Consequences of Cap and Trade. By Warwick McKibbin, Adele Morris, Peter Wilcoxen, and Yiyong Cai
Brookings, Jun 08, 2009
SUMMARY
The U.S. Congress continues to debate a potential cap-and-trade program for the control of greenhouse gas (GHG) emissions. The economic effects of such a bill remain in dispute, with some arguing that a cap-and-trade program would create jobs and improve economic growth and others arguing that the program would shift jobs overseas and hit households with large energy price increases.
This report applies a global economic model to evaluate different emission reduction paths and to offer insights to policymakers about how to the design the program to lower the costs of achieving long-run environmental goals. The study examines emissions reduction paths that are broadly consistent with proposals by President Obama, Representatives Waxman and Markey, along with two cost minimizing paths that reach similar goals.
KEY FINDINGS
The study estimates that alternative paths to reach an emission reduction target of 83% below 2005 levels by 2050:
• reduce cumulative U.S. emissions by 38% to 49%, about 110 to 140 billion metric tons CO2
• reduce total personal consumption by 0.3% to 0.5%, or about $1 to $2 trillion in discounted present value from 2010 to 2050
• reduce the level of U.S. GDP by around 2.5% relative to what it otherwise would have been in 2050
• reduce employment levels by 0.5% in the first decade, with large differences across sectors
• create an annual value of emission allowances peaking at around $300 billion by 2030, and a total value of about $9 trillion from 2012 to 2050
The different timing of emissions reductions under the various paths explored has significant effects:
• Without banking, in the short run the Obama and Waxman-Markey emission paths result in more gradual carbon price rises than the paths that minimize the present value of abatement costs. In the medium run, Obama and Waxman-Markey targets are relatively more stringent.
Incremental stringency produces high incremental cost, e.g. an extra 8% reduction increases costs by 45%.
LEARN MORE
For more information about the Climate and Energy Economic Project, please visithttp://www.brookings.edu/topics/climate-and-energy-economics.aspx
Monday, June 8, 2009
Floating Libertarian paradise
20,000 Nations Above the SeaIs floating the last, best hope for liberty? By Brian Doherty
Reason, July 2009
[See full article at the link above.]
Ideas evolve quickly along the Friedman family tree. The late Milton Friedman, an economist at the University of Chicago, was one of the 20th century’s most respected and influential advocates for classical liberalism. In scholarly books and popular articles he argued that if we want the greatest possible wealth and freedom, government should be restricted pretty much to cops and courts. It shouldn’t be in the business of manipulating or dictating our choices, whether they involve education, the economy, or joining the military.
Milton’s son David took this attitude a step farther in several books on political philosophy and economics. Given the manifest inefficiencies of government, David argued, the healthiest and most efficient social and economic system requires no state at all.
Now David’s son Patri has taken the family tradition one step beyond. Inspired by his dad’s classic 1973 book The Machinery of Freedom, Patri Friedman has concluded that society’s design flaw goes deeper than just government itself. Think of the state as a business—but one with enormously high barriers to entry and enormously high exit costs. As it would in the business world, this set-up breeds sclerosis, inefficiency, and the tendency to treat customers like dirt.
From Patri’s point of view, Milton’s path of steady, sober education about the advantages of liberty wasn’t changing the basic negatives very much. And although David might be right that government isn’t even necessary, the fact remains that governments, however inefficient, control virtually every chunk of planet Earth. Winning control of a piece of land almost necessarily involves bloodshed, with very little likelihood of success. High barriers to entry, indeed. So while the libertarian movement maintained its traditional orientation toward scholarship, journalism, and political activism, governments were busy perpetrating mass murder on a scale no other institution could manage, mucking up market transactions that could improve everyone’s lives, and ruining millions of lives over private but illegal choices, such as consuming disapproved drugs.
Patri Friedman was doing all right himself, living with his wife and child in a mini-commune of sort—the kind people today call an “intentional community”—in Mountain View, California, a bit south of San Francisco. He had a great and challenging job with a great company, Google. But his preoccupation, his passion, lay elsewhere. He thought he had figured out the real underlying problem bedeviling society, and it went deeper than just governments themselves. The real solution, he came to think, would involve the lure of the bounding main, the unbounded horizon, our vast and empty oceans.
Remember those high exit costs? Friedman wondered: What if you could just move—not just you, but everything you own, including your home, and, if your neighbors agreed with you, your whole community? What if you could move all of it where no government would bother you at all, and you could make a new, better society?
Friedman called his theory “dynamic geography.” He remembered a line from his dad’s book The Machinery of Freedom about how differently terrestrial government would behave if everyone lived in trailers and could easily flee state oppression. If land itself could get up and go, the incentive structure of government would change even more, moving it in a libertarian direction.
In the past, such thoughts led many libertarians to dream of space colonization. But you don’t need to leave the planet, Friedman reasoned; just make “land” that can float on the ocean.
And so Friedman is no longer with Google. He is president of something called the Seasteading Institute. He thinks he has a feasible plan to accomplish something neither his father nor his grandfather managed, for all their inspiration to him and hundreds of thousands of others: actually creating a libertarian society. Even if it’s a small, floating one. “I would be sad if it doesn’t happen in my lifetime,” Friedman says. “But even looking at optimistic scenarios, I can see it will take several decades before I can say I really changed the world.”
