July 30, 2014 – Arsenal For Democracy 94

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Topics: Big Ideas in U.S. Reform – Measuring government performance; Arms control; Libya crisis. People: Bill and Persephone. Produced: July 27, 2014.

Discussion Points:

– Big Idea: Can government programs’ performance be measured objectively — or is it inherently political?
– Should the U.S. and its NATO allies completely stop selling and giving weapons to other governments, especially repressive ones?
– Is a general from Virginia about to become the next dictator of Libya? Should the U.S. pick a side?

Part 1 – Measurement:
Part 1 – Measurement – AFD 94
Part 2 – Arms Sales:
Part 2 – Arms Sales – AFD 94
Part 3 – Libya Crisis:
Part 3 – Libya Crisis – AFD 94

To get one file for the whole episode, we recommend using one of the subscribe links at the bottom of the post.

Related links
Segment 1

– AFD: Should government programs be funded Moneyball-style?
– NYT: The Quiet Movement to Make Government Fail Less Often
– AFD: In Mass., Goldman wants in on prison profit stream
– AFD: United State of Unemployment

Segment 2

– AFD: UK has a real arms sales problem on its hands
– Middle East Monitor: Kerry says US will deliver Apache helicopters to Egypt soon

Segment 3

– AFD: US embassy staff moved out of Libya
– AFD: Meanwhile in Libya
– Previously on the show: July 2013 debate on types of U.S. involvement in Syria

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And don’t forget to check out The Digitized Ramblings of an 8-Bit Animal, the video blog of our announcer, Justin.

UK has a real arms sales problem on its hands

No. 10 Downing St (Credit: Sergeant Tom Robinson RLC - Ministry of Defense via Wikimedia)

No. 10 Downing St (Credit: Sergeant Tom Robinson RLC – Ministry of Defense via Wikimedia)

A parliamentary report has found that the British government has not revoked arms sale licenses to Russia in compliance with sanctions against the country following its annexation of Crimea, despite bold claims by the Cameron government.

This comes on the heels of detailed allegations that UK firms sold dual-use (military or police) weapons to Turkey immediately following the vicious 2013 crackdown by Turkish police in several cities, and it echoes revelations that, in 2012, the UK government knowingly approved exports of a key ingredient in Sarin gas to the sanctioned regime in Syria during the Civil War (which were only blocked by the EU).

Details on the new Russia report, according to The Guardian:

More than 200 licences to sell British weapons to Russia, including missile-launching equipment, are still in place despite David Cameron’s claim in the Commons on Monday that the government had imposed an absolute arms embargo against the country, according to a report by a cross-party group of MPs released on Wednesday.

A large number of British weapons and military components which the MPs say are still approved for Russia are contained in a hard-hitting report by four Commons committees scrutinising arms export controls.

Existing arms export licences for Russia cover equipment for launching and controlling missiles, components for military helicopters and surface-launched rockets, small arms ammunition, sniper rifles, body armour, and military communications equipment, the committee says. They also include licences for night sights for weapons, components for operating military aircraft in confined spaces, and surface-to-surface missiles.
[…]
Sir John Stanley, former Conservative defence secretary and chairman of the Commons arms control committees, said there was evidence that appeared to directly contradict the prime minister’s claim that he had already stopped all arms exports to Russia.
[…]
Stanley had already written to Philip Hammond, the new foreign secretary, asking him to explain why, according to official figures given to the MPs, of 285 current licences for Russia, only 34 had been suspended or revoked.

 
Why can’t David Cameron’s government get it together to halt British companies from selling weapons to governments they shouldn’t be doing business with, by law? Is it intentional negligence to keep the arms and money flowing?

On Syria, the laughable line from the government was that the system had worked. This time:

“We will not a grant a licence where there is a clear risk the equipment might be used for internal repression.”

 
So when exactly does it become clear that Russia or Syria might use weapons for internal repression? Or what about Turkey, literally right after it engaged in internal repression?

And what do we make of this accusation in the Russia report?

It says the most significant change in the government’s policy on arms exports over the past year is the dropping of the wording in the arms sales criteria that: “An export licence will not be issued if the arguments for doing so are outweighed … by concern that the goods might be used for internal repression”.

