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Greeks say ‘NO’ to an open laboratory for violation of human rights

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The Greek debt crisis saga continues with no resolution in sight. As expected, the European leaders rejected a last-minute proposal by Alexis Tsipras, Prime Minister of Greece, requesting an extension of the bailout program that expired on 30th June and seeking a new €29.1 billion bailout package that could have covered country’s debt obligations over the next two years.

The rejection led the country to default on its €1.6 billion loan repayment to the International Monetary Fund. Greece is the first developed country to default to the IMF. Even though the IMF does not use the term default, it will now classify Greece as being “in arrears” and the country will only receive funds in future once the arrears are cleared.

After several rounds of protracted negotiations in Brussels, Greece had rejected the anti-austerity conditions contained in the bailout package prepared by the troika (European Commission, European Central Bank and the IMF). The troika demanded substantial cuts in pension and wages besides overhauling value-added tax as a precondition for releasing the remaining funds from the bailout package which expired on 30th June. Disappointed over the rigid stand taken by troika, on 27th June, Mr. Tsipras announced a referendum to decide whether or not Greece should accept the bailout conditions. The referendum will take place on 5th July.

By announcing a referendum, the Greek government has put the ball in people’s court. It is hard to predict the outcome of forthcoming referendum. It is likely that a No vote would strengthen the bargaining power of the current government which came to power on anti-austerity platform in January 2015. While a Yes vote would make the government’s position untenable and probably lead to general elections.

Capital Controls

On 28th June, the Greek government imposed capital controls and other regulatory measures to maintain liquidity and stability in the banking system. These include:

  • All banks in the country will remain closed for a week (June 29- July 6, 2015).
  • An individual can withdraw up to €60 per card a day from ATM.
  • The foreign bank cards are exempted from this daily limit.
  • The transfer of money to outside Greece will require approval from the official authorities.
  • A specialized agency will deal with urgent payments that cannot be met through cash withdrawals or electronic transactions.

The Accumulation of Public Debt

No discussion on Greek debt crisis would be complete without analyzing how the country’s public debt got accumulated over the years. In 2004, the country’s public debt was €183.2 billion. By 2009, it reached as high as €299.5 billion, or 127 percent of country’s GDP.

Currently, Greece’s public debt stands at €323 billion, nearly 175 percent of country’s gross domestic product. Both the critics and supporters of Greek’s government admit that such a high debt-GDP ratio is unsustainable. The current government is seeking substantial write-off of country’s debt so as to put the country back on a growth trajectory. While seeking debt relief for Greece, several economists and legal experts have referred to London Agreement in 1953 which gave generous debt relief to West Germany by writing off its 50 percent of debt, accumulated after world wars. This debt relief was one of the key factors which enabled the reemergence of Germany as a world economic power in the post-war period.

In 2015, the Greek Parliament set up a Truth Committee about the Public Debt to investigate how country’s foreign debt got accumulated from 1980 to 2014. The Committee has recently released a preliminary report which states that Greek public debt is largely illegitimate and odious. I would earnestly request readers to read this report as it confronts several popular myths associated with the Greek public debt. According to the report, the increase in debt before 2010 was not due to excessive public spending but rather due to the payment of extremely high rates of interest to creditors and loss of tax revenues due to illicit capital outflows. Excessive military spending also took place before 2010.

More importantly, the report reveals how the first loan agreement of 2010 was used to rescue the Greek and other European (especially German and French) private banks. The loan agreements of 2010 (and 2012) helped private banks and creditors to offload their risky bonds issued by the Greek government. In simple words, the debt of the private banks was transformed into public sector debt via bail-outs. As pointed out by Tim Jones of Jubilee Debt Campaign, it is not the people of Greece who have benefitted from bailout loans from the troika but the European and Greek banks which recklessly lent money to the Greek government in the first place.

Out of €254 billion lent to the Greek government by troika since 2010, only 11 percent have been spent to meet government’s current expenditure. Of course, previous governments of Greece are equally responsible for spending beyond its means and falsifying its public accounts.

Who owns Greece’s public debt? Currently, close to 80 percent of Greece’s public debt is owned by public institutions — primarily from the EU (member-states, ECB and EFSF) and the IMF (see chart below) The rest is owned by private creditors.

