Showing posts with label history. Show all posts
Showing posts with label history. Show all posts

Friday, January 4, 2013

In the Thunderous Sky of Greece a Lightning Bolt is about to Strike the Country

The most respectable German newspaper Handelsblatt, proclaimed Antonis Samaras as the greatest European politician for the year 2012. At the same time the illustrious former Foreign Minister of Germany Hans-Dietrich Genscher, also praised Samaras in glowing terms as the politician, who after admitting his own mistakes and the disastrous economic policies of Greece that brought the latter to the brink of insolvency, brought the country with remarkable celerity and unsurpassable decisiveness on the right course that would rekindle the economy and lead the country toward economic development. Goldman Sachs is predicting that in the next 10 years Greek GDP will increase by 30%. The rating agency Moody's increased the financial status of Greece by six points.

It’s for this reason that I’m republishing the following essay which was written on April 27, 2012, for the readers of this blog.


By Con George-Kotzabasis April 27, 2012

History has shown that at critical moments, in countries of advanced and high culture, men of stupendous ability, imagination, foresight, and fortitude, sprang, like phoenixes from the ashes, to salvage their countries from mortal threats. Themistocles at the battle of Salamis that saved Greece from the barbarian Persian invasion, is one example, the other is Charles Martel, who at the battle of Poitiers stopped the barbarian Muslim invasion from conquering Europe. In our modern contemporaneous times, Greece, on the verge of being devoured and crashed by the ‘hungry fangs’ of default and economic poverty, is just as promptly to be saved by a modern-day Periclean statesman, Antonis Samaras.

In the early 1980’s, with the advent of Andreas Papandreou’s socialist government in power, which proved to be the destructive force that brought Greece to its present catastrophe, that immediately started implementing the serial economic crime of a policy of deficits, the country entered the vicious circle of government spending without economic development. By the early 90’s it was glaringly clear that the debt of the country was reaching astronomical heights that would lead it to the precipice of default and bankruptcy. In 1994, Constantinos Mitsotakis, the former prime minister of Greece, in a prophetic speech in Parliament, predicted that the economically crass and thoughtless policies of Pasok would send Greece as a mendicant to the International Monetary Fund to spare it from pauperism. Andreas Papandreou himself was shocked when at a sober moment glanced at the unfathomable debt that the country was in, as a result of his dirigisme economic policies. It was in his presence when his minister of finance Kostas Simitis remarked, in an accusatory and pungent phrase, that this was “the revenge of the economy.”

The false prosperity that had engulfed Greece turned a sizable part of its population to indulge in the charms and seductions of dolce vita at the expense of government largesse. A whole generation of Greeks had been spoiled and became kaloperasakides (the easy life of prodigally good-timers) under the perpetual munificence of the State. In such a social situation the New Democracy party, though imbued with the precepts of The Austrian School of economics versus Keynesianism, and realising, as its leader Constantinos Mitsotakis did, that the country was approaching in a rapid pace the edge of insolvency, had its hands politically manacled and could not implement decisively and with celerity, and with the necessary degree required, policies of economic restraint that would have prevented the transformation of Greece into a mendicant status, since there did not exist even a small constituency on the political landscape of Greece that would contemplate, least of all accept, policies of austerity. The Greeks had been ‘pathologically’ conditioned to the ‘benefits’ accruing from big government, introduced by Andreas Papandreou, and any attempt to small government by any party in power or any opposition propagating such an idea, could neither hold or win government. Who would give up the ‘free tans’ in sunny Greece that so profusely and generously the State was providing? And who would give up the cushy and loafing jobs in the public sector that the party boys and girls of Pasok and New Democracy were enjoying and relishing? This is the point from which the economic tragedy of Greece had started and would continue to its tragic end.

Thirty years of frivolous public spending brought debt-to-GDP ratio of 120%. Since October 2009 when the son of Andreas Papandreou, George, became prime minister and implemented measures of severe austerity as directed from Brussels in the first memorandum, debt reached 168% of GDP. With the continued recession of the country for the fifth year, Greece lost 16%--18% of its GDP since 2009.

