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ADB, Cambodia Sign Deals to Improve Water Supply, Financial Sector Development

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The Asian Development Bank (ADB) and Cambodia’s Ministry of Economy and Finance today signed two agreements worth $89 million that will boost rural areas’ access to water supply and sanitation services and improve the country’s financial sector development efforts.

ADB Country Director for Cambodia Ms. Sunniya Durrani-Jamal and Cambodia’s Deputy Prime Minister and Minister for Economy and Finance Mr. Aun Pornmoniroth signed the agreements for the Third Rural Water Supply and Sanitation Services Sector Development Program and the Inclusive Financial Sector Development Program (Subprogram 2) at a ceremony in Phnom Penh.

“The two programs support all four priority areas of the Rectangular strategy IV, which are human resource development through the improvement of public health care and nutrition; economic diversification by promoting financial and banking sector development; private sector development and employment by supporting small and medium-sized enterprises (SMEs); and inclusive and sustainable development through the promotion of agricultural and rural development,” said Ms. Durrani-Jamal.

Over 400,000 people will benefit from the Third Rural Water Supply and Sanitation Services Sector Development Program, approved by ADB in September 2019, through the construction and rehabilitation of 2,500 water supply and sanitation facilities, as well as the implementation of awareness campaigns in at least 400 villages across 10 Cambodian provinces.

Sustainable and reliable water supply and sanitation services remain scarce in Cambodia’s rural areas, where about 77% of the country’s total population of 16.4 million live. In 2017, while 73% of rural households had access to improved water supply, only 11% of those had piped water supply. Meanwhile, 56% of rural residents had access to improved sanitation, and about 41% of rural residents still practice open defecation, which can cause diarrhea and other public health problems.

Subprogram 2 of the Inclusive Financial Sector Development Program, approved by ADB in September 2019, supports the Government of Cambodia’s efforts to develop an efficient and stable financial sector that promotes greater financial inclusion and sustainable development. Key interventions include improving access to finance, particularly for the poor, rural households, and SMEs. The program will also enhance the stability of Cambodia’s financial sector and upgrade financial infrastructure to support the introduction of new financial services and products.

Cambodia’s financial sector is in its early stages of development and is dominated by the banking and microfinance subsectors. While much has been achieved, access to finance remains limited, especially in rural areas. Almost one-third of the population is completely excluded, having no access to any form of financial services. Efforts to improve access to finance have been constrained by low levels of financial literacy.

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After Ukraine: Arming down for lasting Eurasian security

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It is time to start thinking outside the box. A long-term solution requires an institutional design and steps to ensure that front-line states, including Russia, feel safer, proposes Gordon Adams, a political commentator who has created think tanks, worked for Bill Clinton in the White House, taught national security.

Make no mistake: This war is not about democracy versus authoritarianism or the “rules of the international order” as defined by the United States. It is about insecurity and fear on both sides. The fear of invasion and the need for reassurance is an old one. It’s about sovereignty and the inviolability of borders — the right for people to live in safety, be they Ukrainians, Poles, Balts, or Russians.

Fear runs strong on both sides of this conflict. For Ukraine, Poland and the Baltics, the fear is existential; for Russia, the fear is historical.

Broadly speaking, there are two ways nations might alleviate this fear. One is to “arm up” to deter any potential adversary. The other, especially relevant in the space from Brest to Vladivostok, is to “arm down,” lowering security risks through a reduction in tension and reassurance. Both are “realistic” options — but only the first is being pursued today.

The goal of statecraft needs to be security for everyone in the Eurasian region. The Russians need to feel as secure as the NATO members do. In addition, the major powers — the U.S. and China — need to be part of such a regime or its guarantors.

Here are several suggestions to stimulate discussion:

1.) First and foremost, all interested parties need to be included in the regime so all security needs are met. Most important, Russia needs to be an integral member, shaping and participating in the design. This was not done in the 1990s (yes, I was part of the administration that failed to do it). Instead, Russia was marginalized as NATO expanded.

2.) Including everyone means the regime should eventually replace NATO, not make NATO its heart. Otherwise, including Russia is a non-starter.

3.) This might mean putting the European Union at the heart of the regime — a European solution, not an American one. This would be a major challenge for the EU, which has devoted only marginal attention to military capabilities and security strategies for Eurasia. NATO has been Europe’s default.

4.) It means taking Macron seriously when he (like other French presidents before him) calls for “strategic autonomy” for Europe. Europe will need and want independence of action; indeed the caution of France and Germany about confrontation with Russia reflects that reality.

‘Autonomy’ will mean creating a more comprehensive European military capability, one that can work in tandem with the U.S. and others, but also on its own. That would make a significant U.S. military withdrawal from Europe possible, a step that would reassure Russia, too. A European capability would have to reflect the larger security regime being created. The reassurance such an agreement brings could make Europe’s military investment less costly.

5.) Arms control and arms reductions would be a central feature of such an arrangement. Arms control agreements will need to include nuclear weapons — strategic and tactical — and missile defenses. This means a revival of global nuclear arms negotiations, including the U.S. and China, and specifically revived agreements on the deployment of tactical nuclear weapons and missile defenses in the European region. It must include a serious discussion of the role of French (and British) nuclear capabilities.

7.) New institutions will be needed. This is a moment for institutional innovation, as was the moment that led to the UN, the EU, NATO, and the Shanghai Cooperation Organization. Could the Organization for Security and Cooperation in Europe (OSCE) be redefined to play a central role, since it has a security mission and all European players belong? What changes would have to be made for it to play a serious role?

