Category Archives: Germany

National Foresight, Or: Why Russia Needs A Strong Hand

Posted on by

In a 2010 paper on time preferences*, the authors Mei Wang et al. conducted an experiment in which participants could choose either $3400 now or $3800 a month later. Now I would choose the latter option but maybe it’s just because I’m intelligent and have been living in the West for quite a while. In other countries this is not the obvious choice however.

We see the usual correlates. Countries that are richer; more Germanic; less corrupt; more intelligent – they all have more future time orientation. In countries that have a Communist legacy future time orientations are perhaps lower than we might expect them to be otherwise.

This all of not insubstantial relevance because time preference can have an impact on economic structure and social life. For instance, as the paper notes, societies with higher future time  orientation are likely to devote more attention to the environment. They are also likely to devote a greater share of their GDP to R&D.

Continue reading →

Berlin Gets Bad News From PISA

Posted on by

There are several ways to influence national mean IQ levels. One is to improve nutrition and education, but vitally important though they are, they suffer from diminishing returns as populations bump up against their genetic ceilings. Another is to promote eugenic policies, or at least policies to mitigate the dysgenic trends that are typical of modern developed societies, but they tend to be ethically questionable and politically unfeasible. The third major lever is the immigration system, but how can we assess whether it’s doing its job of only letting in the people who would be a net benefit to the host country?

In my wanderings through the interwebs, I found that the NCES has an excellent “International Data Explorer” with all kinds of socio-economic data on the tested students of each country that participated in the PISA standardized tests (which correlate closely with IQ). Of particular interest was data on scores broken down by immigration status (native, 1st generation, 2nd generation), which was frankly stunning in the degree to which it confirms various stereotypes and explains why migrants succeed in some countries and live in lawless ghettos in others. See the graph below (click to enlarge).

Continue reading →

Prophets of the Great War: Friedrich Engels, Ivan Bloch, and Pyotr Durnovo

Posted on by

Though there are plenty of caveats and exceptions, it is safe to generalize that predictions of what the “next war” was going to be like before 1914 were completely inaccurate. The Great War would not be the quick, clean affair typical of the wars of German unification in the 1860′s-70′s or the sensationalist literature of the antebellum period. The generals were as wrong as the general public and war nerds. France had an irrationally fervent belief in the power of the offensive and dreamed of the Russians steam-rolling over Berlin before winter, while the Germans gambled their victory on the success of the Schlieffen plan. When the war finally came, the linear tactics of previous wars floundered in the machine guns, artillery, mud, and barbed wire of trench warfare. The belligerent societies were placed under so much strain by this first industrial total war that by its end, four great monarchies would vanish off the face of Europe.

Nonetheless, there were three theorists – a Communist, a Warsaw banker, and a Russian conservative minister – who did predict the future with a remarkable, even eerie, prescience. They were Friedrich Engels, Ivan Bloch, and Pyotr Durnovo.

Continue reading →

The Endgame Begins

Posted on by

A year ago I predicted that there will be a “decoupling from the unwinding“, as “emerging markets” by and large ride out the temporary shocks of declining Western demand for their exports (China) and the interruption of Western credit intermediation (Russia) before resuming growth. This is one aspect of the trends leading to the imminent demise of Pax Americana, which will be replaced by “the age of scarcity industrialism” / “a world without the West“. We are now entering this Empire’s endgame.

After briefly stalling in early 2009, China’s economy roared back to life on the back of massive credit loosening to build (or overbuild) infrastructure and industrial capacity. Though not the most efficient use of resources, it did have the advantage of 1) maintaining growth, 2) forestalling the social unrest that would rise up if it wasn’t, and 3) at least Chinese investments went into building up their real economy (amongst other things, it became the world’s largest producer of wind turbines and photovoltaic panels in 2009), instead of the pork and oligarch welfare programs more characteristic of the US “stimulus”. And though Russia’s GDP contracted by 7.9% in 2009 – far higher than expected by most commentators, largely thanks to the dependence its big corporations acquired on continuous flows of intermediated Western credit – it began to slowly recover from mid-2009, industrial output is now rising at a fast clip, and investment banks are predicting growth of 4-6% for 2010. The other two BRIC’s, Brazil and India, didn’t have too many problems at all since they had neither a big credit nor trade dependence on the submerging Western markets.