From early 2010 the Opposition leader, Antonis Samaras, few months after his election as leader of the New Democracy party, was warning the Papandreou government of the danger that the austerity measures without economic recovery would lead the country into recession. But his was a lone voice in the wilderness. And for his bold and insightful decision to oppose and vote against the first memorandum replete with the leaden heaviness of austerity that would sink the Greek economy as it did, he was vehemently reprimanded both from within and outside the country. The Economist magazine severely criticised him for his stand against the memorandum but only to lament its critique two years later and concede that Samaras was right. Likewise, Chancellor Merkel and many European ministers with whom Samaras had quarrelled and pointed out to them that austerity measures without rekindling the economy would not resolve Greece’s problem but would make it more abstruse and harder to crack. It took two years for the top brains of Europe to realize that the austerity pills that they were forcing into Greece’s mouth to remedy its ills would have the effect of poisoning its body. (In two years of the severe austerity of the Memorandum, as we indicated above, Greece increased its debt to GDP by a great amount and lost a substantial part of its Gross Domestic Product as enterprises closed and unemployment ravaged the country.) And in turn, like The Economist, admitting that Samaras had won the argument, as all Europeans now are calling for economic recovery and development, supplemented by austerity measures that are necessary, as the way to restore a country’s economic strength.

The May 6 Elections of Greece Crucial for the Future of the Country

The impending election that has been called by the interim government of Lucas Papademos for May 6 is of momentous significance for the future course of the country. Greeks will be called to be partisans of the hard climb to the peak of Mt Olympus from where the sun of hope will rise once again over Greece or be partisans to a free fall in a long twilight of despair. The first is the thunderous call of the New Democracy Party under the Gulliverian and imaginative political leadership of Antonis Samaras, and the second is the deathlike mute call of a congeries of small parties from the left and the right led by Lilliputian politicians. These politically ‘pigmy’ parties, among which is the Communist Party, have no policies of rescuing Greece from its woes, except policies that would lead to the exiting from the European Union and return to the drachma that would lead in turn to the absolute poverty of the country, deliberately drop the curtain on all hope on Greece as their sole aim is to sordidly profit politically by their investment in hopelessness.

The socialist party, Pasok, the main opponent of New Democracy, although on the side of hope, even under the new leadership of Evangelos Venizelos, is totally discredited, as it has been the party that led Greece to its present catastrophe by a bout of unbelievable and unprecedented economic and political mistakes, that Venizelos himself was involved in and responsible, during the last two years that was in government. Moreover, the latest decision of the High Court of Greece to apprehend and charge a former luminary of Pasok and right-hand man of Andreas Papandreou, the founding father of the Panhellenic Socialist Movement, Akes Tsohatzopoulos, his wife and daughter, and some of his relatives, with bribery and corruption and with being the receiver and beneficiary of millions of dollars as paid commissions, during his tenure as minister of defence, from German and Russian companies to which he had authorized major assignments and projects of his department, has indelibly marked Pasok as venally corrupt; particularly when its present leader Venizelos, at the initial investigations of Tsohatzopoulos, with the stentorian voice of the lawyer, that he is, was defending and exculpating from any knave dealings, and with the usual catch-all alibi of the typical politician, that the “accusation against Tsohatzopoulos was politically motivated.” Hence, inconceivable political incompetence and culpability, and unfathomable corruption on the part of Pasok, will be two major themes that will dominate the elections and which will ineluctably lead to new lows in the polls for the socialists.

In this critical economic and political setting that the country is in and the looming threat of the breaking of social cohesion, Samaras is asking the Greek people to give New Democracy the “auto-dynamism,” by a majority of votes in the elections, so he can have his hands untied to govern the country with decisiveness and clear uncompromised policies that would put Greece on the trajectory of economic recovery and development. He argues cogently, that in the present political situation of Greece when consensus about the necessary economic policies among parties of how to regenerate the economy of the country is absent, a coalition government--which is the designated position of Pasok and according to the polls at this moment the desire of a majority of the electorate--will be politically impracticable, and more importantly, would not drag out the country from its peril but would further engulf it into profounder depths; as one could not govern effectively a country in a crisis and gradually bring it out of it by being compelled to make compromises to one’s political partners, but only by a well-defined plan and decisive and prompt action to implement it without compromises, by a leader who has a strong mandate from the electorate.

