Praemonitus praemunitus
The History of Pre-Medieval Bankruptcy |
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The word “bankruptcy” as it appears in European languages originates from medieval Italy and the word is Latin in origin, from the words bancus (a bench) and ruptus (broken). A “bank” originally referred to a bench where the first bankers had in public places and markets, on which they tolled their money and wrote bills of exchange. When a banker failed, he broke his bench (or had it broken for him) to advertise to the public that the person to whom the bank belonged was no longer in business. But although this word is just five centuries old, the concept is as old as society, so I decided to look into how ancient societies handled debtors unable to repay creditors.
The Jewish law of debt forgiveness can be found in the Bible at Deuteronomy 15:1–2 which instructs a release of debt every seven years. In the Old Testament of the Bible and Hebrew Scriptures, Moses’ Laws prescribed that one “Holy Year” or “Jubilee Year” should take place every half century, when all debts are eliminated among Jews and all debt-slaves are freed, due to the heavenly command.
In ancient Greece, there was no bankruptcy—if a man owed money he could not pay creditors, his entire family of wife, children and servants were forced into “debt slavery” until the creditor recouped losses through physical labour. Many city-states in ancient Greece limited debt slavery to a period of five years and debt slaves had protection of life and limb (not enjoyed by regular slaves). However, servants of the debtor could be retained beyond that deadline by the creditor and were often forced to serve their new lord for a lifetime, usually under significantly harsher conditions.
Under per-Imperial Roman law, creditors had a fairly persuasive method for dealing with individuals who did not appear to be able to pay their debts when they fell due:
Fasten him in stocks or fetters. He shall fasten him with not less than fifteen pounds of weight or, if he choose, with more. If the prisoner choose, he may furnish his own food. If he does not, the creditor must give him a pound of meal daily; if he choose he may give him more… Three market days later, the creditors were entitled to divide the debtor’s body amongst them… if they cut more or less than each one’s share it shall be no crime.
Roman law later evolved and copied the Greek system noted above (although it was more draconian, and included perpetual foreign slavery for the debtor). As Roman imperial law developed, creditors could petition a local government official (Praetor) for a private right to sell the debtor’s assets. This would eventually develop into the European system of bankruptcy, as the Roman expansion brought this law with them.
In India, I understand that the creditor “may even violate with impunity the chastity of the debtor’s wife. But then, by so doing, the debt is understood to be discharged.” Source here. I have no information on in how bankrtupcy worked in ancient China, but anyone with information is welcome to let us know in the comments.
Being realistic about maritime terrorism |
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EagleSpeak offers a quick and dirty Q&A on maritime piracy that is both enlightening and practical. I found his statement on the link between piracy and terrorism particularly concise:
Piracy as practiced today can be political (Nigeria in some instances) but mostly seems to be a revenue raiser. AQ’s statement may be mostly propaganda and relates more to attacks on ships for the purpose of damaging them than to robbing ships or holding them and their crews for ransom.
A few days ago the strategist linked to a BBC report on Malaysian efforts to counter piracy in the Malacca Straits. My comment:
The real risk piracy poses for the straits can be found in skyrocketing insurance premiums. This is what will cause cargo to take alternative routes, increasing lead times for shipping. Furthermore, maritime terrorism in the straits on the scale of the security punditocracy in the US and Japan is also extremely unlikely, and not helpful for longterm policy-making.
The Scramble For…well…Everything |
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The Scramble for Africa was a quick proliferation of often conflicting European colonial claims on Africa. While imperialism was initially an indirect process, i.e. ruling or influencing the through locals, it ultimately led to outright annexation and centralized control of foreign lands. As borders hardened and “free territory” quickly disappeared, European empires raced to snatch up what was left. It would seem, at the beginning of the 21st century, the same is playing out as the world’s resources become scarce, or are at least perceived to be scarce. It started in the Arctic and has now moved to all of the world’s oceans.
