Comparing two five-year periods between 2007-11 and 2012-16, the volume of Chinese exports of major arms increased by 74 per cent. Its share of the global total of exports rose from 3.8 to 6.2 per cent, making it the third-largest supplier in the world, following the United States and Russia.
Unlike the US, which accounts for one-third of exports and supplies at least 100 countries, China delivered major arms to 44 countries, mostly in Asia and Africa. More than 60 per cent of China’s exports went to Pakistan, Bangladesh and Myanmar and another 22 per cent went to Africa.China has also been expanding its market. In 2015, it exported type 90 multi-barrel rocket launchers to Peru, the first time Chinese weapons were used to equip Peru’s armed forces. A report released by the Pentagon last April estimated that China’s arms sales from 2010 to 2014 totalled about US$15 billion. Continue reading
Author Archives: Lin
SIPRI: Arms Trade 2012-2016
SIPRI: Global Arms Trade Highest since Cold War
The Stockholm International Peace Research Institute (Sipri) said on Monday that more weapons were delivered between 2012 and 2016 than any other five-year period since 1990. Saudi Arabia, which leads a military intervention in Yementhat has cost hundreds of civilian lives, was the world’s second largest importer after India, increasing its intake by 212%, mainly from the US and the UK.
Asia was the main recipient region in the world as India dwarfed regional rivals, China and Pakistan, by accounting for 13% of the global imports. While India received most of its arms from Russia, the Saudis relied heavily on US arms. US and Russia together supplied more than half of all exports. China, France and Germany were also among the top five exporters. Continue reading
Debt Cancellation and Economic Renewal
Basically what you had in the Bronze Age and every ancient society was a different concept of time than you have today. You had the concept of time as circular. That meant economic renewal. The idea was that every new ruler, every new reign, began time all over again. It wasn’t really time, it was really the economy had to start from a new position of equilibrium. This equilibrium – basically freedom from debt, the ability to support yourself – had to start afresh. Continue reading
Antitrust in the era of Amazon
This Note argues that the current framework in antitrust—specifically its pegging competition to “consumer welfare,” defined as short-term price effects—is unequipped to capture the architecture of market power in the modern economy. We cannot cognize the potential harms to competition posed by Amazon’s dominance if we measure competition primarily through price and output. Specifically, current doctrine underappreciates the risk of predatory pricing and how integration across distinct business lines may prove anticompetitive. These concerns are heightened in the context of online platforms for two reasons. First, the economics of platform markets create incentives for a company to pursue growth over profits, a strategy that investors have rewarded. Under these conditions, predatory pricing becomes highly rational—even as existing doctrine treats it as irrational and therefore implausible. Second, because online platforms serve as critical intermediaries, integrating across business lines positions these platforms to control the essential infrastructure on which their rivals depend. This dual role also enables a platform to exploit information collected on companies using its services to undermine them as competitors.
Would Gandhi give the go-ahead to the UBI
India is nearly done building the plumbing to enable such a system by connecting the Aadhaar-based biometric ID system to individual bank accounts. It’s already replaced LPG gas canister subsidies with cash, a program that has 150 million beneficiaries and is the now the world’s largest cash transfer program. So could India take this example to its logical conclusion and replace all welfare benefits with UBI? (GiveDirectly is asking a similar question in a bold 10-year $30 million experiment in Kenya.)
The Survey’s assessment begins with quotes from Mahatma Gandhi suggesting both support and objection to the principles of UBI. The chapter then methodically addresses the conceptual pros (e.g., justice, equity, agency, efficiency) and potential cons (e.g., labor disincentives, moral hazard, political objections). It attempts various modeling, including a rough estimate that cutting national poverty in half via UBI would cost just 1.5 percent of GDP, less than the subsidy bill in the 2016-17 budget. For the data nerds, there are seven (!) appendices explaining all the estimates and calculations. Continue reading
$900 billion spent in Afghanistan
The most telling moment in the SASC hearing came when Nicholson remarked that plans were being developed to “find success” in Afghanistan within the next four years. That would mark a full twenty years of direct U.S. military involvement in Afghanistan. Since the first Central Intelligence Agency paramilitary teams entered Afghanistan in November 2001, 2,350 servicemembers have given their lives and almost $900 billion in taxpayers’ money has been spent. Meanwhile, the country is less politically stable and less secure from all forms of insurgent and criminal predation. No one can say how or when this largely forgotten war will end, but “finding success” certainly should begin with some realism, honesty, and a corresponding adjustment in U.S. expectations and objectives.
