Wages of Incompetence

The heated debate over whether the Administration lied to take us to war in Iraq or was the victim of its own mismanaged intelligence has cooled somewhat, as worries about the economy have heated up. But the two are connected; Iraq is a big part of our economic woes.

Joseph Stiglitz, a Nobel Prize-winning economist who used to be vice-president of the World Bank, recently connected those dots in a talk to a British think-tank, Chatham House.

According to Stiglitz, not only has the Iraq war already cost the United States between 50-60 times more than the Administration originally predicted, it has been a major contributor to the sub-prime banking crisis now threatening the world economy. The war has cost American taxpayers nearly 3.3 trillion dollars—not 50 billion, as the Administration predicted in 2003, and not the 500 billion they currently admit to. (According to Stiglitz, the 500 billion dollar figure “massively understates things such as the medical and welfare costs of US military servicemen.”)

Stiglitz went on to explain why spending on the Iraq war—now the second-most expensive in U.S. history after World War II and the second-longest after Vietnam—has been a major, if hidden, cause of the current credit crunch. “Because the U.S. central bank responded to the massive financial drain of the war by flooding the American economy with cheap credit. The regulators were looking the other way and money was being lent to anybody this side of a life-support system," he said. That led to a housing bubble and a consumption boom. Now the fallout is plunging the U.S. economy into recession and saddling the next president with the biggest budget deficit in history.

So in addition to all the places we could have spent that money—repairing our deteriorating infrastructure, improving our public schools, public transportation and neglected parks…we’ve thrown the American economy into a tailspin.

And what do we have to show for this massive hemorrhaging of green? What “gain” have we purchased with our pain?

We invaded a country that wasn’t responsible for the tragedy of 9/11, rather than keeping our focus on the real culprits in order to bring them to justice. We further destabilized one of the world’s least stable areas. We created an opening for Al Qaida in Iraq, where they had previously been unwelcome. We damaged our standing in the world, making it much more difficult to get the co-operation from other countries that we need in order to protect America from international terrorism. Worst of all, we’ve lost over four thousand young Americans, maimed 128,000 more, and killed untold thousands of Iraqis.

But the news isn’t bleak for everyone. According to a recent investigation by the Chicago Tribune, war profiteers are doing quite well, thank you. Recently unsealed court records detail kickbacks, graft and massive fraud that “endangered the health of American soldiers even as it lined contractors pockets.”

Where was Congress while this was going on? And the American people—where were we?

 

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The Wages of Incompetence

The heated debate over whether the Administration lied to take us to war in Iraq or was the victim of its own mismanaged intelligence has cooled somewhat, as worries about the economy have heated up. But the two are connected; Iraq is a big part of our economic woes.

Joseph Stiglitz, a Nobel Prize-winning economist who used to be vice-president of the World Bank, recently connected those dots in a talk to a British think-tank, Chatham House.

According to Stiglitz, not only has the Iraq war already cost the United States between 50-60 times more than the Administration originally predicted, it has been a major contributor to the sub-prime banking crisis now threatening the world economy. The war has cost American taxpayers nearly 3.3 trillion dollars—not 50 billion, as the Administration predicted in 2003, and not the 500 billion they currently admit to. (According to Stiglitz, the 500 billion dollar figure “massively understates things such as the medical and welfare costs of US military servicemen.”)

Stiglitz went on to explain why spending on the Iraq war—now the second-most expensive in U.S. history after World War II and the second-longest after Vietnam—has been a major, if hidden, cause of the current credit crunch. “Because the U.S. central bank responded to the massive financial drain of the war by flooding the American economy with cheap credit. The regulators were looking the other way and money was being lent to anybody this side of a life-support system," he said. That led to a housing bubble and a consumption boom. Now the fallout is plunging the U.S. economy into recession and saddling the next president with the biggest budget deficit in history.

So in addition to all the places we could have spent that money—repairing our deteriorating infrastructure, improving our public schools, public transportation and neglected parks…we’ve thrown the American economy into a tailspin.

