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Graham Allison of the Kennedy school of Government at Harvard and John Deutsch former head of the CIA under Clinton and now a Professor at MIT, say it would be adesirable thing that Afghanistan develop into a prosperous, poppy-free and democratic country, but it is not vital for American interests. They say lets face it, one cannot push Afghistan into modernity overnight, just because we wish it. It would be atragic mistake to do so, and take a huge and ultimately failing effort to do this, with a vast expenditure of American blood and money, to do this. One can expect for Afghanistan after we exit to revert to conditions that exist in other countries at the same level of development, like Bangladesh, Sudan, Somalia. Allison sees a vital interest at stake in Pakistan because of nuclear weapons.

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John Holmes the UN deputy secretary general and relief coordinator says after a 4 day situation that the situation in Afghanistan is deteriorating. Afghanistan's food needs he says are very great considering the worsening food situation cause by world food prices surging and by the loss of about 40% of Afghanistan's wheat crop from drought that has affected food producing areas. The UN appealed 6 months earlier for $400 million in food aid to meet the needs of 4.5 million people or 14% of the people and for seeds and fertilizer to increase food production. Complicating food delivery is the worsening security situation with 432 deaths to insurgent attacks, and 62% rise in civilian deaths, displacement of 160,000 people.

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Musharraf's efforts at economic growth were not broad enough or deep enough to create a measurable difference in the lives of the Pakistani people. And improvements in industry and agriculture may have been shallow compared to the potential. The wars or conflicts one or the other with India and the failure of political leaders may have been too big a distraction to achieve the significant effort needed to make a serious improvement in the lives of ordinary people and grow the middle class. Inflation is up by 24% year to year in July and rising, which is really an intolerable burden in a poor developing country. Now what little progress was made in Pakistan for the lives of ordinary people and the middle class is unraveling in the face of increase in the price of food, and fuel. And the the fall in the value of the Pakistan ruppee to Rs 75 for one American dollar, a 24% decline in value since January 2008 in only 8 months, shows a serious loss of confidence in the economy. The fall in the foreign exchange reserves is striking from $16 billion in November to $9.92 billion at this time. Pakistan appears to be heading in the direction of a serious refocussing of its economy, its politics, its educational institutions, and government and private industry, and its military in the direction of improving the lives of ordinary people, building industry and agriculture and building its infrastructure. If left unattended this crisis can only get worse and none of the past experience the old military approaches, the religious politics, the corruption in politics, the old political slogans, the conflict building with India, is going to be of much help in tackling the real day to day problems of improvement in industry, agriculture, infrastructure, and building better lives....

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US National Intelligence report due after the November elections confirms much of the British Ambassador's cable to the French from Afghanistan. Its a situation in a downward spiral the draft report says and the deterioration is accelerated by rampant corruption and the heroin trade which is now about half of Afghanistan's economy. The government "has lost all trust" according to the British Ambassador Cowper-Coles report.

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Is Ahmadinejad or Khamanei Iran's socalled supreme leader, the leader foreign leaders should be paying attention to in the final analysis? The openings in the Clinton administration under Khatami for a reconciliation of differences, Irans legitimate interests and aspirations in the shiite and Islamic world and how they can be reconciled with the American interests as in Iraq. How rhetoric of Ahmadinejad may have poisoned these possibilities and clouded the real nature of Iran as not a totalitarian state says Akbar Ganji but more of a Sultanate in the Islamic tradition with a heterogenity of views and interests under an Islamic banner and authority, as for instance liberalism, socialism and feminism all views that exist as currents in Iranian society and vie to replace the existing Islamic ideology or to supplement or modify it in a form of modernizing element. And in the final analysis its about the hope of democracy activists in Iran and activists for modernizing element, and moderating influences in Iran's heterogenous society and in its bazaars that emphasize commercial instincts and manner over ideology, which also have popular support as they did under Khatami, to come up with a government that is more likely to work with a range of countries from China and India in Asia to Europe and the United States. And its about how the US and Europe can work towards that outcome requiring less rhetoric and more patience, firmness, and perseverence. ...