Austerity Caused a Humanitarian Crisis

The social and economic consequences of austerity measures imposed by troika on Greece have been devastating. Since 2010, Greece’s GDP has fallen by 25 percent and unemployment rate is 26 percent. The youth unemployment rates are at an alarmingly high level. Currently, over 56 percent of young people in Greece are without a job and there are more than 450,000 families with no working members. After five years of fiscal adjustment and economic hardship under the austerity program, Greece’s major indicators (including GDP, employment and incomes levels) are still far below the pre-crisis levels.

The welfare spending cuts proved to be counter-productive. As pointed out by Ozlem Onaran of University of Greenwich: “The wage and pension cuts and fiscal consolidation led to lower GDP, tax losses, and higher public debt. Our estimates show that the fall in the wage share alone has led to a loss in GDP by 4.5%, and a 7.80% point increase in the public debt/GDP ratio. The fall in wages alone explains more than a quarter (27%) of the rise in the public debt/GDP ratio in this period. The conditionalities of the memoranda have not only been counterproductive in terms of its aims regarding debt sustainability, but also engineered a humanitarian crisis.”

Many legal experts argue that the harsh austerity program imposed by troika could potentially pose a violation of human rights. According to Ilias Bantekas, Professor of International Law at Brunel University Law School, “The measures imposed against the Greek people were wholly antithetical to fundamental human rights as these stem from customary international law, multilateral treaties and the Greek constitution. Consequently, these ‘loans’ were held to be odious, illegal or illegitimate.”

It is pertinent to note that not just in Greece, the austerity programs also failed to yield positive results in Cyprus, Spain and Ireland.

Grexit: Pain and Gain

What would happen if Greece abandons or is forced to exit the euro? In the short-term, it would certainly entail greater uncertainty and economic hardship. A massive capital flight by the elites along with collapse of banks and businesses which have borrowed in euros cannot be ruled out. The payments of salaries and pensions could also be delayed for months.

The social and economic consequences could be disastrous for Greek economy and its people if the transition from the euro to a new national currency (possibly drachma – its old currency) is badly managed. Hence, the transition should be well-planned and properly implemented with popular support.

There is a growing consensus that a massive devaluation of drachma would help in increasing domestic demand and improving the prospects of economic recovery. A weak drachma would make Greek exports more competitive and its tourism more attractive and therefore would open up new opportunities to enhance exports and encourage more tourism over the long-term. Exports account for nearly 30 percent of its GDP. Because of a weak new drachma, the demand for domestic goods would increase as imports will become more expensive thereby boosting the domestic demand which, in turn, would also encourage greater domestic production and create more jobs for Greek people.

In addition, Greece will also regain its independent monetary policy and fiscal space to set policies in tune with its own economic needs instead of those of Eurozone economies. Needless to say, a small country like Greece (representing less than 2 percent of EU’s GDP) should never have joined the flawed monetary union in the first place.

Wider Ramifications for Europe

Greece leaving the euro will have serious economic ramifications for the rest of Europe. If Greece leaves the Eurozone, the threat of financial contagion to other weak Eurozone economies (such as Portugal, Ireland, Spain and Italy) looms large and subsequently these economies may as well exit the euro. Not only such a move would weaken the Eurozone but, more importantly, it would spell the end of the single currency experiment and the larger European project towards greater economic integration.

Besides, one cannot ignore the fact that the euro may face massive devaluation if international investors liquidates their European assets and investments en masse.

Furthermore, there are human and geo-political ramifications which are not sufficiently understood by European leaders. How will the EU cope with the influx of migrants from North Africa who enter Europe (via Mediterranean route) without the active cooperation of Greek government?

Technically speaking, an exit from euro does not mean an exit from the EU. A Greek veto on extending sanctions against Russia over Ukraine would further weaken the European strategy to isolate Russia.

The observation made by many commentators that Grexit would isolate the country from the world economy is highly misplaced. Greece can explore new economic partnerships and build strategic alliances with Russia, China and other developing world. Given its favourable geo-economic location in Southern Europe, Greece can emerge as an important regional energy distribution hub. Greece has already launched discussions with Russia to build a gas pipeline to Greece via Turkey and then to Europe. This pipeline could bring immense benefits to Greece’s economy in terms of new investments and jobs. Greece is currently considering joining the New Development Bank (NDB) which was set up in 2014 by BRICS. Becoming a member of Asian Infrastructure Investment Bank is another possibility.

Needless to say, the European leaders need to act more like statesmen as the European Union is founded on the values of respect for democracy, equality, human rights and solidarity.

