lunes, 16 de noviembre de 2015

BEYOND THE PARIS ATTACKS




Violent road lies ahead and there is little to negotiate

Some, including this writer, believe that last Friday’s outrageous terrorist attacks were part of a general assault aimed at triggering a massive reaction from both the public and governments against Muslims living in the EU and the US. The objective is to push more Muslims living in Europe into the ranks of ISIS. And that the timing and targeting of this particular incident had to do with the fact that, in three weeks, regional elections will take place in France.

There is a strong chance that Marine Le Pen’s right-wing Front National, which holds strong anti-immigrant and anti-Islam views, will be favoured by the voters’ reaction to what happened in Paris. Her immediate response to the terrorist attack was a reiteration of her call for much stricter immigration laws and an abandonment of the Schengen agreements which allow people to circulate within most of the EU freely, without border controls. Curiously, her speech was more moderate than what could have been expected. The Front National’s messages were there, but the rhetoric was acceptably democratic especially in light of the circumstances.

The message of the rest of the relevant political leaders was adequate and — above all — responsible. It promised that justice will fall on the perpetrators but it also remarked the commitment to democracy, human rights and the rule of law. A cynic would define them as politically correct. But a realist would note that in some circumstances — and this is one of them — political correctness, as trite as it may sound, is the only available option. A couple of wrong phrases in the heat of a speech delivered in understandable anger could trigger reactions from the general public which would only make matters worse. And would play into the hands of the terrorists.

However, beyond the statements, last Friday’s events are telling us that the EU, the US, and most of the world are facing a very serious problem which is totally different from the terrorist threats of the past. And that, in order to analyze its nature, it might be necessary to look again at less idealistic views of the world in which we live.

This means accepting that humanistic philosophy, which suggests a weakening of religious dogmatism as a source of conflict, might be a good wish rather than an adequate description of today’s world.

Back in the early 1990s, the Soviet bloc had disappeared and many believed that there was a conflict-free future ahead. There were some strongly discordant voices challenging this view. Perhaps the most memorable was that of Samuel Huntington, a political scientist who published an article with a disturbing title: The Clash of Civilizations.

His view was that conflict between ideological blocs and/or nation states would be replaced by a clash of civilizations which was destined to dominate global politics. And he offered detailed descriptions of the main cultures and their points of conflict.
His remarks on Islam are worth revisiting in view of the current situation. Huntington wrote: “Conflict along the fault line between Western and Islamic civilizations has been going on for 1,300 years. After the founding of Islam, the Arab and Moorish surge west and north only ended at Tours in 732. From the 11th to the 13th century, the crusaders attempted with temporary success to bring Christianity and Christian rule to the Holy Land. From the 14th to the 17th century, the Ottoman Turks reversed the balance, extended their sway over the Middle East and the Balkans, captured Constantinople, and twice laid siege to Vienna. In the 19th and early 20th centuries, as Ottoman power declined, Britain, France, and Italy established Western control over most of North Africa and the Middle East.”

True, the conflict became much more moderate, but it never disappeared entirely. It is about a compound of issues which range from views about God and religion to everyday life. A perhaps minor but nevertheless significant example of this clash, which has to do precisely with France is that Muslim females were banned, in 2004, from wearing their burqas in French public schools.

In other words: French commitment to a non-religious republic against ISIS’ commitment to fundamentalist religious rules.

Noticeably, with a few exceptions, like Palestine and Israel, the conflict transcends the issue of nation states. Israelis can negotiate with groups fighting for an independent Palestinian state. Ironically, even if they are confronting through violence, they can nevertheless negotiate with each other or through third parties. They have something to negotiate about which is quite concrete. Territory and independence. They might not reach an agreement, but both sides have clear final objectives and are mutually aware of them.

By contrast, ISIS’ demands which include elements like “death to all the infidels” are not negotiable. A definitely violent road ahead.



lunes, 2 de noviembre de 2015

BEYOND THE OPINION POLLS




Ignore the surveys — a new tool is helping to predict elections

The aftermath of the 25 October election is as follows: happy faces in the group supporting Mauricio Macri, worried faces in the Victory Front (FpV) crowd, and egg on the faces of the pollsters who did an interesting job out of getting most of their forecasts wrong.

A more private consequence for many was an increase in calorie intake for the numerous Argentines who were collecting their winnings and paying off their debts, as a result of gambles they made on the outcome of the election.

“A dinner says that (Macri/Scioli) wins on 25 October” was a phrase repeated in many social circles over the last month.
A very Argentine tradition, it’s bad for those watching their weight but with great benefits in terms of amusement, friendships and socializing.

Whilst Argentines were settling their particular gambling debts, in the United States a more institutional commemoration was taking place. The “PredictIt” organization celebrated its first year in business. (http://www.predictit.org/)

This is the latest tool available for political practitioners. In its own words, PredictIt “is a new real money game that tests your knowledge of political and financial events by letting you make and trade predictions.” And this organization is not the brainchild of a Wall Street broker. It is a project of the Victoria University, in Wellington, New Zealand, which was “set up to research the potential value of prediction markets in understanding the future.”

For good measure, the people from PredictIt end their presentation with the enticing line: “Our job is to study the wisdom of the crowds, yours is to make you most educated prediction.”

The “game” is quite simple. Predictions about future events are formalized by buying shares in the outcome, either “Yes” or “No.” Each outcome has a probability of between one percent and 99 percent, with the sum of the two always naturally adding to 100 percent. And these percentages are then converted into US cents.

This is not a high-stakes betting game. The limits are quite low and the money element is a device to encourage players to play rather than being the object of the business. The highest possible single deal is currently US$850. In fact, its 37,000 members have traded a total of approximately US$10 million, which averages out to about U$S270 per individual.

The object of the exercise is orientated toward research, in as much as prediction markets like this one are attracting a lot of academic and practical interest. And, perhaps more importantly, what happens in the PredictIt markets can have an immediate impact on “real-life” politics.

Recently, staff of the US Republican Party presidential candidate Jeb Bush learned this at their own expense. They use PredictIt as one of the indicators about their candidate’s chances. And when the predictions market indicated that Marco Rubio was ahead of Bush in the Republican party race for the nomination, campaign donors started to shy away. And in US politics at the moment, it seems easier to recover from a temporary setback to your ranking in the game than from having your donors looking for the exit door.

Fans in Wall Street

According to Bloomberg, the case of Jeb Bush is not isolated. In their view, Wall Street donors (obviously, amongst the biggest contributors to campaigns) look more at information offered by the likes of PredictIt than at opinion polls. The view, held by many economists, is that betting markets are more accurate in predicting political events than opinion polls. Even if they have a lower number of participants.

Interestingly, this prediction market offers numerous themes and options on which to bet that go way beyond the US presidential race. Amongst the US topics open to prediction are if — after the 2016 elections — the party which wins will be unified in government and Congress. Which is possibly related to the primaries and their occasionally bitter quarrels.

Or you can bet on whether a law will be passed by Congress. On international matters, the market is open on issues like whether Venezuelan President Nicolás Maduro or Brazilian President Dilma Rousseff will last out their terms in office. You can even bet on the possibility of a woman becoming the next UN Secretary General.

But there appears to be no Scioli-Macri option on PredictIt. It’s left to you ,dear reader, to imagine the possible questions/options that could be offered around this issue — and the odds.