It
is now clear that the Chinese leadership would prefer Donald Trump. The
messages we are getting from Beijing are that they believe that Joe Biden would
be tougher on China than Trump. They now know the current President relatively
well and they think that if there is an agreement on trade everything else will
be manageable. They see Donald Trump as a transactional leader. He is aware of
the Chinese geopolitical ambitions and must refer to them in his public
speeches. But he can be satisfied with a trade agreement if he thinks the
agreement is good for his electoral basis. And it is true he has a good personal
rapport with President Xi Jinping. On the other side, the Chinese leadership
see Biden as more ideological. He will be raising issues that are particularly unpleasant
to the ears of the Chinese Communist bosses. Issues such as human rights, the special
status and freedom in Hong Kong, the re-education camps in Xinjiang Province,
the relations with Taiwan, and so on. These are extremely sensitive matters for
Beijing. Trade is a small business when compared with any of these challenges.
Therefore, they will try to do anything they can to make sure that Donald Trump
gets re-elected.
Sunday, 26 April 2020
Saturday, 25 April 2020
Poor leadership
Europe
is again building borders and walls. The leaders decided this week that the
external borders of the Union will remain closed for another month or so. I see
this decision as an inept response to the problem. Airports and land passage
points could be equipped to check travellers’ temperatures and identify the individuals that might require further health scrutiny. Worse, the internal borders
between the Member States continue to be blocked for people’s travel. And the
governments cannot agree on a timetable and a phased approach to deal with
that. There is no news about the matter, besides the closure. That is the best
way to feed the nationalistic feelings. It is also one of the direct roads towards
a fragmented Europe. Populists must feel excited.
I
am shocked by the lack of coordination within the EU. I am also amazed by the
timidity of the European institutions’ leaders. They are silent and so afraid
of proposing anything. They have become the obedient functionaries of the
national leaders and little else.
The
world’s recovery, as well as the European one, calls for renewed cooperation,
complementary and strategic alliances. We should be debating that in the G20 or
a similar forum. All that is yet to be seen. There is no international conference
being prepared to agree on a framework for action. No leader speaks on behalf
of a greater project, of a different future, of anything else but of his or her
own national square mile. It is disappointing and more, it is the wrong
approach to build the post-covid world.
Some
national leaders and some published opinion have now concluded we cannot depend
on China or elsewhere when it comes to medical items, including masks. They put
the blame on the Chinese and on the corporations that have established their
workshops in the Far East or in India. That is an excuse. I do not accept it. The
fact of the matter is that we forgot the concept of strategic health reserves.
The national health services were not given enough means and attention. They
have been undersupplied; the emergency stores were depleted. It
is so much so that in Belgium some of the initial health supplies came from a
big bank, that had understood early enough what was going on and created a
substantial reserve of masks and so on. That happened with other governments as
well. Politicians forgot the old and wise adage that one of the key roles of
the government is to foresee impending crises and be prepared for them. To
govern is to predict.
Well,
the new adage, the one that is now being applied, is different: to govern is to
react, a day at a time.
Friday, 24 April 2020
Bolsonaro and Trump
Jair
Bolsonaro and Donald Trump have been duly elected. The democratic procedures in
their respective countries have been followed. At least, at a level that made
their elections acceptable by their countries’ institutions. The point is that
democracy is fine, but it can result in the election of fools. Bolsonaro and
Trump are two daring fools. If you dare, if you know how to insult everybody else,
you might get there. They have taught us that lesson. We should say thank you
for that and then, make sure they are not re-elected.
Thursday, 23 April 2020
The Sahel and its major challenges
The
poor people in the Sahelian countries are now facing three major menaces to
their survival: terrorism, covid-19, and hunger. All three are growing by the
day. And I was listening to reports coming from the region, I thought the
people are very resilient and combative. They do not give up. But the
combination of these three threats is an immense challenge. I noticed that
Africa was mentioned in today’s EU summit. The European leaders know what is
going on in Africa, in particular in the Sahel region. But they must take the
initiative in the international fora to mobilise exceptional support for the
Continent. Medical assistance and food should be prioritised. They are much
easier to deal with than the security dimensions. However, security cannot be ignored.
It has become a major issue.
Wednesday, 22 April 2020
A war economy or just words?
You
call it a war, but you keep acting as if there was no need to reorganise the
entire production to win the war. When you are at war, your economy must become
a war economy. If not, you are not a good leader and you cannot connect your
words with the reality that must be put in place.
Tuesday, 21 April 2020
They can't drink oil
The collapse of the oil price has several
major implications. It is an economic tsunami. For the oil-producing developing
countries, in Africa and elsewhere, it means an extraordinary loss of revenue. That’s
the case for Nigeria, Angola, Congo, South Sudan, Algeria, Libya, Indonesia,
Mexico, Brazil, Venezuela, Iraq, Iran, and so on. It adds fuel to social
instability in those countries. It brings, at least, a new level of poverty and
hardship to their populations. For the developed countries, it carries serious capital
losses for the pension funds and other sovereign funds that were heavily invested
in oil corporations and all the other companies that deal with bits and pieces
of the oil industry. For all of us, it discourages new investments in renewable
sources of energy. The bottom rock oil price makes any renewable too expensive
to contemplate at this stage.
The
oil consumption is at present very low, because of the lockdowns that are implemented
all over. But also, because the United States has continued to pump vast
amounts of oil. They are now the largest producer, with 12.3 million barrels
per day. President Trump could have compelled the industry to reduce daily
production. There was a recommendation to cut it by 2 million barrels per day.
