EU’s Jean Claude Junker on Brexit

                   “The European Dream Still Exists”

On June 23 the British people voted in a referendum to leave the European Union. It was close: Leave 52%, Remain 48%.

The world has seen the result: financial turmoil and political uncertainty. It appears that the Leave group had no “Plan B” for their eventual win; in fact it appears that they did not even have a “plan A.”

Media attention has focused on financial turbulence and British domestic politics. But what about the Europeans, what do they think?

A good indication can be gathered from the speech of the President of the European Commission, Mr. Jean Claude Juncker, to the European Parliament on June 28th. President Juncker focused on these key points:

  • There will be not secret negotiations with the British
  • Britain has voted, and Britain must act on that vote
  • The EU will continue to move ahead despite its diminished status

Here is the full text of Mr. Juncker’s speech. It gives us a good indication about European intentions, and shows us how a statesman thinks as opposed to a mere politician.

Mr. Juncker’s speech in full (Reading Time: 7 minutes)

 

 

Photo: European Parliament via flickr

Warships From Around the Globe Head to Hawaii for RIMPAC 2016

Representative ships from the navies of 27 countries have converged on Hawaii for the beginning of the Rim of the Pacific 2016 naval exercise. RIMPAC 2016, which is billed as the world’s biggest international naval exercise, will be held from June 30 to August 4, 2016 in waters around Hawaii and California.

The exercise is seen as a way for world navies (and not just the Pacific) to sustain and develop relationships, something that is vitally important in the geopolitical climate where countries often have interests that are opposite to other state actors in their region. Again this year China has been invited to the exercise and has decided to participate. Despite some  domestic opposition, the US feels that it is better for all concerned to continue to improve relations with China’s PLA Navy.

RIMPAC 2016 will feature 45 ships, 5 submarines, 200 aircraft and 20,000 personnel. Operations will include disaster relief, counter-piracy, salvage, submarine rescue and amphibious operations. De-commissioned vessels will also be sunk to demonstrate the capabilities of various weapons systems.

Besides the United States and the People’s Republic of China, participants will include:

Australia, Brunei, Canada, Chile, Columbia, France, India, Indonesia, Japan, Malaysia, Mexico, the Netherlands, New Zealand, Norway, Peru, South Korea, the Philippines, Singapore, Thailand, Tonga and the United Kingdom. New this year to the exercise will be: Brazil, Denmark, Germany and Italy.

Photo: US Navy via flickr

Stars and Stripes RIMPAC 2016

Compiled from US Defense and web sources

Iraq’s Mosul Dam – A Coming Disaster of Biblical Proportions?

As for Iraq’s Mosul Dam, things are OK, or they are very much not OK.

It all depends on whom you believe. The dam, started in 1981, was formerly known as the Saddam Dam. It is on the Tigris River 45 miles north of Mosul, Iraq. The dam is used both for irrigation and hydroelectric power. It is said to be one of the biggest dams in the Middle East.

The dam was briefly in the hands of Daesh, but was re-captured by Kurdish Peshmerga fighters in August 2014. The dam needs constant maintenance, or grouting to shore up its unstable foundation, and much of that maintenance has been ignored during the political and military instability that has characterized the state of Iraq since 2003.

The US Army Corps of Engineers has warned of serious consequences in terms of loss of life if the dam does collapse. In an article published by Deutsche Welle on April 24, 2016, Iraq engineers dismiss US warnings of imminent collapse. Their logic seems to be that since it is not happening or hasn’t happened, it won’t.

Should the dam collapse, there is a doomsday scenario that sees flooding in Mosul down to Tikrit and finally Bagdad. Millions would be killed, and Bagdad itself would be under water. And Iraq, now the scene of a war against Daesh, and ailing in so many areas, would become a failed state with millions of dead and an unprecedented regional refugee crisis.

 Deutsche Welle Article

Globe and Mail Article

Photo: Peshmerga fighter at Mosul Dam, Kurdishstruggle via flickr

Romney in 2016? Maybe…

A familiar face has again emerged in the 2016 US presidential election campaign: former Massachusetts’s governor Mitt Romney. For now, Governor Romney is playing the role of elder Republican statesman. Romney has certainly earned the right to this position; his last stint for the party was as a candidate in the 2012 election. He has said he will not run in 2016, and now in mid-year, this seems to be true. There is no official Romney candidacy. However, things might change a bit.