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Admiral Mullen chairma joint cheifs confirms most of what the British Ambassador in Afghanistan s saying about deteriorating prospects in the country. He understands the heroin growing issue brought up by US counter narcotics experts in the NYT recently, by saying "we've got to impact pretty significantly, pretty fast on the poppy issue". He is aware that poppy growing is abundant in the south and in Helmand province pours upwards of $100 million to finance the Taliban. General McKiernan who heads NATO forces there says that NATO forces would be authorized to attack narcotics bosses, their soldiers and infrastructure, if they are linked to movement of weapons, improvised explosives or foreign fighters in Afghanistan. Which is possibly a waiting mode till more troops are sent to Afghanistan as policing this rugged mountanous country with tribal regions and loyalties complicated by the narcotics layer and widespread corruption in the Karzai government and its loss of popular support requires many more troops than are now in the country and a sustained campaign. So far the US and European forces possibly outnumbered have resisted alienating the poppy farmers in the south through land based eradication. But with more troops Mullen's new approach and Petraeus's has to shift to something like that, at the same time as they follow Petraeus's new counterinsurgency doctrine in display in Iraq to draw down the Taliban strength to its core supporters by winning other tribal factions with no hardcore loyalties over to the American side....

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Tranlation of an oped article in French on the Lashkar -e Taiba terrorist group in Pakistan, and its links and sponsors in the Pakistan ISI agency which is itself a state within a state.

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India's response says Amitav Ghosh is better being like the Spanish response to the Madrid bombings 11-M as it is known in Spanish, than the American response to 9/11. The American response was military buildup and the invasion of Afgahnistan and then Iraq. The Spanish response was says Ghosh was of vigilance, patience and careful police work in coordination with neighboring countries. And in the case of India the added effort to eliminate the terrorists hideouts and safe houses in cooperatation with other countries. Tightened security in all areas and bringing it on par with the security in countries that have addressed the challenge at a much better level.

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Argentina's president Christina Kirchner's popularity increases from 31% in September 2014 to 43% in June 2015 during her last year in office, according to polling firm Management and Fit.

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 Mayor Reiter of Munich, Christian Kern, head of Austrian railway OBB, say here that the actions of Viktor Orban of Hungary gave the German government very little time, only a few hours, to act. The first motivation was to act in a humanitarian way, which is what happened. The German government had asked Orban to register and handle immigrants in an orderly way. In the end with the failure of Orban to do this, the immigrants who would have come north anyway, streamed into Germany and Austria in buses and trains. Clearly Hungary and Germany could have handled this better. The German public provided support with a large number of volunteers helping. One German minister is cited here as saying that if Orban wanted to build a fence he should have done it in a quiet way, as there are fences between Bulgaria and Turkey, and Turkey and Greece and it has not bothered anyone.

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Countrywide and Mozilo, Raj Rajaratnam and Galleon hedge fund, and the Madoff prosecutions. Nocera says the Galleon hedge fund prosecutions do not extend to others who benefitted or had knowledge of what was happening, as has happened in the Madoff case. In the case of Mozilo and Countrywide little has happened to deter future behaviour.

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How the efforts of former Secretary of State, Madeleine Albright, as head of the National Democratic Institute, and Senator John McCain, chairman of the International Republican Institute, to push for democratic processes in Egypt, failed to get the support of the Obama administration. Both wrote to Mr Mubarak in July 2010, asking that international monitors be allowed to observe the election in November 2010. The National Democratic Institute, is a US organization training Egyptians to be election monitors. After the renewal of martial law for another 2 years by Mubarak in May 2010, The Egypt Working Group, a bipartisan body of human rights activists, neoconservative policy makers and Mideast experts, was growing alarmed about the crackdown by Mubarak on anyone seeking transparency in the elections. It sent letters to Secretary of State, Hillary Clinton, in April and May 2010, saying the Mubarak move to rig the elections was dangerous as the young people in Egypt were increasingly agitated. The administration acted as if it was taken by surprise by the situation in Egypt, when respected leaders like Albright were cautioning the administration about the situation in Egypt from early 2010. Before and after the protests, the Obama administration was slow to support democratic processes in Egypt, and failed to take a clear consistent stand supporting the freedom of expression of the Egyptian people....