Oil reserves are running out, gas prices are soaring. France’s government is reacting to the dwindling energy supply much like Russia and Great Britain: the government is laying claim to vast stretches of the world’s oceans. In France’s case, the claims span the globe: from French Guyana in South America to Africa and across the Indian Ocean.Paris would like to see its Exclusive Economic Zone (EEZ) [...] expanded by almost a million square kilometers. [...]
Like many other states, the French government will be arguing in the next year that its geographic features in many cases extend far beyond the 370 kilometer zone. At most, that could mean an extension of its EEZ to 650 kilometers past the coastline. Right now, France claims more than 11 million square kilometers of the world’s oceans—the second largest in the world, after the United States. May 13, 2009 is the deadline for countries to submit territorial claims to the United Nation’s Commission on the Limits of the Continental Shelf (CLCS). A handful of governments have been scrambling to prepare the way for claims down the road by sending out exploration missions and establishing outposts in remote parts of the globe.
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Under the Commission on the Limits of the Continental Shelf (CLCS) at the United Nations, member states have until May 13th to officially submit their claims. The key parts of the treaty involves the various oceanic zones radiating out from sovereign territory. The UN Law of the Seas Treaty establishes several different types of zones: internal waters, territorial waters, Archipelagic waters, Contiguous zone, Exclusive economic zones (EEZs) and Continental shelf. The EEZ, as described above, is defined as follows
Exclusive economic zones (EEZs) – Extend 200 nautical miles from the baseline. Within this area, the coastal nation has sole exploitation rights over all natural resources.
Unlike the high profile Russian attempts to stake a claim to the Arctic, increasing countries’ Exclusive Economic Zones has thusfar remained under the radar. But as claims proliferate and controversy ensues, even friends may clash over faraway islands and seas. Just as the nation-state system has begun to settle and borders have become more stable in many parts of the world, the race to claim every last bit of land, water and ice may undermine that stability, inflame tensions between enemies and divide friends. Oh, and let’s not forget about space.
Japan-China Relations, circa 2008 |
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Hu Jintao is heading out after a visit to Tokyo, where the leaders of China and Japan brought a thaw in bilateral ties after more than a decade out in the cold. The trip was historic in that it was China’s state visit to Japan in a decade, and at five days, it is Mr. Hu’s longest single foray to any country.
On the top political levels, things have gone well. Japanese PM Yasuo Fukuda and Hu signed a blueprint for ties that represented a “new starting-point” between the two nations. There were not be regular top-level visits in future, increased cultural exchanges, and even military relations. And even tough issues were addressed. Fukuda said China should recognize that Tibet has become an international issue. And the disputed gas exploitation by China in the disputed East China Sea was discussed, if not resolved.
The in the public diplomacy arena, Hu has been very active. He gave a lecture at Waseda University, played ping pong with teenagers, chilled with the Emperor, promised new pandas, and stopped by Sun Yat Sen’s favorite Japanese eatery. On the surface things have been peachy.
But despite this, and opinion polls showing growing popular trust in both countries, there remains strong suspicion towards China by many Japanese (and I suspect the feeling is mutual). The governor of Chiba Prefecture (next to Tokyo and where seven people fell sick after eating Chinese-made frozen dumplings several months ago) said Thursday that people should not be “fooled” by China’s pandas: “be it the gyoza case or the oil (gas) field problem, it is high time that the two countries that exercise political leadership in Asia held talks squarely to move in the right direction.” A non-commissioned GSDF officer tried to commit suicide in front of the parliament building. And as I work just a few blocks away from the foreign ministry, I witnessed blaring loudspeakers from right-wing activist groups that blocked the streets and backed up traffic for miles.
Much of this is to be expected, and ultimately this may just be growing pains to a better relationship. While there is a long way to go in improving and stabilizing bilateral relations—so far, so good.