Being Honest About U.S. Military Strategy in Afghanistan Continue reading
America dropped 26,171 bombs in 2016
President Obama did reduce the number of US soldiers fighting in Afghanistan and Iraq, but he dramatically expanded the air wars and the use of special operations forces around the globe. In 2016, US special operators could be found in 70% of the world’s nations, 138 countries – a staggering jump of 130% since the days of the Bush administration.
Looking back at President Obama’s legacy, the Council on Foreign Relation’s Micah Zenko added up the defense department’s data on airstrikes and made a startling revelation: in 2016 alone, the Obama administration dropped at least 26,171 bombs. This means that every day last year, the US military blasted combatants or civilians overseas with 72 bombs; that’s three bombs every hour, 24 hours a day. Continue reading
Thousands of US military’s stats on airstrikes have gone unreported
The American military has failed to publicly disclose potentially thousands of lethal airstrikes conducted over several years in Iraq, Syria and Afghanistan, a Military Times investigation has revealed. The enormous data gap raises serious doubts about transparency in reported progress against the Islamic State, al-Qaida and the Taliban, and calls into question the accuracy of other Defense Department disclosures documenting everything from costs to casualty counts.
In 2016 alone, U.S. combat aircraft conducted at least 456 airstrikes in Afghanistan that were not recorded as part of an open-source database maintained by the U.S. Air Force, information relied on by Congress, American allies, military analysts, academic researchers, the media and independent watchdog groups to assess each war’s expense, manpower requirements and human toll. Those airstrikes were carried out by attack helicopters and armed drones operated by the U.S. Army, metrics quietly excluded from otherwise comprehensive monthly summaries, published online for years, detailing American military activity in all three theaters. Continue reading
The Grave Threat of Outdated Nuclear Weapons Is Now Greater Than Ever
The Pentagon repeatedly denied that launch-on-warning was American policy, claiming that it was simply one of many options for the President to consider. A recent memoir, “Uncommon Cause,” written by General George Lee Butler, reveals that the Pentagon was not telling the truth. Butler was the head of the U.S. Strategic Command, responsible for all of America’s nuclear weapons, during the Administration of President George H. W. Bush.
According to Butler and Franklin Miller, a former director of strategic-forces policy at the Pentagon, launch-on-warning was an essential part of the Single Integrated Operational Plan (siop), the nation’s nuclear-war plan. Land-based missiles like the Minuteman III were aimed at some of the most important targets in the Soviet Union, including its anti-aircraft sites. If the Minuteman missiles were destroyed before liftoff, the siop would go awry, and American bombers might be shot down before reaching their targets. In order to prevail in a nuclear war, the siop had become dependent on getting Minuteman missiles off the ground immediately. Butler’s immersion in the details of the nuclear command-and-control system left him dismayed. “With the possible exception of the Soviet nuclear war plan, [the siop] was the single most absurd and irresponsible document I had ever reviewed in my life,” Butler concluded. “We escaped the Cold War without a nuclear holocaust by some combination of skill, luck, and divine intervention, and I suspect the latter in greatest proportion.” The siop called for the destruction of twelve thousand targets within the Soviet Union. Moscow would be struck by four hundred nuclear weapons; Kiev, the capital of the Ukraine, by about forty.
Regulations are Protections
Here is a typical example. Minority President Trump has said that he intends to get rid of 75% of government regulations. What is a “regulation”?
The term “regulation” is framed from the viewpoint of corporations and other businesses. From their viewpoint, “regulations” are limitations on their freedom to do whatever they want no matter who it harms. But from the public’s viewpoint, a regulation is a protection against harm done by unscrupulous corporations seeking to maximize profit at the cost of harm to the public. Continue reading
Investment in Health promotes while investment in Defense inhibits economic growth
Using cross-national fixed effects models covering 25 EU countries from 1995 to 2010, we quantified fiscal multipliers both before and during the recession that began in 2008.
We found that the multiplier for total government spending was 1.61 (95% CI: 1.37 to 1.86), but there was marked heterogeneity across types of spending. The fiscal multipliers ranged from −9.8 for defence (95% CI: -16.7 to −3.0) to 4.3 for health (95% CI: 2.5 to 6.1). These differences appear to be explained by varying degrees of absorption of government spending into the domestic economy. Defence was linked to significantly greater trade deficits (β = −7.58, p=0.017), whereas health and education had no effect on trade deficits (peducation=0.62; phealth= 0.33).
