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Strong bounce-back in jobs, but wage growth still lackluster


We can all breathe a big sigh of relief – the job market does not appear to be dramatically slowing.

After a very weak jobs report for the month of May – when only 11,000 jobs were created – the employment numbers bounced back strongly in June, with 287,000 payroll jobs created this month.

This represents the strongest monthly rate of new job creation this year, and is well above economist expectations of about 170,000 jobs created. The return of Verizon workers to their jobs after a strike last month accounted for only about 35,000 of these jobs. Employment growth over the past 3 months now averages 147,000 – a bit below last year’s rate but quite good in a labor market where there is now less slack than before.

Job growth was strong in a range of sectors, including leisure and hospitality, health care and information technology. Growth was also notable in professional and business services, retail trade and finance. Even manufacturing showed a small uptick in employment (of 14,000), after having fallen in previous months (due to the rising value of the dollar and economic slowdowns overseas). But construction jobs this month were flat and mining employment fell again, but only slightly.

On the household side of the ledger, unemployment edged up a bit, from 4.7 to 4.9 percent. But much of this was due to a small bounce back in the labor force participation rate, which had dipped in the previous two months. Other concerns, such as rising part-time employment among those preferring full-time work, were also eased as such employment declined this month.

If there was any disappointment in the report, it was in wage growth. Hourly wages rose by just 2 cents this month, or about 1 percent on an annualized basis. Wage growth had been stronger in the two previous months, suggesting that some labor markets were perhaps tightening up. Over the past year, wage growth has averaged 2.6 percent – above the inflation rate and a modest improvement over previous years in which we were slowly recovering from the Great Recession.

Overall, the June jobs report should ease concerns of a coming economic slowdown, which grew stronger after the “Brexit” vote in Britain. Indeed, this report restores the view that prevailed a few months before, of a slowly but steadily improving labor market.

Authors

      
 
 




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Figure of the week: Annual Nelson Mandela lecture focuses on the potential of Africa’s youth


On Monday, July 18, 2016, the world celebrated Nelson Mandela International Day, a day recognizing the former president of South Africa’s commitment to fostering peace and freedom. Every year the Nelson Mandela Foundation hosts a lecture, inviting prominent individuals to discuss significant social issues affecting the African continent. For this year’s lecture, Bill Gates was selected to speak on the theme of “Living Together” in front of a packed stadium in Pretoria. Gates focused on a topic Mandela returned to repeatedly throughout his life—the power of the youth. In the words of Gates, “…young people are better than old at driving innovation because they are not locked in by the limits of the past… we must clear away the obstacles standing in young people’s way so that they can seize all of their potential.”

Unfortunately, South Africa, the second-largest economy on the continent, has the highest youth unemployment rate at 54 percent, as seen in the figure below. Surprisingly, according to the figure the highest rates of youth unemployment lie in the upper-middle-income countries as classified by GNI per capita. Additionally, these unemployment rates might be depressed due to the fact that unemployment refers to people looking for jobs, and many of Africa’s youth are forced into the informal sector after giving up on their search for employment.

Although youth unemployment in Africa is often seen as a growing challenge, a number of experts interpret the large youth population as an opportunity, as long as the youth have access to the economic opportunities through which they can channel their energy into progress. As Africa’s youth is predicted to grow exponentially, achieving broad-based economic growth and development will rely on breaking down the barriers to economic opportunity, by investing in human capital (through education) and in improving business environments. 

Figure 2.3. Youth unemployment will continue to be a growing challenge in 2016

Interestingly, GDP and income classification have little correlation with youth unemployment rates. For example, South Africa, which has the second-largest economy on the continent and is considered an upper-middle-income country based on its GNI per capita, has the highest youth unemployment rate at nearly 54 percent. Meanwhile, the Liberian economy, which is nearly 200 times smaller than South Africa’s, has a youth unemployment rate 10 times smaller. Youth unemployment is measured as the share of the labor force (ages 15-24) without work but available for and seeking employment. Estimates may be low in some low-income countries like Liberia because many young people cannot afford not to work to seek employment and as a result, end up in low-paying jobs.

Source: Youth unemployment figures from World Development Indicators and GDP data from the World Bank databank.

See the Brookings Africa Growth Initiative’s Foresight Africa 2016 report, from which the figure below comes, for more highlights on the growing challenge of youth unemployment in Africa. In addition, earlier this month the Brookings Institution hosted an Africa Policy Dialogue on the Hill on jobs in Africa, alluding to the shortcomings of the educational systems and the importance of infrastructure and electricity to support business and attract investment. For a summary of the conversation, see here.

Tor Syvrud contributed to this post.

Authors

  • Amy Copley
      
 
 




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Labor force dynamics in the Great Recession and its aftermath: Implications for older workers


Unlike prime-age Americans, who have experienced declines in employment and labor force participation since the onset of the Great Recession, Americans past 60 have seen their employment and labor force participation rates increase.

In order to understand the contrasting labor force developments among the old, on the one hand, and the prime-aged, on the other, this paper develops and analyzes a new data file containing information on monthly labor force changes of adults interviewed in the Current Population Survey (CPS).

The paper documents notable differences among age groups with respect to the changes in labor force transition rates that have occurred over the past two decades. What is crucial for understanding the surprising strength of old-age labor force participation and employment are changes in labor force transition probabilities within and across age groups. The paper identifies several shifts that help account for the increase in old-age employment and labor force participation:

  • Like workers in all age groups, workers in older groups saw a surge in monthly transitions from employment to unemployment in the Great Recession.
  • Unlike workers in prime-age and younger groups, however, older workers also saw a sizeable decline in exits to nonparticipation during and after the recession. While the surge in exits from employment to unemployment tended to reduce the employment rates of all age groups, the drop in employment exits to nonparticipation among the aged tended to hold up labor force participation rates and employment rates among the elderly compared with the nonelderly. Among the elderly, but not the nonelderly, the exit rate from employment into nonparticipation fell more than the exit rate from employment into unemployment increased.
  • The Great Recession and slow recovery from that recession made it harder for the unemployed to transition into employment. Exit rates from unemployment into employment fell sharply in all age groups, old and young.
  • In contrast to unemployed workers in younger age groups, the unemployed in the oldest age groups also saw a drop in their exits to nonparticipation. Compared with the nonaged, this tended to help maintain the labor force participation rates of the old.
  • Flows from out-of-the-labor-force status into employment have declined for most age groups, but they have declined the least or have actually increased modestly among older nonparticipants.

Some of the favorable trends seen in older age groups are likely to be explained, in part, by the substantial improvement in older Americans’ educational attainment. Better educated older people tend to have lower monthly flows from employment into unemployment and nonparticipation, and they have higher monthly flows from nonparticipant status into employment compared with less educated workers.

The policy implications of the paper are:

  • A serious recession inflicts severe and immediate harm on workers and potential workers in all age groups, in the form of layoffs and depressed prospects for finding work.
  • Unlike younger age groups, however, workers in older groups have high rates of voluntary exit from employment and the workforce, even when labor markets are strong. Consequently, reduced rates of voluntary exit from employment and the labor force can have an outsize impact on their employment and participation rates.
  • The aged, as a whole, can therefore experience rising employment and participation rates even as a minority of aged workers suffer severe harm as a result of permanent job loss at an unexpectedly early age and exceptional difficulty finding a new job.
  • Between 2001 and 2015, the old-age employment and participation rates rose, apparently signaling that older workers did not suffer severe harm in the Great Recession.
  • Analysis of the gross flow data suggests, however, that the apparent improvements were the combined result of continued declines in age-specific voluntary exit rates, mostly from the ranks of the employed, and worsening reemployment rates among the unemployed. The older workers who suffered involuntary layoffs were more numerous than before the Great Recession, and they found it much harder to get reemployed than laid off workers in years before 2008. The turnover data show that it has proved much harder for these workers to recover from the loss of their late-career job loss.

Download "Labor Force Dynamics in the Great Recession and its Aftermath: Implications for Older Workers" »

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Authors

Publication: Center for Retirement Research at Boston College
      
 
 




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Israel’s Arab parties may help determine who runs the next government.

       




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In Israel, Benny Gantz decides to join with rival Netanyahu

After three national elections, a worldwide pandemic, months of a government operating with no new budget, a prime minister indicted in three criminal cases, and a genuine constitutional crisis between the parliament and the supreme court, Israel has landed bruised and damaged where it could have been a year ago. This week, Israeli opposition leader…

       




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A growth strategy for the Israeli economy

EXECUTIVE SUMMARY Annual economic growth in Israel of 3.5% over the past decade has largely been the result of an increase in employment rates, while the growth rate in productivity has been very low. The rates of employment cannot continue to grow at this rate in the future due to the expected saturation in employment…

       




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What does the Gantz-Netanyahu coalition government mean for Israel?

After three inconclusive elections over the last year, Israel at last has a new government, in the form of a coalition deal between political rivals Benjamin Netanyahu and Benny Gantz. Director of the Center for Middle East Policy Natan Sachs examines the terms of the power-sharing deal, what it means for Israel's domestic priorities as…

       




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Rule of law is essential for the economy, too

       




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Should we restructure the Supreme Court?

The Vitals In recent presidential campaigns, Republicans more than Democrats have made selecting federal judges, especially Supreme Court justices, a top issue. 2020 may be different. Left-leaning interest groups have offered lists of preferred nominees, as did candidate Trump in 2016. Groups, along with some Democratic candidates, have also proposed  changes to the size of…

       




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The Trump administration misplayed the International Criminal Court and Americans may now face justice for crimes in Afghanistan

At the start of the long war in Afghanistan, acts of torture and related war crimes were committed by the U.S. military and the CIA at the Bagram Internment Facility and in so-called “black sites” in eastern Europe. Such actions, even though they were not a standard U.S. practice and were stopped by an Executive…

       




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The rule of law is under duress everywhere

Anyone paying attention to major events of the day in the United States and around the world would know that the basic social fabric is fraying from a toxic mix of ills — inequality, dislocation, polarization, environmental distress, scarce resources, and more. Signs abound that after decades of uneven but steady human progress, we are…

       




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Why a proposed HUD rule could worsen algorithm-driven housing discrimination

In 1968 Congress passed and President Lyndon B. Johnson then signed into law the Fair Housing Act (FHA), which prohibits housing-related discrimination on the basis of race, color, religion, sex, disability, familial status, and national origin. Administrative rulemaking and court cases in the decades since the FHA’s enactment have helped shape a framework that, for…

       




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Webinar: Policing in the era of COVID-19

The consequences of the novel coronavirus pandemic stretch across the entirety of government services. Major police agencies have reported absentee rates as high as 20% due to officers who are either themselves afflicted with the virus or in need of self-quarantine. Reported crimes are generally down in America’s cities as a result of the many…

       




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How close is President Trump to his goal of record-setting judicial appointments?