A Sunken History of Floating Nations
Wayne Gramlich is a voluble, white-bearded tech geek and science fiction fan—the kind of guy who thinks about how things work, and could work, a bit deeper than most people do. A former Sun Microsystems engineer, he became interested in creating free lands on the ocean after stumbling across the website of the Atlantis Project, a.k.a. Oceania, a failed scheme to do just that from the early 1990s. Gramlich took an idle notion about liberated ocean living and turned it into an experimental social and physical engineering project. He set his ideas afloat on the sea of the World Wide Web in the late 1990s under the name “Seasteading: Homesteading the High Seas.”
Gramlich’s solution to building new land on the ocean was cheap and inventive: achieve flotation by lashing together empty two-liter soda bottles; convert the bottle-raft into usable land by covering it with five-mil-thick (roughly fivethousandths of an inch) black plastic sheeting and dirt. (He later realized he had underestimated the power of waves in the open ocean, and he now dismisses his plastic bottle idea as “just a glorified form of suicide.” But in calm waters, it could work.)
Friedman stumbled upon Gramlich’s seasteading manuscript in the early 21st century. The two men began chatting online, realized they lived near each other, and forged a partnership that in April 2008 was formally chartered as the Seasteading Institute. The organization now has two part-time paid employees in addition to Friedman (who is salaried) and Gramlich (who is not, as he spends far less time on the project). It is dedicated to pursuing and proselytizing for ideas and techniques that could allow human beings to live on stateless floating “land” on the ocean. The institute is throwing conferences, patenting aquatic platform designs, sending Friedman to spread the word at far-flung gatherings of tech world bigwigs and libertarian visionaries, and receiving friendly coverage on CNN and in Wired.
To longtime libertarian hands, though, seasteading seems like an old idea, one weighed down by the corpses of many ill-fated plans. Most of these efforts are legend, barely documented by history. Their tales are recounted in moldering tiny-circulation newsletters seen only by enthusiasts (and in 1970s issues of reason). One of the most influential of the small magazines pushing libertarianism in the 1960s was Innovator, and in its latter days the journal’s editors had come to think along the same lines as Friedman, though with far less rigor.
Innovator’s leading theorist of taking to the seas for liberty was an anarchist writer named Kerry Thornley. Thornley’s essays on oceangoing freedom inspired the science fiction writers Robert Shea and Robert Anton Wilson to create an anarchist yellow submarine that was central to the plot of their influential 1975 novel Illuminatus! But when it came to real-world endeavors, Thornley wasn’t the ideal pioneer. Among other things, he was confident that he had been groomed to be a patsy of sorts in the John F. Kennedy assassination, given his previous acquaintance with, and supposed resemblance to, Lee Harvey Oswald. (Before that fateful day in Dallas, Thornley had already written a roman à clef about Oswald, whom he knew from the U.S. Marines.)
Other libertarians, largely in the 1970s, actually attempted to create free nations on the open ocean, sometimes using existing islands and reefs, sometimes using boats or artificial islands. The history of these attempts is equally comic and terrible. The one that most resembles the Seasteading Institute’s efforts was Operation Atlantis, in which Werner Stiefel, an upstate New York pharmaceutical manufacturer, convinced a small gang of eager young libertarians to help him build a ferro-cement boat called “Atlantis II” in 1969. This vessel was supposed to sail down to the Caribbean, where the crew might grab some land in disputed territories such as Anguilla or the Silver Shoals near Haiti, or just use the ship as a staging ground to build some artificial concrete land.
The schemers had their own silver coin, dubbed the “deca”; they got some press in Esquire; and they had their own homemade boat. But the ship sank in a hurricane, attention from the Haitian government forced the project into quiet mode (canceling the highly entertaining newsletter Atlantis News), and no new libertarian Atlantis ever arose in the Caribbean.
The king of the “take over existing land” plan was Mike Oliver, a Nevada-based real estate developer and coin dealer who had published a book called A New Constitution for a New Country in 1968. Oliver had a winning never-say-die approach to his dream. In 1972 he attempted to claim space for a Republic of Minerva on a series of reefs in the southwest Pacific, 260 miles from the tiny kingdom of Tonga. Perhaps create is a better verb than claim: Oliver had to pay dredging boats to build up usable land between a couple of sturdy reefs. Shortly afterward, the king of Tonga conquered the colony with one boat. The land Oliver paid to build eventually was reclaimed by the ocean.
For the rest of the 1970s, Oliver concentrated instead on islands that had the advantage of already existing but the disadvantage of already being governed. He made common cause with separatist groups on the Bahamian island of Abaco and the New Hebrides island of Espiritu Santo. Such conspiring failed to instigate any independent libertarian nations; it just resulted in the arrests of some rebellious natives.
I called Oliver to ask for an interview while researching my 2007 book Radicals for Capitalism. A weight of angry regret and failure seemed to block his throat as he testily informed me he had nothing to say about any past attempts to start a new libertarian nation.
So Why Expect Seasteading to Work?
Patri Friedman, who has been sailing around some of the very reefs on which earlier utopias capsized, is well aware of these past failures and says he has learned from them. The Seasteading Institute’s website is as thorough and thoughtful a guide as you’ll find to the foibles and follies of previous attempts to create new and/or floating nations. And there are some important points of departure that Friedman says will make the difference this time around.