First some background on the Governor. Mr. Romney (Born March 12, 1947) is the son of George Romney, a candidate for the Republican Presidential nomination who lost to Richard Nixon in1968 and became Regan’s Secretary of Housing and Urban Development.

Mitt Romney earned a BA from Utah’s Brigham Young University, and then went on to Harvard University where he earned a combined JD (Law) degree and MBA.

After graduation he worked for Bain & Company. His business career has been a great success, to the extent that he and his wife’s net worth is estimated at between $190-$250 million. In 1994 Mitt Romney ran against Senator Kennedy for the Massachusetts senate seat. He was defeated.

In 2002 he became President and CEO of the Salt Lake Organizing Committee. Romney took charge of the floundering Salt Lake City Olympics organization and turned it around, winning praise and showing a profit. In the same year he ran and was elected governor of the state of Massachusetts.

One of his major achievements was a health care program that was later echoed by so-called “Obamacare” several years later. Romney was governor for one term, not seeking a second term so he could focus on a presidential run. Governor Romney did run in 2012, but lost to Barack Obama.

And now it is 2016. Governor Romney is not running for president. Or is he? On March 3, 2016 Romney gave a speech at the Hinckley Institute and made a scathing assessment of Donald Trump, the Republican frontrunner. Some of his comments about trump include:

“A business genius he is not.”

“When it comes to foreign policy he is very, very not smart.”

“His imagination must not be married to real power.”

“He has neither the temperament or judgment to be president.”

Romney’s March 3 speech is the voice of the Republican establishment. They have made it perfectly clear what they think of Trump through Romney.

So what is the next step? The Republican National Convention is scheduled for July 18-21 in Cleveland, Ohio. It will certainly be one of the most watched events ever shown on television. But what will happen? There is a good chance that anti-Trump forces might block Donald Trump from becoming the party’s nominee.

And who might take his place? Who might emerge as the party’s candidate to face off against Hillary Clinton in November? Don’t be surprised if it is Governor Mitt Romney with someone like Marco Rubio as his running mate. Some people may remember Romeny’s turnaround of the Salt Lake City Olympics and think that maybe, just maybe, he is the guy to turn around the circus that is the 2016 presidential election has become and bring home a win for the Republican Party.

Romney speech March 3, 2016 https://www.youtube.com/watch?v=2iefXdC794I

Photo: Mitt Romney twitter

“Summer Davos” Set to Kick off in Tainjin June 26

The World Economic Forum’s Annual Meeting of New Champions, or simple Summer Davos will take place on June 26-28 in Tianjin China. The event rotates between Dalian in Northeast China, and Tianjin, China’s dynamic and historical port city a hop skip and a jump from Beijing.

This year’s event will have 1700 (or more) participants from 90 countries. Young leaders from government, media and academia will meet and exchange ideas surrounding this year’s theme: “The fourth Industrial Revolution and its Transformational Impact.” The three major topics addressed will be:

  • Rebuild systems
  • Reshape growth
  • Rethink innovation

For more information on this year’s event, or to register, contact the organizers.

Summer Davos China

Photo: World Economic Forum via flickr

India-Iran: “Let’s Make A Deal”

Since the lifting of sanctions in January 2016, Iran has been a busy place. Delegations have arrived and deals have been made. It is quite simple: Iran is back and open for business. New partners have included China, South Korea, Italy and France. So it should not have been a surprise when India’s prime minister, Narendra Modi showed up in May of 2016. Modi is the first Indian PM to visit Iran in 15 years.

In addition to renewing friendship and going through the usual diplomatic kabuki, some important business was done centering on the Iranian port of Chabahar on the Gulf of Oman. The Hindustan Times reported on May 24, 2016 that India had pledged around $500 million for port development.

What was even more interesting was a trilateral meeting between the heads of India, Iran and Afghanistan, i.e. Modi, Rouhani and Ghani to develop a rail link running 500KM from Chabahar to Zahedan in Afghanistan. Up till now, India-Afghan trade had to pass through Pakistan and made it subject to all sorts of uncertainties. This line will also give India access to Iran’s rail network, open up Iran’s eastern regions, and lay the groundwork for further trade with central Asia. Of note is the fact that this Chabahar port/rail facility is only 72 miles (115 km) west of the Pakistani port of Gwadar that is a key element in China’s Belt and Road initiative.

Photo: Narendra Modi via flickr

Whither Britain?