President Trump threatened during an April 15 pandemic briefing to “adjourn both chambers of Congress” because the Senate’s pro forma sessions prevented his making recess appointments. The threat will go nowhere for constitutional and practical reasons, and he has not pressed it. The administration and Senate Republicans, though, remain committed to confirming as many judges…

       




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Lessons from the Shutdown: Management Matters, Even for Presidents

In the wake of the shutdown, problems with the healthcare.gov exchanges have come to light. Elaine Kamarck explains that one lesson from the experience is that president need to devote extensive time to management issues, yet few rarely do. The result is always problems that capsize a president's agenda.

      
 
 




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Book Review of Al From’s Reflections on the Creation and Rise of the DLC

Phillip Wallach reviews Al From’s new political memoir, The New Democrats and the Return to Power (2013). The book contains a wealth of historical material, including From’s time working in the Clinton transition team from 1992-1993 and his efforts to spread a progressive Third Way abroad during the late 1990s.  One lesson in particular stands out: institutional change is a long slog, requiring a combination of fertile political conditions and reformers well prepared to seize their moment. Yet From notes that a Democratic Leadership Council-style turnaround will be harder for Republicans today because today’s Republicans are more homogeneous and less inclusive than the Democrats of the 1980s.

      
 
 




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What Will Be Bernanke’s Political Legacy?

As Ben Bernanke finishes his term as chairman of the Federal Reserve, Sarah Binder reflects on Bernanke's political legacy, and how he contributed to the Fed's standing in America's political system.

      
 
 




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The Case for Corruption: Why Washington Needs More Honest Graft


Jonathan Rauch describes the concept of honest graft in Washington politics and policymaking. Politics needs good leaders, but it needs good followers even more, and they don’t come cheap. Loyalty gets you only so far, and ideology is divisive. Political machines need to exist, and they need to work.
      
 
 




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Political Takeaways From the Federal Reserve Transcripts


The Federal Reserve last week released transcripts of Federal Open Market Committee (FOMC) meetings that took place in 2008 amidst a worsening global financial crisis. Sarah Binder describes what was found amongst the transcripts. Alongside financial and economic crises facing the Fed that year, the Fed faced a crisis as a political institution.  

      
 
 




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It’s the Family, Stupid? Not Quite…How Traditional Gender Roles Do Not Affect Women’s Political Ambition

In April of 2014, media outlets speculated whether Hillary Clinton’s future grandchild would impact her potential presidential campaign in 2016. Jennifer Lawless addresses the question of whether family roles and responsibilities affect a potential candidate’s political career. Lawless analyzes both female and male candidates and finds that traditional roles and responsibilities have little influence on candidates’ decision to run for office. 

      
 
 




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Turning Around Downtown: Twelve Steps to Revitalization

This paper lays out the fundamentals of a downtown turnaround plan and the unique "private/public" partnership required to succeed. Beginning with visioning and strategic planning to the reemergence of an office market at the end stages, these 12 steps form a template for returning "walkable urbanism" downtown.

Though every downtown is different there are still common revitalization lessons that can be applied anywhere. While any approach must be customized based on unique physical conditions, institutional assets, consumer demand, history, and civic intent, this paper lays out the fundamentals of a downtown turnaround plan and the unique "private/public" partnership required to succeed. Beginning with visioning and strategic planning to the reemergence of an office market at the end stages, these 12 steps form a template for returning "walkable urbanism" downtown.

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The National Trend of Downtown Revitalization

In this speech at the annual meeting of the Downtown Detroit Partnership, Chris Leinberger discussed the downtown Detroit strategic planning process Brookings has started in partnership with the University of Michigan.

The metro program hosts and participates in a variety of public forums. To view a complete list of these events, please visit the metro program's Speeches and Events page which provides copies of major speeches, PowerPoint presentations, event transcripts, and event summaries.

Selected Media Coverage
Expert Offers Tips to Give Downtown a Lift
UM Land-Use Strategist: Detroit Poised for Downtown Redevelopment

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Publication: Downtown Detroit Partnership
     
 
 




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Where the Next $30 Trillion Will Be Invested in the Built Environment Between Now and 2025

During his presentation at the University of Michigan/Urban Land Institute Real Estate Forum, Christopher B. Leinberger discusses the impact walkable urbane places has and will have on metropolitan development patterns, the market reasons for this change and how to strategically manage it.

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Publication: University of Michigan/Urban Land Institute Real Estate Forum
     
 
 




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Footloose and Fancy Free: A Field Survey of Walkable Urban Places in the Top 30 U.S. Metropolitan Areas

Introduction

The post-World War II era has witnessed the nearly exclusive building of low density suburbia, here termed “drivable sub-urban” development, as the American metropolitan built environment. However, over the past 15 years, there has been a gradual shift in how Americans have created their built environment (defined as the real estate, which is generally privately owned, and the infrastructure that supports real estate, majority publicly owned), as demonstrated by the success of the many downtown revitalizations, new urbanism, and transit-oriented development. This has been the result of the re-introduction and expansion of higher density “walkable urban” places. This new trend is the focus of the recently published book, The Option of Urbanism: Investing in a New American Dream (Island Press, November 2007).

This field survey attempts to identify the number and location of “regional-serving” walkable urban places in the 30 largest metropolitan areas in the U.S., where 138 million, or 46 percent, of the U.S. population lives. This field survey determines where these walkable urban places are most prevalent on a per capita basis, where they are generally located within the metro area, and the extent to which rail transit service is associated with walkable urban development.

The first section defines the key concepts used in the survey, providing relevant background information for those who have not read The Option of Urbanism. The second section outlines the methodology. The third section, which is the heart of the report, outlines the findings and conclusions of the survey.

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Walkable Urbanism

Chris Leinberger discusses his book about the most walkable urban and metro areas in the United States with Nicole Lapin from CNN.

NICOLE LAPIN: Walkable Urbanism.  Well, it's spreading beyond the boundaries of inner cities and into suburbs as Gen-Xers and empty nesters are searching for communities offering a walkable lifestyle. Well, all of this is according to a brand new book The Option of Urbanism Investing in a New American Dream.  The book was written in conjunction with the survey by the Brookings Institution. Brookings basically compiled a list of the best places for a car-less walkable urban lifestyle. Where you can basically: work, go home, go shopping, go to school, see entertainment all within a walking distance. So joining me now to talk more about this whole idea, the new 'American Dream,' is the author of that book Chris Leinberger. He joins us live from the Brookings Institution. Chris, thank you so much.

CHRIS LEINBERGER: Why thank you Nicole.

NICOLE LAPIN: Okay, first of all, let’s talk about this list because I got in my car this morning in Atlanta. I'm assuming Atlanta is not on the list?

CHRIS LEINBERGER: It's sort of in the middle of the list – it's not towards the top.

NICOLE LAPIN: Okay, so the top ten, can we start out, what’s number one?

CHRIS LEINBERGER: Number one is Washington, D.C. – and again we are talking about the metropolitan area.

NICOLE LAPIN: So, basically the west end, west of downtown, that has changed so much lately.

CHRIS LEINBERGER: Yes it has, but downtown itself has probably been the most remarkable downtown turnaround in the country. But, then all of the downtown adjacent places like the west end – which was an old industrial section – that's almost now built out. Dupont Circle which was dangerous twenty years ago is now a very elegant place and three or four other places around downtown, so it's not just downtown. 

Watch the full interview>>

Authors

Publication: CNN
     
 
 




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Walkable Urbanism is Changing City Life

Ever since World War II, the American dream has encompassed the four-bedroom house with a white picket fence, tucked away in the suburbs. But this dream has gradually turned into a nightmare, with the increase of traffic, congestion and the general inconvenience of being detached from the city. Whereas people once rejoiced in camping trips to escape metropolitan living, we are now, as a culture, magnetized towards it as the appeal for walking more and driving less steadily increases.

KOJO NNAMDI:Chris you've dubbed this new style of living- "Walkable Urbanism." What is the evidence of a rising demand for it?

CHRIS LEINBERGER: There's demographic evidence; there's consumer research evidence; but probably the most compelling evidence is the price premium people are willing to pay to live in a walkable urban place, that the survey's show anywhere from a 40% to 200% price premium on a price per square foot basis for a walkable urban place as oppose to a competitive near by drivable suburban place.

KOJO NNAMDI: So it used to be that a condo or a townhouse was entry level product for people who couldn’t afford a real house, its beginning to be the other way around?

CHRIS LEINBERGER: In fact in 2003 for the first time in the country's history, condos on a price per square foot basis cost more than single family housing, and that includes all those old condo's that were built to be a alternative to a quote "real house" which was a single family house.  Its fundamentally changed and we've only seen the beginning of this train.

KOJO NNAMDI: I am intrigued about why people's preferences are indeed changing. In your book you give some of the credit to popular culture. Talk about the difference between the baby boomers- who grew up on 'Leave it Beaver,' the 'Brady Bunch' versus Generation Xer's who watch 'Seinfeld, and 'Sex in the City.'

CHRIS LEINBERGER: That’s just a reflection of the market reality. Hollywood does more consumer research than any business in the entire economy, and there out there doing focus groups constantly. So there reflecting what’s going on. Baby Boomers when they would see somebody- an image on the screen of some young woman flimsily dressed, walking down a dark street in a city, they would think- 'Oh my God, Hill street blues, and Blade Runner.' And the Gen-Xer's think, 'oh she is going to go to a new art gallery opening right down the street with all her friends.' Whole different perception of what a city life is like.

KOJO NNAMDI: A generational difference...

  
Listen to the full interview

Authors

Publication: The Kojo Nnamdi Show (WAMU)
      
 
 




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Dallas Should Walk This Way

Walk Score®, a new Web site popular with urbanists and environmental advocates (www.walkscore.com), rates neighborhoods by their walkability--basically the ease of meeting daily needs on foot. The higher the Walk Score®, the more walkable a place is.

Beyond its utility, however, the rise of Walk Score® is another indicator that how the American Dream lays out on the ground has been fundamentally changing over the past 10 to 15 years. Dallas in general and downtown Dallas in particular is well on its way to accommodating this new version of the American Dream, but more needs to be done.

The Ozzie and Harriet drivable suburban vision of the American Dream is being supplemented by the Seinfeld vision of "walkable urbanism." Led by late-marrying young adults and empty-nester baby boomers, many households are looking for the excitement and options that living and working in a walkable urban place can bring. Current demographic trends promise continued demand.

A recent Brookings Institution survey of the largest 30 metro areas in the country identifies the 157 walkable urban places that play a regionally significant role, such as concentrations of employment, education, professional sports, entertainment and housing. It ranked these metros on their per capita number of walkable urban places. Washington, D.C., was first, followed by Boston, San Francisco, Denver and Portland.

The top 15 metro areas had the vast majority, 85%, of these walkable urban places, though only two-thirds of the surveyed population. This showed that the top 30 metros are dividing between haves and have nots: metropolitan areas that have many walkable urban options and those that are lagging. Additionally, two-thirds of these 157 places had rail transit, demonstrating the importance of rail transit to the emergence of walkable urbanism.