8.) The U.S. and China would both need to be central partners in shaping this regime. Would they be members? Guarantors? Answering this question could ensure that the U.S. plays a role but is less centrally involved with the decisions. This would mollify those in Washington who want the Europeans to carry more of the burden. It would also recognize China’s growing role in security issues globally. This is about Eurasian security, remember. A U.S.-China confrontation could blow the whole idea up…

Lest this proposal be thought “idealistic;” it is actually realistic. If security is the goal, a Eurasian security arrangement — “arming down” — is a more realistic way of providing long-term security.

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‘Market Fundamentalism’ – is it an obstacle to social progress?

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In a crisis like this, the most important postulates of the Western economy are subject to revision. Some economists began to ask uncomfortable questions, such as: “How efficient the market is?” It seems that we are one step away from how his deification will stop into his curse. An article from “Counter Punch” puts these questions:

Market fundamentalism—invites and deserves criticism as a major obstacle to navigating this time of rapid social change. Market fundamentalism attributes to that particular social institution a level of perfection and “optimality” quite parallel to what fundamentalist religions attribute to prophets and divinities.

The market has thus rationed out the scarce supply. It has determined who gets and who does not. Clearly, the richer a buyer is, the more likely that buyer will welcome, endorse, and celebrate “the market system.” Markets favor rich buyers. Such buyers in turn will more likely support teachers, clerics, politicians, and others who promote arguments that markets are “efficient,” “socially positive,” or “best for everyone.”

Social leaders who have had to deal with actual markets in society have likewise repeatedly intervened in them when and because markets worked in socially unacceptable ways. Thus, we have minimum wage laws, maximum interest-rate laws, price-gouging laws, and tariff and trade wars. Practical people know that “leaving matters to the market” has often yielded disasters (e.g., the crashes of 2000, 2008, and 2020) overcome by massive, sustained governmental regulation of and intervention in markets.

During times of scarcity, markets often reveal to capitalists the possibility of earning higher profits on lower volumes of product and sales. If they prioritize profits and when they can afford to bar others’ entry, they will produce and sell less at higher prices to a richer clientele. We are watching that process unfold in the United States now.

The neoliberal turn in U.S. capitalism since the 1970s yielded big profits from a globalized market system. However, outside the purview of neoliberal ideology, that global market catapulted the Chinese economy forward far faster than the United States and far faster than the United States found acceptable. Thus the United States junked its market celebrations (substituting intense “security” concerns) to justify massive governmental interventions in markets to thwart Chinese development: a trade war, tariff wars, chip subsidies, and sanctions. Awkwardly and unpersuasively, the economic profession keeps teaching about the efficiency of free or pure markets, while students learn from the news all about U.S. protectionism, market management, and the need to turn away from the free market gods previously venerated.

Then too the market-based health care system of the United States challenges market fundamentalism: the United States has 4.3 percent of the world population but accounted for 16.9 percent of the world’s COVID-19 deaths. Might the market system bear a significant share of the blame and fault here?

So dangerous is the potential disruption of ideological consensus that it becomes vital to avoid asking the question, let alone pursuing a serious answer, writes the American magazine.

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Report: Russia adapted arms and tactics ahead of Ukraine offensive

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photo:© Vadim Savitsky/TASS

Widespread perceptions of Russian army weakness are in some cases either out of date or misconceived according to the 30-page report by the UK’s Royal United Services Institute.

While the report described a military which is often dysfunctional, over-reliant on artillery and suffering poor morale, it said the focus on these weaknesses means Russia’s battlefield advances have often been overlooked.

The study was drawn from April-May field interviews with 10 Ukrainian brigades that had fought Russian units across the war.

Russia’s military is far from the spent force often characterized, according to Nick Reynolds, one of the report’s two authors. “There is a lot being thrown around on social media to suggest Russia’s lack of capacity, but social media is awash with propaganda on both sides and at this stage we thought a more sober assessment was needed,” Reynolds said, adding that expectations for Ukraine have been set “very, very high.”

Understanding how Russia has changed its approach matters not just to Ukraine, but also to members of the North Atlantic Treaty Organization that face an increasingly hostile and evolving rival in Moscow, the report said.

Russia has largely remedied early failures in battlefield air defense by properly connecting missiles systems and their sensors along the invasion’s 1,200 kilometer (750 mile) front, according to the report.

As a result, Russian forces have been able to largely shut down the threat from Ukraine’s radar-seeking HARM missiles, intercept rockets and down a low-flying Ukrainian combat jet from 150 kilometers.

Russia’s electronic warfare capabilities, now deployed from airborne to platoon level, are evolving constantly. That’s costing Ukraine 10,000 drones per month. Russian forces appear able to decipher Ukraine’s encrypted Motorola communications systems in real time, according to the report.

On the ground, Russian combat engineers were able to build pontoon bridges at speed even at the start of the war and are now creating trench defenses and complex minefields that any offensive will have to break through.

Russian command centers, which proved vulnerable to precision attacks by US HIMARS rockets last July, and routinely had their communications hacked, are now dug into hardened bunkers. They’ve commandeered local phone networks in occupied territories, isolating and dedicating them to the war.

Russia’s army made its T-80 and T-72 main battle tanks less vulnerable to Ukraine’s arsenal of Western anti-tank weapons by improving their explosive armor defenses and making them less detectable to heat-seeking missiles.

The much criticized shift to fight in so-called ‘human waves’ around the eastern city of Bakhmut was a rational, if brutal response to the large losses of armor, experienced troops and artillery munitions Russia suffered earlier in the war, the report said.

The shift from attacks on Ukraine’s energy infrastructure could indicate a Russian intent to hit and degrade military targets ahead of the counteroffensive, yet that’s unclear, according to Ben Barry, senior fellow for land forces at the International Institute for Strategic Studies.

If the targets are indeed military, “the Ukrainians would not necessarily be telling us,” Barry said.

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