First, seasteading does not require anyone to take over existing terrain. That was hopeless; the land’s all claimed by some government or another, even the parts barely above water. And an open rebellion against an existing regime is unlikely to succeed. Seasteaders therefore will make their own “land.”
Second, seasteading is modular. Unlike various floating nations that never got off the drawing board—the “Freedom Ship,” the “Aquarius Project,” and other pipe dreams—the institute’s plan doesn’t require an upfront multimillion-dollar buy-in. Seasteading can start small, and in fact Friedman is sure it will start small, with tiny family-sized platforms called “coaststeads” near the mainland serving both as proof of concept and a laboratory for working out the kinks before community-sized seasteads are ready to sprout in international waters. Friedman figures the cost of such starter sea homes won’t be too out of line with housing costs on land, especially if people are buying in a communal or time-share fashion. In fact, most recent cost estimates for a particular hotel/resort seasteading design came out to roughly $258 per square foot (without factoring in some assembly and deployment costs), which is quite a bit cheaper than the current price of many single family homes in the San Francisco Bay area.
Third, seasteading isn’t just based in libertarian theorizing and hopes. Friedman knows that seasteads will need to have some business hook, and he’s busy working those angles. There’s SurgiCruise, a nascent floating medical tourism company that is seeking venture funding. If Americans will fly to Mexico, India, or Thailand for cheaper medical care free of U.S. regulatory costs, the idea goes, why wouldn’t they sail 12 miles for it? Among the other first-tier business ideas being bruited about with varying levels of intensity are vacation resorts, sin industries, aquaculture, deep-sea marina services, and universal data libraries free of national copyright laws.
Fourth, because the open ocean plus “dynamic geography” allows for experimentation with governance in any form, seasteading shouldn’t appeal only to libertarians. Sure, any seastead that Friedman would want to live in would get as close to anarchism as can be managed. But he thinks a variety of ideologues should be willing to leap on board, from sustainability-oriented environmentalists to members of various intentional communities, religious or philosophical or whatever, that want to shape their own lives in peace without government interference. Such communities might not be individualist in their internal policies, but they fit within the libertarian framework of seasteading itself, which allows for a wide variety of freely chosen social structures.
In April 2008, Friedman’s vision received a tangible and encouraging business reward: a half-million-dollar stake from Peter Thiel, the libertarian co-founder of PayPal. Friedman’s high profile on the Internet, particularly on his always engaging and interesting LiveJournal blog, coupled with his personal history in the Silicon Valley, had won his project the attention of local programmers and money people. A job interview with Thiel’s venture capital management firm Clarium soon morphed into a meeting with Thiel himself.
Thiel supports many endeavors to create a future filled with wonderful science-fictional ideas, including the Methuselah Mouse Prize for life extension research and the Singularity Institute, which focuses on wild futuristic accomplishments of all sorts. He was a natural audience for Friedman’s vision, and he was sold. As Thiel’s colleague Joe Lonsdale tells me, “To Thiel and others involved in lots ofdifferent innovations in Silicon Valley, this seems like the coolest new thing you could create: a new government. That sounds really neat.”
Seasteading, Friedman insists, should be of interest to any philanthropist who wants to preserve and protect a wider and more secure human future. As he writes in his book-in-progress on seasteading, “The ability to experiment with a new system will produce both internal benefits to the pioneering seasteaders and external benefits to the world. Seasteaders will be able to choose a society which is in harmony with their values. And each society will serve as an experiment, to see how its system works in practice.”
A Seasteaders’ Convention
The First Annual Seasteading Conference, held in October 2008, draws about 50 people to an Embassy Suites meeting room in Burlingame, California. Most but not all of the attendees are male libertarian Americans in the computer industry. Friedman and Gramlich do a lot of the talking, selling the reasons why you should, and the ways that you could, seastead. Representatives of Marine Innovation and Technology, a reputable ocean engineering firm, give detailed discussions of designs for small, relatively affordable, modular and movable seasteads. (The firm later supplied the Seasteading Institute with a design for a floating seven-story hotel-casino resort, patent pending.)
The conference attracts solid, serious people with lucrative occupations and (in at least a few cases) cash to invest. Friedman says he is “pleasantly surprised by the low wacko factor.” He detects hardly any “people who were not competent, not practical, who have a crazy vision and don’t think about how to make [it] a reality.” This already puts the project ahead of most past new-country schemes.
I am struck by how few would-be seasteaders have actual nautical experience, as opposed to lots of clever ideas about flotation, breakwaters (to protect floating domiciles from waves, including the dreaded, superpowerful “rogue waves”), and transportation of seastead-sized objects. One attendee—Mikolaj Habryn, who works for Google—tells me he took a sailing course out of his interest in the topic, but for the most part these are not people with saltwater in their veins. They are computer types, social and physical engineers, and visionaries who for various reasons think experimenting with new social forms is an exciting challenge. Many of them tell me they are not likely to be early adapters living on small-scale experimental seasteads; instead they plan to wait until the business environment offshore has room for their careers, or until the comfort level for landlubbers rises a bit.