Samaras believes, and reasonably hopes with the confidence of a statesman, that during the electoral period and closer to election date, there will be a dramatic shift of voters toward polarized positions, once the crucial issues of the country are spelled out clearly and without lies to the people by New Democracy and by foreshadowing the practical economic policies backed by real numbers that would put Greece on the track of economic recovery, there is a great chance that the majority of Greeks will give New Democracy a strong mandate to govern on its own for the benefit of all Greeks and for the salvation of the country.

Samaras contended long ago, that only through a clear strong authorization given to him by a majority of the people he would be able to radically change Greece. For real economic development entails not only good policies and incentives but a transformation in the views and customs of people toward such development. He puts great emphasis on the value of human capital and entrepreneurship as the prerequisites for the economic recovery of the country. That is why he has promised to re-legitimize private enterprise and effort that for many years now has been delegitimized in the country by communist-led unions, to whom profit has been, as always, the devil-incarnate of the capitalist free market.

The present high unemployment of more than 20% Samaras contends, will not be reduced by mere lower labour costs which already have been decreased by 15% in the private sector while the tax burden on the latter has increased by 50% and energy costs by 450%. Even if Greeks worked for free no one would hire them with such high taxes and energy costs. Samaras in his Zappeio III speech few days ago declared that he would cut corporate tax to a flat rate of 15%, sharply cut pay-roll tax, lower personal income-tax to 32% maximum, and reduce taxes substantially on fuel and tourism. This would make harder rampant tax evasion and would unleash the creativity of the private sector and hence commence the gradual reduction in unemployment. He also announced, that he would increase the lowest pensions to 700 euros per month--that were reduced drastically by the second Memorandum under the austerity measures--and would increase the endowment of families with many children which would not only correct an injustice inflicted upon these two weak sections of society but would also have favourable economic consequence as they would increase consumer demand, which is so important in rekindling the economy, as both recipients of this government assistance spend their money in consumer goods. He would do these two things without increasing public expenditure and hence worsening the deficit, but by cutting government wastage that is so massive and profligate in the State’s spending. Further, he will provide incentives to private enterprise in areas where Greece has almost unchallengeable comparative advantage, i.e., in the merchant marine sector, ship building, and tourism; and in the production and merchandise of olive oil and other agricultural goods by the local producers themselves, not by foreign ones as is the case presently, whose development in all the above sectors will vitally affect the resurgence of the economy. He also proposes to provide incentives to entrepreneurs to exploit the rich mineral resources of the country and to give priority to find and tap the vast natural gas deposits under the Aegean Sea, by declaring the Greek AOZ (Exclusive Economic Zone) that could transform the export dynamic of Greece. He intends further, to reverse the present dryness of liquidity in the country by proffering amnesty from any legal penalties to those who withdrew their cash holdings from Greek banks during the height of the crisis and deposited them overseas once they bring them back to the country; and also by immediately paying back the 6.5 billion euros that the government owes to domestic enterprises; these two measures would increase the liquidity of the banks and hence their ability to provide loans to the private sector, especially to small businesses, that are the backbone of the country’s economy. Moreover, the re-capitalization of the banks, Samaras argues, will enable them to borrow funds at low interest rates from the European Central Bank, that were set up by it last December, which would be used to put Greece on the track of recovery and economic development.

It is by this method of supply-side economics, as that wunderkind Alders Borg the Swedish Finance Minister illustrated for his own country that Greece’s economy will rise again. The necessary austerity measures stipulated in the new Memorandum that Greece has to implement must be accompanied by the rejuvenated “animal spirits” of private enterprise. Samaras, consistently has been saying for the last two years that “we need a recovery to jump-start the economy,” and in conditions of recession austerity measures cannot stimulate the economy but on the contrary sink it deeper into stagnation.