The Broader Meanings of ‘No’ Vote

Finally, the Greek citizens have delivered a resounding ‘No’ to bailout conditions demanded by creditors in a referendum held on 5th July. The referendum was announced by Greece’s Prime Minister, Alexis Tsipras, on 27th June after bailout talks with the creditors failed. The referendum asked voters to decide “whether to accept the outline of the agreement submitted by the European Union, the European Central Bank and the International Monetary Fund at the Eurogroup of 25/06/15.”

The government-backed ‘No’ side won with 61.31 percent of votes, while ‘Yes’ got the remaining 38.69 percent. Further, not a single electoral district of Greece voted for ‘Yes’. No one in Greece had predicted such a massive victory for ‘No’ vote. Most opinion polls had predicted a tight contest with ‘No’ side winning by a slim margin.

Does a ‘No’ victory mean Greece leaving the euro and the EU? Not exactly. As pointed out by PM Tsipras, “This is not a mandate of rupture with Europe, but a mandate that bolsters our negotiating strength to achieve a viable deal.”

Undoubtedly, the landslide victory in the referendum has greatly strengthened the bargaining power of the current government with creditors. The impacts of the austerity measures imposed by the international creditors have been catastrophic. The Syriza-led government, which came into power on an anti-austerity platform in January 2015, has resisted pressure to implement harsh austerity programs that affect the elderly and the poor.

Another positive outcome of the referendum is that the opposition parties have also given support to the Syriza-led government to negotiate a new deal with creditors. In many important ways, the decisive referendum has brought political stability in Greece which has witnessed four elections in five years.

A New Deal for Greece

In the current circumstances, a new deal is challenging but still feasible. Both sides need to realize the sense of urgency to pursue a realistic agenda. The negotiations between Athens and Brussels should resume immediately in order to avoid a major financial meltdown.

On their part, the leaders of Eurozone should accept a compromised deal to end the impasse. They should not insist that any special privileges to Greece would encourage other potential rule-breaking eurozone countries. The costs of a Grexit are high not only for Greece but also the entire Europe in terms of wider economic and geo-political implications.

It is important to note that the IMF in its preliminary draft debt sustainability analysis (dated June 26, 2015) has sought substantial debt reduction along with extended concessional financing for Greece. This IMF analysis specifically points out that Greece needs “a significant haircut of debt, for instance, full write-off of the stock outstanding in the GLF facility (€53.1 billion) or any other similar operation.” The Greek Loan Facility (GLF) consists of bilateral loans pooled by the European Commission.

A new deal is feasible if the European leaders realize the true importance of ‘No’ vote. The message of Greek referendum is loud and clear: harsh austerity measures imposed by the EU lack democratic legitimacy. And the debt relief should not be treated as a taboo.

Hence, keeping the wider interests of the European project in mind, its political leadership should adopt a more flexible approach towards Greece based on the principles of democracy, human rights, cooperation and solidarity. After all, the financial rules are meant to serve the people, not the other way around.

In return, Greece should also undertake policy measures to check massive tax evasion by oligarchs and streamline its public finances. Needless to say, the Greek government should be given a fair chance to put its house in order. This entails patience on the part of official creditors.

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Disconnecting From SWIFT? No, We Did Not Hear About It

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Photo: Markus Spiske/Unsplash

The European Parliament has adopted another resolution on Russia. It reflects the key political claims against Moscow which have recently been on the Union’s official agenda. These include the aggravation of the situation in Ukraine, the “Navalny case”, the diplomatic scandal between Russia and the Czech Republic concerning the explosion of a military warehouse in 2014. The resolution contained radical proposals. Disconnect Russia from SWIFT and stop imports of energy resources in the event of an aggravation of the conflict in Donbass, reconsider relations between Russia and the EU, develop new sanctions regimes, etc. These proposals generated headlines in the media. However, the stock markets ignored them. The resolution did not cause any fluctuations of the ruble or Russian blue chips. Why did this happen and should the resolution be taken seriously?