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People of a new generation cannot imagine that India that they know today could not exist without the integration of 560 smaller kingdoms within overall British India that were allowed self rule under British conditions and law. They made up no less than one third of the British Empire in India. During India's 75th anniversary of independence and looking to India's 100th year a young generation born after 1947 growing up in post-British India cannot easily imagine the critical years after 1910, with Gandhi writing Hind Swaraj that year during a period when he negotiated for the rights of Indians in South Africa just to move freely. The years of the struggle for Swaraj between 1910 and 1931, the Satyagraha March to the Sea at Porbandar to protest the British Salt Tax, the elected assemblies that brought the first experience with self-rule in the thirties, and the "karenge o marenge" pledge to do or die with Quit India Movement in 1942 by Gandhi.  The dominant role of Jawaharlal Nehru after 1947, and that of daughter Indira Gandhi after him, wittingly or unwittingly had the intended or unintended effect of obscuring from view the role of many of the leaders around Gandhi of whom Jawaharlal Nehru was just one. No doubt about Jawaharlal who wore a prisoners badge number token around his neck and spent years in British jails. No doubt about his contribution. Lyrarc throws a spotlight on other leaders who made equally large contributions so that India's young people can get a better sense of what this struggle involved and how it was won by the  people of that time  under the most difficult conditions and trials. This includes Vallabhbhai Patel, Ambedkar, Subhas Chandra Bose, Rajendra Prasad, Rajagopalachari, Maulana Azad, and the young Lal Bahadur Shastri. Others Naoroji, Vidyasagar, Vivekananda, from an even earlier period, Gokhale and Tilak, are people on whose shoulders Mohandas Gandhi stood on and fully accepted as his mentors, as do today's Indian leaders. This BBC report looks at the role of Vallabhbhai Patel of Kheda district in Gujarat state and of his assistant VP Menon. Gandhi was born in 1869, Patel in 1875 and Nehru in 1889. In 1947 Gandhi made the decision to go with Jawaharlal Nehru who was 14 years younger than Vallabhbhai Patel as the younger leader and prime minister who could take India through this critical first decade after independence with Patel as deputy prime minister. Patel died of heart conditions in 1950. Patel's assistant during the crucial period of negotiations for independence after the war ended in 1945 with Viceroy Mountbatten was V.P. Menon.  Mohandas Gandhi always believed that with hundreds of millions of Indians gaining consciousness of their rights even under British concepts of free men and free people, and a sense of their own dignity under God, the British would simply have to leave. His faith in the Bhagavad Gita that affirmed this right under God was firm and indomitable. This was true by 1947. He needed other leaders around him to structure the form this independence would take in terms of administration of the country and the constitution of the new nation. He also needed to bring those parts of British India that were not absorbed into direct British rule during successive wars between 1756 and 1857. These small kingdoms were retained under princely rule after the British decided to halt the policy of integrating them into direct rule following a war in 1857 that almost led to the downfall of the British in India. How large was this area is hard to comprehend when one sees that this was one third of British India in land mass from the Himalayan mountains to the Indian Ocean. Harder still it is to grasp that it would involve bringing in about 560 different princely states or kingdoms into the new India of 1947. It was the task of Vallabhbhai Patel and of his assistant V P Menon to do this. Southik Biswas of the BBC tells the story of how this was done with pictures from that period- click on Original Article to see the BBC report. It also shows how much modern India owes to Vallabhbhai Patel, as it does to Jawaharlal Nehru, Lal Bahadur Shastri, Atal Bihari Vajapayee, to Tilak and all the people in the jails of Andaman, to Naoroji and Gokhale. And how much it owes to today's leaders who have made it their task to bring Har Ghar Jal, cooking gas, and electricity to every family in every village in India, never losing sight of that last poorest of men and women in the land that Vivekananda and then Mohandas Gandhi never lost sight of.   ...