And what do we have to show for this massive hemorrhaging of green? What “gain” have we purchased with our pain?

We invaded a country that wasn’t responsible for the tragedy of 9/11, rather than keeping our focus on the real culprits in order to bring them to justice. We further destabilized one of the world’s least stable areas. We created an opening for Al Qaida in Iraq, where they had previously been unwelcome. We damaged our standing in the world, making it much more difficult to get the co-operation from other countries that we need in order to protect America from international terrorism. Worst of all, we’ve lost over four thousand young Americans, maimed 128,000 more, and killed untold thousands of Iraqis.

But the news isn’t bleak for everyone. According to a recent investigation by the Chicago Tribune, war profiteers are doing quite well, thank you. Recently unsealed court records detail kickbacks, graft and massive fraud that “endangered the health of American soldiers even as it lined contractors pockets.”

Where was Congress while this was going on? And the American people—where were we?

 

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Can We Talk?

Can We Talk?

                  Great Decisions 2008

My topic is “Talking to Our Enemies.” That construction implies two separate, equally important questions: should we talk to those with whom we disagree? And if the answer to that question is yes, when and under what circumstances?

Let me give you an analogy drawn not from my non-existent experience as a diplomat, but from my far-too-extensive experience as a mother: when your two-year-old is throwing a tantrum, you don’t choose that moment to have a frank exchange of views. But you don’t use the tantrum as an excuse not to talk to him for the next twelve years, either. To translate that lesson to international affairs, you obviously don’t respond to a military attack by suggesting we talk it over, and you don’t negotiate with terrorists who are holding Americans hostage for equally obvious reasons. But talking—done properly—should help us avert many of those kinds of situations. And in their wake, after they have been resolved militarily or in some other fashion, resumption of talks can ease lingering tensions and increase American safety and national security.

We sometimes forget that talking to is not the same thing as talking at; it is a two-way process; in order to have a discussion, you need to be willing to genuinely listen to what the other person (or country) is saying. Even while the two-year-old is kicking and screaming, he’s probably saying something that gives you a clue to what has set him off. That information can provide a basis for discussion and what parents like to think of as “re-education” when he does calm down. At risk of belaboring my point, listening is how we acquire information, and information about those who have the potential to do us harm is obviously valuable.

In order to acquire useful information, however, we need to begin with a framework for understanding what we hear. We should enter any discussion, but especially a discussion with our enemies, armed with as much credible, accurate background information as possible. We need to understand the motivations, the history and the culture we are dealing with, in order to really hear what is being said. Uninformed conversation can be worse than useless—if we misread the signals, or misinterpret the information, it can be positively dangerous.

Applying these general observations to our current situation, let me just suggest that this Administration’s disinclination to talk to our enemies—or on too many occasions, even our allies—is part and parcel of its approach to policy in general: This is a President and an Administration that simply do not base policy decisions on evidence or information. The word “arrogant” is often applied to George W. Bush, but I really don’t think what we are seeing is arrogance as we usually define that term. It’s faith—in his own righteousness, in the complete adequacy of his own knowledge, and in the superiority of his own worldview. And as we have seen over the past six years, that sort of “faith-based” approach to the world has been enormously counterproductive—even disastrous.

Just last week, I saw a news analysis in the International Herald Tribune revisiting the President’s decision—announced in 2002—that he would not engage in communications with countries he had decided were part of the so-called “axis of evil.” The story quoted James Baker, former Republican Secretary of State, saying he believed in talking to your enemies, and it quoted Jimmy Carter saying that refusing to do so was “the stupidest thing a government can do.” According to the article, many within the White House are urging the President to reconsider this tactic, but thus far the President remains adamant.

What are the arguments for and against engaging in discussion with those we believe to be our enemies? What considerations should prompt the timing of those discussions? What issues are relevant to those decisions, and which are tangential?

This question of relevancy, in particular, hit me when I was reading the background materials that were distributed for this session. The reading focuses on Iran, and suggests (among other things) that we need to determine whether Iran is a state sponsor of terrorism. It then spends several paragraphs struggling with a definition of terrorism. But is defining terrorism really necessary to our decision whether to talk to Iran? I don’t think so.