As if on Queue |
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Just yesterday I again recommended that Georgia aim to internationalize its conflict with Russia over Abkhazia and South Ossetia as its only hope for eventual victory is diplomatic and not military. Today, the headlines seem to confirm that either the Georgian Foreign Ministry readers our blog or that this blogger should perhaps go work for them. According to reuters,
Georgia wants the European Union to send police to the separatist region of Abkhazia, Georgian Deputy Prime Minister Georgy Baramidze said on Wednesday. “We are going to present this request to the European Union, we are going to ask for European police forces to be sent to Abkhazia,” he told a news conference after a Council of Europe meeting in Strasbourg. “What we need is for everyone to take part, including Russia.”
Indeed, the Georgian strategy should aim not to exclude Russia but to include them wherever possible, however, along with Europeans and Americans. Additionally, the Georgian strategy must stay on message that it aims to solve the problem or end the conflict and humanitarian crisis, not to take back its territory. In this way, Russia will have difficulty rejecting any offer which indeed includes them and aims not at retaking territory but at solving the problem.
Additionally, the European Union is now dispatching a delegation of foreign ministers to visit Abkhazia, assess the situation and to cool tensions. The makeup of that group should be rather sympathetic towards Tbilisi as it consists of the Slovenian, Swedish, Polish and Lithuanian foreign ministers.
Check back for more as the situation develops. For the moment, a former ambassador of Greece has written an op-ed in support of Georgia and condemning Europe’s cowardice and unwillingness to stand up for its own principles.
Jamestown also has similar advice for Georgia and a further analysis of the peacekeeping situation.
Another Drone Down? |
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Globalsecurity.org reports that Abkhazia claims it has shot down yet another Georgian drone, bringing the unconfirmed total to five. They include drones shot down (allegedly) on March 18, April 20th, and two more on May 4th. While Georgia denies the report, it would coincide with the rise in tensions with Russia and now, especially with Moscow’s new deployment of soldiers to Abkhazia. It would be reasonable to think that Tbilisi has stepped up surveillance to keep tabs on the Russians and Abkhaz who have become more belligerent. Both Russia and Abkhazia continue to claim that Georgia is preparing military action and building up troop levels in the Kodori Gorge and other border areas although Georgia denies this, a claim supported by UNOMIG observers.
Recently, the UN Security Council renewed the mandate for observers in Georgia (UNOMIG) in a fairly bland and uninteresting statement. What was however noteworthy is that the UNSC did not add language addressing Russia’s illegal actions such as providing citizenship to the Abkhaz to add a further “legitimate” reason for it to annex Georgian territory and station troops there illegally.
War or Diplomacy?
Since Georgia clearly has no way to beat Russia militarily, it must tread carefully and push diplomacy as his only resort, but the Russians know this. One such way in which this author believes Georgia could push harder is urging for real peacekeepers to be stationed in Abkhazia and South Ossetia. In this way, Georgia could tone down its language, implicitly acknowledge the two breakaway regions and try to push Russia out of the picture, or at least sideline them by diluting their presence with other peacekeepers. While it has attempted such in meetings with other nations, it must be done in a more public manner, using Western media outlets among other things. In addition, Georgia must address European concerns about escalation and angering Russia in a concrete and meaningful way. With Western Europe behavior consistently cowardly vis-a-vis Russia, illustrating that European peacekeepers would actually decrease the risk of war and escalation. While I’m not necessarily optimistic that it would work, it would be difficult for Russia to argue against further peacekeepers since it would technically protect their dear Abkhaz.
While Kosovo may be more or less settled, it would seem the rest of Europe and Asia’s frozen conflicts haven’t begun to thaw after all.