At first glance, the resolution confirms that high consensus of one of the key (along with the EU Council) legislative bodies of the EU. It was adopted by 569 votes in favour, 67 against, and with 46 abstentions. Kiev and Prague welcome the resolution. Their political positions are uncompromisingly reflected in the document, although, for example, in the case of the explosion at a Czech military depot, there is no consensus, even in the Czech Republic itself. Not to mention the situation around Donbass, where the military build-up was carried out on both sides. According to an already established tradition, Russia is declared guilty of all obvious and perceived problems. Naturally, the document also reflects the “Navalny case”. Earlier, the European Parliament had already issued two resolutions. One in connection with the alleged poisoning, and the other after the arrest of the Russian opposition YouTuber Navalny. Tough measures against Moscow were proposed in previous resolutions as well. In some ways, their intention is consistent with American bills on “draconian sanctions”, such as DASKA: to designate a “lowest denominator” and possible measures that the European Union could potentially take. The threat of disconnection from SWIFT was the “icing on the cake”, which, as expected, was popular in the media success.

However, the markets ignored the resolution of the European Parliament. There are several reasons for this.

First, the period of aggravation of the situation in Donbass is clearly over. Yes, the problem itself has not been resolved. The conflict will smoulder for a long time, and new rounds of escalation will be still felt. There are no prospects for the implementation of the Minsk agreements. However, the prospect of an open military clash, which loomed on the horizon a month ago, has receded into the background. Ukrainian diplomacy was unable to achieve progress towards the revision of the Minsk agreements, although it temporarily returned the topic of Donbass to the political and media mainstream. Russia has shown that it is ready to balance the military build-up in Donbass without hesitation and to respond to a possible attempted military solution. The next round of exacerbation has so far fizzled out without leading to qualitative changes in the sanctions regime against Russia, or in the political positions of the parties.

Second, the radical proposals of the European Parliament are unlikely to find a response in the European Commission and the EU Council. The head of EU diplomacy, Josep Borrell, has already noted that decisions on restrictions on SWIFT and Nord Stream 2 are not within the competence of the European Union. It is obvious that disconnecting Russia from SWIFT will lead to colossal losses for both Russian business and EU companies doing business with Russia. The refusal to purchase Russian energy resources will also lead to significant costs. The Nord Stream 2 project remains in the interests of the European Union and Germany. Moreover, the disconnection from SWIFT, taking into account its consequences for the Russian economy, can simply be perceived by Moscow as an act of aggression with all the ensuing political consequences. The EU is losing the opportunity to strengthen and promote the role of the euro as a more desirable instrument for international payments. In particular, the share of the euro is likely to grow in trade between Russia and the PRC, ousting the US dollar. Manipulation with SWIFT will hurt Brussels’ plans to promote the euro globally.

Finally, thirdly, the real magnitude of the political contradictions between Moscow and Brussels is clearly not up to such radical steps. Yes, relations between Russia and the EU are in a deplorable state. The political dialogue periodically breaks down amid mutual accusations. There are no ways to resolve the most serious contradictions so far. However, the “level of support” of the existing, albeit bad, relations is still strong and its “breakdown to the bottom” has not yet taken place, even despite a number of recent local shocks. The “warehouse case” in the Czech Republic has not generated a pan-European chain reaction and has mostly damaged bilateral relations between Moscow and Prague. Most of the EU members are not eager to get involved in this scandal. The Navalny case will remain a toxic asset for a long time to come. But it, too, has not yet led to fundamental shifts. As for Ukraine, Moscow is clearly not eager to get involved in a military conflict, although it has demonstrated its force. To a certain extent, such demonstrations even reduce the likelihood of a violent scenario in the resolution of the conflict. At the same time, they do not bring political solutions closer. In general, the existing problems are large-scale. Their cumulative effect will increase. But its weight for the measures proposed in the European Parliament resolution is clearly not enough.

The only innovation that currently has a political perspective is the proposal for a new sanctions mechanism on corruption. A similar mechanism has recently been established in the UK. It involves freezing the assets of persons suspected having ties to corruption. The European Commission may well develop proposals for such a mechanism and submit it to the EU Council for consideration. The chances of its approval are very high. However, even if it is used against Russian individuals, its impact on economic ties between the EU and Russia will be extremely low. This may be the reason for the possible success of such an idea. The European Commission and the EU Council will show that they are loyal to at least some of the requirements of the European Parliament. At the same time, the use of the mechanism will remain in their hands, and the risks for the business will be minimal.

Moscow will also draw its conclusions from the rhetorical exercises of the European Parliament. Despite the fact that the risks of it implementing the recommendations of parliamentarians are negligible, this is another incentive for the Russian authorities to continue working on an alternative financial infrastructure in partnership with their foreign partners, who are also the target of unilateral restrictive measures.