Let’s look at the situation: Bush has taken the position that he already knows that Iran is a sponsor of terrorism, just as he already knows that it is trying to develop a nuclear weapon. Based upon these asserted attributes, he claims that Iran must not be “rewarded” by being allowed to talk to us. Note the assumptions built in to that approach: not only the assumptions about Iran’s behavior, which may or may not be accurate (according to the recent National Intelligence Estimate, which the President clearly does not believe, the weapons assumption is false), but President Bush’s obvious conviction that our refusal to talk will be viewed by Iran as a punishment.  As many foreign policy experts have pointed out, however, our refusal to engage is one of the major factors helping prop up President Ahmedinijad, whose economic policies have made him very unpopular at home. Our bellicosity has allowed him to position himself as a leader who has successfully defied the “Great Satan” and to thus divert attention from his other failings.

The situation with Iran is a very good example of the pitfalls involved in failing to ask the genuinely relevant question: What are the considerations that should guide our decision about whether to engage in negotiations? Let me suggest two:

·         What are America’s national interests? and

·         What tools do we have available that are likely to advance those interests?

 

As a 19th Century diplomat once said, “We have no eternal allies and we have no perpetual enemies. Our interests are eternal and perpetual, and those interests it is our duty to follow.” A more recent formulation was that of British Lord Gore-Booth, who in 1974 put it this way:

“Foreign policy is what you do; diplomacy is how you do it. Of course the two get mixed up especially when a diplomat is advising on policy or a member of the government normally engaged in policy decision takes over a diplomatic operation which seems to merit top level or summit discussion. But generally speaking, the task of a government is to decide and the task of a diplomat at any level is to try to make the decision work.”

 

In other words, foreign policy consists of asking two questions: where are we going, and how do we get there? Or, what are our national goals, and what is the best way of reaching those goals?

 

Your reading identifies three broad categories of tools for achieving our foreign policy goals: talking (negotiation); economic sanctions; and military action. Within each of those categories are various options for their deployment: for one thing, each of these tools can be deployed unilaterally, bilaterally or multi-laterally. In other words, we begin by asking “what is it that we want,” which should include a discussion of whether those goals are the proper ones. (During question and answer, we can discuss whether “bringing democracy to the Middle East” ought to be a goal of American foreign policy, for example.)  When we have settled on our goals, we ask “which of these tools, used in what manner, is most likely to help us get what we want?”

 

Those are the questions that have guided our foreign policy through both Republican and Democratic administrations, but they rather clearly are not the questions this Administration is asking. In fact, the President reminds me of clients I used to have when I was a practicing lawyer—the ones who would come in and want to bring a lawsuit that would cost them much more in legal fees than they could ever expect to recover, or the clients who refused to settle a suit for a reasonable amount even when continuing to litigate was likely to cost them much more. They all said the same thing President Bush says: “it’s the principle, not the money.”  Those clients almost always ended up getting hosed. As any lawyer will tell you, you do your best work for the client who comes in with a specific and achievable goal, and who is willing to be both reasonable and realistic about reaching it. The “my way or the highway” guys are disasters waiting to happen, and that’s equally true of governments; when the United States has disregarded our national interest and taken a stand “on principle,” we’ve generally shot ourselves in the foot.

 

Invading Iraq was a case in point: it was an unbelievable gift to Osama bin Ladin. It has allowed him to achieve a level of importance he could never have achieved otherwise. As numerous military men and CIA operatives have testified, our presence in Iraq has been the single most potent recruitment tool Al Quida has ever had.

 

In fact, the War in Iraq is a case study of what happens when we don’t understand the difference between talking to and talking at, when we don’t have sufficient information to evaluate a situation properly and engage in meaningful conversations, and when we don’t base American policy on our national self-interest, using the two questions I’ve identified.