This lack of high-seas experience might be just fine. While ocean living creates unique challenges and costs—Friedman refers to these as the “ocean tax,” recognizing that seasteaders must eventually make the cost lower than the “government tax” you suffer on land—most prospective seasteaders think the obstacles can be largely overcome through money and thought. Human beings already know how to generate power on isolated locations off the grid. Wind, solar, and diesel strike Friedman as the most obviously feasible, and the ocean will probably provide a particularly suitable environment for wind power. Although seasteads probably will try to grow their own food, it can be shipped in if needed; the ocean is all about moving big things cheaply.
What about that most time-tested vessel for living on the sea: the boat? Modularly connecting the vehicles into larger communities seems tricky. Friedman’s ideal seasteading community can start small, grow marginally as the idea or the techniques improve enough to attract more people, and be able to both expand and contract as social experiments succeed or fizzle in the judgment of each individual seasteader. He fears boats don’t provide much room for self-sufficiency in food and power, let alone comfortable long-term living, given their space limitations. Finally, he’s leery of the “Just use boats!” line of thinking because ships are simply too old-fashioned to capture the visionary imagination in the way he thinks seasteading must if the movement is to thrive. Still, Friedman has been moved enough by the obvious immediate advantages in cost and proven legal status to think that living on retrofitted old ships might be a reasonable starting point for experimenting with his ideas.
Oil platforms, another existing model of ocean living and working, are cost-effective because they extract a valuable commodity. But seasteaders cannot, and don’t expect to, begin with resource extraction. That would certainly run afoul of both the Law of the Sea Treaty and any number of existing government and corporate interests that claim to have a say over how ocean-based resources should be used and allocated. For the same reason that taking over existing land is a bad idea for nascent seasteaders, anything that suggests a challenge to existing wealth and authority could hobble the movement while it’s still trying to find its sea legs.
Indeed, this aspirationally lawless bunch muses throughout the conference in Burlingame over the extent to which the world would view all seasteaders as a part of the same team, and thus whether seasteads would have to, gulp, police each other to prevent one bad apple from spoiling the bunch. They do not reach a conclusion.
Seasteaders do have a legal adviser: Jorge Schmidt, an attorney who has experience with the Law of the Sea Treaty. Schmidt is careful to tell me there are plenty of unknowns awaiting future floaters, although he approves of Friedman’s basic framework: get your seastead out of the 12-mile range that countries claim full sovereignty over, don’t mess with resources in the 200-mile exclusive economic zone that most nations also assert, and emulate existing ships in international waters by arranging with some nation to obtain a “flag of convenience” marking seasteads as under its protection. In open waters, only nations have rights. Individuals without a stable flag are considered pirates and outlaws.
The seasteading project benefits from the fact that many poorer countries are willing to sell their sovereignty to the highest bidder in a flag-of-convenience process that works to the buyer’s advantage. “I definitely think at the start those countries will want a cut [of whatever economic benefit a seastead produces], but keep in mind we’re in a good negotiating position,” Friedman says. “We can talk to every country in the world and only need one to give us the deal we want, and we can have them bid against each other for how low the cut can be.”
Schmidt speculates that full sovereignty might never happen for seasteads, but that it might not matter. “Maybe we’ll get 95 percent of what we want just paying Tuvalo,” he tells me. “If that’s the case, why go the extra step?” Reality is nine-tenths of the law: “What’s most important is to get things running, to have something concrete that works. Once we have that, the actual dynamics fuel themselves, rather than expectations and theory.”
Getting lost in these worlds of expectation and theory while talking to seasteading enthusiasts and reading their message boards is delightfully bracing, even if it’s difficult in sober moments to imagine their dreams materializing. Surely before it gets to the point of modular anarchy, some nation is going to say, “Screw existing international law; we’re not letting this happen.”
Friedman says something during our first interview in Palo Alto, something that sounds puckish at first but on second and third thought seems more and more true. Libertarians, he says, expend precious time and energy on truly and self-evidently impossible paths toward political change. “Like the Ron Paul movement,” he says. “Lots of libertarians’ effort and millions and millions directed in a way that’s hopeless! For real change [electoral politics is] totally hopeless. Think how much more likely to succeed [libertarians would be] if that amount of resources were put into something that could actually work.” By which he means seasteading. And you have to admit: When you compare it to the likelihood of creating a libertarian world through American politics, seasteading starts to look more and more sensible.
‘We Can’t Build Libertopia’
I have talked to a lot of people about the seasteading concept, normal human beings not particularly familiar with libertarianism or new-country schemes. Everyone offers at least some objections. Friedman and his team have heard them all, and they’ve got answers—or at least suggestive approximations that indicate the various critiques ought not to be deal killers.
Pirates, for example, are far more likely to attack wealthy ships than humble residential platforms. Seasteaders are very likely to have arms and can raise the cost of attacks higher than most pirates will be willing to pay. Storms? You can keep seasteads safe through breakwaters and a spar-and-buoy design in which most of the wave energy hits just a pillar or two while the city sits cozily on a top platform. And yes, tight communal living can be stressful, but residents of places such as Antarctica stations already find a way to muddle through.
Unlike most new-country dreamers, Friedman and his team are winningly scientific, as opposed to scientistic. They are scrupulous about avoiding claims that such-and-such technical solution must work. They are wary of oceandreamer concepts such as “seament” or “ocean thermal energy conversion,” which are based on the premise that both building materials and energy are easily gleanable from the open seas themselves.
