The Impunity Trap by Jeffrey D. Sachs | Project Syndicate

Jeffrey D. Sachs, Professor of Sustainable Development, Professor of Health Policy and Management, and Director of the Earth Institute at Columbia University, highlights one of the great challenges to modern society: public indifference to dishonest and unethical behavior.

The ability of those who wield great public and private power to flout the law and ethical norms for personal gain is one of the more glaring manifestations of inequality. The poor get life sentences for petty crimes, while bankers who fleece the public of billions get invitations to White House state dinners…..

In some societies and economic sectors, impunity is now so pervasive that it is viewed as inevitable. When unethical behavior by political and business leaders becomes widely viewed as “normal,” it then goes unpunished by public opinion, and is reinforced as normal – creating an “impunity trap.” For example, with politicians in the United States now so flagrantly and relentlessly on the take from wealthy donors, much of the public accepts new revelations of financial impropriety (such as the Clinton Foundation’s morally dubious financial dealings) with a cynical yawn.

The situation in the global banking sector is especially alarming. A recent careful study of ethical attitudes in the financial-services industry in the US and the United Kingdom showed that unethical and illegal behavior is indeed now viewed as pervasive…..

Yet not all societies or sectors are caught in an impunity trap. Some societies, most notably in Scandinavia, maintain the expectation that their public officials and business leaders should and will act ethically and honestly. In these countries, ministers are forced to resign for petty infractions that would seem trivial in other countries.

What is needed is a two-pronged approach. Firstly, a “broken window pane” strategy, where strict enforcement against minor infringements will reduce the occurrence of major violations. Second, ensure that penalties imposed on major transgressors in the banking industry, politics, sports administration (FIFA), and other public areas are sufficient to act as a visible deterrent to others.

Imposing a billion dollar fine on a bank for illegal behavior penalizes shareholders not the perpetrators who generally get away scot-free. A two-year jail sentence for senior executives involved would be a far more effective deterrent.

Read more at The Impunity Trap by Jeffrey D. Sachs – Project Syndicate.

The Catch-22 of energy storage | On Line Opinion

John Morgan questions whether wind and solar are viable energy sources when one considers energy returned on energy invested (EROEI).

There is a minimum EROEI, greater than 1, that is required for an energy source to be able to run society. An energy system must produce a surplus large enough to sustain things like food production, hospitals, and universities to train the engineers to build the plant, transport, construction, and all the elements of the civilization in which it is embedded. For countries like the US and Germany, Weißbach et al. estimate this minimum viable EROEI to be about 7……

The fossil fuel power sources we’re most accustomed to have a high EROEI of about 30, well above the minimum requirement. Wind power at 16, and concentrating solar power (CSP, or solar thermal power) at 19, are lower, but the energy surplus is still sufficient, in principle, to sustain a developed industrial society. Biomass, and solar photovoltaic (at least in Germany), however, cannot. With an EROEI of only 3.9 and 3.5 respectively, these power sources cannot support with their energy alone both their own fabrication and the societal services we use energy for in a first world country.

EROEI with and without storage

Energy Returned on Invested, from Weißbach et al.,1 with and without energy storage (buffering). CCGT is closed-cycle gas turbine. PWR is a Pressurized Water (conventional nuclear) Reactor. Energy sources must exceed the “economic threshold”, of about 7, to yield the surplus energy required to support an OECD level society.

These EROEI values are for energy directly delivered (the “unbuffered” values in the figure). But things change if we need to store energy. If we were to store energy in, say, batteries, we must invest energy in mining the materials and manufacturing those batteries. So a larger energy investment is required, and the EROEI consequently drops…[to the buffered level].

Read more at The Catch-22 of energy storage – On Line Opinion – 10/3/2015.

Why our prep-school diplomats fail against Putin and ISIS | New York Post

Kerry and Putin

“Why do our “best and brightest” fail when faced with a man like Putin?” Ralph Peters asks. “Or with charismatic fanatics? Or Iranian negotiators? Why do they misread our enemies so consistently, from Hitler and Stalin to Abu Bakr al-Baghdadi, the Islamic State’s self-proclaimed caliph?”

The answer is straightforward:

Social insularity: Our leaders know fellow insiders around the world; our enemies know everyone else.

The mandarin’s distaste for physicality: We are led through blood-smeared times by those who’ve never suffered a bloody nose.

And last but not least, bad educations in our very best schools: Our leadership has been educated in chaste political theory, while our enemies know, firsthand, the stuff of life.

Above all, there is arrogance based upon privilege. For revolving-door leaders in the U.S. and Europe, if you didn’t go to the right prep school and elite university, you couldn’t possibly be capable of comprehending, let alone changing, the world…….

That educational insularity is corrosive and potentially catastrophic: Our “best” universities prepare students to sustain the current system, instilling vague hopes of managing petty reforms.

But dramatic, revolutionary change in geopolitics never comes from insiders. It’s the outsiders who change the world.