Liberalism and Trumpism
By “liberalism” I mean what is considered under this term in the US. By “to blame” I mean “for the rise of Trump and similar nationalist-populists”.
What are the arguments for seeing liberal triumphalism which began with the collapse of Communism in the 1990s as having produced the backlash we are witnessing today? I think they can be divided into three parts: economics, personal integrity, and ideology.
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Biggest rise in inequality since Thatcher years
The Resolution Foundation’s study found that the current parliament would be the worst for living standards for the poorest half of households since comparable records began in the mid-1960s and the worst since the early years of Thatcher’s 1979-90 premiership for inequality.
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Higher NHS spending is necessary and affordable
The King’s Fund suggest that a 3.5% annual real-terms rise in NHS expenditure, combined with the provision of ‘moderate’ and ‘higher’ social care needs free at the point of use, would bring total health and social care expenditure up to between 11 and 12 per cent of UK GDP by 2025. This compares with the 16.9% of GDP spent by the US and the 11% spent by France on healthcare alone in 2015.
If UK economic growth continues at an annual average of 2%, by 2025 GDP at 2013 prices will be around £2.2 trillion compared to £1.8 trillion in 2015, an increase of £400 billion. In 2013 terms an increase in spending on health and social care to 12% of GDP would represent around an additional £60-70 billion annual spend in 2025. Yet even with this increase in health and care expenditure, the nation as a whole would still have over an extra £300 billion to spend on all other goods and services, public and private. The King’s Fund’s recommendation is thus eminently affordable.
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Foreign investment increases house prices
Average house prices in England and Wales have almost tripled in the last 15 years, from just over £70,000 in 1999 to about £215,000 in 2014. Apart from a reduction in 2009, at the height of the global financial crisis, house prices increased every year during this period. Behind this average lies considerable regional variation, with average prices in the prime London area of Kensington and Chelsea reaching £1.3 million in 2014. Continue reading
Unemplyment and Trade Deficit
Note that the level of manufacturing employment, while it has cyclical ups and downs, is nearly constant from 1970 to 2000 at around 17 million. It plunged in the early years of the last decade as the trade deficit exploded. Most of the fall in employment was before the collapse of the housing bubble in 2008. This is what happens when a trade deficit increases from around 1.5 percent of GDP, the mid-1990s level, to almost 6.0 percent of GDP at its peak in 2005-2006 (over $1.1 trillion in today’s economy).
In his article Brad does a bit of slight of hand on this rise in the trade deficit, attributing it to an over-valued dollar rather than trade agreements like NAFTA. I agree with him on this, but I think the ignorant masses can be excused for failing to recognize that the jobs lost to trade were due to the Clinton administration’s dollar policy rather than its trade deals.
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Is a Pakistan-India war just one terrorist attack away?
If a new attack occurs and inflicts major casualties in India, especially among civilians in the heartland, the kudos the Modi government won at home for the response to Uri will compel it to act more forcefully. Pakistani military and civilian leaders, fearful of each other and of militant political forces, cannot let a substantial Indian military operation against targets on Pakistani soil go unanswered.
In this context, the lack of any apparent strategy and political determination (in both India and Pakistan) to change the current dynamic and establish a peacemaking process is dangerous. Can serious people in either country believe this situation is sustainable over a long-term period, that violence can continue to be managed? Continue reading
F-35 will only cost $85 million?
Birkey repeats Lockheed Martinand Pentagon Joint Program Office claims that the F-35 will cost taxpayers only $85 million per copy by 2019.
This claim is as generous as it is deceptive. For one thing, that is just the estimated cost of an Air Force conventional take-off variant, the F-35A — the least expensive of the three variants. In addition, that cost figure is actually only an estimate, one that assumes everything will perfectly for the F-35 from here on out and that the Pentagon will buy more than it had planned.
When people say the F-35 will only cost $85 million, they are only talking about the price of the airframe and the engine. Proponents don’t include how much it will cost to fix design flaws found in testing — a not insubstantial amount of money.
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SIPRI’s Arms Trade Treaty database now covers Latin America and the Caribbean
SIPRI is proud to announce that is has expanded and improved its online database for Mapping Arms Trade Treaty (ATT)-relevant cooperation and assistance activities to include activities in Latin America and the Caribbean. The database now contains information on over 350 activities involving partner states from Sub-Saharan Africa and Latin America and the Caribbean since 2012. Continue reading
Tipping Point North South 