In just a couple of weeks Britain will vote on whether to stay or leave the European Union. A referendum will be held on June 23, 2016 where British citizens including (Irish and Commonwealth ) will have their say on this important question. Prime Minister David Cameron is seen as the head of the “stay” group, while former London mayor, Boris Johnson represents the “leave” group.

Arguments for and against the so-called “Brexit” focus on economic and social matters with a strong focus on “sovereignty.” Those who want to leave the European Union state the issue as regaining control of a number of issues including immigration. They are also against Britain’s annual financial contribution to the EU. Those who agree with the prime minister cite the advantages of remaining in the EU, particularly the advantages to big business.

Recent polls suggest the “leave” camp has a slight lead as of mid-June 2016. What are your thoughts on the “Brexit”? Will the UK leave the EU, and more importantly, should they? Please log in and let us know what you think.

Photo: Number 10 via flickr

UNESCO World Heritage Sites–Hoi An Vietnam

In the first half of 2016, Viet Nam recorded visits by more than 4 million tourists. The country has a lot to recommend it; beautiful beaches, great food, an ancient culture and affordable prices. The port of Hoi An in Quang Nam Province has been described by Lonely Planet Guides and “…one of Viet Nam’s most important tourist centres.” And apparently for good reason.

The Old Town of Hoi An was designated a UNESCO World Heritage Site in 1999. The UN chose it for its unique cultural heritage that, in addition to indigenous culture, shows strong Chinese, Japanese and European influences. UNESCO cited Hoi An as an excellent example of a 17th and 18th century Asian trading port, noting its wooden buildings, well-laid out streets and port.

Visitors to Hoi An have the choice of museums, temples, restaurants, beaches, night markets and ample shopping. Numerous day-trips are available for exploring the surrounding countryside. Convenient access to Hoi An is available from Da Nang.

Photo: Maarten Thewissen via flickr

Tim Cook, The Man Who Likes China

                               by David Parmer/Tokyo

Last month, in May 2016, Apple’s Tim Cook made his eighth visit to China since becoming CEO in 2011. The news in China that greeted Mr. Cook was not all good, but not all bad either. The bad news first: the Chinese government (or one agency thereof) closed down two of Apple’s moneymakers; iTunes movies and books, after only six months of operation. And there is a significant slowdown in iPhone sales in Apple’s second largest market after the US. Looking at the short term it is easy to wring one’s hands, call foul and cash out of Apple. 

Or one could accept the bad news as speed bumps and as temporary, and partner with Chinese companies while settling in for the long game. Well, that looks like what Apple, under the direction of Mr. Cook, is doing. Recently Apple has made two major agreements with Chinese companies (“deals” in Trump-speak) both focusing on the long term.

First, Apple introduced Apple Pay to the Chinese market by partnering with China’s only domestic bankcard company, Union Pay, making mobile payments a snap for Apple product owners. Next, Apple boldly ignored its Silicon Valley neighbor, Uber, and voted with its checkbook for Didi Chuxin, Uber’s main China rival in the ride-hailing business. The check Apple wrote was for $1 billion. (For the record, Bloomberg Technology reports that Didi now operates in 400 Chinese cities and has 14 million registered drivers.)

Just about a year ago (May 2015) Mr. Cook did an interview with China’s domestic CCTV in which he noted:

“We’ve created over three million jobs in China.”

When the interviewer suggested that Apple might compete down-market, Mr. Cook replied:

“Our strategy is always to make the best product.”

So do Apple and Mr. Cook like China? Apparently so. The question now is what is Apple’s next move, and will China regulators cut them some more slack on what they can and can not sell in the China market?

CCTV Interview YouTube

Photo: Tim Cook, Weibo

South China Sea–Time To Get Some Help?

It would be fair to say that if we graphed tensions in the South China Sea, we would see a steady and escalating upward curve over time. Now we have claims regarding territory, rights to navigation, and responsibility for tensions made by the several state actors in the region including China, the Philippines, and Viet Nam and the US. There is a steady militarization of the region with no mechanisms to de-escalate tensions.

With so many military forces active in the SCS, and such reluctance to even negotiate, there seems to be an inevitable road to confrontation down which all parties are heading. This cannot be seen as good for anyone. Could some third party such as the UN negotiate differences, or could a South China Sea Conference enable the countries involved to negotiate potential settlements, or at least dial back the tensions in the region? Please log in and give us your thoughts.

Photo: US Navy via flickr