 

·         First question: Was invading Iraq in our national interest? Clearly, it was not, and the fact that it was not was apparent to many observers from the beginning. As we know now, and as many experts at the time suspected, there were no WMD. But because the Administration refused to listen to reports from the United Nations inspectors, refused to work with our allies, and refused to talk to any Iraqis who didn’t talk to any Iraqis who didn’t already agree with them—most of whom hadn’t even been in Iraq for years), they refused to believe that there weren’t any WMDs.

 

Once it became obvious that there were no weapons, the invasion was retroactively justified on the basis that Sadaam was a tyrant, which he certainly was. But the world is full of tyrants. The question we should have asked was: When is it in America’s interest to topple a bad guy? It certainly can’t be in our interest to go around the world deciding who should be in power and who shouldn’t. (Even if we had wanted to take out all the dictators, why not start with Kim Jong Il, who has a million people in concentration camps?) I don’t mean to suggest that it is never appropriate to intervene in another country for humanitarian reasons, but those reasons need to be considerably more compelling than they were in Iraq, and our allies in such instances should be far more substantial than those who joined the so-called “Coalition of the Willing.”

 

There is pretty widespread agreement that it is in America’s national interest to promote stability in the Middle East—one of the least stable parts of the globe. Promoting stability is not the same thing as promoting democracy. Invading Iraq always held a threat of further de-stabilizing this volatile region and upsetting a delicate balance of power, which meant that any decision to intervene militarily required higher levels of justification and evidence supporting that justification. And it required especially careful planning for the aftermath of military action. We now know that such planning never occurred. As a result, rather than advancing our national interest, our actions harmed those interests, and diminished our opportunities to advance other important national goals, both at home and abroad.

 

One example among many: It is clearly in America’s interests to maintain good relations with our allies. When we act unilaterally, when we “blow off” advice from those with whom we have enjoyed long-term alliances, and generally behave as if they don’t count, our ability to achieve other important goals is compromised. (Terrorism) When we go it alone, or with “Coalition” partners like Albania, Costa Rica and Latvia against the wishes of most world powers, we also end up harming our own economic interests.  Look at the differences between the first and second gulf wars (expand) Again, I’m not suggesting we should never make decisions contrary to the wishes of our allies, only that the reasons for doing so need to be particularly compelling. In foreign policy, as with other policy areas, leaders need to be able to connect the dots—to consider all of the ramifications of anticipated actions on American interests.

 

·         Second questions: What are the tools that we had to advance those national interests? In the case of Iraq, we now know that U.N. monitoring and consistent multi-national pressure would have prevented Sadaam from reconstituting his weapons program, thus achieving the stated, legitimate goal of protecting America against attack. It is even likely that with continued diplomacy, we could have facilitated a transition to a somewhat more democratic—or at least, less repressive—government in that country. It would have required patience—and it would have required real discussion, real give and take. But we wouldn’t have lost 4000+ young soldiers. We could have used the trillion dollars we’ve wasted to address needs at home. And we wouldn’t be dealing with a vastly diminished national image, and a Middle East that is exponentially more treacherous and dangerous for Americans than it was prior to our unilateral invasion.

 

Whatever our mistakes in Iraq—and they will haunt us for a generation, if not longer—we now must learn from those mistakes when dealing with other countries, notably but certainly not exclusively Iran. And learning means talking before we start bombing. Senator Obama has made that point repeatedly during the Presidential primary campaigns.

 

Diplomacy and negotiation sound complicated, but they are really just more sophisticated versions of the processes that mediators use every day. I talked to a friend of mine who teaches mediation at the Law School, and I’d like to close by sharing some of his insights, because they illuminate both the techniques and the benefits of talking to those with whom we disagree.

 

·         Although Mediation is sometimes called “positional bargaining,” the actual goal is to get beyond “positions” to “interests.” With respect to Iran, for example, our position is that Iran should not have a nuclear capacity, but our interest is in peace, stability and reduced risk of nuclear war.

 

·         The point of discussion is to identify common interests. For example, both Iran and the US have an interest in seeing the global energy markets stabilized and efficiently operating—Iran because much of its national income depends upon oil sales, the U.S. because our economy is heavily dependent on continued supplies of inexpensive oil.