You know, in the sense, that that action is exactly the opposite of the supposed policy stated by the government spokesperson.

The United Kingdom is the 7th largest arms exporting country in the world by dollar value annually, according to the Stockholm International Peace Research Institute.

June 9, 2014 – Arsenal For Democracy 87

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Extended Episode. Topics: Right-wing extremism in the US & Europe, FIFA is terrible. People: Bill, Nate, guest expert Etienne Borocco.

Discussion Points:

– Should right-wing violence in America be considered terrorism? Should terrorism be treated differently from other crimes?
– Just how awful is FIFA? Is the World Cup a net harm to host countries and cities?
– How should Europe respond to the rise of neo-Nazi parties such as Golden Dawn?
– Who are the Front National and why are they winning in France?
– Who are the UKIP and why are the winning in Britain?

Part 1 – Nevada Attack:
Part 1 – Nevada Attack – AFD 87
Part 2 – FIFA/World Cup:
Part 2 – FIFA World Cup – AFD 87
Part 3 – Golden Dawn:
Part 3 – Golden Dawn – AFD 87
Part 4 – Etienne Borocco on French and UK Populism:
Part 4 – European Elections – AFD 87

To get one file for the whole episode, we recommend using one of the subscribe links at the bottom of the post.

Related links

– AFD Guest: “EU Elections, the Rising Populists, and Why Europe is Worried” by Etienne Borocco
– AFD: “Cameron making louder “Brexit” noises after UKIP win
– Guardian: “SS songs and antisemitism: the week Golden Dawn turned openly Nazi
– AFD: “Vegas attack was domestic terrorism, tied to Bundy standoff
– AFD: “Alt-history novelists have got nothing on Cliven Bundy
– AFD: “No shock there: Bundy a raging racist
– AFD Radio: “April 21, 2014 – Arsenal For Democracy 81
– Last Week Tonight: John Oliver explains the mess that is FIFA
– AFD: “2022: Slavery World Cup

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EU Elections, the Rising Populists, and Why Europe is Worried

Guest post by Etienne Borocco in France: Europe went to the polls last weekend and elected a lot of fringe politicians to the EU parliament. So what does it all mean?

Traditionally, the turnout is low in the European elections: only about 40%. This year, it was 43%. The functioning of the European Union is quite complex, as depicted in the chart below:

Illustration 1: Flowchart of the European political system (Credit: 111Alleskönner - Wikipedia)

Illustration 1: Flowchart of the European political system (Credit: 111Alleskönner – Wikipedia)

Why the EU elections matter — and why the media and most voters ignore them:

The directly elected European parliament and the unelected Council of the European Union (Council of Ministers) co-decide legislation. The European Commission has the monopoly of initiative, i.e. it is the only one to initiate proposals. The European Parliament can vote on and amend proposals and has the prerogative to vote on budgets. If the Council of European Union say no to a project and the parliament yes, the project is rejected. So the parliament is often described as powerless and its work, which is often about very technical subjects, does not hold the media’s attention very much. Consequently, the European elections to vote for Members of the European Parliament (MEPs) have a low turnout – and a lot of electors use it to express concerns about national subjects.

For example in France, 37% of the registered voters answered that they would vote by first considering national issues and 34% also answered that they would vote to sanction the government. The proportional vote system (in contrast with America’s first-past-the-post Congressional elections, for example) gives an additional incentive to vote honestly according to one’s opinion, rather than strategically for a major party (or major blocs of allied parties in the case of the EU parliament).

The May 25th European election was a shock in the European Union, even after the small parties had long been expected to do well. The biggest parliamentary groups in the European parliaments lost seats, while parties that reject or contest the European Union rose dramatically.

In Denmark, in the United Kingdom, and in France, the anti-euro right wing took the first place. It was particularly striking in France because unlike the traditionally euroskeptic UK or Denmark, France was one of the founding countries of European integration and is a key member of the eurozone (while the other two are outside it). The Front National (FN), which has anti-EU and anti-immigration positions, gathered one quarter of the vote in France. Non-mainstream parties captured significant shares in other countries, although they did not finish first.

Populist/Right-wing/Anti-EU party vote share by country in the 2014 EU elections. Data via European Parliament. Map by Arsenal For Democracy.

