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Kim Jong Un’s ascent to power in North Korea

In her new book, Becoming Kim Jong Un: A Former CIA Officer's Insights into North Korea's Enigmatic Young Dictator (Ballantine Books), Brookings Senior Fellow Jung Pak describes the rise of North Korea's ruler. In this episode, she is interviewed by Senior Fellow Michael O’Hanlon. Also on this episode, Senior Fellow Sarah Binder offers four lessons about how Congress…

       




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Technology competition between the US and a Global China

In this special edition of the Brookings Cafeteria Podcast, Lindsey Ford, a David M. Rubenstein Fellow in Foreign Policy, interviews two scholars on some of the key issues in the U.S.-China technology competition, which is the topic of the most recent release of papers in the Global China series. Tom Stefanick is a visiting fellow…

       




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Introducing Techstream: Where technology and policy intersect

On this episode, a discussion about a new Brookings resource called Techstream, a publication site on brookings.edu that puts technologists and policymakers in conversation. Chris Meserole, a fellow in Foreign Policy and deputy director of the Artificial Intelligence and Emerging Technology Initiative, explains what Techstream is and some of the issues it covers. Also on…

       




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Addressing COVID-19 in resource-poor and fragile countries

Responding to the coronavirus as individuals, society, and governments is challenging enough in the United States and other developed countries with modern infrastructure and stable systems, but what happens when a pandemic strikes poor and unstable countries that have few hospitals, lack reliable electricity, water, and food supplies, don’t have refrigeration, and suffer from social…

       




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Decoding declines in youth employment


Interpreting employment stats among young people can be tricky. No one expects employment rates among teens or people in their early 20s to reach those of prime-age workers. These are prime years for what economists call “investing in human capital,” an activity most people would describe as “going to school.”

Education requirements for good jobs are getting higher, so finishing high school and earning a post-secondary credential like two or four-year college degrees, apprenticeships, or certifications are top priorities. But early work experiences can allow young people to learn new skills, gain experience, and expand networks. Evidence suggests that it can improve employment prospects down the line. And the earlier that people are exposed to the workplace, the earlier they learn such skills as teamwork, communication, and dependability—skills that employers say are in short supply

The employment rate for teens fell from 43 percent in 2000 to 26 percent in 2014, and for young adults aged 20 to 24, it fell from 70 to 62 percent. These are big drops. In a new analysis, I take a deeper look at employment trends among young people. When employment rates are broken out by age and race/ethnicity, you see the same downward pattern, but also substantial variation among whites, blacks, Latinos, and Asians.

Do these declines spell trouble? The answer is, it depends:  on how young people spend their time, what resources and support are available to them, and how the person making the judgement values academics and enrichment relative to employment.

Some argue that workplace experience provides key developmental opportunities that benefit all young people. Robert Halpern, for example, wryly notes that high school students are isolated from the adult world “at just the moment when [they] need to begin learning about participating in it.” 

Others say that employment matters more for some young people than others. For example, disadvantaged youth—those not on track to earn a post-secondary credential and without strong family or community  networks to help them find jobs—can particularly benefit from formal programs that connect them to the labor market. As Jeylan Mortimer concluded about “low academic promise” high school students (those with poor grades and low educational goals): “[H]aving a positive work experience can help to turn you around.  For those who have a lot of disadvantages, any positive experience is likely to have a greater impact than on people with a lot of advantages already.” Research on Career Academies, high schools that combine academics with career development, support this view. Career Academy students, disproportionately low-income, black, and Latino, posted significant earnings gains eight years after graduation, and young male graduates also had higher rates of marriage and custodial parenthood.

And some would say that it’s appropriate to prioritize education over employment, especially for teens, who are typically not responsible for supporting themselves and their families.

So what do the data tell us? Voluntarily dropping out of the labor force to concentrate on academics as a young person can pay off when people enter their prime working years, generally considered to be 25 to 54. Though education and work are not necessarily incompatible, employment rates are generally lower among students than among those not enrolled in school. Among teens and young adults, Asians have the lowest employment rates, but they also have the highest school enrollment rates. 92 percent of Asian 16- to 19-year-olds and 63 percent of Asian 20- to 24-year-olds are in school, compared to 80 percent and 38 percent among all races. It follows, then, that Asians have high levels of educational attainment. In fact, 50 percent of 23- to 24-year-old Asians have a Bachelor’s degree, double the average rate. Given the strong correlation between education and employment, it is not a coincidence that prime-age Asians have high employment rates and low unemployment rates. Their low employment rates as young people do not, on the whole, seem to lead to problems as adults. (Of course, this is not to downplay the diversity of the Asian population and to suggest that all Asians are doing well economically.)

On the other hand, blacks have the second lowest employment rates as teens and young adults, and the lowest rate as prime age workers. They also have the highest unemployment rates, showing an active desire to work. Among black teens in 2014, the unemployment rate was 38 percent, compared to 23 percent overall, and it was 22 percent among black young adults, compared to 13 percent overall. The trend continues into prime working years: blacks have an unemployment rate of 11.4 percent, nearly double the overall rate of 6.2 percent.  The low employment rate among young black people is not driven by school enrollment. Latinos have similar (below-average) enrollment levels but higher employment rates, and whites have much higher employment rates but only slightly higher enrollment levels. The weaker employment outcomes of blacks at all ages is probably related to multiple factors: relatively low levels of educational attainment, discrimination, and the neighborhood effects of living in concentrated poverty.

Blacks and Latinos are disproportionately represented among so-called “disconnected youth,” young people aged 16 to 24 who are neither working nor in school. 17 percent of black young adults aged 20 to 24 are disconnected, as are 13 percent of Latinos, 7 percent of whites, and 4 percent of Asians. Half of disconnected young adults have a high school credential and another 20 percent have taken some college courses, suggesting that getting these young people on a better path involves not only reducing the high school dropout rate, but also strengthening the transition from high school to post-secondary education and the labor market. 

In short, employment rates among young people tell different stories that often track by race and ethnicity. Some voluntarily withdraw from the labor market to focus on academics and extra-curricular activities, others would really like a job but can’t find one, and some—the most disadvantaged—are alienated from both school and the labor market.

Authors

Image Source: sruss
     
 
 




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Mindsets for the 21st century and beyond


Editor’s note: In the "Becoming Brilliant" blog series, experts explore the six competencies that reflect how children learn and grow as laid out by Kathy Hirsh-Pasek and Roberta Golinkoff in their new book "Becoming Brilliant."

The world is morphing into a place that no one can foresee. How can we prepare students to live and work in that place?

Not long ago, people could learn job skills and use them indefinitely, but now jobs and skill sets are becoming obsolete at an alarming rate. This means that students, and later adults, need to expect and thrive on challenges and know how to turn failures into stepping stones to a brighter future.

When I was a beginning researcher I wanted to see how children coped with setbacks, so I gave 5th graders simple problems followed by hard problems—ones they couldn’t solve. Some hated the hard ones, some tolerated them, but, to my surprise, some relished them. One unforgettable child rubbed his hands together, smacked his lips, and declared, “I love a challenge!” Another said, “I was hoping this would be informative.” They didn’t think they were failing, they thought they were learning. Although this was years ago, they were already 21st century kids.

I knew then that I had to figure out their secret and, if possible, bottle it. With help from my graduate students, figure it out we did. And we are learning how to bottle it too. 

So, what was their secret?

Our research has shown that these children tend to have a “growth mindset.” They believe that their basic abilities, even their intelligence, can be developed through learning. That’s why they love challenges and remain confident through setbacks. Their more vulnerable counterparts, however, have more of a “fixed mindset.” They believe their basic abilities are just fixed—set in stone­. So their key goal is to look and feel smart (and never dumb). To accomplish this they often seek easy over hard tasks. And when they do encounter setbacks, they tend to feel inept and lose confidence. Research shows that even exerting effort can make them feel unintelligent. If you’re really good at something, they believe, you shouldn’t have to work at it.

These mindsets make a difference. In one study we tracked hundreds of students across the difficult transition to seventh grade, akin to entering a new world with harder work, higher standards, and a whole new structure. Those who entered with more of a growth mindset (the belief that they could develop their intelligence) fared better. Their math grades quickly jumped ahead of those of students with a fixed mindset and the gap became wider and wider over the next two years. This was true even though the two groups entered with equivalent past achievement test scores.

Recently, we were able to study all the 10th-graders in the country of Chile. We found that at every socioeconomic level students with a growth mindset were outperforming their peers with a fixed mindset. What was most striking was that when the poorest students held growth mindsets they were performing at the level of far richer students with fixed mindsets.

What’s exciting is that we have been able to teach a growth mindset to students through carefully designed workshops. In these workshops, students learn that their brain can grow new, stronger connections when they take on hard learning tasks and stick to them. They learn to avoid categorical smart-dumb thinking and instead focus on their own improvement over time. They hear from other students who have benefitted from learning a growth mindset. And they learn how to apply growth mindset thinking to their schoolwork. In these workshops students also do exercises, such as mentoring a struggling peer using what they learned about the growth mindset. Such workshops have been delivered both in person and online and have typically led to an increase in students’ motivation and achievement, particularly among students who are encountering challenges—such as difficult courses, school transitions, or negative stereotypes.

We have also studied how teachers and parents can foster a growth mindset in children. Sadly, many do not—even many of those who hold a growth mindset themselves! This is because adults, in their eagerness to motivate children and build their confidence, can tend to do things that foster a fixed mindset.

Here is what we’ve found:

  • Praising children’s intelligence conveys that intelligence is fixed and promotes a fixed mindset and its vulnerabilities. Praising the children’s learning process—their strategies, hard work, and focus—and linking it to their progress conveys a growth mindset.
  • Reacting to children’s failures with anxiety, false reassurances, or comfort for their lesser ability (“Don’t worry, not everyone can be good at math”) can foster a fixed mindset. Reacting with compassionate questions and plans for future learning conveys a growth mindset.
  • Research shows that how math teachers react to their students when the students are stuck is critical. Teachers can help students develop growth mindsets by sitting with them, trying to understand their thinking, and then collaborating with them on how to move forward and what to try next.