A surprising finding of the survey is that while downtowns are a major location of walkable urbanism, downtown adjacent places are exploding in number and size. Places like Lincoln Park in Chicago, Dupont Circle in Washington, D.C., and the Pearl District in Portland, Ore., are booming alongside their resurgent downtowns.

A major benefit of walkable urban development is that its keeps and attracts young adults to the metro area, many of whom willingly trade crushing car commutes for walkable places to live and work. Walkable urban places seem to attract the well educated, the so called "creative class." Even the nascent revival in downtown Detroit has seen 83% of new residents arriving with a college education, compared to 26% of the national population.

While the Dallas metro ranked only 25th of 30 in the Brookings' survey, there are reasons to believe your destiny is to become a major concentration of walkable urban places. That reasoning starts with your investment in Dallas Area Rapid Transit light rail and the Trinity Railway Express commuter rail. This is being followed by aggressively encouraging high-density zoning around rail stations and in downtown adjacent locations. The combination of rail transit and high density zoning is essential to allow the private real estate community to respond to the pent-up market and economic demand of walkable urban development.

Finally, it is crucial to manage the various walkable urban places that either exist or are evolving. The role model in the Dallas area is the DowntownDallas organization, which provides security, signage and strategic direction for downtown.

The future of the Dallas metro area is linked to your ability to provide both more walkability options and expanded offerings of existing walkable urban places. There should be 15-20 more places like downtown Dallas, downtown Fort Worth, Uptown, Plano Town Center and Addison Circle for the region to meet the pent-up demand for walkable urbanism.

Building those additional walkable urban places will continue the economic development miracle that has been Dallas metro for so many years and it will increase your Walk Scores® as well.

Publication: Dallas Business Journal
      
 
 




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Philly's Many Walkable "Center Cities"

WALK SCORE, a new Web site popular with urbanists and environmentalists (walkscore.com), rates places for their walkability—the ease of meeting daily needs on foot.

The popularity of the site is an indicator that how the American Dream plays out on the ground has been fundamentally changing over the last 10 to 15 years.

The Ozzie and Harriet drivable suburban version of the American Dream is being supplemented by the Seinfeld vision of "walkable urbanism." Led by late-marrying young adults and empty-nester baby-boomers, many households are looking for the excitement and options living and working in a walkable urban place can bring. With almost nine of 10 new households over the next 20 years being singles or couples without children, this trend promises to continue.

A recent Brookings Institution survey of the largest 30 metro areas in the country identifies the 157 walkable urban places that play a regionally significant role. It also ranks the Top 30 metros in per capita number of walkable urban places. The Philadelphia metropolitan area ranks as the 13th highest on the number of walkable urban places per capita.

Certainly the many already revived downtowns like those in Denver, Washington, Portland, Seattle and San Diego are the most visible signs of the walkable urban trend. But there are many other places you might not suspect.

This includes the emergence of "downtown-adjacent" places like Chelsea and Union Square in New York, suburban town centers like Pasadena and Long Beach in the L.A. area and even built-from-scratch spots like Reston Town Center near Dulles Airport, 30 miles outside Washington.

A major benefit of walkable urban development is that it keeps and attracts young adults to the metro area, many of whom willingly trade crushing car commutes and high gas prices for lively walkable places to live and work.

Walkable urban places seem to attract the well-educated, the so-called "creative class."

Approximately 26 percent of Americans over 25 have college degree - but 99 percent of the new residents moving to Center City this decade have a college degree.

Walkable urbanism increases the economic development potential of the metro area in the knowledge economy. If many of the Gen X-ers and the Millennial generations do not get this lifestyle, they'll move to New York or Washington, depriving Philadelphia of the entrepreneurs it needs to grow.

Walkable urbanism is also essential to create sustainable places to live and work, reducing greenhouse-gas emissions. It is probable that walkable urban households emit less than half the greenhouse gas as driving suburban households - they walk more and unavoidably share heat with upstairs neighbors.

Center City and Society Hill are the most obvious, though not the only, locations of this trend in the Philadelphia region. The recent emergence of University City around Penn and Drexel, Manayunk and New Hope are other significant walkable urban places in the Delaware Valley.

Missing are additional places in the suburbs, particularly around commuter and subway stations.

Rail transit is crucial for walkable urbanism places to emerge.

The investment has already been made for this comprehensive, if underfunded, rail system. Building high-density, mixed-use places around these stations will fulfill pent-up market demand, promote economic growth, lower greenhouse emissions and even give their suburban neighbors a great place for a restaurant within walking distance.

Over the next few years, Philadelphia metro will no doubt see its ranking in the Brookings survey rise while more households will see their Walk Score numbers soar. Seinfeld is coming to Philadelphia. *

Leinberger is a visiting fellow at the Brookings Institution, professor at the University of Michigan and a limited partner in Arcadia Land Co., which has projects in the Philadelphia and Kansas City areas. His most recent book is "The Option of Urbanism: Investing in a new American dream" (Island Press, 2007).

Publication: Philadelphia Daily News
      
 
 




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New Kind of Growth Emerging for Charlotte

I have been coming to Charlotte for 25 years, consulting for the likes of Crosland and Faison Enterprises, and have observed in Charlotte one of the most remarkable metropolitan transformations in the country. The economy has obviously changed, becoming one of the largest concentrations of U.S. financial institutions, thanks to the likes of Hugh McColl, Bank of America and Wachovia.

Your town has seen the metropolitan edge grow into South Carolina and up past Davidson. This sprawl is balanced by the splendor of uptown, or Center City, partially a benefit of McColl's focus on your downtown.

I returned to Charlotte two weeks ago, courtesy of the Charlotte Region Civic By Design Forum, sponsored by AIA Charlotte, to see what has happened since my last visit and to give a speech about the structural shift in how the country is building its built environment. As I mentioned in a column in the Observer before I came (March 8, "Charlotte, walk this way"), the metro areas are changing from just offering the Ozzie and Harriet version of the American Dream and adding a "walkable urban" Seinfeld version as well.

So what did I see in Charlotte?

First, I saw the beginning of the end of sprawl. Like much of the rest of the country, the over-production of automobile-driven suburban development at the fringe of your metropolitan area has reached its limits. The combination of outrageous commutes, high gas prices, and the increasing number of consumers preferring a walkable urban way of life have combined to end the geometric increase in land consumption.

The sub-prime crisis has just accelerated an underlying trend. That trend demonstrates that a lifestyle predicated on cheap gas, subsidized infrastructure and long commutes could not last.

Walkable, urban places

But what is emerging to take its place?Metro Charlotte seems to be following a national trend in creating and growing high-density, walkable urban places. The opening of the Lynx light rail line to the south is showing the way. It starts in a re-energized Center City with the one-of-a-kind performing arts center, museums, high-rise temples of commerce, sports venues, a convention center, high-end hotels, the central library, among other regionally significant treasures. There is now a "there there" in Center City.

However, housing is the true sign that a downtown is viable. For years, the few urbanites in Charlotte found refuge in the Fourth Ward, one of the special places in the South. However, resilient, safe and racially and socially integrated housing districts have emerged in the First, Second and Third Wards, as well as the beginning of luxury high-rise living in the heart of Center City. There even are small grocery stores and some of the best dining in the region. You are seeing the emergence of a Big City.

But it definitely is not confined to Center City.

Downtown-adjacent places such as Southend, arts-focused places like NoDa, and emerging Elizabeth Avenue and Midtown all are providing rich options. Each of these places has its own character. These places offer a somewhat lower density, but still walkable urban, alternative to Center City.

There is going to be a major hurdle to transforming SouthPark into what it wants to be, an upscale walkable urban place like Winter Park in Orlando or Bethesda near Washington, D.C. It was built for the easy movement and storage of the car, and a decision will have to be made as to whether it wants to be a drivable place -- or a walkable place. Right now, it is trying to be both, is neither fish nor fowl, and this will fail. The fact that there are no plans for rail transit nearby is just one of many signs that it is a very confused area.

Metro Charlotte's future

Regardless of whether SouthPark figures out what it wants to be when it grows up, there will be 8-10 regionally significant, walkable urban places to develop in Metro Charlotte over the next two decades. Each will have a unique character and different density. What they will have in common is that they are walkable (also bikable) for most residents' everyday needs and maybe even employment.

Only four or five have begun to germinate so far. SouthPark should be on that list but won't be until it solves its identity crisis. Where will the others emerge? Best bet is to follow the rails. Most will be anchored by a transit station.

I think I have seen the future of Charlotte. Continue to build out the light-rail system and encourage mixed-use, high-density zoning around the stations. You will find that your extraordinary growth of the past generation will continue but in a new and different manner since the market demands different options. You will also find that this new kind of growth will be economically, financially and environmentally more sustainable.

Publication: The Charlotte Observer
      
 
 




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Ohio's Cities at a Turning Point: Finding the Way Forward

For over 100 years, the driving force of Ohio’s economy has been the state’s so-called Big Eight cities—Columbus, Cleveland, Cincinnati, Toledo, Akron, Dayton, Canton, and Youngstown. Today, though, the driving reality of these cities is sustained, long-term population loss. The central issue confronting these cities—and the state and surrounding metropolitan area—is not whether these cities will have different physical footprints and more green space than they do now, but how it will happen.

The state must adopt a different way of thinking and a different vision of its cities’ future—and so must the myriad local, civic, philanthropic, and business leaders who will also play a role in reshaping Ohio’s cities. The following seven basic premises should inform any vision for a smaller, stronger future and subsequent strategies for change in these places:

  • These cities contain significant assets for future rebuilding
  • These cities will not regain their peak population
  • These cities have a surplus of housing
  • These cities have far more vacant land than can be absorbed by redevelopment
  • Impoverishment threatens the viability of these cities more than population loss as such
  • Local resources are severely limited
  • The fate of cities and their metropolitan areas are inextricably inter-connected

These premises have significant implications for the strategies that state and local governments should pursue to address the issues of shrinking cities.

Full Paper on Ohio's Cities » (PDF)
Paper on Shrinking Cities Across the United States »

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Walk this Way:The Economic Promise of Walkable Places in Metropolitan Washington, D.C.


An economic analysis of a sample of neighborhoods in the Washington, D.C. metropolitan area using walkability measures finds that:

  • More walkable places perform better economically. For neighborhoods within metropolitan Washington, as the number of environmental features that facilitate walkability and attract pedestrians increase, so do office, residential, and retail rents, retail revenues, and for-sale residential values.

  • Walkable places benefit from being near other walkable places. On average, walkable neighborhoods in metropolitan Washington that cluster and form walkable districts exhibit higher rents and home values than stand-alone walkable places.

  • Residents of more walkable places have lower transportation costs and higher transit access, but also higher housing costs. Residents of more walkable neighborhoods in metropolitan Washington generally spend around 12 percent of their income on transportation and 30 percent on housing. In comparison, residents of places with fewer environmental features that encourage walkability spend around 15 percent on transportation and 18 percent on housing.