Populist/Right-wing/Anti-EU party vote share by country in the 2014 EU elections. Data via European Parliament. Map by Arsenal For Democracy.

The new seat allocations:

Let’s look at the gains and losses. With the exception of the socialist bloc, the traditional parties lost seats — particularly in the mainstream conservative EPP and centrist ALDE blocs, which virtually collapsed. The May 25 European parliamentary elections also marked the notable appearance of new populist right-wing parties in Eastern Europe, among the newer member states. For example, two conservative libertarian parties (movements that are a bit like a European version of Ron Paul) won seats – the KNP in Poland and Svobodní in Czech Republic. Moreover, the national government ruling parties were hugely rejected in most countries, whether by populist fringe parties dominating (as in France, the UK and Denmark) or by the main national opposition parties beating the ruling parties.

2014-european-election-results-table

Among the non-aligned (NA) members elected, if we exclude the six centrists MEPs of the Spanish UPyD (Union, Progress and Democracy), the 35 MEPs remaining are from far-right parties.

Among the 60 “Others” MEPs, there are 3 MEPs of Golden Dawn in Greece and 1 MEP of the NPD in Germany, both of which are neo-Nazi parties. The NPD was able to win a seat this year because Germany abolished the 3% threshold. With 96 seats for Germany, only 1.04% of the vote is enough to get a seat. The Swedish Democrats (far right) got 2 seats. In total, 38 MEPs represent far-right parties, out of a total of 751 MEPs.

So why do observers talk about an explosion of far right?

Beyond those scattered extremists, the vote for the more organized euroskeptic, hardcore conservative, and far right parties all increased sharply. The UKIP in UK (26.77%, +10), the National Front (FN) in France (24.95%, +18), the Danish People’s Party (DPP) (26.6%,+10) and the FPÖ in Austria (19.7%,+7) rocketed from the fringe to center stage. The UKIP, the FN, and the DPP all arrived first in their countries’ respective nationwide elections, which is new.

Other parties elsewhere did not come in first but performed unexpectedly (or alarmingly, depending on the party) well this year. For example, although the Golden Dawn only won three seats from Greece, they did so by winning 9.4% of the country’s vote, even as an openly neo-Nazi party. The Swedish Democrats (9.7%, +6.43) and the Alternative For Germany (7%, new) also made a noteworthy entry in the parliament.

Their shared characteristic of all these parties, regardless of platform and country of origin, is that they are populist in some way.

True, under the word “populism,” a lot of different parties are gathered and their ideologies may vary. While most of these parties claim to be very different, we can, nonetheless, put everyone in the same basket for the purposes of this analysis, to understand why the results were so shocking. Their core point in common is that they all claim represent the people against “the elite” and “Brussels” which embodies both “evils”: the EU and the euro.

We could use the following system to classify like-minded populist parties:
Read more

Cameron making louder “Brexit” noises after UKIP win

Will the Conservatives let Britain exit the EU in response to the rise of the UKIP — and make Jean-Claude Juncker the scapegoat?

Our full-scale guest analysis of the European-wide impact of last weekend’s EU populist-dominated elections will be coming tomorrow (update: read it here), but in the meantime, I wanted to highlight one of the probably very related fallouts of the ruling Conservatives finishing third nationwide in the United Kingdom behind the anti-EU “UK Independence Party” (the first non-major party to a nationwide election in more than a century) and the opposition Labour.

There are rumors — already denied, of course — that UK Prime Minister David Cameron is threatening to escalate Britain’s halfhearted attempts to exit the European Union (a move nicknamed the “Brexit”) if the new center-right coalition in the EU parliament goes ahead with plans to make former Luxembourgish Prime Minister Jean-Claude Juncker President of the powerful European Commission, which has the sole power to propose new European laws and regulations across the Union:

German magazine Der Spiegel says British PM David Cameron warned that the UK could leave the EU if Luxembourg ex-PM Jean-Claude Juncker became president of the European Commission.

It reported Mr Cameron as saying that the appointment could destabilise his government, which may bring forward referendum plans on EU membership.
[…]
The magazine quotes Mr Cameron as telling the German chancellor that “a face from the 1980s cannot solve the problems of the next five years”. A senior government source told the BBC it did not recognise the language about destabilisation and that it is not something the prime minister would have said.