In the long-term, I argued that the brunt of the crisis would fall on the “submerging” Anglo-Saxon markets, thanks to their “charades over “quantitative easing” (translation: printing money), transfer of toxic “assets” onto the public account”, and unsustainable fiscal stimuli. Today, the American political system is for all practical purposes broken. Republicans won’t agree to tax increases, Democrats won’t agree to cutting entitlement programs. The legislative process is reverting to that of the 17th century Polish-Lithuanian Commonwealth, when a single veto could (and did) prevent anything being agreed on in their Sejm, or parliament. (Hint: the ultimate consequences weren’t good for Poland).

The inflated hopes and expectations accompanying Obama’s accession to power were indeed, just as I suggested on his election, “greatly constrained by financial and institutional realities”. He is a weakling President, alternating between meaningless populist rhetoric and pandering to the Wall Street oligarchs; scorned by the left as Bush II with gloss, and condemned by the right as a foreign Marxist Islamofascist: his policies and outreaches failing at home and abroad, rejected in his own heartlands, these outcomes are engendered by and in large part made inevitable by his hopelessly pollyannish belief in his own messianic powers of compromise and persuasion.

Continue reading →

Freedom, Welfare, and the Future

Posted on by

The welfare state, or what we conceive of as such today, is a relatively recent phenomenon. Although pre-modern states did perform some pro-welfare functions such as regulating prices and wages, maintaining workhouses for the poor and even a limited form of targeted social support[1], this spending was framed not in terms of the state’s fulfillment of defined obligations to its citizens, but as “wholly-discretionary state charity”. The state’s only incentive to do this, admittedly a powerful one, was to buy off revolt and preserve community cohesion; otherwise, these extremely hierarchical societies harbored no ethical concerns about empowering the individual or ensuring equality of opportunity. This meant that the prime means of social support remained one’s family and clan, friends, and local community institutions like the Church. The modern definition of a welfare state, such as the one provided by Robert Goodin – 1) it a) “intervenes in a market economy b) to meet certain of people’s basic needs c) through relatively direct means” and 2) is “a system of compulsory, collective, and largely non-discretionary welfare provision”[2] – has its early antecedents in Bismarck’s social insurance reforms (1889), the genesis of Swedish socialism in the 1930’s, and the US introduction of social security measures in the New Deal to mitigate the effects of the Great Depression.

Drawing on Goodin’s work, let us clarify the definition of the democratic welfare state. First, welfare states are explicitly market-based (ranging the gamut from America’s relative laissez-faire to Belarus’ “market socialism”) – according to Marshall, it “did not reject the capitalist market economy, but held that there were some elements in a civilized life which ranked above it and must be achieved by curbing or suppressing the market”[3]. Second, it does not (necessarily) aim for radical economic or social transformations; its goals are more modest – “the characteristically welfare statist approach is to opt for readjusting final distributions [primarily to relieve those in the most distress through direct provision of basic needs like food, shelter, etc], rather than altering the pattern of property rights in productive resources that gave rise to undesirable distributions in the first place”[4]. Third, welfare is enshrined in law and viewed as a universal civil right for those deserving of it, in contrast to private charities and the “public charity” embodied in the English Poor Laws (their aid being viewed as gifts and humiliating to have to accept).

Continue reading →

Europe, The Black Continent

Posted on by

I am going to start off by looking at Europe, defined as the region under the influence of Western Christianity and/or the European Union (not Russia or Turkey, which will be covered in a later Eurasia Report).