From our partner RIAC

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When diplomacy cannot get the best of geopolitics: Cyprus’s lack of a way forward

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The United Nations Peacekeeping Force in Cyprus (UNFICYP) controls the buffer zone between the opposing sides. UN Photo/Eskinder Debebe

On April 24, people from both sides gather in proximity of the demarcation line splitting the capital, Nicosia, in two. Near this highly-contest frontier, Turk and Greek Cypriots alike demanded their leaders achieved the hoary aim of a united Cyprus. The most common motto protestors had written on their placards was a call for peace and unity across ethnic divides: We are Cypriots. This hopeful, determined appeal was addressed to the then-upcoming UN-sponsored meeting between the leaders of the two communities in Geneve. Three international guarantors partook also in the meeting: the UK as the former coloniser and, obviously enough, Greece and Turkey.

Introduction

Four years have passed since the UN hosted in Geneve peace talks on the future of Cyprus — and their collapse. Failed mediations are also due, in part, to the great power imbalance between the two sides. The so-called Turkish Republic of Northern Cyprus’s only ally and supporter is Turkey, on which it is “almost completely dependent”. On the other hand, the Greek-Cypriot government is internationally recognised and a member of the European Union since 2003. Yet, Secretary General Antonio Guterres is putting renewed energies in the long-standing issue that thorns the region. But, according to many commentators there were little to no hopes that anything concrete would be achieved. Actually, the positions at the negotiating table seem more divergent they have ever been and peaceful unification farthest than ever.

The Cypriot question is highly internationalised, which makes its resolution easier and harder at the same time. History can reveal why this is the case. and, hopefully, shed a light on the way forward.

A long-standing issue

Commentators and diplomats began talking compulsively about the island of Cyprus as a hotspot in the Eastern Mediterranean in 1974. Yet, any solution must account for the fact that Cyprus’s problematic history goes back well before that year.

The way to independence (1960)

In the modern and early-contemporary period (16th–19th century), the Ottoman Empire’s wider frame of ethnic coexistence guaranteed Cyprus’s stability. Turks and Greek were actually just Rum Christians and Muslims, and the Sultan vied for their diversified rights and obligations. The Porte experienced a deep crisis in the runup to the Great War, accepting to cede many peripheral territories. Thus, the British Empire administered the island of Cyprus from 1878 to the island’s formal annexation during in the 1910s. Nevertheless, the two communities still cohabited peacefully for several decades. If anything, Greek Cypriots started fighting against the Brits using terroristic methods.

Cohabitation started to be a problem when Cyprus became independent in 1960. In order to ensure that the region would not descend into utter chaos, there was the need for an agreement. Hence, Britain sat down with Greece and Turkey to establish the framework within which to establish the Republic of Cyprus. Athens had to backtrack on many of its requests on behalf the Greek Cypriot majority. Eventually, principles of bi-national independence, political equality and administrative partnership the two communities prevailed and became part of the constitution.

More importantly, the three signed a controversial Treaty of Guarantee reminiscent of colonial mandates. According to this agreement, each of the signatories could intervene militarily to defend Cyprus’s status from any sort of threats.

Ethnic conflicts (1963–1974)

Tensions escalated immediately after, with Greek Cypriot leaders making pressing attempts to erode their neighbour’s representation and rights. Finally, in 1963’s Bloody Christmas, Greek elites staged the expulsion of Turkish Cypriot representatives from all levels of government. As a result, about 25% of all Turkish Cypriots had to leave their villages for safer Turkish “enclaves”. That year inaugurated a season of inter-ethnic strife and conflict on the Mediterranean island. The situation was so dire that the UN stationed its blue helmets on a peace-keeping mission in December 1963.

The turning point of Cyprus’s recent history is 1974, when the Greek government organised and carried out an artless golpe. Back then, the colonels who animated the military junta sitting in Athens felt that power was slipping away from them. Clearly, the economy was in ruinous conditions and people started to grow unresponsive to the colonels’ efforts to repress discontent. Thus, they thought Greek nationalist fractions’ victorious insurrection in Cyprus and the island’s annexation would have raised morale.

But the situation evolved for the worse as Athens’s actions violated of 1960 agreement with Ankara and London. In a swift counter-manoeuvre, the Turkish army occupied the island invoking its right of interference under the Treaty of Guarantee. For determined it could be, the Greek junta could not afford the risk of a full-scale confrontation with Turkey. Not least, because they are both formally member of NATO, a cornerstone of the Cold War’s bipolar system of alliances. Therefore, the Turkish-majority northern half of the island was able to seceded from the Greek-dominated south thanks to Ankara’s support.