And although he remains a happy anarchovisionary, Friedman knows that he and his confederates must take baby steps. He just wants to see marginal improvements in governance, and he is sure “dynamic geography” is the key. Thus, while the goal is to be totally free-floating, he is willing to let seasteads be encased in breakwaters if that’s the cheapest way to keep them safe from the ocean’s ravages.
“We can’t build libertopia,” he says. “Whatever we build will have to have security forces who will bust in your door if they think you’re designing nuclear weapons or funding terrorism.”
This concession is based not on principle but on the pragmatic concern that nukes and terrorism would make seasteads sitting ducks for nation-states. “It will be a bummer,” Friedman adds, “and not what I want ultimately, but with that constraint we can get a lot of freedom, a lot more than we have now.”
Friedman comes across as a consistently calm and reasonable man. So reasonable, in fact, that dealing with the rest of the world’s passions and irrationalities have come to bore and annoy him.That’s why he embraced seasteading to begin with.
As Milton’s grandson says at the conference, the best thing about seasteading is that it doesn’t require any proselytizing to the masses. “Niche social and political movements [try to] argue with everyone they run across and convince the whole country,” he notes, but that’s “stressful and hopeless.” Why not just do it: build a version of the world you want to live in. Then you get to live in it, regardless of whether anyone else is convinced it’s proper or makes sense.
‘We Just Want to Create a Laboratory’
In his introductory talk at the seasteading conference, Friedman calmly tells a series of maddening stories: of men dying of cancer in prison because of stupid immigration restrictions, of tens of millions murdered by states in the 20th century, of people imprisoned and impoverished because of their choice of recreation. The context and political intent are clear: We have to figure out a way to escape governments.
As of this writing, seasteading is still mostly talk and dreams. Raising more money is in abeyance, as the Seasteading Institute doesn’t even have official nonprofit status yet. (The Internal Revenue Service is processing the paperwork.) The patent on the first hotel-casino design is still pending. The publicity generated by the article in Wired, seasteading’s first extensive major print media hit, more than doubled Friedman’s volunteer base within a few weeks.
The current economic crisis, everyone involved notes, makes the institute’s prospects both better and worse in the short term. It’s easier to sell the notion that the world desperately needs some new political and economic systems, but it’s harder to convince people to be charitable, especially toward experimental long shots.
The first real, physical thing the seasteaders plan is a fall 2009 event in the San Francisco Bay called Ephemerisle, a sort of aquatic Burning Man (the annual desert art festival in which Friedman is an enthusiastic participant). They plan to experiment with some flotation designs and begin to feel what a free life at sea might be like.
“You can read all the books you want that say freedom is a better system, but if people in their daily lives are surrounded by cops with guns, where government supplies emergency services, where every product has been regulated and tested by government, it’s hard to wrap your head around the crazy idea that all these things can be provided by a free market,” Friedman tells me. “So let’s do it. Let’s live it. It could be a disaster. People might die. But living it makes it so much more powerful than talking about it.” Through Burning Man, he adds, he’s “seen the power of experience to shape people’s perceptions about what’s possible.”
What will the experience of living on a seastead be like? What social structures will arise on a liberated ocean? Friedman recognizes that it is neither possible nor necessary for him to know. In his words, it’s “an enormous relief to realize that we can just throw up our hands and safely leave some of the questions philosophers have been discussing for millennia unresolved. We just want to create a laboratory for experimenting with social contracts, and a world in which people are free to create societies with groups of like-minded compatriots. The details of those societies are up to you.”
Senior Editor Brian Doherty is the author of This is Burning Man (BenBella), Radicals for Capitalism (PublicAffairs), and Gun Control on Trial (Cato Institute).
Reason, July 2009
[See full article at the link above.]
Ideas evolve quickly along the Friedman family tree. The late Milton Friedman, an economist at the University of Chicago, was one of the 20th century’s most respected and influential advocates for classical liberalism. In scholarly books and popular articles he argued that if we want the greatest possible wealth and freedom, government should be restricted pretty much to cops and courts. It shouldn’t be in the business of manipulating or dictating our choices, whether they involve education, the economy, or joining the military.
Milton’s son David took this attitude a step farther in several books on political philosophy and economics. Given the manifest inefficiencies of government, David argued, the healthiest and most efficient social and economic system requires no state at all.
Now David’s son Patri has taken the family tradition one step beyond. Inspired by his dad’s classic 1973 book The Machinery of Freedom, Patri Friedman has concluded that society’s design flaw goes deeper than just government itself. Think of the state as a business—but one with enormously high barriers to entry and enormously high exit costs. As it would in the business world, this set-up breeds sclerosis, inefficiency, and the tendency to treat customers like dirt.
From Patri’s point of view, Milton’s path of steady, sober education about the advantages of liberty wasn’t changing the basic negatives very much. And although David might be right that government isn’t even necessary, the fact remains that governments, however inefficient, control virtually every chunk of planet Earth. Winning control of a piece of land almost necessarily involves bloodshed, with very little likelihood of success. High barriers to entry, indeed. So while the libertarian movement maintained its traditional orientation toward scholarship, journalism, and political activism, governments were busy perpetrating mass murder on a scale no other institution could manage, mucking up market transactions that could improve everyone’s lives, and ruining millions of lives over private but illegal choices, such as consuming disapproved drugs.
