The Chinese leadership will face daunting challenges in the coming year
It is appropriate that the year began with the Tiger Mom and closed with an official indictment of the management of the Chinese high-speed rail program. The book ends of this year's China narrative capture the zeitgeist in 2011: the ever fiercer duels between the China bulls and bears. Yes, Amy Chua is American, but her story became instantly linked to the general competitive fears that Americans had about what appeared to be an unstoppable juggernaut -- perhaps one of the most overused nouns in describing China. From raising future Ivy Leaguers to clocking the fastest bullet trains, the Chinese can do it all and with exacting efficiency. It was a year in which many latched onto the China story, many more traveled to China for days or weeks and commented on it, and many used the country as a reflection of America's own debilitating dysfunctions. A "juggernaut" it may be, but China's size is also its curse. The country is no longer under the proprietary province of China specialists -- it is now subject to Saturday Night Live parodies and Gary Shteyngart's literary satire. For better or worse, 2011 saw the democratization of the China narrative.
This debate is due in large part a consequence of this democratization, leading to a proliferation of "takes" on China that make it difficult to separate the good from the bad. Each camp can marshal enough evidence to support their respective cases. To be sure, the China bulls had plenty of ammunition entering into 2011. China was the indisputable growth engine in the wake of the financial crisis, just as the Eurozone was lurching from fiscal to political crises and the U.S. faced abysmal employment figures. Formally assuming the #2 spot in the global economy, China took on some swagger. President Hu Jintao's January state visit in Washington was popularly viewed as a debt-collection exercise (call that the "SNL effect"). I recall watching Hu's motorcade, regaled in Chinese flags, descending Connecticut Avenue as a random passerby quipped, "you know what that means, he's gonna want his money back."
Of course, Hu wasn't asking for his money back and in fact continued to pile China's foreign exchange reserves into U.S. Treasuries as the export sector boomed amid a global downturn. Yet support for an export-led strategy had already waned and was clearly de-prioritized as Beijing finally unveiled its long-awaited 12th Five-Year Plan in March, as I have previously discussed. (Also see here, here, and here.) The rebalancing agenda incorporates a major effort to restructure China's energy landscape, including a commitment to nuclear energy. And so, despite initial concerns over the prospects of China's nuclear program in the immediate aftermath of the tragic Fukushima disaster, China never intended to ditch its ambitious program. The Chinese position lent some cheers for those hoping for a nuclear renaissance.
Things appeared rather swell, even as the perception on China began to shift. For the next several months, China was walloped by investor bears, who overwhelmed the bulls. Few were as colorful as investor guru Jim Chanos in describing China as running on a "treadmill to hell". But the compounded effect of stubbornly high inflation, a clampdown on the property sector, cleaning up the stimulus hangover, a deadly bullet train crash, and embarrassing discoveries of fraudulent Chinese IPOs all made China appear much more wobbly than many had thought. And all of this took place as the Arab Spring reached a crescendo, prompting the arrest of activist Ai Weiwei -- the Liu Xiaobo of 2011 -- and as the mood over Eurozone prospects grew darker than ever. "Pork prices," "ghost cities," "hard landing," "political repression," and "debt-laden local governments" became the watch words for the rest of the year.
So did the Beijing mandarins over-tighten as it was heading into a double dip because of Europe? In other words, was China repeating the mistakes of the 2007-08 period? For markets, China was the remaining leg in the tripod of global growth -- the other two being the U.S. and EU -- and any sputtering of its economic engine could prove disastrous. Beijing responded by signaling a looser fiscal and monetary policy to put a floor on growth, even as it is determined to keep the screws tight on the housing market to prevent another bout of irrational exuberance. Why? Because despite the preference for full-throttle growth by some, the Chinese public still ranked inflation and housing prices as top issues in 2011, according to a recent survey by an influential state think tank (h/t China Smack):
Indeed, nearly 60 percent of respondents believe that inflation was the #1 issue, while housing costs ranked #6. Healthcare and education costs, employment, social security, wealth gap, and corruption all made the top ten. These are largely bread-and-butter issues that have little to do with demanding Western-style political liberalization, though corruption and the income gap would require political solutions. What transpired in "Occupy Wukan" over the last month or so was not an urgent demand for democracy, but is emblematic of the worsening rural-urban divide and local government malfeasance. Wukan alone won't bring down the Chinese government, but the two structural maladies, if left untreated, could, not least because they have before.
That is precisely what the rebalancing agenda seeks to solve. It is meant to rescue the party-state from defeating itself by allowing these problems to fester. I think what I wrote in last year's wrap-up remains valid as we head into 2012:
...But the outstanding question remains whether China's leaders will pursue the right policies with the kind of urgency necessary. Major economic adjustments are usually never pleasant, and most leaders would prefer to minimize the pain on the largest swath of the population possible during that process. The Chinese are no different in this regard, but how much heavy-lifting can they tolerate?
Yu and a similarly reform-minded lot are advocating temerity over timidity, likely in a bid to influence the direction of debate as there are forces inevitably arrayed against them. Plenty of interests in China eschew these changes that will involve taking away some of their wealth, likely prompting a vigorous defense of the status quo...
To me, one of the biggest questions next year is whether China can create the necessary political conditions, amid one of the most important transitions in a decade, to forge ahead with its restructuring. With the anticipated slow down in growth and a shrinking export surplus, there appears to be an opportunity to steer the ship of state in a different direction. Yet with a political leadership still unsettled, I find it hard to be optimistic over the extent of progress next year. But I am fully open to being surprised.
Damien Ma is a fellow at the Paulson Institute, where he focuses on investment and policy programs, and on the Institute's research and think-tank activities. Previously, he was a lead China analyst at Eurasia Group, a political risk research and advisory firm.
The Islamic State is no mere collection of psychopaths. It is a religious group with carefully considered beliefs, among them that it is a key agent of the coming apocalypse. Here’s what that means for its strategy—and for how to stop it.
What is the Islamic State?
Where did it come from, and what are its intentions? The simplicity of these questions can be deceiving, and few Western leaders seem to know the answers. In December, The New York Times published confidential comments by Major General Michael K. Nagata, the Special Operations commander for the United States in the Middle East, admitting that he had hardly begun figuring out the Islamic State’s appeal. “We have not defeated the idea,” he said. “We do not even understand the idea.” In the past year, President Obama has referred to the Islamic State, variously, as “not Islamic” and as al-Qaeda’s “jayvee team,” statements that reflected confusion about the group, and may have contributed to significant strategic errors.
Places like St. Louis and New York City were once similarly prosperous. Then, 30 years ago, the United States turned its back on the policies that had been encouraging parity.
Despite all the attention focused these days on the fortunes of the “1 percent,” debates over inequality still tend to ignore one of its most politically destabilizing and economically destructive forms. This is the growing, and historically unprecedented, economic divide that has emerged in recent decades among the different regions of the United States.
Until the early 1980s, a long-running feature of American history was the gradual convergence of income across regions. The trend goes back to at least the 1840s, but grew particularly strong during the middle decades of the 20th century. This was, in part, a result of the South catching up with the North in its economic development. As late as 1940, per-capita income in Mississippi, for example, was still less than one-quarter that of Connecticut. Over the next 40 years, Mississippians saw their incomes rise much faster than did residents of Connecticut, until by 1980 the gap in income had shrunk to 58 percent.
A Chicago cop now faces murder charges—but will anyone hold his colleagues, his superiors, and elected officials accountable for their failures?
Thanks to clear video evidence, Chicago police officer Jason Van Dyke was charged this week with first-degree murder for shooting 17-year-old Laquan McDonald. Nevertheless, thousands of people took to the city’s streets on Friday in protest. And that is as it should be.
The needlessness of the killing is clear and unambiguous:
Yet that dash-cam footage was suppressed for more than a year by authorities citing an investigation. “There was no mystery, no dead-end leads to pursue, no ambiguity about who fired the shots,” Eric Zorn wrote in The Chicago Tribune. “Who was pursuing justice and the truth? What were they doing? Who were they talking to? With whom were they meeting? What were they trying to figure out for 400 days?”
Why are so many kids with bright prospects killing themselves in Palo Alto?
The air shrieks, and life stops. First, from far away, comes a high whine like angry insects swarming, and then a trampling, like a herd moving through. The kids on their bikes who pass by the Caltrain crossing are eager to get home from school, but they know the drill. Brake. Wait for the train to pass. Five cars, double-decker, tearing past at 50 miles an hour. Too fast to see the faces of the Silicon Valley commuters on board, only a long silver thing with black teeth. A Caltrain coming into a station slows, invites you in. But a Caltrain at a crossing registers more like an ambulance, warning you fiercely out of its way.
The kids wait until the passing train forces a gust you can feel on your skin. The alarms ring and the red lights flash for a few seconds more, just in case. Then the gate lifts up, signaling that it’s safe to cross. All at once life revives: a rush of bikes, skateboards, helmets, backpacks, basketball shorts, boisterous conversation. “Ew, how old is that gum?” “The quiz is next week, dipshit.” On the road, a minivan makes a left a little too fast—nothing ominous, just a mom late for pickup. The air is again still, like it usually is in spring in Palo Alto. A woodpecker does its work nearby. A bee goes in search of jasmine, stinging no one.
One hundred years ago, a crisis in urban masculinity created the lumberjack aesthetic. Now it's making a comeback.
The first one I met was at an inauguration party in 2009. I was in a cocktail dress. He was in jeans, work boots, and a flannel shirt. He had John Henry tattooed on his bicep. He was white. Somehow, at a fairly elegant affair, he had found a can of PBR. Since then they’ve multiplied. You can see them in coffee shops and bars and artisanal butchers. They don't exactly cut down trees, but they might try their hand at agriculture and woodworking, even if only in the form of window-box herb gardens.