But how can teachers themselves develop more of a growth mindset?

In some quarters, a growth mindset became a “requirement.” This led many educators to claim a growth mindset without really understanding what it is or how to develop it. We have suggested that educators understand, first, that a growth mindset is the belief that everyone can develop their abilities. It is not simply about being open-minded or flexible. Second, they must understand that all people have both mindsets and that many situations, such as struggles or setbacks, can trigger a fixed mindset. Finally, they must learn how their own fixed mindset is triggered so that they can work to stay in a growth mindset more often.

As we prepare students to thrive in the new world, we can influence whether they see that world as overwhelming and threatening or whether they greet it with the confident words “I love a challenge.” The latter are the ones who can make the world, whatever it’s like, a better place.  

Authors

  • Carol Dweck
     
 
 




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Understanding Ghana’s growth success story and job creation challenges


Ghana attained middle-income status after rebasing its National Accounts, pushing per capita gross domestic product (GDP) of the country above $1,000 in 2007. After recovering from economic recession in 1984 on account of the Bretton Woods sponsored economic reform introduced at that time, Ghana’s growth has been remarkably strong, with its lowest economic growth of 3.3 percent recorded in 1994. The country’s growth rate reached its peak of 15 percent in 2011 on the back of the commencement of commercial production of oil, making it one of the fastest growing economies globally during that year. This has translated into increased per capita income, which reached a high of about $1,900 in 2013.

The concern, however, has been the ability of the country to sustain this growth momentum given the level and quality of education and skills, and, more importantly, the failure of this strong growth performance to be translated into the creation of productive and decent jobs, improved incomes and livelihoods. The structure of the economy remains highly informal, with a shift in the country’s national output composition from agriculture to low-value service activities in the informal sector. The commencement of commercial production of oil raised the share of the industrial sector in national output. However, the continuous decline in manufacturing value added undermines Ghana’s economic transformation effort to promote high and secure incomes and improve the livelihoods of the people.

Structural change towards higher value added sectors, and upgrading of technologies in existing sectors, is expected to allow for better conditions of work, better jobs, and higher wages. But the low level and quality of human resources not only diverts the economy from its structural transformation path of development but also makes it difficult for the benefits of growth to be spread through the creation of gainful and productive employment. Thus, productive structural economic transformation hinges on the level and quality of education and labor skills. A highly skilled, innovative and knowledgeable workforce constitutes a key ingredient in the process of structural economic transformation, and as productive sectors apply more complex production technologies and research and development activities increase the demand for education and skills. However, the observed weak human capital base does not provide a strong foundation for structural economic transformation of Ghana.

Ghana’s employment growth lags behind economic growth, with an estimated employment elasticity of output of 0.47, suggesting that every 1 percent of annual economic growth yields 0.47 percent growth of total employment.

There is also widespread concern about the quality of the country’s growth in terms of employment and inequality, as well as general improvement in the livelihood of the people (see Alagidede et al. 2013; Aryeetey et al. 2014; Baah-Boateng 2013). A key indicator for measuring the extent to which macroeconomic growth results in gains in the welfare of the citizenry is the quality of jobs that the economy generates. Ghana’s employment growth lags behind economic growth, with an estimated employment elasticity of output of 0.47 (see Baah-Boateng 2013), suggesting that every 1 percent of annual economic growth yields 0.47 percent growth of total employment. Besides the slow rate of job creation is the dominance of vulnerable employment and the working poverty rate in the labor market. In 2010, 7 out of 10 jobs were estimated to be vulnerable while only 1 out of 5 jobs could be considered as productive jobs that meet the standard of decent work (Baah-Boateng and Ewusi 2013). Workers in vulnerable employment tend to lack formal work arrangements as well as elements associated with decent employment such as adequate social security and recourse to effective social dialogue mechanisms (Sparreboom and Baah-Boateng 2011). The working poverty rate remains a challenge with one out of every five persons employed belonging to poor households.

The article seeks to provide an analytical assessment of Ghana’s economic growth as one of Africa’s growth giants over a period of more than two decades and the implication for labour market and livelihood outcomes. Growth of labor productivity at the national and sectoral level is examined, as well as the sectoral contribution to aggregate productivity growth. The article also analyses the effect of growth on employment and the employment-poverty linkage in terms of elasticity within the growth-employment-poverty nexus in Ghana. It also delves into a discussion of the constraints on growth and productive employment from both demand and supply perspectives, and identifies skills gaps and the opportunities offered in the country, which has experienced strong growth performance. The article has five sections, with an overview of Ghana’s economic growth performance in Section 2, after this introductory section. This is followed by an overview of the developments in the labor market, specifically in the area of employment, unemployment, poverty, and inequality in Ghana in Section 3. The growth-employment-poverty linkage analysis is carried out in Section 4 followed by a discussion of constraints to growth and employment generation in Section 5. Section 6 provides a summary and conclusion, with some policy suggestions for the future.

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Authors

  • Ernest Aryeetey
  • William Baah-Boaten
     
 
 




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Help wanted: Better pathways into the labor market


Employment is down among everyone between the ages of 16 and 64—particularly among teens, but with a great deal of variation by geography, race, and education. The disparity between blacks and whites is especially stark. For example, unemployment among white young adults peaked at 14% in 2010—still considerably lower than unemployment rates for black young adults at any point in the 2008 to 2014 time period. Unemployment for black 20- to 24-year-olds rose to 29.5% in 2010 and fell to 22.3% in 2014, compared to 10.3% among whites in 2014.

While there is no silver bullet, higher levels of education and work experience clearly improve job prospects down the line for young people. There are multiple strategies local and regional leaders can use to build more structured pathways into employment.

Teens and young adults (referring to 16- to 19-year-olds and 20- to 24-year-olds, respectively) are not monolithic populations. Age is an obvious differentiator, but so are a number of other factors, such as educational attainment, skill level, interests, parental support, and other life circumstances.  Schools, families, and neighborhoods all play a role in a young person’s trajectory—both positive and negative. But at the most basic level, a program for a 17-year-old high school student is likely not appropriate for a 23-year-old, regardless of educational attainment. Successful programs integrate education, training, work-readiness, and youth development principles, but the particular blend of these elements and settings vary: more school-based and educationally focused programs for younger youth, and more community-based and career-focused programs with strong ties to education for older youth.

An admittedly non-comprehensive review includes the following types of promising and proven programs:  

For high school students:

For out-of-school youth and young adults:

  • Highly structured programs offering work readiness and technical skills development, often in partnership with community colleges, and coupled with paid internships, such as Year Up, i.c.stars, npower, and Per Scholas
  • Programs that offer stipends and combine academics, job training, mentoring, and supportive services while carrying out community improvement projects, such as YouthBuild and Youth Corps

The sobering fact is that promoting employment and economic security among young people is not a straightforward proposition. To succeed in today’s economy and earn middle-class wages, a young person needs to complete several steps: graduate from high school or earn an alternate credential; enroll in and complete some post-secondary education or job training; preferably gain meaningful work experience; and enter the labor market with in-demand skills. (A decent economy and some luck help, too.) There are many points along that path from which a young person can get off-track, particularly young people of color and those from high-poverty neighborhoods. And while high youth unemployment is increasingly in the news these days, the difficulties youth without college degrees face in finding good jobs has been a problem for decades.

Programs such as the ones listed above are part of the solution. But they are not enough, given the magnitude of the problem. In order to produce better employment outcomes at scale, leaders from all sectors and levels of government need to make broader shifts in how education and workforce programs are designed, and how they interact with each other and employers. That is a heavy lift, but it is worth it to address the high costs imposed by the status quo: high unemployment, poverty, and untapped potential.  

Authors

Image Source: © Brian Snyder / Reuters
     
 
 




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Where are the nonworking prime-age men?


On Monday, the White House Council of Economic Advisers (CEA) released a report examining the long-term decline in the share of prime-age men (aged 25 to 54) who are either working or actively looking for work. What economists call the labor force participation rate for this population decreased from 98 percent in 1954 to 88 percent today, the second largest decrease among OECD countries. This trend has raised concerns not only for its impact on economic growth, but also because it seems to track an increase in mortality over that time, particularly among white males, as economists Anne Case and Angus Deaton have found.

The CEA report documents a number of possible explanations for this trend, including increasing rates of women in the workforce, rising disability insurance claims, falling demand for less-skilled workers, and barriers to employment for those with criminal records.

The report’s national analysis alone, however, obscures tremendous variation across the United States in employment among this critical group.

According to data from the Census Bureau’s American Community Survey, in 2014, 81 percent of prime-age men nationwide were employed (this statistic differs from the labor force participation rate in that it omits those who are looking for, but not in, work). Yet among the nation’s 374 metropolitan areas for which data are available, that rate ranged from over 93 percent in the oil boomtown of Midland, TX, to just over 50 percent in Kings County in California’s Central Valley.

There are clear regional patterns to this important statistic. Many of the metro areas with the highest employment rates for prime-age men are smaller places located in the middle of the country, from the Upper Midwest, to energy-rich areas in Texas and the Plains states, to the Intermountain West. In several large, economically dynamic metro areas such as Denver, Houston, Minneapolis, San Jose, and Washington, D.C., rates of work among prime-age men are also very high.

Of much greater concern is the large number of metropolitan regions with very low rates of work among prime-age men. These include many small former industrial centers in states like Michigan, Indiana, and Ohio; areas of West Virginia and Louisiana that rely on declining-employment industries like mining; and long-struggling agricultural economies in Arkansas, Texas, and inland California.

These patterns echo findings from the CEA report that falling demand for labor is an important part of the long-term decline in prime-age male employment. In many places where a high school diploma alone once provided the gateway to a middle-class job, nearly one-third of men in this age group are out of work. This is also evident in the local relationship between educational attainment and work—where educational attainment rates are higher among prime-age men, members of that group are more likely to be employed. A 10-percentage point difference in employment rates separates the most highly-educated quarter of metro areas from the least highly-educated quarter.