An Athenian general once wrote:

The state that separates its scholars from its warriors will have its laws made by cowards, and its fighting done by fools.

~ Thucydides (c. 460 BC – c. 400 BC)

Read more at Why our prep-school diplomats fail against Putin and ISIS | New York Post.

Putin Will Never Back Down | Institutional Investor’s Alpha

Excellent analysis of the situation in Eastern Europe by Bill Browder, founder of London-based Hermitage Capital Management:

I’m afraid that, based on the reasons behind Putin’s motivations for invading Ukraine in the first place, there is no chance that he will back down. To understand this, all it takes is a simple analysis of how this crisis unfolded.

First, Putin didn’t start this war because of NATO enlargement or historical ties to Crimea, as many analysts have stated. Putin started this war out of fear of being overthrown like Ukrainian president Yanukovych in February 2014. Yanukovych had been stealing billions from the state over many years, and the Ukrainian people finally snapped and overthrew him. Compared with Putin, Yanukovych was a junior varsity player in the field of kleptocracy. For every dollar Yanukovych stole, Putin and his cronies probably stole 50. Putin understands that if he loses power in Russia, he and his underlings will lose all the money they stole; he will lose his freedom and possibly even his life.

I believe that Bill is right. Putin was not reacting to EU or NATO encroachment (they were never a threat), but to Maidan. Especially when we read Michael McFaul’s (former ambassador to Russia) summation of Putin: “He is obsessed with the CIA…..With respect Ukraine he believes the US led the coup in the Ukraine. The Ukrainians had nothing to do with it. It was all the CIA.”

Former Ambassador to Russia Michael McFaul

….. Putin has never dealt with economic chaos before. Though some may argue that this will bring him to the table to negotiate with the West, in my opinion any negotiation would be seen as a sign of weakness and is therefore the last thing Putin would want to do.

Putin’s only likely response is to escalate in Ukraine and possibly open up new fronts in other countries where there are “Russians to protect.” But doing so will only harden the sanctions, leading to further economic pain in Russia — and further military adventures to distract Russia’s people from that pain.

I cannot imagine a scenario in which there is any compromise, because for Putin compromise means being overthrown. Judging from all of his actions to date, he is ready to destroy his country for his own self-preservation.

We should start preparing ourselves for a war in Europe that may spread well beyond the borders of Ukraine. The only Western response to this has to be containment. This all may sound alarmist, but I’ve spent the past eight years in my own war with Putin, and I have a few insights about him that are worth knowing.

In Putin’s mind, he is fighting for survival. The US/EU/Nato and Ukraine are just a convenient scapegoat. His real enemy is the Russian people. This 1945 image of Benito Mussolini, his mistress Clara Petacci, and three others hanging outside a petrol station in Milan must haunt his dreams.
Bodies of Benito Mussolini, his mistress Clara Petacci, and three others hanging outside a petrol station in Milan

When they realize they have been duped, the anger of the Russian people will be palpable.

Read the full article at Unhedged Commentary: Putin Will Never Back Down | Institutional Investor's Alpha.

Russia terror alert | Kyiv Post

Kyiv Post quotes Markian Lubkivskyi, an adviser to SBU head Valentyn Nailyvaichenko on the rise of terrorism outside of Eastern Ukraine:

“(Terrorists) are aiming to undermine Ukraine from within,” Lubkivskyi told the Kyiv Post, adding that terrorism is one of Russia’s tools in the war against Ukraine. “This is definitely a planned set of linked actions carried out to demoralize people, scare them, spread chaos and create protest moods.”

One of the latest incidents occurred on Jan. 20, when a bridge near the village of Kuznetsivka in Zaporizhzhia Oblast collapsed under a cargo train that was carrying iron ore to Volnovakha in Donetsk Oblast. As a result, 10 cars derailed.

This was the fourth railway explosion over the last two months.

In January, three fuel tanks on a freight train were set on fire at the Shebelynka station in Kharkiv Oblast, and a bomb blew up a freight tank with petrochemicals at the Odesa-Peresyp railway station. On Dec. 24, explosives hidden under the railways hit a train at the Zastava 1 railway station, also based in Odesa.

Odesa has become the main target of attacks in the last two months.

The word terrorism is widely misused. What we are dealing with is state-sponsored terrorism or war by proxy. Without state sponsorship — in the form of training, weapons, logistics and financial support — most terrorist organizations would shrivel up and die. The level of proxy warfare increased hugely since World War II, when direct confrontation between major powers became dangerous because of the advent of nuclear weapons. Instead of direct confrontation these powers resorted to deniable aggression, by proxy, in order to weaken their enemies. The former Soviet Union was a major sponsor of proxy wars, from Korea and Vietnam to support for guerrilla wars elsewhere in Asia, Africa and South America. It appears that Vladimir Putin has adopted a similar strategy and is expanding its use into Eastern Europe.

It is difficult to win a guerrilla war where there are few conventional battles. The lesson from Vietnam is that you can win every battle, but still lose the war. Far better to identify and attack the sponsor through unconventional (asymmetric) means such as sanctions. Make sure that the cost outweighs the benefits of proxy warfare.