Bad News for NATO from Germany |
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With questions about a two-tier system for NATO and concerns about certain members being unreliable or not sharing the burden, a ruling by the German Supreme Court comes as more bad news. The issue this time was the deployment of German AWACs along the Turkish border with Iraq in 2003. The article notes that:
Germany had sent its Airborne Warning and Control System (AWACS) planes at the request of its NATO ally, Turkey. Germany provided crews to man NATO planes that flew surveillance flights near Turkey’s southern border which were meant to protect Turkey against an Iraqi attack during the US-led invasion. Schroeder’s government described the 2003 deployment as a “routine” NATO operation.
However, although a NATO flight in conjunction with Turkey would seem fairly uncontroversial, there was a much deeper issue at hand for the Germans, the risk of war. The AWACS were sent to patrol the border and to be able to alert and direct Turkish fighter jets in the event of an attack by Iraq, most likely with missiles. And although the planes are unarmed and used solely for command and control purposes, the risk that they could have become involved in a war was real, according to the German Supreme Court. Therefore, the previous government of Gerhard Schröder, acted illegally and unconstitutionally by putting the German military in a situation in which it could have potentially been involved in armed conflict. Only the German parliament has the authority to do such.
Effects
First of all, this ruling puts the Chancellor on a much tighter leash that before and strengthens the German parliament. It does not however, affect any current operations such as in Afghanistan, Djibouti or Kosovo nor is it likely to cause trouble for any politicians who were involved in the decision at the time. Yet, it could complicate future decisions, mostly minor ones, and subject them to prevailing political whims which may in turn further damage Germany’s reputation as an ally of the United States and as a reliable NATO member. However, outsiders do need to retain a bit of perspective as the Germans, and indeed their form of government, is rather explicit in its intention to keep the majority of power in the hands of the elected representatives of parliament and prevent an overly strong executive branch from repeating World War Two.
On a related note, this is also bad if not fatal news for the CDU’s proposal to create a German NSC.
Hydroelectric Surprise |
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With all the talk of alternative energy and whether it is indeed a viable replacement for other conventional sources like coal and oil, one interesting case comes to mind. So readers, without looking in Google, Wikipedia or any other source, what country do you think generates about 60% of all its energy needs solely from hydroelectric power?
Click for the answer:
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Kaplan on Colombia |
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Congressional Democrats continue to hold up a free-trade deal with Colombia.All the debate about Colombian free trade has obscured something important: Colombia is far safer now than it was five years ago. In fact, if Iraq were reclaiming terrorist-controlled areas as effectively as Colombia is, even the most die-hard opponents of the Iraq War would admit error. Colombia is, after Iraq and Afghanistan, our third-biggest nation-building project, and it is by far our most successful.
Colombia demonstrates the value of the indirect approach in our overseas military deployments. Our military role there, started by Bill Clinton and continued by George W. Bush, has been significant: Army Special Forces have trained elite Colombian units, who have in turn engaged the narco-terrorists. When I first visited Colombia in early 2003, the border with Venezuela was a no-go zone. Now new businesses are opening, and the streets are crowded, even at night. Parts of the south and east are experiencing the same success. Indeed, by 2006 I could visit large swathes that were inaccessible before.
Colombia is what Iraq should eventually look like, in our best dreams. Colombian President Alvaro Uribe has fought—and is winning—a counterinsurgency war even as he has liberalized the economy, strengthened institutions, and improved human rights. Nuri al Maliki and Hamid Karzai could learn from him. The failure of Congress to pass a free-trade pact indicates that the greatest threat to our power is our own domestic dysfunction. What should be the icing on the cake to a successful nation-building program has become an embarrassment.
Read more of Kaplan’s recent writing on South American here. Thanks as always to the readers who send in the alerts to Kaplan stories, we greatly appreciate your contributions.
Keepin’ it real and intelligent |
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FP Passport spotlights the hiphop track The Economist by Psikotic, an ode to my favourite magazine suggestive of the nerdcore genre. The track features some choice cuts from The Economist podcast and samples Perpetuum Mobile the iconic composition by the Penguin Cafe Orchestra, one of my favourite modern classical groups (see a performance of the original on YouTube). Have a listen to the track below:
