Tuesday, September 02, 2003

Another Friday Outrage By PAUL KRUGMAN When the E.P.A. makes our air dirtier, or the Interior Department opens a wilderness to mining companies, or the Labor Department strips workers of some more rights, the announcement always comes late on Friday � when the news is most likely to be ignored on TV and nearly ignored by major newspapers. Last Friday the Federal Energy Regulatory Commission, known as FERC, announced settlements with energy companies accused of manipulating markets during the California energy crisis. Why on Friday? Because the settlements were a joke: the companies got away with only token payments. It was yet another demonstration of how electricity deregulation has gone wrong. Most independent experts now believe that during 2000-2001, price manipulation by energy companies, mainly taking the form of "economic withholding" � keeping capacity offline to drive up prices � added billions of dollars to California's electricity bills. A March FERC report concluded that there had been extensive manipulation of prices in both the natural gas and electricity markets. Using methods widely accepted among economists, the California Independent System Operator � which operates the power grid � estimated that withholding by electricity companies had cost the state $8.9 billion. This estimate doesn't include the continuing cost of long-term contracts the state signed, at inflated prices, to keep the lights on during the crisis. Yet the charges energy companies agreed to added up to only a bit more than $1 million. That is, the average Californian was bilked of more than $250, but the state will receive compensation of about 3 cents.� http://www.nytimes.com/2003/09/02/opinion/02KRUG.html

Sunday, August 31, 2003

Taking Arabs Seriously Marc Lynch From Foreign Affairs, September/October 2003 RIGHT GOAL, WRONG APPROACH For the hawks in the Bush administration, one of the keys to understanding the Middle East is Osama bin Laden's observation that people flock to the "strong horse." Bush officials think U.S. problems in the region stem in part from "weak" responses offered by previous administrations to terrorist attacks in the 1980s and 1990s, and they came into office determined to reestablish respect for U.S. power abroad. After nearly two years of aggressive military actions, however, the United States' regional standing has never been lower. As the recent Pew Global Attitudes survey put it, "the bottom has fallen out of Arab and Muslim support for the United States." The failure to find dramatic evidence of Iraqi weapons of mass destruction has spurred widespread debate in the Middle East about the real purpose of the recent war, which most Arab commentators now see as a bid by the United States to consolidate its regional and global hegemony. U.S. threats against Iran and Syria play into this fear, increasing a general determination to resist. And the chaos that followed the fall of Baghdad, the escalating Iraqi anger at what is always described as an American occupation, and the seemingly ambivalent U.S. attitude toward Iraqi democracy have reinforced deep preexisting skepticism about Washington's intentions. Because of the speed with which intense anti-Americanism has recently emerged across all social groups in the region -- including educated, Westernized Arab liberals -- the problem cannot be attributed to enduring cultural differences, nor to long-standing U.S. policies such as support for Israel or local authoritarian leaders. Arabs themselves clearly and nearly unanimously blame specific Bush administration moves, such as the invasion of Iraq and what they see as a desultory and one-sided approach to Israeli-Palestinian relations. But perhaps even more important than the substance of the administration's policies is the crude, tone-deaf style in which those policies have been pursued. The first step toward improving the United States' image, therefore, must be figuring out how to address Arabs and Muslims effectively. Ironically, for this administration above all others, taking Arab public opinion seriously cannot be considered either a luxury or a concession to "Arabists" lurking in the bureaucracy. It is instead crucial to the success of the administration's own strategy, which links U.S. security to a democratic and liberal transformation of the region. The Bush team's practice, however, has worked against its stated goals, largely because it has been based on misguided assumptions about the Arab world.� http://www.foreignaffairs.org/20030901faessay82506/marc-lynch/taking-arabs-seriously.html

Bridges, Bombs, or Bluster? Madeleine K. Albright From Foreign Affairs, September/October 2003 Summary: Since the attacks of September 11, 2001, the Bush administration has pressured every country in the world to make a simple choice: Are you with the United States or with the terrorists? But by casting the choice so starkly--and expanding the war on terror to include its campaign in Iraq--Washington has alienated many natural and potential allies and made the fight against al Qaeda more difficult. It didn't have to be this way. The White House has acted as if it doesn't care what others think, and the country is paying the price for its mistake. http://www.foreignaffairs.org/20030901faessay82501/madeleine-k-albright/bridges-bombs-or-bluster.html