 

Ok, here’s my immediate takeaway: If he actually said that, even if it’s obnoxious and probably a desperate reaction to the UKIP win that threatens to break apart his party base, it might be the first semi-reasonable point he’s ever made on EU criticisms. The president of the European Commission will be responsible over the next five years for driving further internal lawmaking and regulatory integration within the European Union.

jean-claude-junckerThat seems like something that would call for fresh leadership with a new vision, rather than a career European leader. In fact, Jean-Claude Juncker (pictured), who took office in January 1995, was one of the longest-serving democratically elected leaders in history when he stepped down as Prime Minister of Luxembourg in December 2013. He has been around the block and then some. Isn’t it perhaps time to let somebody else try?

On the other hand, his lengthy and popular service within both Luxembourg and the European Union system mean he’s a proven, effective, experienced leader everyone knows. And maybe that wouldn’t be terrible, in terms of producing results. Of course, if your goal isn’t to produce results because you oppose the EU — which is the position of the UKIP and many Conservative Party voters — then someone flashy who doesn’t do much is ideal. Whereas when one is trying to placate euroskeptics, elevating a man who embodies the European Union at its most European Union-y is not the smart play.

More questionable UK weapons export authorizations discovered

Investigative journalists at BuzzFeed put in a lot of hard work (and Freedom of Information requests) to uncover hundreds of deeply dubious authorizations last year for the sale and export of dual-use weapons to Turkey immediately following a violent government crackdown that began in late May 2013. The crackdown and clashes with protesters across the country resulted in the deaths of at least 11 people and injuries to literally more than 8,000 others.

The authorizations for the sale of controlled goods were made at a high level and almost no requests were denied despite the unfolding repressive response to the protests.

According to a Freedom of Information request made by BuzzFeed, the Department for Business Innovation and Skills granted multiple export licences to arms companies to export sniper rifles, bullets, gas masks, drone parts and other assorted military equipment to the country.

Ministers scrutinise the export of weapons, ammunition and other military technology to foreign countries and have to grant an explicit licence to companies looking to sell controlled goods.

Responding to the official request for information, the department told BuzzFeed that there had been 196 licences awarded by the UK government to firms since the clashes began in May, with only five requests refused.

The UK licenced over £90 million in military and dual-use licences to Turkey, according to the Campaign Against the Arms Trade.

 
It’s not unusual for the United Kingdom, the United States, or other manufacturers of advanced military and anti-riot hardware to sell to questionable governments — indeed there was heavy criticism that many of the tear gas canisters fired at protesters during the Arab Spring several years ago said “Made in the U.S.A.” in big letters.

And it’s also likely true most of the hardware being sold to Turkey last year was indeed for military use, rather than law enforcement use. That would separate it from the government and police, whose response last year was more or less separate from the erstwhile rivals in the Turkish Armed Forces. But a lot of it falls under the “dual-use” header, which means it could be used for a “legitimate” purpose but could also easily be used for a repressive or illegal purpose.

And, either way, selling it during and immediately following a crackdown (especially in a state where the military violently seized power as recently as 1980 before several more less successful attempts) seems like poor decision-making.

Moreover, poorly timed UK weapons sales to dubious governments in the region has not been limited to sales to this latest discovery. Just last September, a different journalistic investigation discovered horrifically worse sales had been authorized the year before (though fortunately were blocked externally in time). Here’s what I wrote last year:

Nearly a year into the brutal Syrian Civil War [in 2012], the British coalition government somehow decided to issue a license for a UK firm to export to Syria the chemical components used in sarin gas manufacturing. To a regime known to hold chemical weapons. In the middle of a civil war. The exports were only blocked by external, EU trade sanctions added 6 months later.

 
Granted, authorizing the sale of “dual-use” components that can be used to make chemical weapons, to a regime with just such a stockpile in the middle of a civil war, is an order of magnitude less explicable or justifiable than the Turkish deals.

And the UK government probably believes that there is no reason for it not to authorize weapons exports to a fellow founding member of NATO, Turkey, which is (a bit) more reliable than neighboring Syria.