State of the art

The brief war of 1974 marked the pike in Greek-Turkish tensions and determined the current status quo on the island. Fortunately, both sides have been taking steps towards the normalisation of South-North relations. For instance, since 2003 it is possible to cross the frontier roughly established almost half a century ago. Moreover, the situation has stabilised and the number of inter-ethnic clashes diminished in the last 50 years. Thus, the international contingent in the ‘buffer zone’ dividing the capital Nicosia in two is now thinner than ever before.

Nevertheless, Cyprus is still divided into two parts which find it difficult to talk to one another. Thus, there are not a lot of reasons to be optimistic for those who aspire to the Cyprus’s reunification. In 2004, on the eve of Greek Cyprus’s accession to the EU, two contemporaneous referendums took place on the island. The question voters had to answer regarded the so-called Annan Plan, named after then UN Secretary General Kofi Annan. The Plan foresaw joining the two current entities in a State federal in name, but de facto confederal.  Cypriots went to the polls en masse: 87.83% of registered voters went to the polls across the island. Of them, about 65% of Turkish Cypriots voted in favour of the Plan, which they approved. Yet, over 75% of Greek Cypriots who voted were against the proposal, which both communities had to approve.

In the last few years, the North has also retrenched in its positions, possibly in response to the Greeks’ ‘No’. Last in order of time, Northern Cypriot elected as head of State Ersin Tatar, a protégé of Erdogan, Turkey’s President.

Conclusion — Peace talks won’t solve the issue

Against this background, Greek and Turkish Cypriot authorities’ approach to these renewed peace talks is unexpected. The Greek Cypriot foreign minister, Nicos Christoduidis, declared that the negotiations’ aimed at “Cyprus’ reunification as a bizonal bicommunal federation.” At the same time, Greek Cypriot President, Nicos Anastasiades, has started to acknowledge the need for a “decentralised federation”. That is, the sort of surreptitious confederal project laid out in the Annan Plan.

On the other hand, Northern Cyprus’s foreign minister Tachsin Ertugruloglu, argued that the “solution is: one island, two states.” President Tatar echoed these remarks arguing that there are two “separate regions and peoples in Cyprus.”Symbolically, Tatar stopped in Ankara to meet President Erdogan before reaching Geneve for the UN’s three-day talks.

Figure 5 Turkey’s planned pipelines in the Eastern Mediterranean cross Greek and Cypriot waters. © Steven Bernard via Financial Times

After several days of fruitless negotiations, Guterres declared that despite “all our efforts, we have not yet found enough points of contact to allow the resumption of formal negotiations.” But he has also proposed a new meeting in the same format “probably in two or three months.”  Yet, these endeavours will fail again unless the situation on the ground changes drastically in or around Cyrus. As a matter of fact, the real power broker in this game in now Turkey’s Erdogan. When he first became Prime Minister, Erdogan looked for a peaceful resolution to the Cypriot issue and accession to the EU. However, since 2011 he has undergone a change of heart turning more illiberal at home and reckless abroad. Most recently, Erdogan’s Turkey has irresponsibly reignited the tensions in the Eastern Mediterranean, by claiming gas fields located in Cyprus’s and Greece’s economic areas.

Thus, Cyprus may have ceased to be a piece of the larger puzzle called ‘Cold War’. But the island’s division has found a new raison d’être in this complex, quasi-multipolar 21st century. A new geo-political and geo-economic confrontation has started and Turkish Cypriot authorities are playing their part.

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Covid-19-Policy Contest Between Libertarianism v. Socialism: The Latest Results

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Early in the “coronavirus-19” — subsequently called “Covid-19” — pandemic, Denmark and Sweden were often being compared with one-another because both are Scandinavian countries, but on 13 March 2020, Denmark had started a lockdown and imposed strict recommendations for businesses and personal behavior, whereas Sweden did nothing of the sort, and so the two countries were considered to be especially suitable to serve as being an almost controlled experiment in what the results would be of socialism versus libertarianism in social policy (regulations) regarding a communicable disease.