In the last month, these bearded, manly men even earned themselves a pithy nickname: the lumbersexuals. GearJunkiecoined the term only a few weeks ago, and since then Jezebel, Gawker, The Guardian and Time have jumped in to analyze their style. BuzzFeed even has a holiday gift guide for the lumbersexual in your life. (He would, apparently, like bourbon-flavored syrup and beard oil.)
As the public’s fear and loathing surge, the frontrunner’s durable candidacy has taken a dark turn.
MYRTLE BEACH, South Carolina—All politicians, if they are any good at their craft, know the truth about human nature.
Donald Trump is very good, and he knows it better than most.
Trump stands alone on a long platform, surrounded by a rapturous throng. Below and behind him—sitting on bleachers and standing on the floor—they fill this city’s cavernous, yellow-beige convention center by the thousands. As Trump will shortly point out, there are a lot of other Republican presidential candidates, but none of them get crowds anything like this.
Trump raises an orange-pink hand like a waiter holding a tray. “They are not coming in from Syria,” he says. “We’re sending them back!” The crowd surges, whistles, cheers. “So many bad things are happening—they have sections of Paris where the police are afraid to go,” he continues. “Look at Belgium, the whole place is closed down! We can’t let it happen here, folks.”
It was widely seen as a counter-argument to claims that poor people are "to blame" for bad decisions and a rebuke to policies that withhold money from the poorest families unless they behave in a certain way. After all, if being poor leads to bad decision-making (as opposed to the other way around), then giving cash should alleviate the cognitive burdens of poverty, all on its own.
Sometimes, science doesn't stick without a proper anecdote, and "Why I Make Terrible Decisions," a comment published on Gawker's Kinja platform by a person in poverty, is a devastating illustration of the Science study. I've bolded what I found the most moving, insightful portions, but it's a moving and insightful testimony all the way through.
Students at Princeton University are protesting the ways it honors the former president, who once threw a civil-rights leader out of the White House.
The Black Justice League, in protests on Princeton University’s campus, has drawn wider attention to an inconvenient truth about the university’s ultimate star: Woodrow Wilson. The Virginia native was racist, a trait largely overshadowed by his works as Princeton’s president, as New Jersey’s governor, and, most notably, as the 28th president of the United States.
As president, Wilson oversaw unprecedented segregation in federal offices. It’s a shameful side to his legacy that came to a head one fall afternoon in 1914 when he threw the civil-rights leader William Monroe Trotter out of the Oval Office.
Trotter led a delegation of blacks to meet with the president on November 12, 1914 to discuss the surge of segregation in the country. Trotter, today largely forgotten, was a nationally prominent civil-rights leader and newspaper editor. In the early 1900s, he was often mentioned in the same breath as W.E.B. Du Bois and Booker T. Washington. But unlike Washington, Trotter, an 1895 graduate of Harvard, believed in direct protest actions. In fact, Trotter founded his Boston newspaper, The Guardian, as a vehicle to challenge Washington’s more conciliatory approach to civil rights.
One reason the underprivileged face an obesity crisis is that they rely on ineffective weight-loss strategies. In part, this is because economic uncertainty makes it harder to plan for workouts and healthy meals.
Poor people—and poor women in particular—are more likely to be overweight and obese. But what makes the obesity epidemic such a tough problem to solve is that the poorest Americans are also less likely to use proven weight-loss strategies, relying instead on quick fixes like diet pills.
For a new study published in the American Journal of Preventive Medicine, researchers from Concordia University looked at the incomes and health habits of more than 3,000 children and teens between the ages of 8 and 19 and more than 5,000 adults over the age of 20.
At least two-thirds of the study subjects reported attempting to reduce food intake or exercising in order to lose weight in the past year. Despite these efforts, the adults in the study gained an average of three pounds, while the youths gained about 12 pounds. The people in the lower income brackets gained about two pounds more than those in the highest one.
Highly-poisonous botulinum toxin (the stuff in Botox), played a formidable role in the history of food and warfare. It is still a factor in prison-brewed alcohol and some canned foods, and can quickly kill a person.
After tanking up on “pruno,” a bootleg prison wine, eight maximum-security inmates at the Utah State prison in Salt Lake County tried to shake off more than just the average hangover. Their buzz faded into double vision, weakness, trouble swallowing, and vomiting. Tests confirmed that the detainees came down with botulism from their cellblock science experiment. In secret, a prison moonshiner mixed grapefruit, oranges, powdered drink mix, canned fruit, and water in a plastic bag. For the pièce de résistance, he added a baked potato filched from a meal tray weeks earlier and peeled with his fingernails. After days of fermentation and anticipation, the brewer filtered the mash through a sock, and then doled out the hooch to his fellow yardbirds.