The Big Questions

  1. Demographic problems: aging, low fertility and Eurabia?
  2. The unsustainability of the modern welfare state?
  3. Cultural decline & reaction against liberal rationalism?
  4. The return of Great Power politics? (e.g. Mearsheimer 1990), & the decline of the EU and growing centrality of Franco-German relations, – or will the EU survive, and if so in what form?
  5. National trends: a secure, “flourishing” France; a troubled but powerful Germany; Poland beset on two fronts; marginalized Britain, Spain & Italy, all in decline; Sweden as preeminent Baltic power; on the outskirts, both Russia and Turkey increase their power – realistic?
  6. The retreat into authoritarianism and militarism? Europe as a Black Continent?

European Trends

Without much exaggeration, demography is Europe’s central issue for the foreseeable future. Just to keep the labor force constant, the EU needs 1.6mn immigrants annually (current population: 500mn); to maintain a 3:1 ratio of labor force to retirees, it will need 3.1mn immigrants yearly to offset the aging of the population. These kinds of numbers are probably unrealistic due to (justified?) European xenophobia, especially in the east and center.

Continue reading →

Review of “Kicking Away the Ladder” (Ha-Joon Chang)

Posted on by

Chang, Ha-Joon – Kicking Away the Ladder: Development Strategy in Historical Perspective (2002)
Category: economy; history; industrial policy; Rating: 5/5
Summary: Kicking Away the Ladder:How the Economic and Intellectual Histories of Capitalism Have Been Re-Written to Justify Neo-Liberal Capitalism (Ha-Joon Chang)

Much has been said of the smug arrogance, cultural aloofness and end-of-history conceit characterizing the neoliberal Washington Consensus, the philosophy that a one-size-fits-all set of “good policies” (e.g. privatization, liberalization, deregulation) and “good institutions” (e.g. patent and IP protection system, etc) can – and must – be transplanted onto any country, irrespective of its historical or cultural traditions, if it were to ever join the developed “international community’. The general bankruptcy of this approach is evident from the facts on the growth, with global GDP growth during the 1960-1980 period of “bad policies” substantially higher than during the “good policies” 1980-2000 period. After seeing high growth during the earlier period, Latin America stagnated, and Africa and Eastern Europe declined during the latter; the major exception was mercantilist China.

Though always disabused by reality, from 1998 Russia to the 2008 crisis, the neoliberals retain their intellectual underpinnings by continuing to claim, like Marxists, that history itself is ultimately on their side – after all, did not Britain and the United States, the world’s greatest economic successes, rise to global preeminence through the virtues of minimal government and free trade? Not at all, argues Ha-Joon Chang in this excellent book.

Continue reading →

The Return of the Reich?

Posted on by

This is my second follow-up post to The Belief Matrix, in which I attempted to advance a universal model for civilizational responses to subsistence crises (The Malthusian Loop) and the Western challenge (The Sisyphean Loop). This time I will look at Germany, a nation that was always torn between its hard-assimilated Roman / Western identity, and German Romanticism – the nativist reaction against the “Idea of the West” (as previously loosely-defined, a set of concepts like the scientific method, rule of law, economic rationalism, and liberalism).

Before World War One, Germany was a confident, expanding power, but  one wracked by insecurity. It was encircled by France and Russia on land, and contained by Great Britain at sea. The increasing cooperation between those three nations reinforced Germany’s suspicions and made it resentful about being denied its rightful place in the sun (all the best colonies had already been snapped up by the time Germany came to the imperialist game). In retrospect, much has been made of the balefulness of the Prussian militarist tradition, the influence of German nationalist groups, and the Kaiser’s bombastic antebellum rhetoric as one of the enabling factors of Germany’s Sonderweg. However, one should also note that in 1900 Germans enjoyed a higher level of adult enfranchisement than the British (22% versus 18% of the population, albeit with the caveat that the Reichstag’s powers were far more circumscribed) and that the anti-war Social Democrats won 34.8% in 1912.