Patri Friedman was doing all right himself, living with his wife and child in a mini-commune of sort—the kind people today call an “intentional community”—in Mountain View, California, a bit south of San Francisco. He had a great and challenging job with a great company, Google. But his preoccupation, his passion, lay elsewhere. He thought he had figured out the real underlying problem bedeviling society, and it went deeper than just governments themselves. The real solution, he came to think, would involve the lure of the bounding main, the unbounded horizon, our vast and empty oceans.
Remember those high exit costs? Friedman wondered: What if you could just move—not just you, but everything you own, including your home, and, if your neighbors agreed with you, your whole community? What if you could move all of it where no government would bother you at all, and you could make a new, better society?
Friedman called his theory “dynamic geography.” He remembered a line from his dad’s book The Machinery of Freedom about how differently terrestrial government would behave if everyone lived in trailers and could easily flee state oppression. If land itself could get up and go, the incentive structure of government would change even more, moving it in a libertarian direction.
In the past, such thoughts led many libertarians to dream of space colonization. But you don’t need to leave the planet, Friedman reasoned; just make “land” that can float on the ocean.
And so Friedman is no longer with Google. He is president of something called the Seasteading Institute. He thinks he has a feasible plan to accomplish something neither his father nor his grandfather managed, for all their inspiration to him and hundreds of thousands of others: actually creating a libertarian society. Even if it’s a small, floating one. “I would be sad if it doesn’t happen in my lifetime,” Friedman says. “But even looking at optimistic scenarios, I can see it will take several decades before I can say I really changed the world.”
A Sunken History of Floating Nations
Wayne Gramlich is a voluble, white-bearded tech geek and science fiction fan—the kind of guy who thinks about how things work, and could work, a bit deeper than most people do. A former Sun Microsystems engineer, he became interested in creating free lands on the ocean after stumbling across the website of the Atlantis Project, a.k.a. Oceania, a failed scheme to do just that from the early 1990s. Gramlich took an idle notion about liberated ocean living and turned it into an experimental social and physical engineering project. He set his ideas afloat on the sea of the World Wide Web in the late 1990s under the name “Seasteading: Homesteading the High Seas.”
Gramlich’s solution to building new land on the ocean was cheap and inventive: achieve flotation by lashing together empty two-liter soda bottles; convert the bottle-raft into usable land by covering it with five-mil-thick (roughly fivethousandths of an inch) black plastic sheeting and dirt. (He later realized he had underestimated the power of waves in the open ocean, and he now dismisses his plastic bottle idea as “just a glorified form of suicide.” But in calm waters, it could work.)
Friedman stumbled upon Gramlich’s seasteading manuscript in the early 21st century. The two men began chatting online, realized they lived near each other, and forged a partnership that in April 2008 was formally chartered as the Seasteading Institute. The organization now has two part-time paid employees in addition to Friedman (who is salaried) and Gramlich (who is not, as he spends far less time on the project). It is dedicated to pursuing and proselytizing for ideas and techniques that could allow human beings to live on stateless floating “land” on the ocean. The institute is throwing conferences, patenting aquatic platform designs, sending Friedman to spread the word at far-flung gatherings of tech world bigwigs and libertarian visionaries, and receiving friendly coverage on CNN and in Wired.
To longtime libertarian hands, though, seasteading seems like an old idea, one weighed down by the corpses of many ill-fated plans. Most of these efforts are legend, barely documented by history. Their tales are recounted in moldering tiny-circulation newsletters seen only by enthusiasts (and in 1970s issues of reason). One of the most influential of the small magazines pushing libertarianism in the 1960s was Innovator, and in its latter days the journal’s editors had come to think along the same lines as Friedman, though with far less rigor.
Innovator’s leading theorist of taking to the seas for liberty was an anarchist writer named Kerry Thornley. Thornley’s essays on oceangoing freedom inspired the science fiction writers Robert Shea and Robert Anton Wilson to create an anarchist yellow submarine that was central to the plot of their influential 1975 novel Illuminatus! But when it came to real-world endeavors, Thornley wasn’t the ideal pioneer. Among other things, he was confident that he had been groomed to be a patsy of sorts in the John F. Kennedy assassination, given his previous acquaintance with, and supposed resemblance to, Lee Harvey Oswald. (Before that fateful day in Dallas, Thornley had already written a roman à clef about Oswald, whom he knew from the U.S. Marines.)
Other libertarians, largely in the 1970s, actually attempted to create free nations on the open ocean, sometimes using existing islands and reefs, sometimes using boats or artificial islands. The history of these attempts is equally comic and terrible. The one that most resembles the Seasteading Institute’s efforts was Operation Atlantis, in which Werner Stiefel, an upstate New York pharmaceutical manufacturer, convinced a small gang of eager young libertarians to help him build a ferro-cement boat called “Atlantis II” in 1969. This vessel was supposed to sail down to the Caribbean, where the crew might grab some land in disputed territories such as Anguilla or the Silver Shoals near Haiti, or just use the ship as a staging ground to build some artificial concrete land.
The schemers had their own silver coin, dubbed the “deca”; they got some press in Esquire; and they had their own homemade boat. But the ship sank in a hurricane, attention from the Haitian government forced the project into quiet mode (canceling the highly entertaining newsletter Atlantis News), and no new libertarian Atlantis ever arose in the Caribbean.