He decided not to act because he saw this branch of the economy as a key pillar of his political basis. There are 10 million oil and gas sector jobs in
the US, plus many billionaires that inject money in the Republican camp. Now, he is promising them billions of dollars
in subsidies. Public money being wasted when the solution was to reduce exploitation. His political choice has a huge impact on the domestic taxpayers’
money and on the world economy. It is inexcusable.
They
say that misfortunes never come alone. Indeed.
Labels:
Africa,
Algeria,
Angola,
Brazil,
Congo,
Donald Trump,
financial markets,
Indonesia,
Iran,
Iraq,
Libya,
Mexico,
Nigeria,
oil,
OPEC,
South Sudan,
Venezuela
Monday, 20 April 2020
Preparing for a new world
It’s time to start thinking about the
shape of the world that is emerging in front of us. This pandemic is a deeper
and wider challenge than what the politicians want us to believe. Tomorrow’s
world will not be just a resuscitation of yesterday’s living styles. Some
people say it is a call for a new paradigm. I would say that it is more than a
call. It’s a must. Too many people will be excluded if we do not change the way
we look at human security and dignity.
Sunday, 19 April 2020
The world is next door
During the weekend, I spoke with
friends living in Africa, South East Asia, Australia and the Pacific, as well
as in Rio de Janeiro. I also have many friends in other parts of the world,
from San Diego where dear Christine leaves to Helsinki, and so on. Had I
chatted with them too, and I would have gotten the same report. Large chunks of
the world are either closed or on a go-slow situation. Even remote places like
Bougainville, an Autonomous Region of Papua New Guinea, is on lockdown. This is
just an incredible reality. The world is getting poorer by the day. The debt levels, both public and private, are
growing by the hour. Elections are being postponed in many corners of the
planet, except for a few cases, including Mali, that voted again today in the
second round of their legislative assembly.
In many developing countries, the
lockdown approach can’t work. People need to go out every day because survival
is a daily chore. Moreover, in their cities, they live in large numbers in small
and unfit dwellings. Overcrowding is the rule. There is no way they can follow
the instructions about hygiene and social distancing. Extreme poverty means
extreme fragility. And the health services have no capacity to deal with the disease.
It’s a major problem. People are afraid but they know they have no other choice
but to keep on moving. Fate, my friends remind me, is the currency of the poor.
It’s the only thing they have in abundance. And after listening to that, I feel
so disturbed.
Friday, 17 April 2020
The big fight ahead of us
Besides the public health dimension, the
main risk associated with the current world crisis is called isolation. Peoples
have moved behind national borders and felt that was the only way to get safe.
Before this calamity, there was already a growing mistrust on regional
associations and multilateral organisations. In a few countries, the politicians
were getting dividends out of that distrust. They were throwing fuel at it. I
am afraid we might see a lot more of that as we get into the next stage of this
global challenge. That would destroy the multilateral system, the UN and its
main agencies, and other entities such as the European Union. At least, it
would contribute to further marginalise them, making them irrelevant, walking
ghosts.
Our response must address that
menace. We must find the words and the platforms that would make our voices
heard. It´s not going to be easy. But we should not expect any easy times ahead
of us. We must be prepared to fight for international cooperation. We must be
able to win over the leaders that want to take advantage of the crisis to build
new walls.
Thursday, 16 April 2020
The US leadership
These days, for a European, to watch
American TV is painful. And deeply troubling. The country is going through a
major crisis, a very complex one, that combines serious health challenges with
widespread economic hardship. Both challenges are immense. On top of that,
there is a leadership tragedy. The President has lost the support of key State governors
and of the country’s intelligentsia. The messages coming from the White House
and from the key States are full of contradictions. There is no common
direction. Many lives are lost every day, in the most developed country in the
world, a good deal of them because there aren’t enough medical resources
available, others because of poor policy guidance. The President’s press
briefings look like boxing matches. He spends hours repeating the same simple
sentences, the only ones he can articulate. It’s most unfortunate that the
pandemic happens when the leadership in Washington is so incompetent and
shallow.
I should not be writing about this,
because I am not a US citizen. It is up to the country’s voters to decide whom
they want next. But as we live in a period of global crisis, we tend to look in
the direction of the US for leadership. That’s the reason why I write about the
matter. We need the US to lead. And what we see leaves no room for optimism. One
of the few positive things is to see the resolve of politicians like the New
York Governor Andrew Cuomo, a Democrat, or the Ohio Governor Mike DeWine, a
Republican, as well as the California Governor Gavin Newsom (Democrat) and the Maryland Governor Larry Hogan (Republican). There are many more in action
and doing the right things, but I just mention a few of them, in a balanced
manner. The problem is the lack of clarity and support coming from the Federal
government.
Another positive development concerns
the medical research that is taking place in the US with a view to beat the virus.
That research is done in collaboration with foreign institutes. That is
certainly very encouraging. It brings together the best minds in the
universities, philanthropic foundations and the private sector.
In the meantime, billions of dollars have
already been spent in support of small businesses and individual workers. That is
good but it is a short-term answer. The durable approach is to make the health
system stronger, affordable to all, intensify the health education campaigns
and re-open the economy as much as it is possible. For us, in addition to all
that, we would like to see the US taking the lead in the UN Security Council,
at the political level, and being much more engaged with WHO, at the technical
level. The US must go back to the multilateral system. Its place is in the
global scene, not simply in the Rose Garden.
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