The vision and plan of Samaras is to plant radical changes on the whole landscape of Greece. In his Zappeio speech he adumbrates constitutional changes that would separate the three branches of government the executive, the legislative, and the judiciary and thus prevent a member of parliament from being a minister, which has been in the past a malignant link of political corruption and has bestowed ‘asylum’ to members of parliament for their malfeasances. He pledges to bring changes to educational institutions that would reclaim the proud heritage of Greece that tragically has been eroded by the cultural relativists of a left coterie of pseudo-intellectuals and led to the disconnection of many young Greeks from their great cultural origins. He also promises to take drastic measures against illegal migrants, whom he calls “unarmed invaders” of Greece that under the soft immigration policies of Pasok they have occupied the main centres of cities, and remove them to provincial hostels until their eventual expulsion. Another important commitment of Samaras is to transform the bon vivant ethos of many Greeks, which up till now its tab has been picked up by the government, into a creatively productive one. On the new green tree planted by New Democracy, the singing cicadas will be replaced by fecund working bees. As Samaras is fully aware that sustainable economic development cannot be accomplished without transformative changes in the thinking and the mores of the people, especially of the younger generation.

Samaras is “framed in the prodigality of nature,” to quote Shakespeare. He is endowed charismatically both with a high intellect and remarkable moral strength along with the will and determination—all the stuff out of which statesmen are made--to change all things in Greece. But whether this lightning bolt of creative destruction will strike Greece or not depends on the strong mandate that he needs from the people. If Greeks do not fail, at this critical juncture, from fulfilling their historical duty to render to New Democracy a majority of seats in Parliament, then Antonis Samaras, in turn, will consummate the cultural political and economic Renaissance of Greece.

Hic Rhodus hic Salta

Monday, July 2, 2012

Egypt: Which Side Will the Dominoes Fall?

In view of the triumph of the Muslim Brotherhood in Egypt, I'm republishing the following essay that was written in February 2011, that foreshadowed and tried to prevent by a proposal of mine the fall of the country to radical Islam, for the readers of this blog.

By Con George-Kotzabasis February 08, 2011

Swallowing victory in one gulp may choke one.

Egypt, not unexpectedly for those who have read history and can to a certain extent adumbrate its future course, as one of the offsprings (Tunisia was the first one) of the rudimentary Democratic paradigm that was established in Iraq by the U.S. ‘invasion’, has a great potential of strengthening this paradigm and spreading it to the whole Arab region. The dominoes that started falling in Iraq under a democratic banner backed by the military power of the Coalition forces are now falling all over the Arab territories dominated by authoritarian and autocratic governments. The arc that expands from Tunisia to Iran and contains all other Arab countries has the prospect and promise of becoming the arc of Democracy. But Heisenberg’s principle of uncertainty in physics also and equally applies to politics. For one cannot predict, especially in a revolutionary situation, and more so, when it is combined with fledgling and immature political parties that is the present political configuration in Egypt as well as of the rest of the Arab world due to the suppression of political parties by their authoritarian regimes, whether the dominoes will fall on the side of Democracy or on the side of Sharia radical Islam. This is why the outcome of the current turmoil in Egypt is of so paramount geopolitical importance. And that is why the absolute necessity of having a strong arm at the helm that will navigate the presently battered State of Egypt toward the safe port of Democracy is of the utmost importance. Contrariwise, to leave the course of these momentous events in the hands of the spontaneous and totally inexperienced leaders of the uprising against Mubarak is a recipe of irretrievable disaster. For that can bring the great possibility, if not ensure, that the dominoes in the whole Arab region will be loaded to fall on the side of the extremists of Islam. And this is why in turn for the U.S. and its allies in the war against global terror, it is of the uttermost strategic importance to use all their influence and prowess to veer Egypt toward a Democratic outcome.

One is constrained to build with the materials at hand. If the only available materials one has to build a structure in an emergency situation are bricks and mortar he will not seek and search for materials of a stronger fibre, such as steel, by which he could build a more solid structure. Presently in Egypt, the army is the material substance of ‘bricks and mortar’ by which one could build a future Democratic state. It would be extremely foolish therefore to search for a stronger substance that might just be found in civil society or among the protesters of Tahrir Square. That would be politically a wild goose chase at a time when the tectonic plates of the country are moving rapidly toward a structural change in the body politic. The army therefore is the only qualified, disciplined organization that can bring an orderly transitional change on the political landscape of the country. Moreover, the fact that it has the respect of the majority of the Egyptian people and that it has been bred and nourished on secular and nationalist principles, ensures by its politically ‘synthetic nature’ that it will not go against the wishes of the people for freedom and democracy, that it will be a bulwark against the extremists of the Muslim Brotherhood, and that it will be prepared to back the change from autocracy to democracy, if need be, with military force and thus steer the country away from entering the waters of anarchy and ‘permanent’ political instability that could push Egypt to fall into the lap of the supporters of Allahu Akbar.