The king of the “take over existing land” plan was Mike Oliver, a Nevada-based real estate developer and coin dealer who had published a book called A New Constitution for a New Country in 1968. Oliver had a winning never-say-die approach to his dream. In 1972 he attempted to claim space for a Republic of Minerva on a series of reefs in the southwest Pacific, 260 miles from the tiny kingdom of Tonga. Perhaps create is a better verb than claim: Oliver had to pay dredging boats to build up usable land between a couple of sturdy reefs. Shortly afterward, the king of Tonga conquered the colony with one boat. The land Oliver paid to build eventually was reclaimed by the ocean.
For the rest of the 1970s, Oliver concentrated instead on islands that had the advantage of already existing but the disadvantage of already being governed. He made common cause with separatist groups on the Bahamian island of Abaco and the New Hebrides island of Espiritu Santo. Such conspiring failed to instigate any independent libertarian nations; it just resulted in the arrests of some rebellious natives.
I called Oliver to ask for an interview while researching my 2007 book Radicals for Capitalism. A weight of angry regret and failure seemed to block his throat as he testily informed me he had nothing to say about any past attempts to start a new libertarian nation.
So Why Expect Seasteading to Work?
Patri Friedman, who has been sailing around some of the very reefs on which earlier utopias capsized, is well aware of these past failures and says he has learned from them. The Seasteading Institute’s website is as thorough and thoughtful a guide as you’ll find to the foibles and follies of previous attempts to create new and/or floating nations. And there are some important points of departure that Friedman says will make the difference this time around.
First, seasteading does not require anyone to take over existing terrain. That was hopeless; the land’s all claimed by some government or another, even the parts barely above water. And an open rebellion against an existing regime is unlikely to succeed. Seasteaders therefore will make their own “land.”
Second, seasteading is modular. Unlike various floating nations that never got off the drawing board—the “Freedom Ship,” the “Aquarius Project,” and other pipe dreams—the institute’s plan doesn’t require an upfront multimillion-dollar buy-in. Seasteading can start small, and in fact Friedman is sure it will start small, with tiny family-sized platforms called “coaststeads” near the mainland serving both as proof of concept and a laboratory for working out the kinks before community-sized seasteads are ready to sprout in international waters. Friedman figures the cost of such starter sea homes won’t be too out of line with housing costs on land, especially if people are buying in a communal or time-share fashion. In fact, most recent cost estimates for a particular hotel/resort seasteading design came out to roughly $258 per square foot (without factoring in some assembly and deployment costs), which is quite a bit cheaper than the current price of many single family homes in the San Francisco Bay area.
Third, seasteading isn’t just based in libertarian theorizing and hopes. Friedman knows that seasteads will need to have some business hook, and he’s busy working those angles. There’s SurgiCruise, a nascent floating medical tourism company that is seeking venture funding. If Americans will fly to Mexico, India, or Thailand for cheaper medical care free of U.S. regulatory costs, the idea goes, why wouldn’t they sail 12 miles for it? Among the other first-tier business ideas being bruited about with varying levels of intensity are vacation resorts, sin industries, aquaculture, deep-sea marina services, and universal data libraries free of national copyright laws.
Fourth, because the open ocean plus “dynamic geography” allows for experimentation with governance in any form, seasteading shouldn’t appeal only to libertarians. Sure, any seastead that Friedman would want to live in would get as close to anarchism as can be managed. But he thinks a variety of ideologues should be willing to leap on board, from sustainability-oriented environmentalists to members of various intentional communities, religious or philosophical or whatever, that want to shape their own lives in peace without government interference. Such communities might not be individualist in their internal policies, but they fit within the libertarian framework of seasteading itself, which allows for a wide variety of freely chosen social structures.
In April 2008, Friedman’s vision received a tangible and encouraging business reward: a half-million-dollar stake from Peter Thiel, the libertarian co-founder of PayPal. Friedman’s high profile on the Internet, particularly on his always engaging and interesting LiveJournal blog, coupled with his personal history in the Silicon Valley, had won his project the attention of local programmers and money people. A job interview with Thiel’s venture capital management firm Clarium soon morphed into a meeting with Thiel himself.
Thiel supports many endeavors to create a future filled with wonderful science-fictional ideas, including the Methuselah Mouse Prize for life extension research and the Singularity Institute, which focuses on wild futuristic accomplishments of all sorts. He was a natural audience for Friedman’s vision, and he was sold. As Thiel’s colleague Joe Lonsdale tells me, “To Thiel and others involved in lots ofdifferent innovations in Silicon Valley, this seems like the coolest new thing you could create: a new government. That sounds really neat.”
Seasteading, Friedman insists, should be of interest to any philanthropist who wants to preserve and protect a wider and more secure human future. As he writes in his book-in-progress on seasteading, “The ability to experiment with a new system will produce both internal benefits to the pioneering seasteaders and external benefits to the world. Seasteaders will be able to choose a society which is in harmony with their values. And each society will serve as an experiment, to see how its system works in practice.”