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Sheila Bair, former head of the FDIC, says householders, business leaders, politicians and government leaders are all prone to looking at the short term, and refuse to make the short term sacrifices necessary to put the economy on a trajectory of long term growth. There is also a sense of short sightedness and resistance to any regulatory steps that would actually create a better framework for the financial industry for longer term growth. The financial industry opposes increases in capital requirements for reserves that would lead to a healthier balance sheet for the industry, and opposes any efforts to create amore stable financial system for the country that might sacrifice short term profits. She points to IBG-YBG sense that prevailed in the industry, I be gone- you be gone, leading to the mortgage crisis. The industry tolerated faulty ratings, faulty packaging of securities, and showed complete lack of attention to the long term consequences of such behaviour and excessive leveraging, as long as the short term profits could be made. To a large degree the situation remains the same today, says Bair. Bair and Feldstein were among the first to suggest the Obama administration tackle the huge number of bad mortgages, that were leading to a wave of foreclosures. Only if this problem was tackled head on could this be put behind and the economy be put on a path to steady growth. As it stands today the Obama administration has not tackled the problem, the financial industry still has bad mortgage debt on its books, foreclosures continue, housing prices face further declines, and this will hold back an economic recovery. She refers to the "rationalization" of the last crisis by leaders in the financial industry through the assertion that nobody saw the crisis coming, when she says some of us did see it coming, and a "rationalization" by the same leaders in saying they did nothing wrong. Bair says that the continuation of business practices that led to the financial crisis of 2008 create risks for a new crisis. And some people in government continue to support these same practices while claiming popular support. The President's focus every two years is on getting re-elected and raising funds for re-election, business is focussed on the short term, and this creates a pervasive sense of the short-term throughout out the system and society. ...

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Anthony Faiola describes how Berlusconi gained political power in Italy, his television media enterprises that that upended social norms and built an audience through comedy shows and showing buxom women, the power base he built with the loyalty of housewives and pensioners and the use of special favors to the political class, the affability that helped him continue through several crises including corruption charges. Comparisons could be drawn with Rupert Murdoch of Britain, for the influence of media businessmen on politics. But there are several sharp differences. Murdoch used papers like News World that purveyed gossip and scandal to win large newspaper audiences with tawdry methods. He was influential in bringing politicians on both sides of the political spectrum- Margaret Thatcher of the Conservative party and Blair of the Labor party- to power. At the same time he was concerned about the national interest, was mindful of his responsibilities as a newspaperman, saw himself as the worthy successor to a father who started the newspaper enterprise he would run and was remembered as a distinguished journalist who exposed the problems of the British military in Gallipolli, Turkey, during the First World War. Murdoch's desire to be seen as a serious journalist as well as a businessman, led to his desire to acquire and run the Wall Street Journal. Even in his leaving Berlusconi shows a complete absence of any concerns for Italy, being more obsessed with himself. He tells the Italian newspaper La Stampa that his situation is similiar to that of Benito Mussolini when he wrote about his feeling of betrayal in a letter to a lover: "At a certain point he says: 'Don't you understand I don't count for anything anymore?' I have felt in the same situation." To the world outside Italy it is hard to comprehend that even as Murdoch was being skewered inside Britian for the News World episode and apologized and appeared shaken by the experience, Berlusconi would be treated passively by the public and Italy's political and ruling class. The editor of Italian magazine Il Foglio is quoted as saying Berlusconi was "a cultural reformer," and the leader of the opposition Democratic party, is quoted as saying that even after his resignation Berlusconi will remain in politics, behind the scenes, and "invent his successors." ...