 

·         How you frame the conversation, according to my mediator friend, is key. Beginning a conversation with the equivalent of “how can we both accomplish our goals?” is different from the equivalent of “how can we get you to stop beating your wife?” Lawyers sometimes characterize the proper approach as “bargaining in good faith.”

 

·         The goal of a productive discussion is not venting—it is not an opportunity to score points and engage in one-upsmanship. The goal is to listen carefully, in order to determine where the parties might be able to agree. We want to know: What is going right? What are our respective priorities? What is most important to the other party? What are the challenges and obstacles as we each see them? A good listener then tries to detect what genuine priorities lie beneath the rhetoric. Information truly is power, and informed listening allows us to acquire information. Listening is informed if it is preceded by careful preparation and research that allows us to truly understand the information we are acquiring.

 

In a genuine negotiation, we won’t get everything we want. But we are likely to get what we need—if we are realistic about what our needs are.

 

We are also highly unlikely to do harm to America’s interests by talking. If talks prove inadequate, and sanctions or military action do become necessary, we will be more likely to get the assistance of our allies if it is clear that we have made a good-faith effort to avoid conflict. Our ability to achieve our other foreign policy goals may well depend upon the perception that we played fair, and didn’t rush to use our superior military might against those with whom we had disagreements.

 

Furthermore, if we have talked—and listened—and still find it necessary to engage in military action, we will probably have acquired insights and information that will help us fight smart.

 

On the other hand, what do we gain by refusing to talk? What is the downside? With very few exceptions, refusing to talk hurts us—at the very least, it deprives us of valuable information; more often, refusal to negotiate costs us dearly. I can think of very few situations where talking harmed our national interests.

As Barack Obama recently noted, “even during the Cold War, when there were nuclear missiles pointing at every major U.S. city, there was a direct line between the White House and the Kremlin.”

There really is something to be said for a foreign policy based upon intelligence and realism, rather than faith and self-righteousness. There really is an advantage to be gained by engaging other countries in conversation rather than lecturing them on their flaws (I don’t have to remind those of you in this church of the biblical passage “Let him who is without sin cast the first stone.” We aren’t without flaws of our own, and the natural response to our hectoring is to point those out. We end up having the equivalent of the old playground argument: “you’re a bigger one.”)

There is also a more general point to be made about engaging in discussion and dialogue–it’s harder to demonize people when you know them. That’s true domestically, and it’s equally true in the international arena. Recent polls confirm that people in other countries who actually know Americans are able to separate their disapproval of our government from their opinions of us as a people. As we get to know those from other countries and cultures, we learn that in many important respects, we want the same things: the ability to raise our children and provide for them in a world where they will be valued and respected. Ignorance of “the other” breeds intolerance and fear; and intolerance and fear are never a sound basis for decision-making.

The world is shrinking daily. To belabor my playground analogy, since we have to share this sandbox with the other kids, maybe we need to talk to them.

 

 

 

 

 

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A Dismal Legacy

If conversations at my office and family gatherings are any indication, Americans are intensely focused on the upcoming presidential election. Traditional print and broadcast media and internet blogs alike are filled with arguments over the respective merits of the candidates, and detailed analyses of who is voting for whom and why.

Whatever their other differences, voters clearly can’t wait to be rid of George W. Bush. However, before we rush to bid a not-so-fond farewell to the Bush Administration, it may be instructive to examine the legacy of the past seven years.

Bush took office in 2001. During the previous eight years, Gross Domestic Product had grown an average of 4.09%  annually. Over the past seven years, GDP growth has averaged 2.65% per year.

The national debt was $5.7 trillion in 2001. It is $9.2 trillion now. Over the three years preceding 2001, the government had actually managed to amass a $431 billion surplus; during these last three years, we’ve had a $734 billion deficit.

The Clinton Administration created an average of 1.76 million private sector jobs each year during its eight years in office;  the Bush Administration has averaged 369,000 per year.