Beyond education, size seems to matter, too. Large metro areas exhibit higher rates of work among prime-age men than small metro areas. Across the 100 largest U.S. metro areas, 83.2 percent of prime-age males are employed, compared to 79.8 percent in the smaller 274 metro areas. This relationship partly reflects that men in large metro areas have higher rates of educational attainment than those in small metro areas. Yet even men who have no more than a high-school diploma work at higher rates in large metro areas (64 percent) than similarly educated men in smaller metro areas (62 percent). Larger regional economies with greater economic diversity may stimulate stronger demand for workers at lower skill levels.

Several of the policies that the CEA report recommends to improve prime-age male labor force participation, such as bolstering investment in public infrastructure, reforming unemployment insurance, and boosting educational attainment could help boost rates of work in lagging U.S. metro areas. However, none directly addresses the fact that problems in male employment disproportionately affect small and often economically isolated U.S. regions. This evidence suggests that policies to help dislocated workers relocate to larger, more economically dynamic metro areas—particularly by improving the supply of affordable housing in those regions—should be part of a comprehensive strategy to help reverse the troubling long-term decline in men’s work.

Authors

     
 
 




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Metropolitan Lens: Youth employment in the Washington, D.C. region


In a recent analysis, I highlighted how employment and disconnection among young people vary by age, race, and place. In this podcast, I dig deeper into the data on the Washington, D.C. region. Although the area generally performs well on employment measures, not all young people are faring equally well.

Listen to the full podcast segment here: 

Authors

Image Source: © Keith Bedford / Reuters
      
 
 




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Trump and China


Trade with China has led to the loss of manufacturing jobs in the United States and put downward pressure on wages for blue-collar jobs here. This is a real problem and campaigns in both political parties are grappling with how to address it. In a speech this week, Donald Trump proposed high tariffs on imports of Chinese goods, labeling the country a “currency manipulator,” and ripping up the Trans-Pacific Partnership (TPP). These measures are not likely to reverse the damage that trade has done to blue-collar workers in the United States.

First, on high tariffs: There is a long-term trend for manufacturing employment in the United States to decline as a share of employment. This reflects the fact that automation and productivity growth are easier in manufacturing than in services. The United States is still a manufacturing powerhouse from the point of view of production, but it simply does not take that many workers to produce the output. Trade with China accelerated that trend, and that was bad for the United States because slow adjustment is easier than the rapid adjustment that occurred. But imposing tariffs on Chinese imports now is truly closing the barn door after the horse has left. Jobs in apparel and footwear or the low end of electronics are not coming back to the United States. Tariffs aimed at China will divert that production to other developing countries. If we try to keep out imports from all of the low-wage countries then we are contemplating an end to the open trading system that has been a source of political and economic stability in the world. Economic results for the United States are not likely to be good even if there is no retaliation. But there is almost certain to be retaliation, especially from China which is a powerful and nationalistic country.

The fact that protectionism is likely to backfire and make matters worse for American workers does not mean that other measures would not work. Spending public money on infrastructure is the most obvious measure—it would create jobs immediately and enhance the productivity of the economy down the road. Improving education at all levels from pre-K through adult education is another obvious measure. Workers and communities are looking for more support in the face of uncertainties created by globalization, and providing that support will be more effective than trying to wall off the U.S. economy from the rest of the world.

Second, on currency manipulation: This is also a matter of fighting the last war. Ten years ago China was intervening heavily to keep the value of its currency low. But between 2005 and 2015 the yuan appreciated about 25 percent against the dollar, and this was one factor that brought down its large current account surplus (the broadest measure of its trade surplus) from 10.1 percent of gross domestic product in 2007 to 2.7 percent in 2015. Over the past year there has been pressure in Chinese currency markets for the yuan to depreciate because of large capital outflows in the face of diminishing investment opportunities at home. The Chinese central bank has been intervening to keep the currency high, not low. We should be happy that China is intervening to keep the currency high because this is a source of stability in the world economy at the moment. Congress passed a law in 2015 creating a rigorous definition of a currency manipulator and China does not meet that standard because it is selling reserves not accumulating reserves.

Third, on TPP: China is not a negotiating party to the Trans-Pacific Partnership and if the agreement is implemented, China cannot join without the approval of the United States. U.S. relations with the countries negotiating the TPP provide an interesting contrast to U.S. relations with China. It happens that the TPP partners have about the same sized economy as China—around $10 trillion. But the United States has much more balanced trade with the TPP partners: We export six times as much to them as to China. And we have 15 times as much investment in the TPP partners as we have in China. In other words, the TPP group is a much more open set of economies. The TPP agreement would deepen the integration among us while addressing important issues of labor and environmental standards.

The fact that China remains relatively closed to imports and to inward investment is a source of frustration for the United States. Frankly, we have little leverage over China to force them to open up. China’s communist leaders are much more concerned with domestic political control and territorial disputes with neighbors than with economic relations with the United States. Protectionist measures aimed at China are likely to be met by Chinese retaliation, not by China suddenly opening up. For the United States, deepening integration with the like-minded countries that have negotiated the TPP, as well as with European partners, is a sensible strategy. There are many good jobs in the United States tied to our exports and we want to encourage the expansion of a rules-based trading system, not spark a trade war that is likely to have no winners.

Authors

Image Source: © Brian Snyder / Reuters
      
 
 




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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

      
 
 




in

Employment in June appears to rebound after disappointing performance in May


June’s jobs gains, released this morning, show that 287,000 new jobs were added in June, an impressive rebound after only 11,000 new jobs were added in May (revised down from from 38,000 at the time of the release).

This year’s monthly job gains and losses can indicate how the economy is doing once they are corrected to account for the pattern we already expect in a process called seasonal adjustment. The approach for this seasonal adjustment that is presently used by the Bureau of Labor Statistics (BLS) puts very heavy weight on the current and last two years of data in assessing what are the typical patterns for each month.

In my paper “Unseasonal Seasonals?” I argue that a longer window should be used to estimate seasonal effects. I found that using a different seasonal filter, known as the 3x9 filter, produces better results and more accurate forecasts by emphasizing more years of data. The 3x9 filter spreads weight over the most recent six years in estimating seasonal patterns, which makes them more stable over time than in the current BLS seasonal adjustment method.

I calculate the month-over-month change in total nonfarm payrolls, seasonally adjusted by the 3x9 filter, for the most recent month. The corresponding data as published by the BLS are shown for comparison purposes. According to the alternative seasonal adjustment, the economy added 286,000 jobs in June (column Wright SA), almost identical to the official BLS total of 287,000 (column BLS Official).

Data updates released today for prior months also reveal some differences between my figure and the official jobs gains from prior months. The official BLS numbers for May were revised down from 38,000 new jobs to a dismal 11,000. My alternative adjustment shows that the economy actually lost 6,000 jobs in May, down from 17,000 jobs gained at the time of the release. [i] The discrepancies between the two series are explained in my paper.

In addition to seasonal effects, abnormal weather can also affect month-to-month fluctuations in job growth. In my paper “Weather-Adjusting Economic Data” I and my coauthor Michael Boldin implement a statistical methodology for adjusting employment data for the effects of deviations in weather from seasonal norms. This is distinct from seasonal adjustment, which only controls for the normal variation in weather across the year. We use several indicators of weather, including temperature and snowfall.

We calculate that weather in June brought up the total by 25,000 jobs (column Weather Effect), but this should be considered a transient effect. Our weather-adjusted total, therefore, is 262,000 jobs added for June (column Boldin-Wright SWA). This is not surprising, given that weather in June was in line with seasonal norms.

It’s good to see the jobs numbers rebounding this month. The May number was somewhat affected by the Verizon strike. Also, it is important to remember that pure sampling error in any one month’s data is large, and that could explain part of the weak employment report for May. Averaging over the last three months, employment is expanding by about 150,000 jobs per month—a healthy pace, although a bit of a step down from last year.

a. Applies a longer window estimate of seasonal effects (see Wright 2013). The June 2015 to May 2016 values in this column have been corrected to remove a coding error that affected the previously reported values.

b. Includes seasonal and weather adjustments, where seasonal adjustments are estimated using the BLS window specifications (see Boldin & Wright 2015). The incremental weather effect in the last column is the BLS official number less the SWA number.


[i] Note that, due to a small coding error, my alternative seasonal adjustment for May, at the time of the release, should have been 17,000 new jobs, not -4,000, as was reported in my previous post. In addition to the underlying data revisions, and correcting for this error, the revised alternative seasonal adjustment for May is -6,000 jobs added (second row of column Wright SA).

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  • Jonathan Wright
      
 
 




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Improving youth summer jobs programs

Event Information

July 14, 2016
10:00 AM - 12:00 PM EDT

Falk Auditorium

1775 Massachusetts Ave., NW
Washington, DC

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Youth summer jobs programs have experienced a resurgence of interest and investment since the Great Recession, driven by concerns about high unemployment rates among young people, particularly those who are low-income, black, or Hispanic. Recent research points to summer jobs programs as a positive lever for change by reducing violence, incarceration, and mortality and improving academic outcomes.They are often a jurisdiction’s most high-profile youth employment initiative.

But good intentions do not always lead to results. Research has not yet linked summer jobs programs to improved employment outcomes, evaluations to date are silent on effective program design, and in the absence of agreed-upon standards and best practices, there is no guarantee of quality.They are complicated and labor-intensive to operate, and many jurisdictions had to re-build their programs after a long hiatus following the end of dedicated federal funding in the late 1990s.

On Thursday, July 14, the Brookings Metropolitan Policy Program hosted an event that explored core elements associated with high-performing programs and made recommendations to strengthen summer jobs programs. The event featured a presentation on the finding of a new paper by Brookings fellow Martha Ross and co-author Richard Kazis, titled, “Youth Summer Jobs Programs: Aligning Ends and Means,” followed by a response panel, comprised of leaders from metro areas across the country.  

Join the conversation on Twitter at #SummerJobs


Presentation by Martha Ross


Photo


From left to right: Richard Kazis, Nonresident Fellow, The Brookings Institution; Kerry Sullivan, President, Bank of America Charitable Foundation; Honorable Michael A. Nutter, Former Mayor, City of Philadelphia;  Ana Galeas, Summer Camp Counselor, DC Scores, and Participant, Mayor Marion S. Barry Summer Youth Employment Program; Michael Gritton, Executive Directlor, KentuckianaWorks


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Youth summer jobs programs: Aligning ends and means


Summer jobs programs for young people have experienced a resurgence of interest and investment since the Great Recession, driven by concerns about high youth unemployment rates, particularly among low-income, black, and Hispanic youth. 