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The Economist warns in this editorial and cover issue that if Germany and the European Union do not act fast the Greek crisis could have a Lehmann like effect on Europe's banking systems, with a sovereign default. This would threaten the weaker economies of Portugal, Spain and Italy. As Simon Johnson has done on the pages of the New York Times, the Economist calls the German government and Chancellor Angela Merkel's handling of this crisis filled with ineptitude. Instead of leading the German people and giving a true account of things she followed public opinion- to see that Greece was punished for its mistakes and to provide a lukewarm show of support. A true account would have shown how Germay has gained from the euro, the huge portion of Greek debt that German banks hold, and the losses that the government would have to step in and avert in its banking system if Greece defaulted. Waiting till after a big regional election in Germany on May 9, was to show a lack of grasp of how such a crisis could explode if Greece in the meantime was shut out of capital markets (yield on Greek bonds shot up to 20%). Helping Greece was more in Germany's interest than an act of charity that public opinion in Germany seems to think it is. Other mistakes the Economist cites are- the idea that going to the IMF would be humiliating thus not bringing in the IMF actively much earlier. In the view of these experts it is the ineptitude that led to the loss of confidence in financial markets that now necessitates a much larger aid package for Greece, from $60 billon to $150 billion. The other is to have a slow decision making machinery in the Eurozone and knowing this not to have taken more aggressive action. Suggestions from the Economist as an adhoc measure- set up a single crisis management committee to make quick decisions. Set up a firewall between Greece and the other states like Spain and Italy so that contagion does not spread, with these countries also being shut out of financial markets at some future date if the situation deteriorates. The other is that the European governments should setup inter-governmental liquidity lines, and the European Central Bank act using the new arrangements....

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Shiller, Kashyap, Mishkin, Slaughter, Stein, Stulz, Rajan and others are part of a 15 academic economists group called the Squam Lake Group. They first met at a conference in November 2008 at Squam Lake in New Hampshire. The group has come up with a report that they hope gets the prominence of the 9/11 report. It is called the Squam Lake Report. The book will be introduced in a conference at Columbia University by Fed chairman Ben Bernanke. Some of the economists have little faith in regulators and a new Financial Stability oversight Council led by Treasury Secretary Geithner. (Stulz, Kashyap). The group sees need for better disclosure of risks of financial products, especially retirement savings products.The editor Seth Itchik sees the book as today's version of the 1938 book by Harvard and Tufts economists called "An Economic Program for American Democracy." The motivation for this effort in a field where economists have different opinions, is to build a consensus for decisive action by Congress and the government of the U.S. Two new suggestions that are not in the Congressional bills for financial reform. One is issuance of contingent convertible bonds or CoCo bonds. Banks would be encouraged or required to issue such debt which would convert into equity in a crisis. These funds would help recapitalize a bank in a crisis with no taxpayer liability. Another new proposal is to have a fraction of each year's bonus pool for banking executives to be held separately- if the bank ran into trouble, that portion of pay would be withheld from senior managers. And the group sees political aspects and lobbying making sound plans less implementable in Congress. Congress lets regulators curb pay practices and coordinate other actions which has not worked in the past and during the crisis. Congress has even in its best effort acted on only some of the things needed in its bills- this includes higher capital requirements, and compulsory "living wills" for the largest financial institutions, and the Volcker Rule. The rules for derivatives are still being negotiated by Blance Lincoln who introduced this provision, with the result being more transparency. If it is watered down it would not ensure the strict separation of derivatives trading on the capital accounts of banks that Blanche Lincoln envisaged. ...

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In response to bellicose speeches by Republican presidential candidates Mitt Romney and Rick Santorum at the American Israel Public Affairs Committee conference on March 6, 2012, President Obama stated at a press conference: "This is not a game..The one thing we have not done is we have not launched a war.. If some of these folks think we should launch a war, let them say so, and explain to the American people." The U.S. president, advisors and intelligence officials believe that Iran has yet to acquire a nuclear weapon, that there is time for sanctions to work and make the Iranian government give up any weapons programs it is working on. Their view as stated by the U.S. President is that this time cannot be measured in two days or two months. Recent elections in Iran show divisions in the government between the Ayatollah Khamanei and premier Ahmadinejad, with the elections favoring candidates supporting Khamanei. There is also the dynamic of changing relations in the Middle East- between Iran and other countries such as Iraq, Turkey, Saudi Arabia, India- which have strong ties to the U.S., and Iran's relations with China and other countries which have close economic ties to the U.S. In addition in a country with a demographic skewed heavily towards younger people and a third of the people under 15, the democracy protests in 2011 about a flawed election in 2009 are supported largely by university and college students. That election may actually have been stolen by Ahmadinejad from Mr. Moussavi, who in an election eve television debate accused Ahmadinejad of "adventurism, illusionism, exhibitionism, extremism, and superficiality," (Nazila Fathi, NYT 6/4/2009). These factors are likely to be behind the Obama administration's sense of a "window of opportunity," to use Mr. Obama's words. Recent polls by the University of Maryland's Prof. Telhami show only 19% of Israelis favored a military strike without U.S. backing in Feb. 2012, and Israeli public opinion experts see Obama's position as reflecting a sound judgement. Research by Citigroup shows that at a price for Brent crude of $120 with an escalation in Iran, it would take 9% of the world's GDP to support the higher energy costs, hitting Europe especially hard (Liam Denning, WSJ 1/6/2012)....