The Teutonic Spirit

That said, imperial Germany was different from the Western liberalisms (Great Britain, France and the US) – not even so much in its political economy, an uneasy fusion of “Western” industrialism and “Eastern” autocracy, but also in its reflection in the psychological make-up of the German people, whose defining trait is a constant internal struggle between “civilized” Roman values (Rationalism / “The Idea of the West”) and “barbarian” Teutonic instinct. From Peter Viereck’s Metapolitics: From Wagner and the German Romantics to Hitler, first published in 1941 (well into WW2):

Continue reading →

Violence is Reality

Posted on by

Realism has been falling out of favor since the end of the Cold War, condemned by the Kumbaya crowd, avoided by the liberal, PC-gone-wild intelligentsia, and denigrated by “end of history” ideologues (many of whom all too cynically remain realists while cloaking it under the mantle of “liberal interventionism”). What they all have in common is a denial of reality – denial of basic human psychology, and the inevitability of its transmutation onto the level of inter-state relations. Let’s look at this through the prism of human violence throughout history.

Imagine living in a society in a near-constant state of war, both within and without. A society where you lose 0.5% of your population to violence every year, a rate which would translate to 2bn war deaths during the 21st century. As a man, you are constantly mobilized for fighting and your chances of meeting a violent end are roughly equivalent to that of a French man during World War One or a Russian during the Great Patriotic War – throughout your entire life. Overall there is a 15-60% chance you will die by the club, spear or arrow. Doesn’t sound like a great deal, right? But such was human reality for the vast majority of its history, “noble savage” myths to the contrary. Quoting Lawrence Keeley in War Before Civilization:

The high war death rates among most nonstate societies are obviously the result of several features of primitive warfare: the prevalence of wars, the high proportion of tribesmen who face combat, the cumulative effects of frequent but low-casualty battles, the unmitigated deadliness and very high frequency of raids, the catastrophic mortalities inflicted in general massacres, the customary killing of all adult males, and the often atrocious treatment of women and children. For these reasons, a member of a typical tribal society, especially a male, had a far higher probability of dying “by the sword” than a citizen of an average modern state.

Continue reading →

The Genesis of Total War

Posted on by

In the summer of 1914, the world was integrated as never before. Despite its simmering tensions and conscript armies, the European continent had open borders, a shared respect for private property and rule of law, and dynastic ties that bound its monarchs together – most poignantly represented by the pageantry surrounding the funeral of Edward VII of England in 1910, the world’s largest assemblage of royalty and rank in history. The expansion of world trade, free labor migration and the rise of a cosmopolitan cultural milieu defined this first great globalization.

It was accompanied by democratization, as many nations acquired parliaments and and widened their franchise: by 1900, some 29% of Frechmen, 22% of Germans, 18% of British and 15% of Russians had the vote. In supposedly belligerent Germany, the anti-war Social Democrats won 34.8% of the vote in 1912. Though there were strident militarist and pan-nationalist lobbies, they were partially countered by pacifist movements and moderated by mainstream politicians, who viewed the prospect of a general war with apprehension: even in Germany, with its reputation for bombastic rhetoric, in July 1914 Chancellor Bethman remarked, “a world war with its incalculable consequences would tremendously strengthen the power of Social democracy… and topple many a throne”. Yet glimmers of darkness on the horizon presaged a gathering storm, and “the sun of the old world was setting in a dying blaze of splendor never to be seen again”.

The First World War ended the first golden age of globalization and history returned to Europe with a vengeance. It killed or maimed a generation of European men, destroyed four great empires and spawned the disillusionment that would find its (apparent) resolution in totalitarian ideologies. This  “war to end all wars” came to be known as the first “total” or “Blochian” war, and as the “Great War” in the British Isles, replacing the Napoleonic Wars which had hitherto fallen under that designation.