  • Residents of places with poor walkability are generally less affluent and have lower educational attainment than places with good walkability. Places with more walkability features have also become more gentrified over the past decade. However, there is no significant difference in terms of transit access to jobs between poor and good walkable places.

The findings of this study offer useful insights for a diverse set of interests. Lenders, for example, should find cause to integrate walkability into their underwriting standards. Developers and investors should consider walkability when assessing prospects for the region and acquiring property. Local and regional planning agencies should incorporate assessments of walkability into their strategic economic development plans and eliminate barriers to walkable development. Finally, private foundations and government agencies that provide funding to further sustainability practices should consider walkability (especially as it relates to social equity) when allocating funds and incorporate such measures into their accountability standards.

The Great Recession highlighted the need to change the prevailing real estate development paradigm, particularly in housing. High-risk financial products and practices, “teaser” underwriting terms, steadily low-interest rates, and speculation in housing were some of the most significant contributors to the housing bubble and burst that catalyzed the recession. But an oversupply of residential housing also fueled the economic crisis.

However, a closer look at the post-recession housing numbers paints a more nuanced picture. While U.S. home values dropped steadily between 2008 and 2011, distant suburbs experienced the starkest price decreases while more close-in neighborhoods either held steady or in some cases saw price increases. This distinction in housing proximity is particularly important since it appears that the United States may be at the beginning of a structural real estate market shift. Emerging evidence points to a preference for mixed-use, compact, amenity-rich, transit-accessible neighborhoods or walkable places.

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Image Source: Kevin Lamarque / Reuters
      
 
 




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The African leadership transitions tracker: A tool for assessing what leadership change means for development


Editor's Note: In this blog, Vera Songwe introduces the African Leadership Transitions Tracker, a new interactive that aims to start a broader conversation about leadership transitions and what they mean for the region and beyond.

On March 28, Nigerians voters will go to the polls to participate in their nation’s fifth election since the military handed over power to civilians in 1999. As Africa’s largest economy and an important oil exporter, this election comes at an important time for Nigeria and for the continent as a whole.

Events around this election have generated significant debate around electoral and voting processes on the continent such as the importance of a constitution, the cost, the frequency and level of contestability, and the power of incumbency in African elections. However, amid this dialogue, much less consideration has been devoted to where this election stands within the continuum of leader transitions Nigeria has experienced since it first gained independence in 1960. Nigerians have, in fact, gone through 18 leadership transitions in the last 55 years, including the untimely death of former President Umaru Masu Yar’Adua in May 2010, the multiparty elections that brought President Olusegun Obasanjo to power in 1999, and the first presidential elections that brought President Shegu Shagari to power in 1979. Nigeria’s high rate of leadership changeover should not, however, be considered illustrative of Africa’s overall story. On the contrary, a high level of diversity exists among countries in the region on this measure, with countries like Angola having had only one leadership transition since it achieved its independence in 1975, and Benin, on the other hand, undergoing an election, coup, or other type of leadership transition nearly every two years in the country’s 55-year post-independence history. However, overall in Africa today there are more peaceful and competitive leadership transitions than there have been over the last six decades. This contestability process is gaining ground across the continent, and while coups d’etat appear to be fading revolutions are gaining ground where competition has not taken hold.

The recent passing of Singapore’s 30 year-long leader Lee Kwan Yew credited with having taken Singapore from a third world country to a fully developed country in less than a generation, has brought the question of leadership and leadership transitions back to the fore. A 2010 report by Michael Spence’s Growth Commission heralds Lee Kuan Yew as the hero of Singapore’s growth story. The African Leadership Transition Tracker hopes to launch a dialogue on what the frequency, nature, and scope of leadership transitions mean for African countries’ growth, stability, and development trajectory overall. Moreover, how have transition trends in the region changed from the time of the African founding fathers and the tumultuous years of the 1960s to the present day?

As an initial step towards thinking this question through, Brookings’s African Growth Initiative is today launching the African Leadership Transitions Tracker as a resource both to inform readers about African political history and a tool to initiate analysis on what leadership changeover might mean (or not mean) for development. The Transitions Tracker specifically records all changes that have occurred at the head-of-state level in every African country between the end of the colonial period and the present day. We are hoping that recording this information and presenting it visually (and as a downloadable data set) will help start a broader conversation and support additional work on these issues. Brookings will update this data on a regular basis, and we welcome your feedback as we further refine this interactive. Moreover, the information we present today is by no means the full story—key variables are needed to complement this study, including, for example, the various political party affiliations of leaders within a country or cross tabulations with resources that seek to measure the level of citizen participation and engagement in these transitions. However, as further analysis takes place, we are hoping that the African Leadership Transitions Tracker will enrich dialogue about developments occurring in the region and place current news on elections or other types of changeover events within the broader context of the continent’s leadership story overall.  Over the next few months, we will be running a series of articles based on this data.  

Special thanks to Ehui Adovor, graduate student at George Washington University and the many AGI research assistants, analysts, and program staff that have supported this project, including Jessica Pugliese, Brandon Routman, Christina Golubski, Andrew Westbury, and Amy Copley.

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Africa in the News: John Kerry’s upcoming visit to Kenya and Djibouti, protests against Burundian President Nkurunziza’s bid for a third term, and Chinese investments in African infrastructure


John Kerry to travel to Kenya and Djibouti next week

Exactly one year after U.S. Secretary of State John Kerry’s last multi-country tour of sub-Saharan Africa, he is preparing for another visit to the continent—to Kenya and Djibouti from May 3 to 5, 2015. In Kenya, Kerry and a U.S. delegation including Linda Thomas-Greenfield, assistant secretary of state for African affairs, will engage in talks with senior Kenyan officials on U.S.-Kenya security cooperation, which the U.S. formalized through its Security Governance Initiative (SGI) at the U.S.-Africa Leaders Summit last August. Over the past several years, the U.S. has increased its military assistance to Kenya and African Union (AU) troops to combat the Somali extremist group al-Shabab and has conducted targeted drone strikes against the group’s top leaders.  In the wake of the attack on Kenya’s Garissa University by al-Shabab, President Obama pledged U.S. support for Kenya, and Foreign Minister Amina Mohamed has stated that Kenya is currently seeking additional assistance from the U.S. to strengthen its military and intelligence capabilities.

Kerry will also meet with a wide array of leaders from Kenya’s private sector, civil society, humanitarian organizations, and political opposition regarding the two countries’ “common goals, including accelerating economic growth, strengthening democratic institutions, and improving regional security,” according to a U.S. State Department spokesperson. These meetings are expected to build the foundation for President Obama’s trip to Kenya for the Global Entrepreneurship Summit in July of this year.

On Tuesday, May 5, Kerry will become the first sitting secretary of state to travel to Djibouti. There, he will meet with government officials regarding the evacuation of civilians from Yemen and also visit Camp Lemonnier, the U.S. military base from which it coordinates its counterterror operations in the Horn of Africa region.

Protests erupt as Burundian president seeks third term

This week saw the proliferation of anti-government street demonstrations as current President Pierre Nkurunziza declared his candidacy for a third term, after being in office for ten years.  The opposition has deemed this move as “unconstitutional” and in violation of the 2006 Arusha peace deal which ended the civil war. Since the announcement, hundreds of civilians took to the streets of Bujumbura, despite a strong military presence. At least six people have been killed in clashes between police forces and civilians. 

Since the protests erupted, leading human rights activist Pierre-Claver Mbonimpa has been arrested alongside more than 200 protesters. One of Burundi’s main independent radio stations was also suspended as they were covering the protests.  On Wednesday, the government blocked social media platforms, including Twitter and Facebook, declaring them important tools in implementing and organizing protests. Thursday, amid continuing political protests, Burundi closed its national university and students were sent home. 

Amid the recent protests, Burundi’s constitutional court will examine the president’s third term bid. Meanwhile, U.N. secretary general Ban Ki-moon has sent his special envoy for the Great Lakes Region to hold a dialogue with president Nkurunziza and other government authorities. Senior U.S. diplomat Tom Malinowski also arrived in Bujumbura on Thursday to help defuse the biggest crisis the country has seen in the last few years, expressing disappointment over Nkurunziza’s decision to run for a third term.

China invests billions in African infrastructure

Since the early 2000s, China has become an increasingly significant source of financing for African infrastructure projects, as noted in a recent Brookings paper, “Financing African infrastructure: Can the world deliver?” This week, observers have seen an additional spike in African infrastructure investments from Chinese firms, as three major railway, real estate, and other infrastructure deals were struck on the continent, totaling nearly $7.5 billion in investments.

On Monday, April 27, the state-owned China Railway Construction Corp announced that it will construct a $3.5 billion railway line in Nigeria, as well as a $1.9 billion real estate project in Zimbabwe. Then on Wednesday, the Industrial and Commercial Bank of China (one of the country’s largest lenders) signed a $2 billion deal with the government of Equatorial Guinea in order to carry out a number of infrastructure projects throughout the country. These deals align with China’s “One Belt, One Road” strategy of building infrastructure in Africa and throughout the developing world in order to further integrate their economies, stimulate economic growth, and ultimately increase demand for Chinese exports. For more insight into China’s infrastructure lending in Africa and the implications of these investments for the region’s economies, please see the following piece by Africa Growth Initiative Nonresident Fellow Yun Sun: “Inserting Africa into China’s One Belt, One Road strategy: A new opportunity for jobs and infrastructure?”

Authors

  • Amy Copley
     
 
 




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Why Hong Kong’s next election really matters


Hong Kong’s next vote for Chief Executive (CE)—scheduled for 2017—offers a narrow pathway for improving democratic governance. The question is will a few of Hong Kong’s democratic legislators recognize the opportunity and make the necessary compromises.

As I saw in a trip to the city last week, discussions about reforming the election process are already well underway. Up until now, the CE has always been chosen by a 1200-person selection committee, mostly comprised of members willing to follow China’s lead on major political issues. Now under consideration is a plan to elect the next CE through a one-person, one-vote election (universal suffrage). The number of eligible voters would jump from 1,200 to around 5 million.

The caveat from Beijing has been that the candidates for that election would be selected by a nominating committee to be modelled on—you guessed it—the old selection committee. Pro-democracy politicians have sought a more flexible and open-ended process. It was public opposition to Beijing’s nominating committee that set off the Umbrella Movement protests last September and the 79-day occupation of several downtown thoroughfares. The democrats’ opposition to the current plan is important because the tabled proposal must receive support from two-thirds of the Legislative Council to pass, and the government doesn’t have the votes. It needs four democrats to cross the aisle and vote for the package.

Outsized importance

Hong Kong is a small place (7.25 million people), but what happens to the universal suffrage proposal has rather large implications. I have often thought that how China calibrates its choices concerning Hong Kong’s political system says something about what kind of great power it will be. This is not the defining issue of China’s revival as a great power, to be sure. How Beijing uses its growing power economically, diplomatically, and coercively is more important.