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Father Hesburgh became president of Notre Dame in 1952, at the age of 35, when Notre Dame was a small university known for football and theological studies. He greatly increased the size of the university, hiring new faculty, increasing the endowment fund from $9 million to $350 million, and changed polcies so that women were admitted in 1972. The endowment fund is now $9 billion. Father Hesburgh played a prominent role in the U.S. and was close to presidents Eisenhower, Kennedy, Reagan, Carter and Clinton. By the time he retired in 1986 after 35 years as president of Notre Dame, he was considered the most effective university president in the country, and the most influential priest in the U.S. He fought for civil rights, for peaceful protest on campus, and brought lay control through a secular board to run Notre Dame. In all these issues he stood up for his progressive views when faced by opposition from the Vatican and the U.S. government. Following the Second Vatican Council of the mid 1960's, Father Hesburgh initiated greater involvement of lay Catholics in the Mass and practices of the Church. At a meeting in Land O'Lakes, Wisconsin, 1967, a group of Catholic educators led by Hesburgh put forward the position that the pursuit of truth should be the ultimate aim of Catholic higher education in the U.S., not religious indoctrination. In this way Father Hesburgh created a new level of credibility and respect for Catholic based education in the U.S. Ironically Father Hesburgh was not a big football fan and refused to pose for a picture of him with a football, insisting that collegiate sports not influence higher education. His passion from his early years was to be a chaplain in the U.S. Navy. In fact he had to be dissuaded from going to the Navy as a chaplain in 1943, to stay on campus at Notre Dame to train naval officers during the war. Hesburgh was born in Syracuse in 1917 to an executive at Pittsburgh Plate Glass Company, and studied at the seminary on Notre Dame campus and in Rome for advanced degrees in philosophy and theology. He died in 2015 at the age of 97, having placed a large imprint on the shape of American higher education in the twentieth century. ...

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Ajami cites his own memories of Egypt's Gamal Abdul Nasser, who had a way with crowds and rhetoric in the Arab world, as giving him an insight into the way Barack Obama found his way into the American imagination as a popular leader in 2008. He points out that the coalition of black people who put their faith in him as one of their own, of white educated professionals who liked his cool image, of Hispanics who had hope for better immigration policies, and working class Americans who set aside reservations of elitism to give their support, was put together on the basis of hope and charisma and the uncanny ability of Obama to let himself be seen as all things to all people. Because of the way it was put together it was bound to come apart, particularly for a candidate without enough experience, says Ajami. The aloofness of the president, reliance on Congressional leaders Reid and Pelosi, and relying on a very small circle of advisors whose eyes were focussed on reelection, made this more so. He cites as one example, the controversial decision on Syria's chemical weapons made on a walk with chief of staff Dennis McDonough. Ajami gives a picture of how Obama may be seen from the outside, especially in the Arab and Muslim world- from Turkey and Egypt to Saudi Arabia- a sense of illusions. A European and particularly a German perspective also may have similiar sense of illusions about having gone for the ride and believing the image put out by image handlers. The lack of sensitivity to German sentiments about the tapping of chancellor Merkel's mobile phone- herself a former East German resident of the Soviet backed GDR- bringing this out. A similiar sense seems to have taken hold in Brazil, after Brazilian president Rousseff cancelled a trip because of lack of sensitivity to the tapping of her phone, as she is a survivor of brutal dictatorships in Brazil. This is ironically a full circle, as happens in these situations of euphoria encouraged by politicians inevitably followed by disillusionment, because Turkey, Germany and Brazil were some of the countries where enthusiasm for the new president was highest. More so because president Lula of Brazil, Merkel of Germany,and Erdogan of Turkey were leaders Obama seemed to relate to the most. This acts as a cautionary note for the future....