On 26 March 2020, EuroNews headlined “Neighbours Denmark and Sweden miles apart on coronavirus confinement”. Whereas both countries had socialized healthcare, and were also otherwise generally considered to be similar, Sweden was pursuing Europe’s most libertarian policies on coronavirus or Covid-19, and yet Denmark had a 15% higher percentage of its population who had come down with that disease. On 29 June 2020, I headlined “‘Herd Immunity’ Is a Failed Response to Coronavirus: Comparing Denmark versus Sweden on Coronavirus,” and reported that in early April Sweden’s population-percentage who had the disease had switched (increased so fast as) to become 14% higher there than Denmark’s population-percentage who had Covid-19, and that Sweden’s percentage was also increasing much more quickly than Denmark’s. And, so, at that time, as of 28 June 2020, Sweden had 2.5 times as high a percentage of its population who had contracted the disease, as compared with Denmark’s percentage. There were 131 reader-comments to that news-report, at Reddit, and they were overwhelmingly in denial, and pro-libertarian, anti-socialist, though each comment had a different excuse for their reality-denial.

CNN headlined on 28 May 2020 “Sweden says its coronavirus approach has worked. The numbers suggest a different story” and made clear that, at least up till that moment in time, Sweden’s approach was a failure, not only in competition as compared to Denmark’s, but globally.

Then, on 12 May 2020, Foreign Affairs, the prestigious journal of America’s Council on Foreign Relations, bannered “Sweden’s Coronavirus Strategy Will Soon Be the World’s: Herd Immunity Is the Only Realistic Option—the Question Is How to Get There Safely”, and presented the standard libertarian argument: “There are good reasons for countries to begin easing their restrictions. It will take several years to tally the total number of deaths, bankruptcies, layoffs, suicides, mental health problems, losses to GDP and investments, and other costs attributable not just to the virus but to the measures used to fight it. It should already be obvious, however, that the economic and social costs of lockdowns are enormous.” In other words: the best “regulation” is to let nature rule, not to impose any human-imposed regulations, but just “the free market” should reign.

On 7 January 2021, the Scandinavian Journal of Public health headlined “A comparison of COVID-19 epidemiological indicators in Sweden, Norway, Denmark, and Finland” and reported that:

Compared with its Nordic peers, Sweden had a higher incidence rate across all ages, a higher COVID-19-related death rate only partially explained by population demographics, a higher death rate in seniors’ care, and higher all-cause mortality. Sweden had approximately half as much mobility change as its Nordic neighbours until April and followed similar rates as its neighbours from April to July. Denmark led its Nordic peers in testing rates, while Sweden had the highest cumulative test-positivity rate continuously from mid-March. …

Looser government restrictions at the beginning of the outbreak are likely to have played a role in the impact of COVID-19 in Sweden. In an effort to improve epidemic control, Sweden has increased testing rates, implemented more restrictive prevention measures, and increased their intensive care unit bed capacity.

Here are the figures as-of 30 April 2021:

Denmark cases per million = 43,282

Sweden cases per million = 95,909

Denmark deaths per million = 428

Sweden deaths per million = 1,384

Denmark March unemployment rate = 4.5%

Sweden unemployment rate = 10.0%

But Denmark versus Sweden aren’t, by any means, the only indicators that libertarianism was failing on Covid-19.

On 1 August 2020, I headlined “India and Brazil Are Now the Global Worst Coronavirus Nations”, and that statement was forward-looking, predictive, and not referring only to the numbers at that time but to where the various nations were heading, and it was referring only to medium-sized and large nations (for example, not to the worst performer of all, Andorra, which currently has 171,029 cases per million and a population of only 77,367 people). (Andorra has had a total of 13,232 cases, which is 17.1% of its entire population. The only country that has a population of over 10 million and which is among the 9 worst — and America scores as being absolutely the world’s 10th-worst — is Czechia, the Czech Republic, which has 152,046 cases per million. At the end of this article, Czechia will be discussed.)

As-of 30 April 2021, the following are the world’s only nations that have had more than 6,000,000,000 Covid-19 cases:

USA = 33,044,872

India = 18,881,587

Brazil = 14,592,886.

Those are now the Covid-19 giants (the worst-performing major countries), which, back on August 1st, is what I was expecting them to be, by the present time. Ultimately, I expect Brazil and India to be scoring even worse than the United States. All three countries have been exceedingly lax in their anti-Covid-19 policies, extraordinarily libertarian regarding this.