Yet most of the objects of China’s exercise of power, particularly in East Asia, are countries with informed, patriotic populations who care about the security and independence of their countries. (The only real exceptions are the islands of the East and South China Sea whose only inhabitants are seagulls.) So China will have to balance any temptation to promote its interests in more assertive ways with a sensitivity to popular feeling. Indeed, its recent “big country” mentality has caused a backlash in the “small countries” it has tried to bend to its will.

Shifting politics

So Hong Kong should be a good test of China’s sensitivity level. It is constitutionally a part of China. Its population is predominantly ethnic Chinese. The overwhelming majority of people accept their lot as Chinese citizens and would do nothing to upset the status quo. They are inherently pragmatic and understand, most of them, the benefits Hong Kong enjoys by being a part of China, including the rule of law and some political freedoms.

But a significant majority also want genuine electoral democracy. If China had granted that ten years ago, the gratitude would have been profound. But the delay has had deleterious effects. Hong Kong’s politics have become more polarized and radicalized. Political mistrust is deep and moderates have been marginalized, especially in the democratic camp. Meanwhile, the new Chinese leadership is placing greater emphasis on national security, and Beijing’s propaganda organs warn of “foreign forces” (e.g. the United States) working behind the scenes to destabilize Hong Kong.

So far, therefore, the interaction between the Chinese central government and the majority of the Hong Kong public has not gone well as it could have. Things will come to a head in a couple of weeks when the Legislative Council votes on the electoral reform proposal. The democratic camp maintains an apparently strong united front and says it will vote as a bloc against the package, which will mean that Hong Kong reverts to the past “small circle” election of the CE.

During my visit I found a couple of brave souls who believe the game is not over; the dominant mood, however, was one of pessimism. If the package goes down, there will likely be no protests, since radical forces have at least blocked what they hate, even as they didn’t secure what they wanted. If the package passes, however, there will likely be protests akin to those last fall, but not as prolonged. Whatever happens, there will be a big demonstration on or around July 1, the eighteenth anniversary of Hong Kong’s return to China. The size of that rally will be a barometer of the intensity of public feeling.

A “narrow pathway” to success?

There is a curious aspect about the package that Legislative Council will vote on. As I outlined in a Brookings blog post in late April, the proposal actually creates a narrow pathway for the democrats to first nominate and then elect one of their own as CE.

It would require, above all, a willingness on the part of at least four democrats to set aside their dissatisfaction with the undemocratic defects of the current proposal (and they do exist) and focus on the democratic opportunity that it presents. Later on, it would require the democrat camp to unite in supporting a moderate candidate who would not invite Beijing’s automatic rejection and who would have broad public support (and such individuals do exist). It should also have confidence that the majority of voters are on their side and would vote for that candidate. This is not a sure thing. The pro-Beijing members of the nominating committee will have the power not to name that person as a candidate—but rejecting a moderate, popular democrat would put them in a very awkward position.

The independent people that I spoke to in Hong Kong last week agreed with me that the current proposal creates this “narrow pathway.” But they also deplored the reality that the mutual mistrust between the democratic and pro-Beijing camps has become a serious obstacle to a sensible compromise. Radicals dominate the democratic camp. Their influence often constrains moderate democrats who might otherwise vote, as an act of conscience, for the package.

Beijing could have conducted its engagement with the Hong Kong public and the democratic camp in a much more skillful way. The priority it places on control of Hong Kong has outweighed its pledges to institute democracy. That has not changed, and it has contributed to the radicalization of Hong Kong politics. Yet the radicals, who would rather fight than win, are now providing Beijing with a pretext to take no chances.

     
 
 




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The case for universal voting: Why making voting a duty would enhance our elections and improve our government


William Galston and E.J. Dionne, Jr. make the case for universal voting – a new electoral system in which voting would be regarded as a required, civic duty. Why not treat showing up at the polls in the same way we treat a jury summons, which compels us to present ourselves at the court? Galston and Dionne argue that universal voting would enhance the legitimacy of our governing institutions, greatly increasing turnout and the diversity of the American voter base, and ease the intense partisan polarization that weakens our governing capacity.

Citing the implementation of universal voting in Australia in 1924, the authors conclude that universal voting increases citizen participation in the political process. In the United States, they write, universal voting would promote participation among citizens who are not likely to vote—those with lower levels of income and education, young adults, and recent immigrants. By evening out disparities in the electorate, universal voting would put the state on the side of promoting broad civic participation.

In addition to expanding voter participation, universal voting would improve electoral competition and curb hyperpolarization. Galston and Dionne assert that the addition of less partisan voters in the electorate, would force candidates to shift their focus from mobilizing partisan bases to persuading moderates and less committed voters. Reducing partisan rhetoric would help ease polarization and increase prospects for compromise.. Rather than focusing on symbolic, political gestures, Washington might have an incentive to tackle serious issues and solve problems.

Galston and Dionne believe that American democracy cannot be strong if citizenship is weak. And right now, they contend citizenship is strong on rights but weak on responsibilities. Making voting universal would begin to right this balance and send an important message: we all have the duty to help shape the country that has given us so much.

Galston and Dionne recognize that the majority of Americans are far from ready to endorse universal voting. By advancing a proposal that stands outside the perimeter of what the majority of Americans are likely to support, Galston and Dionne aim to enrich public debate—in the short term, by advancing the cause of more modest reforms that would increase participation; in the long term, by expanding public understanding of institutional remedies to political dysfunction. 

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Image Source: © Gary Cameron / Reuters
     
 
 




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The case for universal voting: What's your opinion?


In a new research paper—The case for universal voting: Why making voting a duty would enhance our elections and improve our government—Brookings scholars E.J. Dionne, Jr. and William Galston make the case for universal voting—an electoral system in which voting would be regarded as a required, civic duty. Why not treat showing up at the polls in the same way we treat, say, a jury summons? Dionne and Galston argue that universal voting’s benefits would include enhancing the legitimacy of our governing institutions, increasing turnout and the diversity of the American voter base, and easing the intense partisan polarization that weakens our governing capacity.

What do you think of Dionne and Galston’s proposal? Specifically, if voting and registration rules were made easier, should voting in national elections be universal and mandatory for all eligible citizens?

To voice your opinion, click the image below and vote. We will share the results on social media.

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Image Source: © Kevin Lamarque / Reuters
      
 
 




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Should Rwanda’s Paul Kagame have the right to another presidential term?


President Paul Kagame of Rwanda has been a very effective leader for his small Central African nation. First, he led the Rwandan Patriotic Front when it ended the 1994 genocide and brought a measure of stability to a land that had just suffered a terrible holocaust. Then as vice president until 2000, and president since then (being formally elected under the current constitution twice, in 2003 and 2010), he has helped usher in remarkable economic growth and human development. Many Western leaders have personally offered high praise for Kagame—calling him a “visionary” and among “the greatest leaders of our time”—and have marshalled considerable resources to aid in Rwanda’s post-genocide development.

But his leadership has not been without controversy. There have been some excesses and allegations of abuses of political opponents during the Kagame years. And his abuses of power have arguably increased in recent years—suggesting that, whatever his past accomplishments, his real motives for wanting to stay in office may have less to do with a call to service and more with his increasingly autocratic tendencies.

On balance, though, he has been an effective leader who has saved countless lives. Does that legacy justify his seeking what would be a third seven-year term in the nation’s 2017 presidential elections? Rwandan voters choose today whether to approve a constitutional amendment—already passed by the Senate—that would allow President Kagame another stint in power.

Murky waters 

Kagame has been for his nation arguably what Franklin D. Roosevelt was for our own, given the nature of the emergencies facing Rwanda that led to his ascent to power. And we elected FDR four times. To be sure, after the fact, we thought better of it and decided never to allow that again. But we did it. George Washington chose not to run for a third term, but he was blessed with a legion of founding fathers of remarkable ability all around him, and was succeeded by Adams and Jefferson. Lincoln never had the chance to consider a third term—and maybe we would have been better off in the day if he could have served for many years. 

I am not comparing Kagame with Washington, Lincoln and Roosevelt to assert that he belongs in their league. But to dramatize the issue, suppose that he is just as important to his nation as those three gentlemen have been to ours. Would that justify another term? Putting the question this way muddies the waters, but I think it is the only fair way to address the issue. 

More often than not, of course, two terms is more than a given leader deserves. Witness President Hamid Karzai in Afghanistan, or Pierre Nkurunziza in Burundi who just garnered a third term amidst much violence, or Joseph Kabila next door in the Democratic Republic of Congo who is due to step down next year. Indeed, Kabila may or may not do so—and it would be unambiguously bad for his country and American interests if he stayed past that date. All the more reason that, for consistency, we should want Kagame to step down—otherwise leaders like Kabila could use his behavior to excuse and justify their own attempts to hold onto power indefinitely. 

But is it really so simple in his case, and is it really such an easy call? Another tough case is President Yoweri Museveni of Uganda, who has brought a degree of peace and development to his nation after the Amin and Obote periods—but who is now in his sixth term. Perhaps once in a blue moon, a nation can benefit from multiple terms in office for a particularly gifted leader at a particularly fraught and important period in a country’s history.

Mr. Kagame: Prove us wrong 

Ultimately, institution building and the establishment of solid democratic procedures are the only sure guarantor of long-term national stability. Kagame is only 58, but he will not live forever. At some point, Rwanda really will need a succession strategy. 

So I hope Kagame chooses not to run again. But if he does run, we need to pressure him to justify it in terms of the legacy he is helping to create so that Rwanda will have future leaders and institutions that can keep the country moving forward.

Ultimately, institution building and the establishment of solid democratic procedures are the only sure guarantor of long-term national stability.

Thus, if Kagame does persuade the public to change the constitution and does win a third elected term, we should cut aid (though not impose stronger measures like trade sanctions) to show our disapproval. That is, we should cut aid unless he uses the third term—which must certainly be his last—to show his countrymen and the world that in fact his rule is about improving his country, not turning it into another fiefdom run by an African strongman. 

For us, taking this approach will necessitate creating a method for evaluating whether Rwanda’s institutions gradually move closer to true democracy in the years ahead so that, whatever might happen with a third term, a fourth term becomes entirely unjustifiable. Presidents for life are bad for their countries while they are alive, and they are dangerous for their countries when they die. Kagame needs to understand this basic fact before he becomes the next world leader who starts out a noble man and then allows power to corrupt him.

More than two decades after the genocide, Rwanda is ready for a more vigorous democratic process—and any responsible leader should be building up the institutions to prepare for that eventuality. Stronger political parties that do not have exclusive ties to just one ethnic group, clear laws constraining and regulating the nature of political competition so that it is inclusive and nonviolent, strong courts—these are the essence of an established democracy, and Rwanda needs them.

      
 
 




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How to avoid a new Argentina default?