The task of the army or rather its political representatives will be to find the right people endowed with political adeptness, experience, imagination, and foresight from a wide pool of political representation that would also include members of the old regime who will serve not only for their knowledge in the affairs of state but also as the strong link to the chain of the anchor that will prevent any possibility that the new political navigation of the country will go adrift. The former head of Egyptian Intelligence Omar Suleiman will play a pivotal role in this assembly of political representation which will not exclude members of the Muslim Brotherhood. What is of vital importance however is that this new political process will not be violently discontinued from the old regime. While room will be made to ensconce the new representatives of the people to government positions, this will not happen at the expense of crowding out old government hands. The only person that will definitely be left out will be Hosni Mubarak and some of his conspicuous cronies. And Mubarak himself has already announced that neither he nor his son will be candidates in the presidential elections in September. The call of the Tahrir Square protesters to resign now has by now become an oxymoron by Mubarak’s announcement not to stand as president in the next election. Further it is fraught with danger as according to the Constitution if he resigns now elections for the presidency must be held after sixty days. That means a pot- pourri of candidates for president will come forward without the people having enough time either to evaluate their competence nor their political bona fide and might elect precipitatingly without critical experience and guidance a ‘dunce’ for president, an Alexander Kerensky in the form of Mohamed Al Baradei, that will open the passage to the Islamic Bolsheviks. To avoid this likely danger I’m proposing the following solution that in my opinion would be acceptable to all parties in this political melee.

The Vice President Omar Suleiman as representative of the armed forces, to immediately set up a committee under his chairmanship that will comprise members of the variable new and old political organizations of the country, whose task will be to appoint the members of a ‘shadow government’ whose function in turn will be to put an end to the protests that could instigate a military coup d’état , to make the relevant amendments to the constitution that will guide the country toward democracy, and to prepare it for the presidential elections in September. The members of this shadow government will be a medley of current holders of government that would include the most competent of all, Ahmed Nazif, the former prime minister, who was sacked by Mubarak as a scapegoat, and of the old and new political parties that emerged since the bouleversement against Mubarak. The executive officer of this 'government in the wings' will be Vice President Suleiman, who, with the delegated powers given to him by the present no more functional president Mubarak will be the real president during this interim period. Finally, the members of this shadow government will have a tacit agreement that their political parties will support candidates for president in the September elections who were selected by consensus among its members.

The ‘establishment’ of such a shadow government might be the political Archimedean point that would move Egypt out of the crisis and push it toward democracy.

Hic Rhodus hic salta

Monday, February 27, 2012

Gareth Evans Doctrine of Bonhomie in International Relations

By Con George-Kotzabasis—January 24, 2012

Gareth Evans the former minister of Foreign Affairs and presently Chancellor of the National University in Canberra, in an article published in The Australian, on December 26, 2011, under the title Peaceful Way in a World of Grey, argues that a confrontational approach is rarely the best means of tackling serious issues. He contends “that Manichaean good vs evil typecasting, to which George W. Bush and Tony Blair were famously prone…carries two big risks for international policymakers.” The first risk is that such thinking restricts the options of dealing optimally “with those who are cast as irredeemably evil,” and the second is by seen the world in “black-and-white terms” engenders “greater public cynicism, thereby making ideals-based policymaking even harder.” To strengthen these two points he uses the “debacle,” according to him, “of the US-led invasion of Iraq…should have taught us the peril of talking only through the barrel of a gun to those whose behaviour disgusts us” (M.E.), while conceding that “sometimes threats to civilian population will be so acute as to make coercive military intervention the only option, ( M.E.) as with Muammar Gaddafi’s Libya.” Conversely, as a non-confrontational smart benign diplomacy he uses his own negotiations “with the genocidal butchers of the Khmer Rouse,” that were “acutely troubling, personally and politically, for those of us involved,” but which “secured a lasting peace in Cambodia.” He caps his argument by saying that one must see the world beyond the “two dimensions, economic and geostrategic,” and add a third: “every country’s interest in being, and being seen to be, a good international citizen.” (M.E.)