On 20 September 2020, I headlined “All 8 of America’s Worst-Hit Coronavirus States Are Now in the South.” That reported “the worst 11 states … are: Louisiana, Florida, Mississippi, Alabama, Arizona, Georgia, Tennessee, South Carolina, Iowa, Arkansas, and Texas” — and all 11 of them had voted for Donald Trump, the more-libertarian (and losing) candidate, in 2020. The United States therefore provides overwhelming evidence of the failure of libertarianism regarding coronavirus-policies.

On 14 March 2021, I headlined “Republican States Have Higher Covid Rates than Democratic States” and — ranking all from the best (#1) to the worst (#51) — reported that the average state which had voted for Trump scored 33.3 or two-thirds of the way down the list of the 51 states + DC, and that the average state which had voted for Biden scored 19.5 out of the 51.

The more corrupt a country is, the more libertarian it is, and on 5 May 2020, I headlined “America’s Design Causes It to Fail the COVID-19 Challenge” and reported that because America is an extraordinarily corrupt country (very libertarian, as compared to other nations), “America is designed so as to fail the coronavirus-19 challenge. The power of big-money (concentrated wealth) is destroying this country. It controls both Parties and their respective media, so the public don’t know (and certainly cannot understand) the types of realities that are being reported (and linked-to) here.”

India and Brazil are nipping at America’s heels on this, but, still, the record up till the present moment shows America as still retaining its title as being the worst of all major nations on coronavirus-performance.

Finally, here, will be considered what might be the strongest exception to the general principle that libertarian policies are inferior to socialistic policies in order to control and limit a pandemic: Czechia. Wikipedia’s article “COVID-19 pandemic in the Czech Republic” says:

The Czech Republic was the first[11] European country to make the wearing of face masks mandatory from 19 March onwards.[12]COVID-19 testing was made widely available with drive-through locations from 14 March,[13] and from 27 March anyone with a fever, dry cough or shortness of breath was eligible for a free test.[14] From 13 April onwards, COVID-19 testing capacity significantly surpassed demand.[15] Contact tracing in the country also included voluntary disclosure of mobile phone position and debit card payments data for previous days and the quarantining of identified contacts.[16] By 1 May 2020, altogether 257 COVID-19-related deaths were identified in the Czech Republic compared to 2,719 in similarly populous Sweden, which did not impose a full lockdown. However, Belgium, also with a similar population, had suffered 7,866 deaths at that time, despite having implemented an early and strict lockdown. …

By April 2021, the Czech Republic has recorded the highest confirmed death rate in the world after Hungary. There are some root causes speculated.

None of those proposed explanations of this is any sort of scientific explanation for it. A great deal remains that is important to know but that is currently unknown about Covid-19. Obviously, Czechia is the most challenging case, not because it is the worst, but because it has been a leader in adherence to international guidelines but has nonetheless disastrously failed on this virus. If that’s not a warning for the world to do lots more research on the Covid-19 problem, then nothing is.

NOTICE TO LIBERTARIANS: Libertarian ‘news’-media often try to obfuscate the importance of the Covid-19 results in the various countries by pretending that a Covid-19 “case” means merely someone who has tested positive for having become infected by the virus, but that is very definitely NOT TRUE. Like virtually all libertarian beliefs, that belieff is based upon wishful thinking in order to dismiss and discredit scientific findings which are inconsistent with those beliefs. In fact, the “2020 Interim Case Definition, Approved April 5, 2020” (and still in force as-of 2 May 2020) makes crystal clear that the definition of a Covid-19 “case” is VERY DIFFERENT FROM AND FAR MORE RESTRICTIVE THAN merely having the infection. Libertarians want to be deceived, because they want to continue believing the myths that they cling to, but news-media try to exploit those ‘free market’ myths in order to build their own following (and to please the ‘free market’ winners — the billionaires — who benefit by having as large a percentage of the public as possible be deceived into believing the ‘free market’ myth (that they became so wealthy by virtue of their virtue and genius, instead of by their cunning and psychopathy). Justice in this world is the opposite of natural: it is un-natural and can be imposed only by careful skepticism and scientific human planning, not by any ‘invisible hand’ of anyone, or any group of people, who constitute an actual Deep State. They own and control the mainstream ‘news’-media and many of the non-mainstream ‘news’-media, and also the vast majority of members of Congress and other key government officials, but that’s the opposite of justice; it is, instead, institutionalized injustice. Libertarianism and corruption go hand-in-hand, and always will. (Outside the United States, libertarianism is more commonly called “neoliberalism”, but it’s the same thing.)

Author’s note: first posted at Strategic Culture

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