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How the reconstruction effort in Iraq never had the clear policy goals and objectives, the technical capacity, and the organization structure, to deliver the basic services like electricity, clean water, phone connections and other infrastructure services which crumbled by 70% or broke down totally after the war. And still does not have these elements, as well as one agency or authority responsible and accountable for delivery and results. This are some of the findings of a detailed audit and investigation in a 513 page history of the American reconstruction effort in Iraq, prepared by the Office of Special Inspector General for Iraq Reconstruction , led by Stuart Bowen, Jr. The reconstruction effort has already cost by mid 2008 $117 billion with $50 billion in US taxpayer money, but the results show that all they have achieved is at best a restoration of services to what they were before the war, when Iraq was under severe sanctions and had an outdated infrastructure. One of the biggest problems was that the war effort was not prepared for such a total breakdown of the infrastructure, and never grasped the critical role the continued delivery of basic services would have in winning or losing the support of the people of Iraq, who would blame whoever was in power if things were worse than under the previous regime which is exactly what happened. The whole reconstruction effort was botched because the will was not there, the direction was not there, and no clear policy on how to go about doing this, and lacking the organization structure for its execution. Bowen concludes that the US government was not adequately prepared to take on the reconstruction mission it took on in mid 2003. When Jay Garner presented plans on rebuilding to Donald Rumsfeld, the secretary of Defense, before the invasion, the conversation shows Rumsfeld asking Garner how much they would cost. Upon being told that it would cost billions of dollars Rumsfeld responded saying, my friend if you think we're going to spend a billion dollars of our money over there you are sadly mistaken. All this becomes important in the light of another reconstruction effort underway in Afghanistan which aslo has struggled with severe problems and poor results. And as the struggle with militants in Afghanistan is growing the reconstruction effort in Afghanistan and its ability to win the support of ordinary people will be critical to winning support of the Afghan people. ...

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Germany's social-affairs minister, Ursula von der Leyden, presents the "fourth poverty and wealth report," in March 2013. The issue of inequality is arousing public sentiment in Germany with this becoming an election issue along with the euro crisis and energy reform. The term Gerechtigkeit means "justice" in German and is associated with the idea of equality. The Social Democrats Party and the Greens talk about this in terms of "social scissors" opening wider. The Minder Initiative which passed in Switzerland enabling shareholders to restrict executive pay has led to public discussion in Germany for a similiar approach to be adopted by Germany. The ruling Christian Democratic Party (CDU) of Angela Merkel and the Bavarian Christian Social Union (CSU) party are different from other parties in Europe because of their Catholic and Lutheran roots which favor social solidarity. The FDP party in the ruling coalition supports free market principles but lacks popular support. The Economist cites the work of the German think tank DIW on inequality, which shows inequality showing sharp rise after German reunification around 1991, especially in East Germany. The situation moderates with improvements in inequality in East Germany and a slight improvement in West Germany after 2005. Both East and W. Germany have moved up overall in the Ginni coefficeint which measures inequality from about 0.4 in 1991 to about 0.5 in 2010, showing that the situation has stabilized at a higher level of inequality. Part of this could be because of the shift to temporary workers at lower wages about this time as German industry made efforts to keep wages down and improve competitiveness, even as overall conditions in the economy improved in the last decade. The Economist cites another study by the Initiative for a New Social Market Economy, a German think tank, which compares Germany with other members of the OECD. Germany ranks closer to Scandinavian countries in seventh place in this study, but does poorly in equal oportunities with 14th place. Germany lags behind other OECD and European countries in opportunities for women to work full time. Germany lacks enough daycare facilities for small children so that their mothers can work full time. There is a shortage of about 150,000 for preschool daycare openings in Germany, acccording to information cited by Deutsche Welle from government sources....