Argentina is on the brink of a new, disorderly default. The government’s original debt plan, an aggressive offer to solve once and for all Argentina´s long-standing external problems, is likely to be turned down by external creditors. The coronavirus crisis opens a door to a viable plan B: a “standstill” agreement—more specifically, a reprofiling exchange—to…

       




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What macroprudential policies are countries using to help their economies through the COVID-19 crisis?

Countries around the world are reeling from the health threat and economic and financial fallout from COVID-19. Legislatures are responding with massive relief programs. Central banks have lowered interest rates and opened lender-of-last-resort spigots to support the flow of credit and maintain financial market functioning. Authorities are also deploying macroprudential policies, many of them developed…

       




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Africa in the news: COVID-19 impacts African economies and daily lives; clashes in the Sahel

African governments begin borrowing from IMF, World Bank to soften hit from COVID-19 This week, several countries and multilateral organizations announced additional measures to combat the economic fallout from COVID-19 in Africa. Among the actions taken by countries, Uganda’s central bank cut its benchmark interest rate by 1 percentage point to 8 percent and directed…

       




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What to do about the coming debt crisis in developing countries

Emerging markets and developing countries have about $11 trillion in external debt and about $3.9 trillion in debt service due in 2020. Of this, about $3.5 trillion is for principal repayments. Around $1 trillion is debt service due on medium- and long-term (MLT) debt, while the remainder is short-term debt, much of which is normal…

       




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Africa in the news: South Africa looks to open up; COVID-19 complicates food security, malaria response

South Africa announces stimulus plan and a pathway for opening up As of this writing, the African continent has registered over 27,800 COVID-19 cases, with over 1,300 confirmed deaths, according to the Africa Centers for Disease Control and Prevention. Countries around the continent continue to instate various forms of social distancing restrictions: For example, in…

       




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From rescue to recovery, to transformation and growth: Building a better world after COVID-19

       




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How to ensure Africa has the financial resources to address COVID-19

As countries around the world fall into a recession due to the coronavirus, what effects will this economic downturn have on Africa? Brahima S. Coulibaly joins David Dollar to explain the economic strain from falling commodity prices, remittances, and tourism, and also the consequences of a recent G-20 decision to temporarily suspend debt service payments…

       




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Eisenhower to Kennedy: Brookings and the 1960-61 Presidential Transition

Nearly 50 years ago, the country weathered a historical presidential transition in turbulent times, as John F. Kennedy bested Richard Nixon in the race to replace Eisenhower. Brookings played a behind-the-scenes role to help ease the transition. “[Brookings] deserves a large share of the credit for history's smoothest transfer of power between opposing parties.” Theodore…

       




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Italian Foreign Minister Mogherini is the Wrong Choice for Europe


According to multiple press reports, European Union leaders are poised to choose Italy’s Foreign Minister Federica Mogherini as the EU’s next foreign policy chief at a summit on Saturday. A previous summit to discuss the position ended in deadlock in July when the Baltics and several Eastern European states objected to Mogherini due to concerns that she was too soft on Russia and lacked foreign policy experience, as she has only been in her position since January.

Now decision day has arrived and Italy’s Prime Minister Matteo Renzi is determined to push her candidacy through even if some disagree. As one EU diplomat told the Financial Times, “You still have a group of countries who will be quite unsatisfied, but they don’t have a blocking minority.” In a comment that could have been made by Stringer Bell in “The Wire,” Italian Minister Sandro Gozi previewed this strategy in July, saying, “The possibility of a majority vote ... is part of the game and cannot be ruled out.”

This highly consequential foreign policy decision is being made on the basis of criteria that have nothing to do with foreign policy. No one claims that Mogherini is the best person to deal with Russia but asking who is is not seen as a relevant question. The sharing of the spoils of several top jobs between the parties means that it must go to a socialist and Europe’s socialist leaders want to help Renzi. There is pressure to appoint a woman because EU leaders have failed to nominate women for other top posts or for the rest of the commission. Merkel had concerns but she is apparently willing to let it slide if it means stopping Italy from diluting the EU’s budget rules. Others are doing their own deals. The bottom line is that foreign policy is almost entirely absent from the discussion.

In normal times, this would be a bit unseemly but not outrageous. These are not normal times however. It is easily forgotten in Rome and Paris but Russia poses a real and near-term threat to some EU members—Latvia, Estonia and maybe even Lithuania. These states have asked for more assistance and support from their allies in NATO and from other EU members. They are deeply concerned by Mogherini’s nomination. Italy has strong economic ties with Russia and has frequently opposed tougher sanctions. Mogherini’s visit to Moscow early this year and her language of respecting Russian interests raised concerns about exactly what those interests are and whether she understands where the fault lies.

In a clear reference to Mogherini, Lithuania's President Dalia Grybauskaitė said that the EU must not pick someone who is “pro-Kremlin”—an exaggerated charge, perhaps, but indicative of the sensitivity and concern her candidacy has caused. But above all is the view that others are better qualified to deal with the Russian challenge—not just in terms of years clocked on the foreign policy beat but in the substance of what they say and do about it. Carl Bildt, Sweden’s foreign minister, is a leading example. Polish Minister of Foreign Affairs Radek Sikorski is another. Bulgaria’s Kristalina Georgieva, currently EU commissioner for humanitarian aid, would be a good compromise candidate.

One would think that the views of these member states would be taken extremely seriously by the rest of the EU. Instead, isolating and defeating them is just another “part of the political game.” Needless to say, this is not a game. It is the most serious security threat Europe has faced in over two decades. Two hundred and twelve EU citizens were killed by a Russian missile fired by Russian backed separatists in July. Thousands have died in Ukraine as a result of the war Russia started. And in recent weeks, Russian forces have begun a formal invasion of Ukraine.

It is mind-boggling that in a week when Russia opened a third front in Ukraine, European leaders are even considering appointing anyone other than someone with a proven track record of understanding and meeting Russia’s challenge, let alone a person who has consistently underestimated the risk. It’s as if a climate skeptic from the oil industry was to be appointed as environment minister.

It is true, of course, that the foreign policy chief, whoever he or she is, will not make EU policy. That will continue to be the domain of individual member states, especially Germany. But appointing the wrong person will do no good and may do some harm. Appointing the right person could serve the purpose of rallying the member states, pressuring them to stick to their previous declarations, and being a powerful voice for Europe’s values and its interests in a peaceful and free continent.

The EU owes it to its own citizens to make a decision of this magnitude solely on foreign policy grounds. It should not sell out the Baltics to keep the gravy train flowing. This is no time for business as usual.

Authors

Image Source: © Muhammad Hamed / Reuters
     
 
 




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A Historic Compromise in Tunisia? What Rome Can Teach Carthage


Next Sunday’s first round of the Tunisian presidential election is unlikely to produce an outright winner but the country can already lay claim to the most democratic success story in the uncertain post-Arab Spring period.

Earlier this year, the Islamist-led National Constituent Assembly in Tunis produced a pluralist constitution that set the stage for a parliamentary contest on October 26 in which the incumbents lost. That simple fact of political alternation is a historic milestone: Ennahda is not the only Islamist party to lose the confidence of its initial protest-vote electorate, but it is the first to live to tell the tale.

Islamist participation in the democratic process

The birthplace of the Arab Spring offers a tantalizing third way toward Islamist participation in the democratic process: a Goldilocks outcome between Turkish majoritarianism and Egyptian militarism. Tunisia is different: it is smaller, lacks a hegemonic army, and Ennahda doesn’t have anywhere near a majority of votes.

The alluring tableau, however, conceals a fragmented elite and a scattered electorate. Twenty-seven parties declared candidates for president, although a handful have dropped out. Last month, more than 15,000 candidates running on over 1,300 party lists vied for 217 parliamentary seats. Only two-fifths of eligible adults registered to vote and less than two-thirds of them actually voted.

The main pattern to emerge from parliamentary elections is the same that has defined the country for decades: an existential battle between Islamists and anti-Islamists with a majority for neither. The Islamists lost six percentage points (32 percent) but the secularists were not exactly embraced. Taking into account non-registration and abstention, the victorious party Nidaa Tounes’s share of the legislative vote (38 percent) corresponds to roughly one out of five eligible voters.

These results accurately reflect a highly polarized society. Nidaa Tounes is led by presidential frontrunner Beji Caïd Essebsi, an 87-year-old who served under every regime since 1956 independence and who stoked voters’ fear of Ennahda’s “seventh century project” during the campaign. Ennahda’s leadership framed the election as a contest “between supporters of the revolution and supporters of the counter-revolution.” It is the only Muslim-majority country where nearly half of the population claims to never step foot in a mosque.

Do Tunisians favor “authoritarian government”?

For the first time since the 2011 revolution, polling this summer showed a majority of Tunisians favoring “authoritarian government” over an “unstable” democratic government. Also for the first time, Ennahda declined to field a presidential candidate to contain apprehensions about them. While Essebsi mostly enjoys an untainted reputation his party, Nidaa Tounes is a loose coalition including many holdovers from the previous regime.

The last time electoral democracies experienced a comparable juncture was not in 2013 Cairo or Gezi Park, but rather Rome during the tense 1970s. In 1976, the Italian Communist Party received one-third of the votes, making it the largest Communist electoral bloc west of the Iron Curtain. Frequent small-scale terrorist attacks took place against the backdrop of global tensions between NATO and Warsaw Pact members.

It is hard to remember a time when the term “socialism” provoked as much angst as “Sharia” does today, but Tunisia stands at a crossroads analogous to the old Cold War alternatives of Washington and Moscow, with Qatar and other Gulf states filling the shoes of the old “evil empire.”

Recognizing that Italy was too divided to govern alone, party leader Enrico Berlinguer proposed a historic compromise (compromesso storico) with the archenemy Christian Democrats to bridge a seemingly impassible cultural-political gap.

Ennahda party faces doubts

Today’s Ennahda party faces the same doubts as Communist leaders in postwar Europe: are they truly pluralist democrats? Do they accept power sharing? The executive director of Nidaa Tounes, Mondher Belhadj Ali, said in an interview in Tunis earlier this year that Ennahda must undergo the equivalent process of the various leftist parties in Europe during the Cold War. The party needs to renounce its “jihadist logic,” Belhadj said, in the same way that the German left distanced itself from international Marxist-Leninist creed at Bad Godesberg in 1959.[1]

To be considered trustworthy despite its association with a revolutionary ideology, the Italian Communist Party (Partito Comunista Italiano, or PCI) underwent key shifts. Its leadership broke with the international Comintern by supporting Italy’s NATO membership. They also refused Moscow’s order of “intransigence” through silent partnership with a Christian Democrat-led government, giving way to the “via Italiana” – an Italian path – to socialism.

Why did the PCI pursue this path at a moment of rising strength, when their share of the vote was peaking at 32 percent? Italian Communists had no doubt noticed that NATO countries were willing to forego democratic outcomes in Chile three years earlier in the name of political stability and anti-communism.

