Xerox is running a TV ad for its publishing software. In the ad, an out-of-it middle-aged professor tells his class how expensive publishing is. A confident young student puts the prof in his place by pointing out, to applause, that Xerox publishing software makes it possible for anyone to be a publisher. Ha. I guess that’s why we’re all using Xerox’s software to publish our blogs. It’s ironic that Xerox doesn’t see that its sales pitch undercuts its own product as much as it does the old publishing ways which it thinks are its main competition. Oh, well. Nobody ever accused Xerox of understanding technology.
Mark Your Calendars!
Fuze reminds us that February 27 is the feast day of Saint Gabriel Possenti, the Patron Saint of Handgunners.
Economic News
Chicago Boy WV forwards an AP article that confirms what we all know: equity markets are thin and whippy because volume is down, and volume is down because everyone is waiting for the war.
– This NYT article discusses a report (pdf link) by a pair of economic researchers who think that war in Iraq is likely to have a significant negative effect on world stock markets. This goes against conventional wisdom that markets will rally in response to the war, but (therefore?) I think these guys may be right. It’s noteworthy that the researchers base their inferences on data from Tradesports.com, an Irish online betting exchange that I discussed in previous posts (here and here). The researchers argue that the Tradesports.com contracts may be more reliably predictive than are those on the respected Iowa Electronic Markets:
The Saddam Security is in fact more widely and frequently traded than the typical contract on the Iowa market. Wall Street is over-represented among market participants, and evidence from a variety of sources suggests that these data do in fact reflect underlying war probabilities.Here’s an article about similar research one of the co-authors did on elections. One of the more interesting sentences:
Wolfers, an assistant professor of economics who as a youth worked for a bookmaker in his native Australia, followed a hunch about the predictive power of betting markets in forecasting the outcome of political elections.So much for abstract theorizing.
Venezuelan Reckoning Approaches
Val e-diction eloquently summarizes and frames in geopolitical context recent events in Venezuela.
A second Cuba is impossible in modern times, we have been told. The Chile of Salvador Allende was a weird consequence of the Cold War and, in Nicaragua, the Sandinistas made a mistake holding elections before they controlled everything. Hugo Chávez wanted to prove everybody wrong, he planned to go forward at his own pace.[. . .]
With a Constitution made to measure and sure of governing under a democratic mantle for years to come, he began penetrating and dominating the country’s public institutions. All of them fell to his soft mallet, one by one, slowly, democratically. . .
[. . .]
But then something happened that changed Chávez’s plan. An unprecedented two-month general strike and huge daily marches and demonstrations, led by the same spoiled middle class he knew was incapable of resistance . . . The writing was on the wall, Chávez would have to repeat the Sandinista mistake. He is in a hurry now, the plan accelerated, the phasing shortened, the mallet now a bludgeon, paradise must be conquered by force. Let’s discard the cloak, for it impedes the advance.
Val has it right (“As in Mein Kampf, the truth had long been there for everybody to see”). Chávez is the problem and Venezuela will not be stable or free as long as he remains in power.
There are parallels between Venezuela and Chile. Conventional wisdom holds that Allende was a social democrat in a hurry, that his overthrow by the Chilean army was a criminal act if not indeed engineered by the evil CIA. Allende was elected, after all.
The problem with this view is that it ignores Allende’s behavior: his avowed socialism; his close collaboration with Fidel Castro; and his relentless power grabbing via creation of a private army, property expropriations, and other measures that weakened the rule of law and made Chileans more dependent on the State. As Robert Moss pointed out, Chile at the time of the coup was well on its way to becoming a communist dictatorship. Not only General Pinochet, but also a large plurality if not majority of the Chilean populace supported the coup, because it appeared to be the only way to stop Allende. So yes, Allende was elected, but the fact that a leader is elected does not confer indefinite legitimacy on his actions. Sometimes elected leaders become dictators, and sometimes it’s necessary to overthrow them. It might not have been possible to vote Allende out of office once he consolidated power. The Chilean army’s coup was ugly but the alternative was probably worse. (And the Army, to its great credit, eventually relinquished power.)
While the current Venezuelan situation appears to parallel Chile’s under Allende, Venezuela may actually be worse off in some respects. Chile in 1973 was not so many years removed from having been a reasonably well functioning democracy, whereas Venezuela in 2003 is on the south end of three decades of oil-fueled political decay and seems not to have institutions that can fulfill the same role as Chile’s army. The anti-Chávez opposition enjoys substantial popular support but so far has lacked a core group with the power and determination to overthrow the government. (Either that or Chávez has learned well the lessons of the failed leftist dictatorships and won’t give his opponents any breaks. Thus he made sure to disarm the Caracas police — an opposition stronghold — before they could cause problems.)
The situation is unstable. Chávez won’t compromise and the productive parts of the country can’t spend all of their time fighting him without seriously harming themselves, which is what happened during the recent strike. The anti-Chávez forces tend to rely on democratic tactics like mass demonstrations, and especially referenda, which require much advance planning and are relatively inflexible with respect to schedule. The opposition is also relatively law-abiding. Chávez is completely unscrupulous and can be more flexible tactically. He can wait for the opposition to make plans and then respond on his own terms.
Given that Chávez must consolidate power or eventually be tossed out, the main constraint he faces may be the possibility that the U.S. will intervene if he goes too far. On the other hand, he knows that he’ll lose if he does nothing. So when will he act? He has been increasingly willing to use violence against his opponents. If he continues to get away with it, there will be no reason for him not to escalate. It’s therefore a good thing that the international press, as Val points out, is beginning to pay serious attention to Chávez’s dangerous behavior. What happens next may be a function of how much the press is distracted by the beginning of the war in Iraq. Val reminds us that Chávez reads the same papers that the North Koreans do.
There’s no telling what will happen, but I think Chávez is capable of anything if he believes that he can get away with it. I wish Venezuelans luck. I hope that the international press, and bloggers too, keep enough focus on that country to prevent the worst from coming to pass.
Postscript
Caracas Chronicles has an excellent three-part series on the decline of Venezuela’s political culture:
Part 1
Part 2
Part 3
There’s also this article and this one on the newly skeptical tone in international press coverage of Chávez. Note that the first post predicts that Chávez will move against private television stations as soon as the U.S. attacks Iraq.
War Crimes Trials?
Here’s a reason to be skeptical that they will happen. Justice and deterrence may be served better by having our military kill Iraqi leaders (or allow them to be killed) rather than subject them to a legal process that is potentially hostage to State Department whims.
(Via Jim Miller)