Summer jobs programs typically last five to seven weeks and provide work opportunities to teens and young adults who otherwise might struggle to find jobs. They offer a paycheck, employment experiences, and other organized activities in the service of multiple goals: increasing participants’ income, developing young people’s skills and networks to improve their labor market prospects, and offering constructive activities to promote positive behavior. Most young people are placed in subsidized positions in the public and nonprofit sectors, although most cities also secure unsubsidized and private-sector placements, which typically come with higher skill and work-readiness requirements. Recent research finds that summer jobs programs have positive effects: reducing violence, incarceration, and mortality and improving academic outcomes.

But a strong program does not automatically follow from good intentions. Program design and implementation carry the day and determine the results. Moreover, research has not yet linked summer jobs programs to improved employment outcomes; evaluations to date are silent on effective program design; and, in the absence of agreed-upon standards and best practices, there is no guarantee of quality.

This paper is written to help clarify what is known about summer jobs programs and to provide information and guidance to city leaders, policymakers, and funders as they consider supporting larger and better summer efforts. Many jurisdictions are rebuilding their summer programs after a long hiatus that followed the end of dedicated federal funding in the late 1990s. Summer jobs programs are complex endeavors to design and deliver. Local leaders and administrators make a multitude of choices about program design, implementation, and funding, and these choices have a direct impact on quality and results. It is an opportune moment to assess the knowledge base and gaps about the operations and impacts of summer jobs programs.

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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.

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Publication: Center for Retirement Research at Boston College
      
 
 




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Israel is back on the brink

In the endless loop of Israeli politics, one could easily have failed to notice that on Monday, the country held its third national election in less than a year. This numbing political repetition, however, masks the high stakes of these recurring elections. After the second election, in September, I wrote that one thing emerged from…

       




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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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Israel’s changing regional landscape in light of COVID-19

The novel coronavirus pandemic will shape the politics and economics of the Middle East in both the immediate and long term. As the pandemic’s repercussions will be felt far beyond public health, many of the dynamics that were set in motion before this crisis will be accelerated by its onset. While Israel closely watches the…

       




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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 end of grand strategy: America must think small

       




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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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Can the US sue China for COVID-19 damages? Not really.

       




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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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Going Partisan: Presidential Leadership in a Polarized Political Environment

Brandon Rottinghaus articulates and finds support for an alternative strategy to the “going public” presidential leadership tactic. With the United States currently experiencing a hyper-polarized political environment, he argues that the president’s goal in “going partisan” is to directly mobilize local partisans and leaning partisans and indirectly engender greater party support of the president’s party within Congress. Ultimately there is a tradeoff with this strategy: while big losses are avoided and presidents can maintain a defensive position by keeping a minimum amount of opposition unified around the White House’s agenda, the fact remains that fewer substantial policy innovations or major agenda items are likely to be initiated or maintained.  

      
 
 




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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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Appointments, Vacancies and Government IT: Reforming Personnel Data Systems

John Hudak argues for reforming personnel data systems – more carefully tracking both appointments and vacancies within government offices ­– in order to ensure that agency efficacy is not compromised. Hudak recommends several revisions that would immediately recognize vacancies, track government positions and personnel more carefully, and eliminate long-standing vacancies that reduce the efficiency within a department or agency. He asks Congress to stop its cries of “waste” and “inefficiency” and instead push data system improvements that will limit these issues.

      
 
 




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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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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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Back to the Future: The Need for Patient Equity in Real Estate Development Finance

Demand for more walkable, mixed use neighborhoods is growing across the United States. However, the challenges associated with fi nancing these developments are allowing much of this demand to go unmet. This paper discusses how more, and more upfront, patient equity in walkable projects—from various sources and providers—would facilitate their development, and yield high returns over the long term. The paper also examines how patient equity contributed to the success of several such developments built over the past 15 years, illustrating untapped potential. Finally, it notes the role the public sector can play in providing patient equity investments.

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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 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...

  
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Publication: The Kojo Nnamdi Show (WAMU)
      
 
 




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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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Decreasing Demand for Suburbs on the Metropolitan Fringe


Drive through any number of outer-ring suburbs in America, and you’ll see boarded-up and vacant strip malls, surrounded by vast seas of empty parking spaces. These forlorn monuments to the real estate crash are not going to come back to life, even when the economy recovers. And that’s because the demand for the housing that once supported commercial activity in many exurbs isn’t coming back, either.

By now, nearly five years after the housing crash, most Americans understand that a mortgage meltdown was the catalyst for the Great Recession, facilitated by underregulation of finance and reckless risk-taking. Less understood is the divergence between center cities and inner-ring suburbs on one hand, and the suburban fringe on the other.

It was predominantly the collapse of the car-dependent suburban fringe that caused the mortgage collapse.

In the late 1990s, high-end outer suburbs contained most of the expensive housing in the United States, as measured by price per square foot, according to data I analyzed from the Zillow real estate database. Today, the most expensive housing is in the high-density, pedestrian-friendly neighborhoods of the center city and inner suburbs. Some of the most expensive neighborhoods in their metropolitan areas are Capitol Hill in Seattle; Virginia Highland in Atlanta; German Village in Columbus, Ohio, and Logan Circle in Washington. Considered slums as recently as 30 years ago, they have been transformed by gentrification.

Simply put, there has been a profound structural shift — a reversal of what took place in the 1950s, when drivable suburbs boomed and flourished as center cities emptied and withered.

The shift is durable and lasting because of a major demographic event: the convergence of the two largest generations in American history, the baby boomers (born between 1946 and 1964) and the millennials (born between 1979 and 1996), which today represent half of the total population.

Many boomers are now empty nesters and approaching retirement. Generally this means that they will downsize their housing in the near future. Boomers want to live in a walkable urban downtown, a suburban town center or a small town, according to a recent survey by the National Association of Realtors.

The millennials are just now beginning to emerge from the nest — at least those who can afford to live on their own. This coming-of-age cohort also favors urban downtowns and suburban town centers — for lifestyle reasons and the convenience of not having to own cars.

Over all, only 12 percent of future homebuyers want the drivable suburban-fringe houses that are in such oversupply, according to the Realtors survey. This lack of demand all but guarantees continued price declines. Boomers selling their fringe housing will only add to the glut. Nothing the federal government can do will reverse this.

Many drivable-fringe house prices are now below replacement value, meaning the land under the house has no value and the sticks and bricks are worth less than they would cost to replace. This means there is no financial incentive to maintain the house; the next dollar invested will not be recouped upon resale. Many of these houses will be converted to rentals, which are rarely as well maintained as owner-occupied housing. Add the fact that the houses were built with cheap materials and methods to begin with, and you see why many fringe suburbs are turning into slums, with abandoned housing and rising crime.

The good news is that there is great pent-up demand for walkable, centrally located neighborhoods in cities like Portland, Denver, Philadelphia and Chattanooga, Tenn. The transformation of suburbia can be seen in places like Arlington County, Va., Bellevue, Wash., and Pasadena, Calif., where strip malls have been bulldozed and replaced by higher-density mixed-use developments with good transit connections.

Reinvesting in America’s built environment — which makes up a third of the country’s assets — and reviving the construction trades are vital for lifting our economic growth rate. (Disclosure: I am the president of Locus, a coalition of real estate developers and investors and a project of Smart Growth America, which supports walkable neighborhoods and transit-oriented development.)

Some critics will say that investment in the built environment risks repeating the mistake that caused the recession in the first place. That reasoning is as faulty as saying that technology should have been neglected after the dot-com bust, which precipitated the 2001 recession.

The cities and inner-ring suburbs that will be the foundation of the recovery require significant investment at a time of government retrenchment. Bus and light-rail systems, bike lanes and pedestrian improvements — what traffic engineers dismissively call “alternative transportation” — are vital. So is the repair of infrastructure like roads and bridges. Places as diverse as Los Angeles, Phoenix, Salt Lake City, Dallas, Charlotte, Denver and Washington have recently voted to pay for “alternative transportation,” mindful of the dividends to be reaped. As Congress works to reauthorize highway and transit legislation, it must give metropolitan areas greater flexibility for financing transportation, rather than mandating that the vast bulk of the money can be used only for roads.

For too long, we over-invested in the wrong places. Those retail centers and subdivisions will never be worth what they cost to build. We have to stop throwing good money after bad. It is time to instead build what the market wants: mixed-income, walkable cities and suburbs that will support the knowledge economy, promote environmental sustainability and create jobs.

Publication: The New York Times
Image Source: © Frank Polich / Reuters
      
 
 




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Urbanization and Inventing a Clean Economy of Place


Editor’s Note: This piece originally was published on the Guardian’s Sustainable Business website.

I recently returned from Copenhagen, my first time to the Danish capital. Even a three day visit affirms why this city of more than 540,000 residents has received global recognition as a beacon of sustainable development. An incredible 36 percent of all commuting trips to work or school are made by bike along, in many cases, secure bike lanes that protect cyclists from cars and buses. Another 32 percent of city residents either walk or utilize the region's highly-efficient public transportation network of buses and trains.

This kind of sustainable development clearly yields significant environmental benefits. Copenhagen achieved the highest ranking in the 2009 European Green City Index, scoring in the top 10 in all eight categories, from energy efficiency to transport and environmental governance.

Growing green is obviously an environmental imperative. Yet the Copenhagen experience shows that it can be a market proposition as well, with a diverse set of economic and fiscal benefits accruing to cities that are at the vanguard of sustainable development. Cities like Copenhagen, in short, may be inventing a clean economy of place.

Monday Morning, the respected Scandinavian thinktank, recently released a report detailing the effect of building a city that is high in spatial efficiency and rich in transport choices. Some of the benefits are direct and local. Residents who cycle to work or school are healthier, so health care costs decline (by an estimated $380 million a year). Fewer cars on the road means less congestion and fewer accidents, so additional savings are realized.

Yet the big effect from sustainable development may be indirect and global, as specialized firms naturally rise and expand to meet the growing demand for clean services and clean products. Monday Morning's report finds that Copenhagen's clean sector has been a critical contributor to the region's economy in the past decade, with green exports outpacing all other sectors by growing at an astounding 77 percent between 2004 and 2009.

Cities in the U.S. are following suit. Portland, Oregon, is also internationally renowned for its commitment to sustainable development. The Portland metropolis has an expansive public transit system and an urban growth boundary to control development at the urban periphery. The city boasts a green investment fund to provide grants for residential and commercial building projects.

Now the city is striving, like Copenhagen, to reap the economic rewards of sustainable development through business formation, firm expansion, job growth and private investment. In February, Portland released its first regional export plan to double exports over five years by building on the region's distinctive economic and physical attributes. A critical pillar of this strategy involves increasing the export orientation of firms in the burgeoning clean technology sector to serve growing markets in Asia, Latin America and elsewhere.

Both Copenhagen and Portland recognize that urbanization is the dominant market-shaping trend of the century. By 2030 it is estimated that China will have one billion residents while India will have 590 million. These nations and others will demand products and services that enable development that is economically supportive, environmentally sensitive and spatially efficient. And those products and services may disproportionately emerge from firms located in cities, in mature economies and rising nations alike, which are first movers on sustainable development.

The economic benefits of sustainable development could be substantial. Last year, my program at Brookings measured the U.S. clean economy at 2.7 million jobs. That means the clean economy has more jobs than fossil-fuel related industries and is nearly twice the size of the biosciences field and 60 percent of the 4.8 million strong IT sector.

The U.S. clean economy is also incredibly diverse (sweeping across five broad categories and 39 separate clusters) and disproportionately located in the nation's top 100 cities and metropolitan areas.

Green architecture and construction services cluster illustrates the potential for growth and the reality of metropolitan concentration. This segment already employs over 56,000 people in the U.S. Some 90 percent of these jobs are located in the top 100 cities and towns (although those communities house only two-thirds of the population). The segment grew by a healthy annual average of 6.4 percent between 2003 and 2010 and includes firms such as Burns and McDonnell Engineering in Kansas City, McKinstry and Co. in Seattle, and Gensler in San Francisco. Conclusion: the clean economy of place constitutes a virtuous cycle between cities, companies, consumers and clusters.

Let me end where I began, in Copenhagen. The city is not resting on its cycling laurels but setting its sights higher, towards achieving a goal of carbon neutrality by 2025. Shakespeare was wrong: all is not rotten in the state of Denmark. Nurturing what is good — and green — embracing it and extending it could provide a platform for economic growth for decades to come.

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Publication: The Guardian
Image Source: © Brendan McDermid / Reuters
      
 
 




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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?”

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  • Amy Copley
     
 
 




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Saving Somalia (Again)


In early May 2015, U.S. Secretary of State John Kerry made a historic but little noticed visit to Somalia, a country no other U.S. secretary of state had ever visited. His trip symbolized both how far Somalia has come—from the blackest days of civil war, clan infighting, and famine in the 1990s; to the brutal rule of the jihadi group al Shabab in the late 2000s; to something getting closer to normal now—and how very far it still has to go.

The fact that a high U.S. official could enter the country at all speaks of real security improvements. During his visit, moreover, Kerry announced the reopening of a U.S. embassy in Somalia, which had been closed since 1991 when the government of long-term dictator Siad Barre collapsed. But the fact that Kerry’s visit was a brief few hours—during which he did not even leave the heavily-guarded Mogadishu airport—also points to deep and persistent security challenges. Moreover, his meeting with Somali President Hassan Sheikh Mohamoud and Prime Minister Omar Sharmarke comes at a time when the relationship between international donors and the Somali government has soured and the Somali people have grown increasingly weary of their government. The early optimism that the 2012 election of Mohamoud by appointed members of the Somali parliament would usher in badly needed changes in Somali politics, toward inclusiveness, effectiveness, and accountability, dissipated long ago.

Indeed, an observer’s bullishness about Somalia very much depends on his or her baseline. Compared to the early 1990s or 2011, when al Shabab controlled most of Mogadishu and most of central and southern Somalia, with only the semi-autonomous regions of Puntland and Somaliland escaping its grasp, Somalia is in much better shape. However, when compared to the spring of 2013, when I took a previous research trip there, the 2015 spring (my latest trip), and summer hardly look peppy. Security is tenuous, with al Shabab and the African Union Mission in Somalia (AMISOM) forces stuck in a draw, and politics has been regressing to many of the same old discouraging patterns.

The rest of 2015 and 2016 are important times for Somalia. They could either resurrect optimism about the country’s progress or reinforce disappointment. The current AMISOM mandate expires in November 2015. By 2016, as a compact between the international donors and Somalia government specifies, presidential elections are supposed to take place, a constitution redrafting is to be finished, and the transformation of a centralized state into a federal one with states formed is to be completed. From the perspective of the middle of 2015, this agenda looks daunting.

AL SHABAB’S BATTLEFIELD

After struggling against al Shabab for several years and hunkering down in a few blocks of Mogadishu, AMISOM forces, with the assistance of international private security companies and international funding, finally began to reverse the al Shabab tide in 2011. As clan militias defected from al Shabab, AMISOM succeeded in pushing the terrorist group out of Somalia’s major cities. U.S. air and Special Forces attacks against al Shabab leadership eliminated some key figures, such as the group’s amir, Ahmed Godane, in September 2014 and its previous leader, Aden Ayro, in May 2008.

That said, al Shabab is hardly defeated—even if its membership is thought to be down to around 6,000, with the most potent and hardcore Amniyat branch down to perhaps 1,500. (Such estimates, given by Somali government officials and international military advisors, need to be taken with a grain of salt, since the capacity of insurgent groups to replenish their ranks often outpaces the capacity of counterinsurgent forces to kill or arrest the groups’ members.) The group’s spectacular terrorist attacks in Kenya and Uganda, such as the one on Nairobi’s Westgate Mall in September 2013 and on a teaching college in the city of Garissa in April 2015, don’t necessarily mean that al Shabab has lost the capacity to operate in Somalia. In fact, if anything, al Shabab’s operations have become more targeted and more effective, and generate more casualties with the militant group losing fewer fighters. The fact that the group has deeply infiltrated Somali military and police forces helps it in that regard.

Although AMISOM still holds the major cities that it won back from al Shabab as part of the 2014 Operation Eagle and Operation Indian Ocean, al Shabab’s presence in supposedly liberated cities is often robust. The group extorts shopkeepers and intimidates the local population with threatening night letters that regularly appear in public spaces. People routinely receive cell phone texts such as “You forgot to pay your zakat (religious tax); tomorrow we cannot guarantee your security.” Such intimidation is prevalent even in Kismayo, a strategic port in the southern region of Juba that used to be a key source of revenue for al Shabab from customs and smuggling items like charcoal. Kismayo, and the newly-formed state of Jubaland, are controlled by Ahmed Madobe, who defected from his role as al Shabab commander several years ago and, with the support of Kenyan forces, took control of the area and declared himself president of the state.

Over the past year, al Shabab attacks have also escalated in Mogadishu. Assassinations are a daily occurrence. Many government officials have to live and work (often in the same room) in hotels close to the Mogadishu airport, a palpable symptom of the decline in confidence and sense of security since 2013. The fact that some assassinations are actually perpetrated by rival politicians, warlords, and businessmen, with al Shabab happily taking the credit, does not lessen the sense of insecurity.

Al Shabab also controls roads and limits AMISOM’s movement. Attacks on AMISOM convoys and IEDs are frequent. In fact, despite its two much-touted offensive operations last year, AMISOM is mostly in defensive garrison mode. Rarely does it actually fight al Shabab; in advance of AMISOM’s clearing operations, al Shabab often disperses. Usually, by the time AMISOM arrives, it finds a ghost village (sometimes destroyed by al Shabab). AMISOM leaves, and al Shabab comes back from the bush. Often locals, at best, sit on the fence and, at worst, continue to support al Shabab because of their calculation that al Shabab will ultimately be the dominant force in their area.

That does not mean that Somalis actually like al Shabab: Its brutality is still shocking; memories of the militant group’s aggravation of the 2011 famine are still vivid; and al Shabab has hardly been a competent ruler enabling local economic growth. Instead, the group often tried to suppress or undermine vital economic markets, such as in qat. And, thanks to its control of the roads, ordinary Somalis fear traveling on them. Those who are willing have to be prepared to pay bribes of about $30 dollars to travel to Mogadishu from Merka and over a $100 to travel from there to Kismayo. Only the wealthy can absorb such costs, increasing Somalis’ frustration and sense of insecurity. Likewise, urban Somalis are quick to point out that inflation, including the cost of basic food items, has significantly increased since deliveries must now either come by air, be smuggled in, or are levied with substantial extortion fees and illegal taxes.

STUCK IN THE SAND WITH AMISOM

On the other side of the fighting, AMISOM nominally numbers 22,000 soldiers from Burundi, Djibouti, Ethiopia, Kenya, and Uganda. It could and should be much more efficient in its fight against al Shabab. But it is not clear how many soldiers are actually on the ground at any one point. The capacity and training of the AMISOM deployments varies widely across the countries. Some of the forces, such as those from Burundi, do not speak English and have little training overall. Many of these militaries were built during their country’s own political revolutions and have had little deployment or battle experience since. Very few of the deployed troops have had any counterinsurgency training and they lack logistics, medevac, and intelligence and reconnaissance support. AMISOM was to be equipped with ten helicopters, with Uganda promising to provide four and the other United Nations member states the rest. Three, however, crashed into Mt. Kenya as they were flying from Uganda to Somalia, and Uganda is now in dispute with the international community over who will pay for the destroyed aircraft.

Moreover, the original expectation that a United Nations force would eventually replace AMISOM has long since died. Nor do the AMISOM forces necessarily want to get out of Somalia (or fully defeat al Shabab): The international funding they receive for their effort makes for good living for their soldiers and a substantial financial boost for their military institutions. Moreover, their presence in Somalia allows them to pursue their regional interests and enhance their importance with the broader international community.

AMISOM has weak headquarters to which few member countries pass on any information, let alone intelligence, or bother to coordinate. Some AMISOM commanders maintain highly personalized and sometimes outright subversive agendas: There are credible rumors that AMISOM units have sold fuel and arms to al Shabab or looted humanitarian convoys.

The fact that AMISOM is organized into five sectors operated mostly by one of the AMISOM member countries does not help with coordination and planning. The division of the sectors reflects the strategic interests of the intervening forces. Kenya and Ethiopia, although they have suspended some of their mutual rivalries, still mostly cultivate proxies in their sectors to create buffer areas, prevent the leakage of terrorism into their countries, disrupt support for separatists within their own countries, and project land and sea power. Offensive operations are decided mostly on a sector basis, with the forces in each area reporting and taking orders from their own capitals. Whether captured weapons are handed over to Somali forces varies by sector. So does how al Shabab terrorists are dealt with. There is little coordination among the sectors and little planning at AMISOM headquarters; in fact, they are generally only interested in working together when headquarters has something to offer to them, such as logistical support via the United Nations.

Not surprisingly, it has been hard for AMISOM to hold and build a “cleared” territory. At first, AMISOM forces exhibited little interest in providing any governance functions or even conducting stabilization operations, such as repairing bridges or providing clean water systems. They expected the Somali security forces and government to do so. But Somalia hasn’t been able to because local governance structures are frequently destroyed, blocked off by al Shabab, dominated by problematic powerbrokers, or lack resources. And so AMISOM has come under pressure from the United States and the international community to take over these stabilization functions.

Pushing AMISOM into stabilization operations is a difficult call. On the one hand, it should be the responsibility of the local and national government to administer its territory, and the credit for doing so should accrue to the Somali government, not to foreign forces. On the other hand, local communities are frustrated by the lack of security and services after AMISOM clears a territory. In either case, it isn’t clear that AMISOM militaries could do much better at governance, since they, too, lack resources and training. And the political sensitivities abound. Somalis do not see themselves as African, but rather as Arab; and al Shabab can easily label Burundi, Uganda, Kenya, and Ethiopia as Christian invaders. Although Somalis are deeply divided along scores of clan divisions, they also identify as nationalists, opposing foreign intervention.

If AMISOM does take on a stabilization role, it should be limited, discreet, and concrete, including short-term support for building water and other infrastructure. One of the current ideas is to deliver quick-impact projects only when some, even interim, local authority has been created and is supported by local peace committees consisting of clan elders, imams, women’s groups, businessmen, and civil society members. Even though the projects could still become fronts for graft, any accountability is better than none.

SOMALI NATIONAL FORCES IN TATTERS

Another major official combatant in the war is Somalia’s own forces, consisting of the army, police, and militarized intelligence service. They have not been able to provide stabilization operations on their own because, as still mostly a collection of disparate militias, they lack the capacity. They remain beholden to clans and powerbrokers, and lack both a national ethos and training. When pressure rises, they mostly fall apart or return to militia behavior. Underpaid and often not paid for months, they frequently resort to selling their equipment to obtain some income. They are also notoriously infiltrated by al Shabab. The paramilitary intelligence service run by the National Intelligence and Security Agency, and the preferred partner of U.S. and Ethiopian counterterrorism efforts, is somewhat better, but also rather brutal and beholden to clan politics.

Not surprisingly, the Somali people do not trust their national forces. Although the federal government nominally controls the national forces (while explicitly not controlling regional militia forces), its presence beyond Mogadishu is limited and it depends on AMISOM and international support for protection from al Shabab and rival powerbrokers. In order to wean itself off AMISOM, defeat al Shabab, and suppress regional conflicts, Somalia’s national forces would need to be significantly bigger than they are now at about 10,000 fighters. But donors, aware that a large percentage of foreign military aid disappears into personal pockets of Somali politicians, are reluctant to commit more money for larger Somali security forces.

The security forces of the semi-autonomous state of Puntland are somewhat more capable, but insecurity in Puntland, too, has been increasing since al Shabab was pushed into the state from central Somalia. Numbering perhaps about 4,000, the forces include a state-armed militia/police force known as darawish as well as other police forces and custodial forces. Many other unofficial entities also operate in Puntland, including the Puntland Security Force, which is paid by the United States to fight al Shabab and presumably reports to the Puntland president, and the Puntland Maritime Police Force, which is paid for by the United Arab Emirates. The latter was originally created to fight pirates, although recently it has also apparently been dispatched to fight al Shabab in the Galgadud area. The Puntland government has little interest in integrating these forces into the Somali national armed forces.

Somaliland remains the most secure part of Somalia with the best functioning government­—although, of course, the local leadership there continues to want to secede from the country and establish independence. Mediation talks in Ankara facilitated by Turkey collapsed in the spring of 2015. Since then, Somaliland has been preoccupied by presidential and parliamentary elections for the state government, which were to be held on June 26, 2015. But despite popular demand and strong pressure from international donors, the elections were delayed by at least 17 months due to a lack of preparedness, (as they had previously been in Puntland). This delay undermines governance and accountability in the state.

THE VICIOUS CIRCLE

It is not just security that has been sliding in Somalia for the past year and half. Equally, the sense of political momentum has dissipated. In 2013, there was a great deal of optimism among the Somalis whom I interviewed that Somalia hit rock bottom in 2011 and that the pernicious clan politics that plagued the country for the past three decades have ended. They placed a great deal of hope in their President, Mohamoud. A Somali professor and member of the country’s civil society, he was not a former warlord nor a member of the diaspora parachuted in. And although he was elected by a parliament of appointed (or self-appointed) clan elders and former warlords, he was not seen as beholden to any particular clan. The international community, including the United Kingdom and the United States, also embraced him.

But that was then. With little control over the country’s armed forces and budget, and unable to tackle pervasive and extensive corruption, the president fell back on one source of support: his Hawiye clan. And so the cycle of exclusionary politics began again, privileging access to business deals for his supporters and promoting clan backers for government positions.

Mohamoud’s government was soon paralyzed by the infighting between him and his prime ministers (a familiar story in Somalia over the past decade), whom he would repeatedly seek to replace. The Somali constitution makes the president the symbol of authority, but his role and relationship with the prime minister is not clearly defined. Ultimately, the constitution is generally interpreted as mandating a Hawiye president and a Darod prime minister. That design is meant to encourage inclusiveness. In truth, however, it mostly led to a struggle between the president and prime minister, mimicking the power fights between the two main clans.

The constant turnover of government officials at the federal and subnational levels is another major problem: With appointments often lasting only a few weeks, officials have far more interest in quickly making money and placing allies in other public sector positions than in governing effectively and building equitable and accountable state institutions—or any institutions for that matter.

To give itself legitimacy, the government has embraced a brand of conservative Islam that is not as far from al Shabab’s teachings as many would like. The president is reputed to have admiration for the Muslim Brotherhood in Egypt and is said to consider Mohamad Morsi, the imprisoned former Muslim Brotherhood–affiliated president of Egypt, a personal friend.

Indeed, the contest for political legitimacy in Somalia revolves around four elements: Who is more Islamic? Who is more nationalistic? Who delivers better security? And who is less corrupt and delivers better services? For years, the Somali federal government has struggled to win on any of these fronts. And it has exhibited little recognition of, or interest in, the problems of clan marginalization and poor governance, even though these grievances thrust Somalis into al Shabab’s hands.

To address some of these problems, under a 2013 compact between the international community and Somalia, Somalia was supposed to hit three milestones by 2016: hold presidential elections; adopt a new constitution; and form subnational states. All are important, and none is easy to do, much less do well, in the given timeframe. Yet international donors, not wanting to repeat their frequent sin of setting up conditions but still delivering aid after a Somali government fails to meet them, are loath to relax the 2016 timeline.

Pervasive insecurity makes holding national elections difficult. It also enables fraud and heightens feelings of purposeful exclusion. AMISOM has helped little when it comes to providing security for a vote. And the government has made few preparations itself. So far, there is not even a voter registry. In late May 2015, the Somali government launched a census effort (a step toward creating a voter registry). However, the census itself could lead to new conflict, particularly if the resulting counts of the Hawiye, Darod, and other clans and subclans make any one group unhappy—as is almost sure to happen. Meanwhile, the fact that the independent electoral commission is located within the presidential palace of Villa Somalia, even if for legitimate security reasons, makes it seem potentially biased and illegitimate.

But there is little alternative to holding a national election. Many Somalis want to see a change in government; and international donors are also increasingly frustrated with the current one. Perhaps the president could again be appointed by members of parliament, with all the legitimacy limits such a process brings. Ultimately, though, a vote and the creation of real political parties is important. It is the only way to realign Somali politics away from narrow clan parochialism and individual patronage networks and toward broader national representation and coalitions. But few Somali powerbrokers have an interest in allowing their formation; even under the best of circumstances, they will not materialize by the 2016 election.

It is also possible that the international community will agree to postpone the elections. It did so in Puntland, it now has to live with it in Somaliland; and it may do so again at the national level. Even if national elections do not take place, it is worth considering whether some subnational elections (such as for the mayor of Mogadishu) could be held to facilitate greater accountability.

The next task is revising the constitution in a way that increases inclusiveness. Donors do not want the redrafting process to drag on for years, as it has in Nepal for over a decade. Somalis are already disappointed with initial drafts, though: Quotas for women have disappeared from the constitution, and progressives have little faith that the current language—women should have a “meaningful representation” in all elected and appointed positions—will achieve progress. Moreover, the constitution drafters are still to tackle some of the most politically contentious issues, including how power (including arms, taxes, and other resources) will be distributed between the center and the newly forming states.

But the fact that Mogadishu has accepted federalism and power decentralization is perhaps the greatest political accomplishment in years. Competition over who controls Mogadishu and crucial resources has, for years, been a major source of conflict and corruption. Few outside of the capital, including Hawiye clans who dominate business there, want to be ruled by it.

However, there is as yet little agreement about the relative balance of power between the center and subnational states, including whether they will be allowed to retain their militia forces as some sort of paramilitary police. In the Jubaland State, Madobe, whose self-declared presidency was accepted by Mogadishu on an interim basis in 2013 for two years, has so far shown no inclination to give up control of any of his forces. In the Southwest State that has also been formed, local state officials decry the absence, incompetence, and untrustworthiness of national forces and clamor for their own armed services.

In both Jubaland and Southwest States, the state formation process was unable to avoid fighting between warlord and clan forces over which areas would be included in which state and under whose control. In Jubaland, the process ended with Madobe’s victory over the forces of Barre Hirale’s (who are still mostly hiding in the bush). In the Southwest State, the two local rivals created a coalition government, with over 60 ministers and plenty of built-in political dysfunction, nepotism, and paralysis. State formation still needs to be completed in other areas, such as the Shabelle. In April 2015, a state-formation conference was launched for the Central Regions State. Some representatives continue to question whether six states are enough and others are debating which state their territory should belong to.

How to generate revenues is another major challenge in the federalization process. Neither the state governments nor the national one trusts the other to share revenues: The states do not want to give up land taxes to the federal state; but the federal government strongly dislikes the idea of having to rely only on the tax revenues from fisheries and maritime routes. And the promise of potentially huge mineral resources under the Somali sand only makes the federal versus state competition more intense.

How control is devolved matters a lot. The biggest danger is that the exclusionary politics over spoils and war rents that have dominated Mogadishu for so long will be replicated at the local level. And given how the state formation processes have been going, there are reasons to fear that the clientalistic patronage networks that systematically discriminate against rivals will be reestablished at the state level. In some areas, especially in the Juba Valley, that is already underway, creating a significant number of internally displaced people and potentially allowing al Shabab to insert itself into the area on the side of the oppressed.

IT’S GOOD GOVERNANCE, STUPID

Over the past few decades, international actors have not paid enough attention to subnational governance in Somalia, and they are running that risk again. Many, including the United States, focus predominantly on the problem of al Shabab, even though al Shabab is merely the latest result of poor governance. Many of the crucial donors lack presence outside of Mogadishu, which limits their understanding of life at the regional, town, and village levels. Local peace committees of clan elders, imams, and representatives of civil society and the business community can be an important mechanism of better governance. But the international donors need to work with them, and to be aware of the politics behind the peace committees—such as, for example, of who is selected for them and who is excluded. Other international actors, such as Kenya and Ethiopia, often embrace problematic powerbrokers for the sake of their strategic and counterterrorism interests, even though these powerbrokers ultimately undermine stability.

Fundamentally, whether Somalia succeeds in breaking out of decades of conflict, famine, misery, corruption, and misgovernance depends on the Somali people. It depends on whether a sufficient constituency for better governance and less conflict eventually emerges or whether Somali businessmen and politicians continue to find the way to work around conflict or make money from it while the Somali people eke out survival amidst the harshest conditions without mobilizing for change. Since 2012, Somalia has had one of the best chances to pull off such transformation in years. It should not waste it.

This article was originally published by Foreign Affairs.

Publication: Foreign Affairs
Image Source: © Feisal Omar / Reuters
     
 
 




in

The struggle for democracy in Myanmar/Burma


Event Information

July 14, 2015
9:30 AM - 11:00 AM EDT

Saul/Zilkha Rooms
Brookings Institution
1775 Massachusetts Avenue NW
Washington, DC 20036

Register for the Event

Myanmar/Burma is in the fourth year of a historic transition out of military rule that began after the junta dissolved itself in March 2011, replaced by an elected parliament and the government led by President Thein Sein. New elections are expected in November for its second government under the 2008 constitution. While expressing commitment to holding a free and fair election, the Thein Sein government has left in place a constitutional obstacle to allowing Aung San Suu Kyi, leader of the opposition National League for Democracy (NLD), from becoming the country’s next president. The NLD seems likely to emerge from the new elections with the most seats in the legislature, but may fall short of its landslide victory in the 1990 election, which was not accepted by the ruling military junta.

On July 14, the Center for East Asia Policy Studies at Brookings hosted a discussion of Myanmar’s progress over the past four years and the prospects for strengthening democratic rule under the next government. Delphine Schrank, a former reporter with The Washington Post, spent four years among dissidents in Myanmar/Burma and has written a narrative nonfiction account about their epic multi-generational fight for democracy. Her book “The Rebel of Rangoon; A Tale of Defiance and Deliverance” (Nation Books, 2015) will set the stage for the discussion. Panelists included Brookings Senior Fellow Ted Piccone, Nonresident Senior Fellow Lex Rieffel, and Priscilla Clapp, former chief-of-mission to the U.S. Embassy in Burma (1999-2002). Richard Bush, senior fellow and director of the Center for East Asia Policy Studies, offered opening remarks and moderated the discussion.

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in

Campaign finance regulation in Latin America


The use of economic resources to support election campaigns is an essential ingredient of democratic competition. Often viewed as a malady of democracy, campaign finance is actually part of the normal workings of democratic life. However, it is indisputable that money is capable of inflicting significant distortions on politics and policymaking. When there is a failure to regulate money in the political process or existing regulation is ineffectual, the legitimacy of democratic processes can be jeopardized.

These concerns are particularly relevant to Latin America, a region plagued by a highly unequal income distribution, and where organized crime has a major presence, transacts billions of dollars each year in illicit business, and has the potential to corrupt democratic institutions. In this policy brief, Kevin Casas-Zamora and Daniel Zovatto offer practical guidance for making campaign finance regulation feasible and increasing its likelihood of success. In undertaking reform, countries should prioritize the most urgently needed changes with the broadest political consensus. Proposals for reform include:

• Establish greater control over private funding of parties and election campaigns;

• Create a public subsidy system to ensure fair access for parties and candidates to adequate funding to finance both regular day-to-day operations and election campaigns;

• Adopt mechanisms to keep campaign spending from skyrocketing;

• Craft party and candidate reporting systems to increase accountability, transparency, and disclosure; and

• Establish a graduated and credible system of sanctions for the chief financial officers of political parties in the event of violations of the rules in force.

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in

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
     
 
 




in

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
      
 
 




in

Bolivian re-elections: Slaves of the people or the institutions


Recently, Bolivian President Evo Morales declared himself a “slave of the people” and said he is backing the proposed constitutional reform that would enable him to seek re-election in 2019 if that’s what the citizens want. Last Saturday, September 26, the Legislative Assembly partially amended the Constitution (by a two-thirds majority), authorizing Morales to run for the presidency once again in 2019. February 21, 2016 is set as the date of the popular referendum to validate or reject the amendment.

This amendment allows presidential re-election for two consecutive terms, rather than just one re-election, as dictated by the previous constitutional provision. The change takes into account the current presidential term (2015-2020) and clarifies that Evo and his vice president are authorized to run only one more time, that is, to seek re-election only for the 2020 to 2025 period. The opposition immediately denounced the amendment as “tailoring the law to the needs of one person”.

It should be noted that Morales and García ran and won in the 2005, 2009, and 2014 elections. The current term is the second consecutive term under the new Bolivian Constitution (adopted in 2009) and the third since they were first elected, in 2005. If he wins the elections scheduled for 2019, Evo would become one of the leaders to hold power the longest in Bolivia and throughout Latin America.

Re-election fever

This constitutional amendment, recently adopted in Bolivia, is not an isolated event. Rather, it fits within a regional trend toward re-election that has been gaining ground in Latin America over the past 20 years.

While the region ushered in democracy in the late 1970s and many clearly opposing re-election, this situation changed dramatically a few years later. The first wave of reforms favorable to immediate or consecutive re-election came in the first half of the 1990s with the impetus of Alberto Fujimori in Peru (1993), Carlos Menem in Argentina (1994), and Fernando Henrique Cardoso in Brazil (1997). From then on, several more presidents introduced reforms during their administrations to keep themselves in power. A second wave of reforms, led by Hugo Chávez, took place in the middle of the last decade, with a view to moving from immediate re-election to indefinite re-election. Chávez secured this objective via referendum in 2009.

Chávez’s example was reproduced by Daniel Ortega in 2014 in Nicaragua (the second country to allow indefinite re-election). Currently one more president, Rafael Correa (Ecuador), is promoting a reform along similar lines.

Recent reforms and trends

The years 2014 and 2015 have been full of news a about re-election. In the last 20 years the Dominican Republic has led in the number of re-election related reforms, with four from 1994 to 2015. The most recent, in July 2015, has re-established immediate re-election, enabling President Danilo Medina to run once again in May 2016 elections to aspire to a second consecutive term.

Two more countries have moved in what some might call extreme directions in 2014 and 2015. Nicaragua eliminated any impediment to re-election from the constitution in January of 2014, while Colombia moved in the opposite direction when they approved a reform prohibiting presidential re-election, in June 2015, a decade after re-election was first adopted.

On April 22, 2015, the Honduran Supreme Court declared the articles of the constitution that prohibited presidential re-election inapplicable. These articles also punished public officials and any other citizen who proposed or supported amending them, as these articles were considered not subject to reform. In 2009 the effort to call a National Constitutional Assembly after a non-binding consultation to amend the constitution and do away with this provision, led to the coup d’état that removed former President Zelaya from office.

In Brazil, the Chamber of Deputies cast an initial vote in 2015 in favor of eliminating re-elections, which is now being examined in the Senate. Most analysts consider it likely that the senate will adopt a similar position as the lower house, i.e. in favor of doing away with re-election.

Finally, one should note the cases of Ecuador and Bolivia, countries in which efforts are under way to amend the constitutions in relation to elections, in the terms analyzed above.

As a result of the reforms of the last few years, at this time 14 of the 18 countries in the region allow re-election, albeit with different specific rules. Venezuela (since 2009) and Nicaragua (since 2014) are the only countries so far that allow indefinite re-election. In five countries – Argentine, Bolivia, Brazil, Ecuador, and the Dominican Republic – consecutive re-election is allowed, but not indefinitely (only one re-election is permitted). Nonetheless, presidents who re-founded the institutional order through constitutional assemblies have been able to benefit from a third term, leaving out the first term on the argument that it pre-dated the constitutional reforms (Bolivia and Ecuador). To these five countries we should added the above-mentioned case of Honduras.

In six other countries one can return to the presidency after an interval of one or two presidential terms. These are Chile, Costa Rica, El Salvador, Panama, Peru, and Uruguay. As we have observed, only four countries have an absolute prohibition on any type of re-election, namely Mexico, Guatemala, Paraguay, and, since last July, Colombia.

My opinion

This re-election fever is bad news for a region like ours given the institutional weaknesses, the crisis of the political parties, the growing personalization of politics, and, in several countries, hyper-presidentialism.

Something is very wrong when a president of a democracy considers himself or herself as indispensable as to change the constitution in order to stay in power. As Pope Francis noted recently; “a good leader is one who is capable of bringing up other leaders. If a leader wants to lead alone, he is a tyrant. True leadership is fruitful.”

“The leaders of today will not be here tomorrow. If they do not plant the seed of leadership in others, they are worthless. They are dictators,” he concluded.

I agree with Pope Francis. The health of a democracy depends essentially on its ability to limit the power of those in government so they cannot reshape the law to fit their personal ambitions. In other words, democracy in Latin America does not need leaders who are slaves of the people, but who are slaves to the law and the institutions.

This piece was originally published by International IDEA.

Authors

Publication: International IDEA
Image Source: © David Mercado / Reuters
      
 
 




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ReFormers Caucus kicks off its fight for meaningful campaign finance reform


I was honored today to speak at the kick off meeting of the new ReFormers Caucus. This group of over 100 former members of the U.S. Senate, the House, and governors of both parties, has come together to fight for meaningful campaign finance reform. In the bipartisan spirit of the caucus, I shared speaking duties with Professor Richard Painter, who was the Bush administration ethics czar and my predecessor before I had a similar role in the Obama White House. 

As I told the distinguished audience of ReFormers (get the pun?) gathered over lunch on Capitol Hill, I wish they had existed when in my Obama administration role I was working for the passage of the Disclose Act. That bill would have brought true transparency to the post-Citizens United campaign finance system, yet it failed by just one vote in Congress.  But it is not too late for Americans, working together, to secure enhanced transparency and other campaign finance changes that are desperately needed.  Momentum is building, with increasing levels of public outrage, as reflected in state and local referenda passing in Maine, Seattle and San Francisco just this week, and much more to come at the federal, state and local level.

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in

The case for reinvigorating U.S. efforts in Afghanistan


President Obama is right to keep at it in Afghanistan, argues a new policy brief by Michael O’Hanlon, senior fellow and director of research for the Brookings Foreign Policy program.

Some have criticized the president’s decision to maintain a significant troop presence there (5,500 troops), instead of following through on the planned military withdrawal. But Afghanistan remains very important to American security, O’Hanlon contends, and the situation in the country is far from hopeless in spite of recent setbacks. We should reinvigorate American efforts in Afghanistan, he argues—not returning to levels seen in previous years, but ramping up somewhat from our current posture.

O’Hanlon calls Obama’s resolve in Afghanistan commendable, but writes that he and his administration are still making mistakes on U.S. policy toward the war-torn country. He advises that Washington make two specific changes to its military strategy in Afghanistan:

  1. Allow U.S. and NATO airpower to target the Islamic State and the Taliban (currently, they can only fight those groups if directly attacked). The narrow rules of engagement constraining foreign forces were intended to push Afghan armed forces to defend their territory themselves. While a worthy goal, O’Hanlon says, these rules often prevent us from attacking ISIS (though the targeting strategy towards the group may be changing) as well as the Taliban. They also impose unrealistically high demands on Afghan forces and make too fine a distinction between an array of aligned extremist groups operating in the country.
  2. Expand U.S. force presence from the current 5,500 troops to around 12,000 for a few years. In O’Hanlon’s opinion, our current numbers are not enough to work with fielded Afghan forces, and skimping on ground forces has contributed to security challenges in places like Helmand, for instance, which experienced new setbacks in 2015. More broadly, leaders in Washington and Brussels should stress the value of a long-term NATO-Afghanistan partnership, rather than emphasizing an exit strategy. This will signal Western resolve to the Taliban and other groups. While the next commander in chief should set the United States on a gradual path toward downsizing American troops in Afghanistan, he believes it would be a mistake for Obama to do so in the short term.

The long haul

O’Hanlon also argues that the United States needs to take a longer-term perspective on key political and economic issues in Afghanistan. On the economic front, there seems to be little thinking about an agricultural development plan for Afghanistan, associated infrastructure support, and land reform, among other challenges. On the political front, conversations often tend to focus on shorter-term issues like organizing parliamentary elections, reforming the Independent Election Commission, or modifying the current power-sharing arrangement. In the process, conversations about foundational political strategy focusing on Afghan institutions and the health of its democracy get short-changed. The parliament is in need of reforms, for instance, as is the political party system (which should encourage Afghans to group around ideas and policy platforms, rather than tribes and patronage networks).

O’Hanlon concludes that the situation in Afghanistan today, while fraught, is understandable given the Taliban’s resilience and NATO’s gradual withdrawal of 125,000 troops. We should not be despondent, he writes—rather, we should identify specific strategies that can help improve the situation. At the end of the day, Afghans must make the big decisions about the future of their country. But as long as the United States and its partners are still providing tremendous resources—and as long as security threats emanating from South Asia continue to threaten the United States—leaders in Washington should use their influence wisely.

Authors

  • Anna Newby
      
 
 




in

Democracy in Latin America on trial


In the recently-released Democracy Index of the Economist Intelligence Unit (EIU), Latin America’s performance is worrisome. Just one country, Uruguay, is classified as a “full democracy.” Costa Rica falls into the category of “flawed democracy,” which also includes Mexico and Brazil, both of which fell in the ranking. The assessment could be even more discrediting were it not for the good results of several Latin American countries on the indicator for quality of electoral justice. Brazil’s score is auspicious: 9.58. Only five countries in the world score better.

Like other attempts to gauge democracy based on a given set of variables, the EIU’s assessment is susceptible to criticism. Yet it has the merit of reflecting a reading shared by observers of the current moment in Latin American politics. We agree that the region has continued to leave crucial questions regarding the future of its democratic experiences unanswered. How can one update the models of representation, reinforcing their social resonance and the legitimacy of public action? What can be done to ensure that the state is more efficient and responsive to society at large? What are the paths to advancing the democratization of the political parties, recovering their role as mediators between society and government authority, a function they share today with new mechanisms and new collective actors? Is it feasible to bring a halt to the sequestration of politics by economic power, looking out for the preeminence of the public interest?

In some quarters, the discourse of democratic renewal took on a regressive tone in recent years. A supposed antinomy was preached between social change and representative democracy in the name of seeking less oligarchic and more inclusive models. New institutional arrangements were postulated, with a plebiscitary bias, while principles such as the independence of the branches of government and respect for fundamental freedoms and guarantees were neglected.

While the backward-looking discourse appears to be receding with the victory of the opposition in the Venezuelan elections and the fall of like-minded forces such as kirchnerismo, there are problems that are growing more intense that affect the region from the Rio Grande to Tierra del Fuego. They fall into two main groups.

The first has to do with the impact of the economic crisis on patterns of social cohesion. With the end of the expansionist cycle driven by the high commodities prices, the means for sustaining the widely disseminated programs for income transfers and easy credit were becoming scarce. The emerging sectors lost the immediate prospect of their continued social ascent. More than a few analysts considered the dissatisfaction of those groups to be the fuse that led to the multitudinous demonstrations that took place in Brazil and other Latin American countries in 2013.

True, demonstrators in Sao Paulo held up banners that echoed the “networks of indignation and hope” (as put by Manuel Castells) that proliferated after the “occupy” movement with the disenchantment of traditional politics. Yet their main demand, for better living conditions, will continue to go unaddressed in Brazil and elsewhere as long as the state’s fiscal crisis continues.

The agenda of Latin American societies goes beyond vindicating quality infrastructure services. It includes calls for a genuine updating of the institutions. They want public security, repression of organized crime, transparency in the conduct of public affairs, effective oversight mechanisms, careful accountability by public agents, the end of patrimonialism, an end to practices that harm the national treasury, anti-corruption efforts, and an end to impunity – in summary, a series of positions that cannot be addressed without a coordinated action by the state and citizens. It is that institutional deficit that justifies negative assessments such as the EIU’s.

Yet the exception pointed out by the Democracy Index should be highlighted. After more than 20 years heading up the regional office of the Institute for Democracy and Electoral Assistance (IDEA), I am happy to confirm that Latin America’s electoral justice system, except for topical cases such as Venezuela, is going against the current. The electoral courts have effectively advocated the adoption of good practices and rules, from the use of new technologies at the service of greater transparency in elections to the endeavor to assure equity in electoral contests. Suffice it to turn to the Brazilian case, which became a reference worldwide in turning to electronic voting. How can one not testify in favor of a model which, in the first round of the 2014 elections, made it possible for 93.9% of the votes to be counted one hour after the polls closed without any evidence of fraud? How can one not welcome the gains in biometric identification, which will eliminate the risk of a repeated vote and make it possible to establish a single national registry? Not to mention the judicious regulation of access by parties and candidates to the media by the Supreme Electoral Tribunal.

Brazil’s electoral justice system has also highlighted the magnitude of the challenge of regulating campaign finance. The figures made available to the Supreme Electoral Tribunal on the weight of financing by companies reveal contributions of more than tens and even hundreds of millions of dollars in a single election campaign. It is an unparalleled phenomenon in the regional context, and perhaps internationally. The anomaly is sufficiently eloquent to justify a correction in direction, such as that adopted by the Federal Supreme Court, at the request of the Brazilian Bar Association (Ordem dos Advogados do Brasil), restricting private financing to natural persons. The adjustment in the party slates for the municipal elections next October will not be simple. Yet what is most important is that an important step was taken to affirm the autonomy of politics. And it happened, as it should, through the joint action of the state and society.

This piece was originally published in Estadão in Portuguese.

Authors

Publication: Estadão
Image Source: © Ueslei Marcelino / Reuters