In 2001, there were 31.6 million Americans living in poverty, according to the U.S. Census Bureau. Today, the Bureau reports there are 36.5 million.

When Bush took office, there were 38 million Americans without health insurance; today there are an estimated 47 million, and the average annual family health insurance premium has increased from $6,230 to $12,106.

Median household income was $49,163 in 2001; it is $48,023 today. Meanwhile, gas prices have increased from 1.39 a gallon to 3.07, and the cost of college tuition has gone from $3,164 to $5,192. Consumer debt has nearly doubled, from $7.65 trillion to $12.8 trillion.

When we turn from domestic matters to international ones, we see an equally dismal landscape: our trade deficit has soared from $380 billion to $759 billion, and the value of the dollar has declined precipitously. In 2001, a dollar would buy you 1.07 Euros; today, it will get you .68. We are more dependent on foreign oil. Our armed forces are stretched dangerously thin. And don’t even ask about our international reputation: a recent Pew poll of ten nations charted dramatic declines in the percentage of people in those countries holding a favorable view of America.

What these statistics from government agencies—the Treasury Department, Bureau of Labor Statistics and the like—can’t and don’t take into account is the damage done to America’s governing institutions by this Administration’s unremitting assaults on the rule of law. How does an accountant quantify cynicism? How do we measure distrust, or value lost accountability?

It is hard to imagine that anyone running for President in 2008, on either ticket, could do a worse job. But whoever wins will face daunting challenges.  The next President must restore fiscal sanity, address our multiple problems, repair our international reputation, and—most important of all—make us believe in America again.

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Political Will…Or Won’t

Will we or won’t we?

The Indiana Commission on Local Government Reform issued its recommendations while I was teaching a class for mid-career government employees in Southern Indiana. They applauded many of the proposals. When the conversation turned to the likelihood of action, however, they were cynical. As one said, “Ultimately, those guys in the statehouse look out for their own political interests, not those of the citizens.”

We all have a stake in proving him wrong.

Those of us who teach public administration like to use words like “transparency” and “accountability.” What those terms mean in simple English is that citizens should be able to figure out who is in charge of what, and who made what decision. It isn’t rocket science.

The Commission’s recommendations would eliminate lots of unnecessary layers of government, and that streamlining would obviously have a major fiscal impact. But important as cost-saving is, the real product of reform will be more transparency, more accountability, and greater efficiency. (How many township assessors or county coroners do we elect based upon their skills in assessing or dissecting? How many of us even know who’s running for those positions?)

The major elements of the report have been widely publicized, but other excellent  recommendations haven’t received enough attention. I particularly like Recommendation #24, which would prohibit employees of a local government unit from serving as elected officials of that unit. (Under this provision, Monroe Gray, among others, would have been disqualified from acting both as lawmaker and city employee.) As the report points out, such service is a clear conflict of interest. It undermines the chain of command and procedures for discipline, and “diminishes the faith that citizens must have that local governments act in the public interest.”  

Recommendation #16 proposes moving municipal elections to even-year cycles, when all other elections are held. Not only would this save the considerable costs involved in holding an extra election, it might improve voter turnout for these contests. In the last Indianapolis mayoral election, for example, only a quarter of those who were eligible voted. Thirteen percent of registered voters chose Greg Ballard. That’s hardly a mandate, and that reality will make it harder for him to govern.

Many of the other recommendations are equally common-sensical. Several have been kicking around longer than I have—and believe me, that is a long time!

I’m not suggesting that legislators obediently enact every single one of the Commission’s recommendations. Some will need to be tweaked. All should be fully debated and analyzed. But overall, the Commission has produced a map to the 21st Century for a state whose administrative structures mostly date from the 19th. If the bulk of these recommendations become law, we can expect the outcomes the Commission identifies: local governments that will be “more understandable, more efficient, more effective and more accountable.”  

The question is whether we have the will to withstand both vested interests and civic inertia—if we have the will to prove my cynical students wrong.   

 

 

 

 

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