This is not Fukyama’s The End of History but the re-writing of history, and distorting it to boot, on a grand scale. Evans by a divinely made eraser rubs out all evil from the pages of history. But let us respond to his points in sequence. It is obviously true that for a policymaker to see the world in black-and-white terms would be utterly wrong. But likewise, to see the world solely in grey colours without the colour of blackness casting its evil shadow in most human affairs is to paint the world in the colours of wishful thinking. The task of statesmanship is to see the world not with the eyes of the ‘good citizen’ but with the piercing eyes of the political scientist who perceives the nucleus of evil that potentially exists in all human action motivated by ideology or extra mundane religious beliefs. It is to identify and separate the irreconcilable from the inconsolable enemy and act commensurably to the dangers issuing from these two substantially different foes.

The attacks on 9/11 were not the attacks of “good international citizens” but of evil ones driven by eschatological divinely directed goals. Bush and Blair promptly and insightfully recognized that they were facing a deadly irreconcilable enemy that could not be mollified by any ‘benevolent’ actions they could take toward him—they were already depicted by this foe as “Great Satans”—but had to be completely defeated in the battlefield. Further, astute strategy would not allow such an irreconcilable foe to become stronger but to defeat him while he was still weak and hence at less expense in human loses and materiel. The invasion of Iraq had this aim, to prevent the nexus of fanatic terrorists with weapons of mass destruction (WMD) and nuclear ones supplied deliberately or inadvertently by rogue states rigidly belligerent against America and generally the West. In the aftermath of 9/11 no statesman could underestimate the possibility of such a great threat consummated by nuclear weapons that would annihilate their people. As the success of one such attack against a western metropolis would be the ultimate incentive for Alahu Akbar terrorists to become serial users of WMD and nuclear ones against the West and its Great Satan America. And this can be illustrated comparatively and plainly by the success of the first car bomb that brought in its wake a succession of innumerable car bombs used by the terrorists against their enemies.

Indubitably, the invasion of Iraq would have been a “debacle,” due to serious tactical errors American strategists committed during the initial stages of the occupation, such as the disbanding of the Iraqi army that fuelled the yet to come insurgency, if it was not for the Surge that under the savvy new strategy implemented by General Petraeus, had not turned a potential defeat into real victory. A victory, moreover, that planted the seeds of democracy in Iraq and by establishing a nascent democratic state there soon became the catalyst that disseminated the ethos of freedom and democracy among the masses in the region and the great potential this entails for all the countries in captivity to brutal and authoritarian regimes. And one must bear in mind that the Arab Spring is the legitimate offspring of the American gate crashing of the dictatorial regime of Saddam Hussein and the transplanting of democracy in Iraq made in the U.S. However, one must not be unaware of the great dangers that could lie in wait in this transformation of democracy among those countries whose peoples in considerable numbers are imbued with the religious fervour of Islam, that Islamists, like Hamas in Gaza, could attain political power through the ballot box. And developments in Egypt after the fall of President Mubarak with the Muslim Brotherhood and extreme Salafists gaining a majority of seats in Parliament at last week’s election, are not encouraging for those sections of Egyptian society that believe in individual freedom and democracy.

There is, moreover, a fundamental inconsistency in Gareth Evans’s argument when he supports military intervention in the case when civilians are killed or threatened to be killed by an authoritarian regime, like Muammar Gaddafi’s, but not when civilians are killed and are threatened to be killed in their hundreds of thousands in the future by fanatic Islamists as it happened in New York and Washington. Lastly, his mentioning of Cambodia and the negotiations with the Khmer Rouse, in which he was directly involved, that brought a “secured a lasting peace” with the backing of “good old-fashioned containment and deterrence,” as a triumph of reason over bellicosity, he overlooks the fact that the Pol Pot regime by the time of the negotiations was already removed from power as a result of being defeated by Vietnam militarily in 1979, and existing as a weak resistance movement in West Cambodia.  

It is by such a collage of diplomatic misapprehensions and awkward inconsistencies that the former minister of foreign affairs attempts to breathe life into his narrative of “a good international citizen” and the “cause of human decency” and insert it into the maelstrom of human conflicts often ensuing from Caesaro-Papist sinister ideologies. The doctrine of bonhomie in international relations can only be indulged over a café latte.

I rest on my oars: your turn now…