We have no idea, according to BuzzFeed, whether the sales went through in this case, after authorization, because that’s proprietary information of the companies. But we do know that the licenses were granted and the Department for Business still doesn’t see a problem with it:

“The UK government takes its defence exports responsibilities extremely seriously and aims to operate one of the most robust export control systems in the world. All export licence applications are assessed thoroughly on a case-by-case basis against rigorous, internationally recognised criteria. If circumstances change, licensing decisions are reviewed quickly.”

 
Assessed thoroughly? If circumstances change, licensing decisions are reviewed quickly?

I mean, that’s an amazing claim to make from a government that had authorized weaponizable chemical sales to Syria the year before and then literally had the Prime Minister’s office declare that having the exports blocked only by the European Union’s intervention later with sanctions that didn’t exist earlier was “the system working.”

And the best part of that story is of course that the same UK government is trying to renegotiate its membership in the European Union before holding a deeply misguided referendum on whether or not to leave altogether.

Once outside the EU, I suppose, the United Kingdom will be free to export as many weapons to questionable states on the other perimeter of Europe to its heart’s content.

I’m sure Thatcher would be proud.

Riot police officer in action during Gezi park protests in Istanbul, June 16, 2013. (Credit: Mstyslav Chernov via Wikimedia)

Riot police officer in action during Gezi park protests in Istanbul, June 16, 2013. (Credit: Mstyslav Chernov via Wikimedia)

Pfizer: Screw America, we want tax havens!

I just read NYT DealBook’s new article from Monday on the awful attempted Pfizer takeover of AstraZeneca: “Pfizer Proposes a Marriage With AstraZeneca, Easing Taxes in a Move to Britain”

On Monday, Pfizer proposed a $99 billion acquisition of its British rival AstraZeneca that would allow it to reincorporate in Britain. Doing so would allow Pfizer to escape the United States corporate tax rate and tap into a mountain of cash trapped overseas, saving it billions of dollars each year and making the company more competitive with other global drug makers.

A deal — which would be the biggest in the drug industry in more than a decade — may ultimately not be done. AstraZeneca said on Monday that it had rebuffed Pfizer, after first turning down the company in January.

 
This is disgusting. Pfizer, founded in the United States in 1849, is trying to buy one of its biggest global rivals, solely so it can reincorporate in the United Kingdom… with its half a dozen or so offshore tax evasion center crown dependencies and British Overseas Territories. Excuse me, I should say tax “avoidance,” because it’s not evasion if it’s legal.

(And while they’re at it, they would probably jack up global drug prices further through anti-competitive price-fixing by forming a cartel with AstraZeneca.)

5000-dollar-bill-madison-200Predictably, Congressional Republicans are already telling everyone that the problem is U.S. corporate tax rates aren’t low enough, when in reality, we’re trying to compete with literal tropical islands for tax evaders that are nominally outside of UK control. That’s a losing battle. We need to put pressure on the UK to stop stealing revenue from the rest of the developed world, not lower our already low effective corporate tax rate.

According to The Globalist Research Center and TaxFoundation.org:

In terms of the effective corporate tax rate, the United States is actually below the average of the big industrial countries, at about 26%, [while] the [advanced economies] OECD’s 2012 GDP-weighted average was 32%.

 
And here’s an eye-popping fact from DealBook:

At least 50 American companies have completed mergers that allowed them to reincorporate in another country, and nearly half of those deals have taken place in the last two years.

 
Put another way, that’s almost 25 tax avoidance deals in the past two years. Again, that says little about the U.S. corporate tax structure which hasn’t really changed much — and certainly not adversely to corporate America under a Republican House Majority — and everything about the total lack of civic pride our country’s corporations have right now, even though their revenues to the government are what helped build the country into such a good corporate environment for so long.

We definitely do need tax reform in some respects, but mainly to reduce tax avoidance and loopholes, unnecessary corporate tax credits and subsidies, and code inconsistency that arbitrarily allows some industries pay less than others. What we don’t need to do is to chop our tax code down to stay competitive with Guernsey, Jersey, the Isle of Man, Gibraltar, the Cayman Islands, and the British Virgin Islands.