“Alternative to the Islamic State”

It is also apparent that Ennahda’s leadership has correctly interpreted the West’s silence after the arrest of Egypt’s first democratically elected president last year. The party’s agreement to omit the word “Sharia” from the constitution, its decision to ban the extremist group Ansar Echaria and its voluntary departure from political posts in 2013 have been taken as early signs of a willingness to compromise. There is no exact Islamist equivalent to Moscow and the Comintern, but Ennahda has offered itself up as “the alternative to the Islamic State.” Ennahda has also adopted an official party line not to govern alone but only in alliance with other parties. Party leader Rached Ghannouchi said he hopes to avoid “the repetition of the Egyptian bilateral polarizing model.”

Political pressure already forced Ennahda and its partners to wage not merely ideological but also actual military war on violent Islamist extremism. The martyrs of the Tunisian Revolution now include not only the two secular politicians who were assassinated in the first half of 2013 but also the 39 Tunisian soldiers who have been killed since then – including five in an attack earlier this month.

The interim government has not hesitated to combat religious enemies of the state. President Moncef Marzouki, a human rights activist, looked ashen in an interview in his office this summer: “I deeply regret it: it means killing and arresting people but I have to defend this state” – at times leading to the deaths of a dozen combatants per month, including six on election weekend.[2]

In the years since the revolution, through a mixture of coercion and conviction, the religious affairs ministry whittled down the number of prayer spaces under the control of Salafi extremists from over 1000 in 2011 to under 100 today. This summer, the government fired an imam who refused to say prayers for a soldier who died in a raid on an Islamist cell.”[3]

Like Berlinguer before him, Ghannouchi has made timely visits to meet with American officials and offer democratic reassurances – but to far greater effect than the Italian Communists ever managed. Washington’s reception of the PCI is captured by the chiaroscuro headshot of Berlinguer on a June 1976 cover of Time declaiming “The Red Threat.” In 2012, the magazine named Ghannouchi one of the “World’s Most Influential People,” someone who offers “a vision of a moderate, modern and inclusive political movement.”

Critics will point out that shortly after the compromesso storico, the Communist Party’s electoral base bottomed out. Left-wing terrorism did taper off but not before the Red Brigades kidnapped and executed the Communists’ main Christian Democratic interlocutor, former Prime Minister Aldo Moro, in 1978.

Compromise may lead to national unity

With counterterrorism support to resist such extremist violence on the fringes and more enthusiastic backing from Western capitals, however, a Tunisian historic compromise may yet deliver the national unity that the country needs to advance to self-confident partisan rule – and mutual faith in political alternation. The recent announcement of joint U.S.-Tunisian counter-terrorism exercises and a gift of $14 million worth of equipment and supplies are small in scale but their timing conveys a broader reassurance.

The lack of a clear political mandate may turn out to be the hidden advantage of this inaugural election season in Tunisia. The country’s political parties can now use the first full presidency and parliamentary session of a democratic Tunisia to blaze a third way between military rule and majoritarian Islamist democracy.

Just as Italian communism was a different animal than the Soviet Communist Party, Tunisian exceptionalism is a real thing. The accelerated modernization period under Independence leader Habib Bourguiba after decolonization left behind the lowest illiteracy rate and lowest birthrate in the neighborhood. Its relatively peaceful democratic revolution has now passed several institutional milestones. As President Moncef Marzouki put it, “if the experiment in Islamic democracy doesn’t work here then it’s unlikely to work anywhere.”[4]

The Italian Communist Party voted to dissolve itself almost 24 years ago, not long after the Berlin Wall fell and sealed its obsolescence. An equivalent geopolitical shift in Sunni Islam – away from the hegemony of ideologically rigid Gulf States – is as unimaginable now as was the thaw of November 1989. But a great compromise between the region’s modern nemeses – secularist and Islamist – could well dislodge the first brick.


[1] Jonathan Laurence interview with Mondher Belhadj Ali, May 2014, Tunis, Tunisia.
[2] Jonathan Laurence interview with Tunisian President Moncef Marzouki, May 2014, Carthage, Tunisia.
[3] Jonathan Laurence Interview with Tunisian Minister of Religious Affairs Mounir Tlili, May 2014, Tunis, Tunisia.
[4] Ibid.
Image Source: © Anis Mili / Reuters
      
 
 




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France’s and Italy’s New ‘Tony Blairs’: Third Way or No Way?


Thanks in large part to his decision to participate in the war in Iraq, former British Prime Minister Tony Blair is a controversial figure in Europe. Yet, Blair’s legacy as a center-left reformer is alive and well in two of Europe’s ruling center-left forces, France’s Socialist Party (PS) and Italy’s Democratic Party (PD).

Both Italy’s Prime Minister Matteo Renzi from the PD and French Prime Minister Manuel Valls of the PS bear strong similarities to the former leader of Britain’s “New” Labour Party. As Blair was when he took office, they are young–Valls is 52 and Renzi is just 39; they are centrists; and they have excellent communication skills that allow them to present themselves as harbingers of change.

Taking a Page Out of Prime Minister Blair’s Book

Renzi and Valls will have to take three pages out of Blair’s book if they want to replicate his electoral achievements: 

  1. They must wrest control of their parties from the old guard; 
  2. They must take control of the political agenda by giving it a centrist thrust (along the lines of Blair’s ‘Third Way’ between conservatism and social democracy); 
  3. They must take control of the political center, even at the cost of shedding votes on the left.  

Renzi is far ahead of Valls in all three respects. He has taken over the PD (via an open primary election which he won resoundingly) after a bitter fight against the party’s old guard. Since taking office in early 2014, he has shown a remarkable ability to dictate the terms of the political debate. While he became prime minister via an inner party coup rather than a general election, he sailed triumphantly through his first electoral test: the European Parliament elections of May 2014. The PD won a larger share of the votes than any other Italian party since the 1950s (41 percent), tapping into constituencies such as entrepreneurs and businessmen who all have a long tradition of contempt for the left.

However, none of Renzi’s achievements rest on firm ground. The main reason is Italy’s appalling financial predicament. The economy has performed abysmally since the 2008 to 2009 recession. Unemployment is over 12 percent, the labor market is overly protective of certain categories and overly unfair to others (particularly the young), the public sector is costly and ineffective and the judicial system byzantine and not entirely reliable. Renzi continues to face harsh criticisms from within his party as his reform agenda flies in the face of traditionally left-leaning constituencies (a few weeks ago the main leftist trade union managed to get about a million people to the streets in protest against a labor market reform bill). Finally, Renzi’s room for maneuver is severely constrained by the tight fiscal rules imposed by the European Union (EU).

For Valls, the path to leadership is a more complicated matter. This is largely due to France’s constitutional set-up, in which the prime minister runs domestic policies but is second in authority to the president. This involves for Valls a variation from Blair’s three-step process—as prime minister, his most urgent priority is not leading the PS but pushing forward a political agenda capable of winning over the political center. He was appointed to the premiership by the current president, the socialist François Hollande, because his previous stint as a tough-talking interior minister and his profile as a business-friendly politician and skillful local manager made him fairly popular with the public. Hollande’s decision was a desperate attempt to revive his own popularity, which has plummeted to unprecedented lows only half-way into his 5-year term, by imparting a new, essentially more pro-market direction to his presidency. Since he stepped in, Valls has tried to change the political agenda by advocating reduced labor costs and lower taxes on businesses.

Like Renzi, Valls is confronted with both internal and external challenges. The first is of course that, although in charge of domestic policies, he is still second-in-command to a highly unpopular president. Because he does not control the PS, Valls faces stiffer opposition to his centrist agenda from within the party than does his Italian counterpart. His calls for a ‘common house’ for reform-oriented leftists and rightists have, unsurprisingly, met with acerbic criticism in the PS. France is in a better economic state than Italy and the government machine is as efficient as ever; yet the French have shown an idiosyncratic resistance to reform which Valls might lack the political authority to overcome. And Valls, just like Renzi, must also make decisions that both help France and comply with EU fiscal rules.

What to Make of Continental Europe’s New Blairs?

In spite of the huge challenges Renzi faces both at home and in the EU, he seems to be the better positioned. Realistically, the chances that he will successfully revive Italy’s economy are slim. Yet Italians do not dream of an era of prosperity, but one of action. Provided Renzi can show that he has begun to tackle the many roadblocks on the path towards growth, Italians are likely to see him as a safer bet than the opposition, which consists of Silvio Berlusconi’s much weakened center-right party and the comedian-turned-politician Beppe Grillo’s anti-establishment 5 Star Movement.

Valls has a harder road ahead. His approval ratings now hover at just around 36 percent (though no other center-left French politician fares much better). He certainly has a popularity problem in his own party during the last presidential campaign, he won only 5.5 percent of the votes in a PS primary contest. Yet Valls also stood out as a credible politician and is now in a position to attract more support. He encapsulates the second half of Hollande’s presidential term, which has made a decision to openly target centrist voters. If Valls manages to regain, at least in part, the favor of the public, the PS might in the end see him as a more appealing presidential candidate in 2017 than Hollande, whose credibility is in poor shape.

Appearing to the public the safer bet is the mark of shrewd politicians. But strong leadership requires one step further. Blair mapped out a course towards prosperity in the much more competitive world of globalization; this, the Iraq war notwithstanding, secured him three electoral victories in a row. For Renzi and Valls, the time to do something alike cannot come soon enough.

Image Source: © Jacky Naegelen / Reuters
      
 
 




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The art of doing business with Iran


If you want to understand what drove the intense opposition to the nuclear deal with Iran in certain quarters of the American political establishment, as well as across the broader Middle East, all you have to do is look at the photos from Iranian president Hassan Rouhani’s inaugural tour of Europe this week. The most notorious shot shows plywood barricades concealing ancient Roman statues, apparently out of concern that their nudity would shock or offend the leader of an Islamic theocracy.

The alacrity with which Italian leaders jettisoned their values and historical legacy in hopes of gaining some advantage in Iran’s post-sanctions gold rush is precisely what nuclear deal opponents predicted and hoped to forestall. After all, a Europe that would so readily censor the treasures of its own glorious antiquity, in an obsequious gesture that was apparently unbidden by Tehran, is unlikely to jeopardize any budding business to penalize any Iranian infractions of the agreement, or to put pressure on Iran over any of its other objectionable policies.

As I wrote 10 months ago:

After a deal, the Islamic Republic will be back in business, its standing as an investment destination restored and its place in the community of nations effectively normalized. This is, of course, precisely what Tehran is seeking and what Hassan Rouhani was elected to the presidency to accomplish — redemption. An imperfect, incomplete redemption, but a new beginning nonetheless.
But redemption is precisely what [Israeli Prime Minister Benjamin] Netanyahu and other opponents of an Iranian deal are determined to prevent. They appreciate that once the current network of multilateral sanctions is unraveled, it will never be reinstated, absent some extraordinary provocation by Tehran. The presumption, then, is that the threat posed by Iran’s regional ambitions will never be successfully blunted. For Netanyahu—and for many in the American policy community—that is an unacceptable outcome. They believe, as the prime minister declared on Tuesday, that “If Iran wants to be treated like a normal country, let it act like a normal country.”