When we read the word “terrorism” in popular media, our first question should be: who is the sponsor and how can we make them desist?

Read more at Russia terror alert.

Robert Wright: Progress is not a zero-sum game [video]

Thought-provoking presentation by Robert Wright, best-selling author of Nonzero, The Moral Animal and The Evolution of God. Progress is not a zero-sum game — the network of linked fortunes and cooperation that has guided our evolution to this point can help us save humanity today.

Some thoughts:

Terrorism is a negative-sum game. The perpetrators commit atrocities to protest their sub-human treatment. The atrocities convince by-standers that these people are sub-human and deserve to be treated as such.

Non-violent protest is a testament to the moral/intellectual leadership of Mohandas (Mahatma) Gandhi. Stoic acceptance of violence without retaliation convinces observers that the protestors are not sub-human and do not deserve such treatment.

Stille Nacht / Silent Night

Tomorrow is the 100th anniversary of a momentous day during the First World War. By December of 1914 the war had already drawn to a stalemate with huge loss of life on both sides and appalling conditions in the trenches. Many of the dead could not be retrieved and were abandoned in No-Man’s land. The war that was supposed to be over by Christmas stretched interminably ahead.

Temperatures fell below freezing and snow began to fall on some parts of the line. German troops decorated the parapets of their trenches with small conifers, resembling Christmas trees. On Christmas Eve they lit candles and sang carols.

The Germans lit candles and in beautiful harmony sang “Silent night…Holy night.” So moved by their cheer, the British soldiers responded with carols of their own. This goodwill inspired many soldiers on both sides to toss gifts of food over into their enemy trenches. The German side applauded the British singing then the Brits cheered and applauded the Germans. One miracle act of goodness led to another, then another….. [1]

Informal truces were negotiated by officers despite warnings from British High Command that the enemy may be planning an attack.

WWI Christmas Truce: German and British Officers

Some of the more adventurous on both sides left their trenches and exchanged small gifts, swapping chocolate for sauerkraut and sausages.

“What a sight; little groups of Germans and British extending along the length of our front. Out of the darkness we could hear the laughter and see lighted matches. Where they couldn’t talk the language, they made themselves understood by signs, and everyone seemed to be getting on nicely. Here we were laughing and chatting to men whom only a few hours before we were trying to kill ”
~ Corporal John Ferguson of the Seaforth Highlanders.[2]

WWI Christmas Truce: German and British Troops

Christmas Day started with unarmed German and British soldiers collecting their dead from No-Man’s Land.

WWI No-Man's Land: Collecting the Dead

Fraternization continued throughout Christmas Day and the informal truce extended in some parts of the line until after New Year’s day. Regimental records of the 133rd Saxon Regiment report a football match against the British which the Saxons won 3-2.

Roughly 100,000 British and German troops were involved in the unofficial cessation of hostilities. Similar exchanges were reported between German and French troops. On the Eastern front, an unofficial ceasefire was recorded between Austrian and Russian troops the following Easter.

Overtures in later years were less successful after Allied Command ordered artillery barrages to discourage communication. Attempts at fraternisation with the enemy and negotiation of local truces to collect the dead between the lines faced severe punishment.

Company commander, Sir Iain Colquhoun of the Scots Guards, was court-martialled for defying standing orders to the contrary. While found guilty and reprimanded, the punishment was later annulled by General Haig and Colquhoun remained in his position.[3]

The Christmas truce of 1914 was a triumph of the human spirit over adversity and is a symbol of man’s humanity towards his fellow man. When we recognize that the enemy is not some faceless devil, as some leaders would have us believe, but much like us — with mothers, fathers, brothers, sisters, husbands, wives, sons and daughters — we will find it easier to resolve our differences without waging war.

Scène du film “Joyeux Noël” (Version Française)

Wishing you peace and goodwill over the Christmas season and prosperity in the year ahead.

Thanks to:
[1] http://professortaboo.wordpress.com/tag/1914-christmas-truce/
[2] http://www.historylearningsite.co.uk/christmas_1914_and_world_wa.htm
[3] http://en.wikipedia.org/wiki/Christmas_truce

A Solution for Afghanistan’s Opium Crisis? | The Diplomat

Sohrab Rahmaty makes a strong case for changing the strategy to control illicit opium production in Afghanistan:

….In the 1970s, Turkey was a major source of illicit opium for the drug trade. In just four years, and with the help of an American-led initiative, Turkey was able to transform its illegal opium trade into a viable and profitable legal industry. The Turkish government instituted a program that offered to license farmers’ crops for medical purposes, resulting in Turkey becoming a leader in the opiates-based medical field. There is no reason why Afghanistan should not pursue a similar path….

The cost of establishing a legitimate industry would be a fraction of the cost of “containment” of the illicit industry and would also strengthen central government control over outlying regions.

Read more at A Solution for Afghanistan’s Opium Crisis? | The Diplomat.