Continue reading →

Review of “America Alone” (M. Steyn)

Posted on by

Steyn, Mark – America Alone: The End of the World as we Know It (2006)
Category: Islam; Eurabia; humor; Rating: 3/5
Summary: The future belongs to Islam (M. Steyn)

It crept up on the West silently. Even as post-historical white Europeans were busy puffing on their weed, hugging trees and chanting Kumbaya in a happy circle, in the dark recesses of their post-industrial civilization – from Britain’s wrecked mill towns to the gray apartment blocks of Malmö, a dark force was bedding, breeding and brooding on history’s return to the mighty continent. They were the Muslims.

*ominous drumbeat*

Slow and surely, they used the lobbying methods of gay rights and feminist organizations to spread their baneful influence to the heights of political power. Sharia enforced at the point of a gun became the law of the land in the grim banlieues of Paris and the gray apartment blocks of Londonistan. They became centers of global jihadist networks that intertwined modern technology, ancient hatreds and Western moral relativism to strike severe blows at its quailing hosts, the apathetic, limp-wristed citizenries presided over by disconnected Eurocrats who were too terrified to do anything but appease. All heroic dissenters, like Mark Steyn, who tried to warn Europe of its mortal peril, were ungratefully cut off by political correctness laws – where the Islamists did not cut off their heads for real, that is.

Some Europeans realized what was happening. Some “reverted” to the Islamofascist wave of the future, making their peace with the new world. The enterprising and quick-witted emigrated to the US of A, one of the world’s few remaining citadels of freedom and prosperity. Most accepted their fate passively – aging, deprived of their pensions through state bankruptcies, forced to pay jizya to their new masters who cut their beards, took away their beer and covered up their women. Though a few bands of neo-Nazi “patriots” tried to stem the Islamic tide, they were outnumbered and crushed in the ensuing civil wars.

*soundtrack*

The world retreated into a new Dark Age of nuclear-armed tinpot dictatorships, transnational terrorists equipped with the latest technology, a totalitarian China, a re-primitivized Russia of nuclearized anarchy fought over by the Chinese Army, brutal Muslim warlords and the dispossessed remnants of its original denizens, and a civil war-torn Europe alternating between fascist black and Islamist green. The barbarian of chaos and destruction leaves only a single, tattered Stars and Stripes fluttering on the winds of time, for now America stands alone as the last bastion of enlightenment amidst the stifling darkness that threatens to engulf it too.

Continue reading →

Review of George Friedman’s “The Next 100 Years”

Posted on by

The Next 100 Years by George Friedman, published in 2010. Rating: 3/5

George Friedman at Stratfor is one of my favorite analysts on world geopolitics. This is because he tries to look at the world as it is, without the pointless moralizing, neoliberal ideologizing and end-of-history triumphalism that clouds too much American geopolitical thinking. Hence whenever I come across new and substantial material from him, although I might not agree with some (or most) of what he says, I nonetheless adjust my beliefs (in a good Bayesian fashion).

And lo and behold!, he comes out with a new book – The Next 100 Years. Funnily enough, it is about the next 100 years, or more specifically, the interplay between technological and demographic trends and geopolitical dynamics that will shape the twenty-first century.

I was originally going to copy out its entire first chapter, Overture (which is available online) and just comment on it. Unfortunately this makes it far too long and I had problems publishing it. So I’ll headline and summarize Friedman’s main points instead and leave my original commentary largely unchanged.

1. The future is unpredictable: “Be practical, expect the impossible”.

Friedman starts off by summarizing the history of the last century in twenty year chunks. Thus we got from the globalized idyll of 1900, through the chaos of 1940, the gathering storm clouds of 1940, the American dominance in 1960, the rising Soviet challenge in 1980 and culminating in the renewed globalized idyll of 2000 – only to be again disrupted by 9/11.

Completely agreed – most commentary is about the short-term, or at best linear extrapolations of short-term things. Good futurists think in terms of differentials, exponents and tipping points.

Continue reading →