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How the French health care system works. France comes in first and the USA 37th in aWHO health care ranking. THe difference in deaths from respiratory disease is half that in the USA, and lower rates of death from heart disease and diabetes. IT has more hospital beds and doctors per capita than the USA. 65% of French people are satisfied with their health system compared to 40% in the USA, and yet France spends 10.7% of GDP on health care and the USA spends 16% for poorer results. THe French system is more generous to its seniors. Unlike Medicare there are no deductibles, just modest co-payments that are often dismissed for chronically ill. And diabetes and critical surgeries are covered 100%. French also buy supplemental insurance like Medigap for extra expenses like dental and eyglasses. Cancer patients are treated free of charge. Avastin treatments costing $48,000 a year are provided at no charge. France's PMI or Protection Maternelle et Infantile, is rated highly. It is anetwork of thousands of healthcare facilities, that ensure that every mother and child in the country receives basic preventive care. Mothers even receive afinancial incentive for attending their pre and post natal visits. France makes this care affordable by reibursing doctors at a much lower rate. The average yearly net income for doctors is around $55,000, about athird of what doctors in the USA make. But French doctors don't have to pay back huge student loans as medical school is paid for by the state and malpractice insurance premiums are only a tiny fraction of that in the USA. And again the French government pays two thirds of the social security tax for most French physicians- which is typically 40% of income. So the $55,000, is more like $92,000 taking that into account and more like $110,000 when student loans and malpractice is taken into account at US levels. Specialists who have 4 or more years experience can charge what they want, but as one gastroenterologist says, there in an unspoken and undefined limit to what you can cahrge or what is socially acceptable. Yet even in France there is inflation in health care costs that the government deals with through price controls and more spending. The French national insurance system is running increased deficits each year and this is now $13.5 billion, and it has led to higher taxes for employers and workers. ...

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Michael Boskin of Stanford University, chairman of the Council of Economic Advisors under the elder Bush, on the risks of protectionism and higher taxes to the economy in the long run, and the need for the Fed to balance the need for providing help with rate cut with the need to keep inflation at low levels. He suggests workouts of the losses from subprime mortgages not bailouts is the correct answer. P.S. A note on December 6, 2008, after the crisis with Bear Stearns in early 2008, and the severe October credit crisis and a series of bailouts of banks, financial institutions and the Detroit auto industry. If one looks for the thinking that was behind the Republican Bush administration's early stand to take no proactive steps to improve things in the economy, then Boskin's article summarizes some of the thinking behind it. Lowering rates at the time except gradually,after the Greenspan moves in preceding years to lower rates and let them stay that way too long (leaving too much liquidity and loose lending in the financial markets), was not to be taken lightly with additional concerns of pushing inflation upwards. And Boskin way underestimated the losses from subprime in December 2007 when he used the estimate of $300 billion investor losses centred in real estate made by the OECD at the time, or as he puts it just one-half of 1% of American's net worth. Concluding that in a $14 trillion economy such losses could be absorbed. He anticipated delays in financing and the need to mitigate that but did not anticipate a collapse of credit markets. Part of this may stem from not realizing the impact of highly leveraged debt on the books of financial institutions and what it could do if fear gripped the financial markets, and underestimating the impact of subprime debt with mortgage securities that had no transparency and distorted credit ratings. Which is why he says that policy should be for workouts not bailouts, emphasizing that the worst idea out there is for a broad interest rate freeze for mortgage borrowers which would throw into question the sanctity of private contracts and thus deter investment. This policy of resisting loan modifications continued as policy of the Bush administration even as Martin Feldstein, another Harvard economist and Reagan administration economic advisor, advocated just that from early 2008 with repeated oped articles in the WSJ throughout the rest of the year....