Netanyahu and other opponents of the deal did not achieve that goal. Much of the U.S. unilateral sanctions regime remains intact, and these measures—along with some residual uncertainty about the longevity of the nuclear deal—will restrain the horizons of Iran’s economic and geopolitical reintegration into the international community. But for all practical purposes, the Islamic Republic’s redemption is complete.

The alacrity with which Italian leaders jettisoned their values and historical legacy in hopes of gaining some advantage in Iran’s post-sanctions gold rush is precisely what nuclear deal opponents predicted and hoped to forestall.

So in the wake of this broad normalization, how can the world continue to nudge Tehran toward “acting like a normal country”? For starters, by restraining the impulse to placate ideological excesses of Iranian politics—or, for that matter, those of its neighbors.

The Italian deference to Rouhani is not without precedent: similar measures were taken last year to protect the delicate sensibilities of Abu Dhabi’s crown prince. And it was not without foundation—in 1999, photos of a previous Iranian president, Mohammad Khatami, enjoying an Italian state dinner provoked a furor among opponents of his reformist agenda because they revealed wine glasses on the tables.

However, there were an infinite number of ways for circumventing these civilizational conflicts without repudiating Italian artistic glory. To avoid a repeat of his Roman fiasco, Khatami simply adapted his future European visits to incorporate a greater number of official breakfast meetings, where abstinence was more easily ensured.

Iran’s rehabilitation without full-fledged reformation compounds the already urgent challenges of an unstable Middle East. Its reintegration can be a stabilizing force, but only if Tehran reconciles itself to the world, rather than the reverse.

Authors

      
 
 




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Why an Italian student’s murder in Egypt could spell big trouble for the Sissi regime


Over the course of my career, I have watched Egypt’s transformation from an authoritarian state to a revolutionary one and back again. But last month’s murder of Italian graduate student Giulio Regeni (with some pointing fingers at Egyptian security forces) illuminates that today’s Egypt is even less safe, less free, and less tolerant than it was under Hosni Mubarak—an impressive feat. The disintegration in Egypt’s security environment could haunt the country and its leaders, as it will only push international travelers and researchers further from its shores.

Fear and loathing in Cairo

In 2010, shortly before the 2011 revolution, I lived in Cairo interviewing civil society activists and government officials on the ability of NGOs to challenge the Mubarak regime. I returned a few months after the uprising to a very different Egypt. 

In some ways, the environment had become more hospitable for discussing democracy and seeking honest assessments of the regime. Egyptians were still brimming with hope that the revolution would bring them the Egypt they had fought for and expressed overwhelming pride in their accomplishments in Tahrir Square. They were forthcoming with critiques of the former regime and inspired to begin by participating in politics, overturning the draconian NGO law, and founding innovative organizations to help usher in an era of democracy in Egypt. 

But in other ways, the conditions in Egypt had become dangerous. The security situation was precarious, as a post-revolutionary crime wave and general lawlessness keeping Egyptians at home and tourists away. For the first time, I hired a driver to ensure my safety. I was afraid to walk alone at night, ride the metro, or hang out in the same cafes I had frequented during my trips to Mubarak’s Egypt. 

Ironically, I was also far more cognizant of the security services in this new “freer” Egypt than I had been in past visits. The vestiges of Mubarak’s security apparatus remained, but they were operating under different and far more arbitrary and kinetic rules, making it challenging to identify—and avoid—redlines. I heard stories of NGO raids that were no different from the Mubarak era and possibly more punitive, with pro-regime security forces hoping to exact revenge on the activists who unseated their leader. Frustration and anger towards foreigners—governments, donor organizations, and even researchers—had emerged among civil society actors, who believed that Washington, in particular, was meddling in a process that was home-grown. Civil society activists whose NGOs had been fully reliant on international funding vowed to no longer take USAID money, for example. And although I was a full-time doctoral student with no ties to the U.S. government, some of those whom I interviewed distrusted my motives and saw me and other foreign scholars as inextricably linked to our governments. 

I heard stories of NGO raids that were no different from the Mubarak era and possibly more punitive, with pro-regime security forces hoping to exact revenge on the activists who unseated their leader.

Pining for yesterday

But the atmosphere in the immediate aftermath of the revolution was nothing like that of today’s Egypt. The murder of Italian national and Cambridge University student Giulio Regeni, who was last seen alive in Cairo on January 25 (the five-year anniversary of the Egyptian revolution), has sparked outrage around the world. The Italian ambassador to Egypt has said that Regeni’s autopsy revealed “clear, unequivocal marks of violence, beating and torture.” Egyptian security officials have admitted taking Regeni into custody. And while the Ministry of Interior subsequently denied such reports, Egyptian State Prosecutor Ahmed Nagi would not rule out police involvement in his murder. 

Despite the similarity of Regeni’s case to “widespread” reports of torture and forced disappearances by the Egyptian security services, we do not know for sure who is responsible for Regeni’s murder. Scholars across the globe have called on the Egyptian government to conduct a thorough and honest investigation. But regardless of the outcome, the very perception that students are no longer safe in Cairo has caused great harm to Egypt. The very fact that scholars, some of whom have studied Egyptian politics for decades, believe that the Egyptian Security Services could have committed this crime speaks volumes about the state of repression there. 

The very fact that scholars, some of whom have studied Egyptian politics for decades, believe that the Egyptian Security Services could have committed this crime speaks volumes about the state of repression there.

Not all press is good press

Regeni’s violent and tragic death and the Egyptian government’s response have far-reaching implications for Egypt. First, the sheer volume of attention on the Regeni case has caused harm to Egypt’s already decaying reputation. Abdel-Fattah el-Sissi’s regime is engaged in a crackdown on freedom of expression surpassing that of Mubarak. As the leadership of the Middle East Studies Association (MESA)—the most prominent academic organization on the Middle East—rightly note in an open letter to the Egyptian regime, Regeni’s case is not an exception, but rather the latest example of an increasingly vicious attack on freedom of expression in Egypt. As the MESA letter states, “human rights reports suggest that academics, journalists and legal professionals are in greater danger of falling victim to arbitrary state repression today than at any time since the establishment of the republic in 1953.” This was particularly true in the weeks leading to the anniversary of the Egyptian revolution, as the state sought to quiet any public discontent before it started. 

But unlike the hundreds of cases of forced disappearances and systematic torture of Egyptians in custody, the sheer brutality of Regeni’s murder and his status as a young, Western scholar, have made it difficult for Western states to ignore and have shed much needed light on the escalating attack on the rights and freedoms of both foreigners and Egyptians. Most clearly, Egypt’s relationship with an important political and economic partner, Italy, is tarnished. And the suspected state involvement in torture is now an issue that Western interlocutors must raise with their Egyptian counterparts, obliging the Egyptian government to address, or at least find a way to dance around, the issue.

the suspected state involvement in torture is now an issue that Western interlocutors must raise with their Egyptian counterparts, obliging the Egyptian government to address, or at least find a way to dance around, the issue.

Egypt’s foreign minister Sameh Shoukry happened to be in Washington when the circumstances of Regeni’s death was made public. His tone-deaf public responses were telling. He not only flatly denied that Egypt is engaged in a widespread crackdown on freedom of expression, he even compared Egypt’s critics, including internationally respected human rights organizations, to Nazi propaganda minister Joseph Goebbels. Shoukry’s response, so undiplomatic and divorced from reality, is unlikely to quiet Egypt’s critics. Rather, it will keep Regeni’s death (and the issue of security service abuses) in the international press even longer. 

This sort of public attention is something that the Mubarak regime would have taken seriously. Mubarak regularly acknowledged and attempted to diffuse, albeit often ineffectively, accusations of human rights abuses under his watch, often justifying repression in the name of security. But the Sissi regime’s response has been far less strategic, and this has potentially dangerous consequences. By ignoring the festering wound the regime has created for itself by torturing, jailing, disappearing, and killing those who speak out against it, the infection will spread, not disappear. 

Fading from view?

Another outcome of Regeni’s murder is that universities will steer their students away from studying in Cairo, traditionally one of the most popular destinations for American students of Arabic, and may discourage faculty from visiting as well. For the American University in Cairo (AUC), an institution known for high standards and academic freedom, the loss of foreign students and researchers could pose serious financial problems. 

That may not concern the regime, but it is not only AUC that will suffer from a deterioration of foreign contacts. Even prior to Regeni’s murder, some Western scholars believed it was too difficult and risky to conduct serious research in Egypt, and this trend will increase. Other scholars may still study Egypt, but will do so from a distance, rather than risking their lives on the ground there. 

This sort of public attention is something that the Mubarak regime would have taken seriously.

A dramatic decline in international academic contacts should worry the Egyptian government. This will greatly harm the world’s understanding of what is happening in a country that has proven time and again its importance to the region’s economy and political trajectory. Egyptian students and scholars will suffer as well, missing out on the important information and cultural education that comes from cross-border academic exchange. 

Not to mention that Egypt is in the midst of an economic crisis. Regeni’s death will likely keep Western tourists away, harming the tourism industry, which makes up over 10 percent of Egypt’s GDP, and which has failed to recover from dramatic declines during the revolution. 

A continued crackdown on freedom of expression and an increasingly dangerous environment for American and European visitors also has implications for Egypt’s diplomatic relationships. While Egypt’s history, size, and political role in the region will keep it on Washington’s radar, it risks joining the ranks of Somalia or Yemen or Libya—states with a limited (if any) diplomatic presence, and even more limited economic assistance package. The robust U.S.-Egyptian relationship—including several high-profile visits each year and a $1.5 billion aid package--is based, in part, on Egypt’s portrayal of itself as the “leader” of the Arab world and a country on the path toward democracy. If the Sissi regime continues to jail, torture, and murder its critics, including Western scholars, it will make it very challenging for the United States to continue this level of support. 

As Secretary of State John Kerry said last month following his meeting with Shoukry, Egypt is “going through a political transition. We very much respect the important role that Egypt plays traditionally within the region--a leader of the Arab world in no uncertain terms. And so the success of the transformation that is currently being worked on is critical for the United States and obviously for the region and for Egypt.”

The Egyptian government is underestimating the negative repercussions of Regeni’s death. Scholars like Regeni and me study Egypt and visit Egypt are driven by Egypt’s incredible history and because of its important cultural, economic, and political role in the modern Middle East. On my very first day in Cairo back in 2002, a kind Egyptian man took my hand and helped me cross the street amidst the infamously crazy Cairo traffic. When we safely made it across and the look of trepidation fell from my face, he told me to repeat after him, “Ana b’hib Masr” (I love Egypt). It was the first colloquial Egyptian phrase I learned and one I have repeated many times. But sadly, it is not one that I or other international researchers will likely be able to repeat in Egypt any time soon.

Authors