A Seasteaders’ Convention
The First Annual Seasteading Conference, held in October 2008, draws about 50 people to an Embassy Suites meeting room in Burlingame, California. Most but not all of the attendees are male libertarian Americans in the computer industry. Friedman and Gramlich do a lot of the talking, selling the reasons why you should, and the ways that you could, seastead. Representatives of Marine Innovation and Technology, a reputable ocean engineering firm, give detailed discussions of designs for small, relatively affordable, modular and movable seasteads. (The firm later supplied the Seasteading Institute with a design for a floating seven-story hotel-casino resort, patent pending.)
The conference attracts solid, serious people with lucrative occupations and (in at least a few cases) cash to invest. Friedman says he is “pleasantly surprised by the low wacko factor.” He detects hardly any “people who were not competent, not practical, who have a crazy vision and don’t think about how to make [it] a reality.” This already puts the project ahead of most past new-country schemes.
I am struck by how few would-be seasteaders have actual nautical experience, as opposed to lots of clever ideas about flotation, breakwaters (to protect floating domiciles from waves, including the dreaded, superpowerful “rogue waves”), and transportation of seastead-sized objects. One attendee—Mikolaj Habryn, who works for Google—tells me he took a sailing course out of his interest in the topic, but for the most part these are not people with saltwater in their veins. They are computer types, social and physical engineers, and visionaries who for various reasons think experimenting with new social forms is an exciting challenge. Many of them tell me they are not likely to be early adapters living on small-scale experimental seasteads; instead they plan to wait until the business environment offshore has room for their careers, or until the comfort level for landlubbers rises a bit.
This lack of high-seas experience might be just fine. While ocean living creates unique challenges and costs—Friedman refers to these as the “ocean tax,” recognizing that seasteaders must eventually make the cost lower than the “government tax” you suffer on land—most prospective seasteaders think the obstacles can be largely overcome through money and thought. Human beings already know how to generate power on isolated locations off the grid. Wind, solar, and diesel strike Friedman as the most obviously feasible, and the ocean will probably provide a particularly suitable environment for wind power. Although seasteads probably will try to grow their own food, it can be shipped in if needed; the ocean is all about moving big things cheaply.
What about that most time-tested vessel for living on the sea: the boat? Modularly connecting the vehicles into larger communities seems tricky. Friedman’s ideal seasteading community can start small, grow marginally as the idea or the techniques improve enough to attract more people, and be able to both expand and contract as social experiments succeed or fizzle in the judgment of each individual seasteader. He fears boats don’t provide much room for self-sufficiency in food and power, let alone comfortable long-term living, given their space limitations. Finally, he’s leery of the “Just use boats!” line of thinking because ships are simply too old-fashioned to capture the visionary imagination in the way he thinks seasteading must if the movement is to thrive. Still, Friedman has been moved enough by the obvious immediate advantages in cost and proven legal status to think that living on retrofitted old ships might be a reasonable starting point for experimenting with his ideas.
Oil platforms, another existing model of ocean living and working, are cost-effective because they extract a valuable commodity. But seasteaders cannot, and don’t expect to, begin with resource extraction. That would certainly run afoul of both the Law of the Sea Treaty and any number of existing government and corporate interests that claim to have a say over how ocean-based resources should be used and allocated. For the same reason that taking over existing land is a bad idea for nascent seasteaders, anything that suggests a challenge to existing wealth and authority could hobble the movement while it’s still trying to find its sea legs.
Indeed, this aspirationally lawless bunch muses throughout the conference in Burlingame over the extent to which the world would view all seasteaders as a part of the same team, and thus whether seasteads would have to, gulp, police each other to prevent one bad apple from spoiling the bunch. They do not reach a conclusion.
Seasteaders do have a legal adviser: Jorge Schmidt, an attorney who has experience with the Law of the Sea Treaty. Schmidt is careful to tell me there are plenty of unknowns awaiting future floaters, although he approves of Friedman’s basic framework: get your seastead out of the 12-mile range that countries claim full sovereignty over, don’t mess with resources in the 200-mile exclusive economic zone that most nations also assert, and emulate existing ships in international waters by arranging with some nation to obtain a “flag of convenience” marking seasteads as under its protection. In open waters, only nations have rights. Individuals without a stable flag are considered pirates and outlaws.
The seasteading project benefits from the fact that many poorer countries are willing to sell their sovereignty to the highest bidder in a flag-of-convenience process that works to the buyer’s advantage. “I definitely think at the start those countries will want a cut [of whatever economic benefit a seastead produces], but keep in mind we’re in a good negotiating position,” Friedman says. “We can talk to every country in the world and only need one to give us the deal we want, and we can have them bid against each other for how low the cut can be.”
Schmidt speculates that full sovereignty might never happen for seasteads, but that it might not matter. “Maybe we’ll get 95 percent of what we want just paying Tuvalo,” he tells me. “If that’s the case, why go the extra step?” Reality is nine-tenths of the law: “What’s most important is to get things running, to have something concrete that works. Once we have that, the actual dynamics fuel themselves, rather than expectations and theory.”
Getting lost in these worlds of expectation and theory while talking to seasteading enthusiasts and reading their message boards is delightfully bracing, even if it’s difficult in sober moments to imagine their dreams materializing. Surely before it gets to the point of modular anarchy, some nation is going to say, “Screw existing international law; we’re not letting this happen.”
Friedman says something during our first interview in Palo Alto, something that sounds puckish at first but on second and third thought seems more and more true. Libertarians, he says, expend precious time and energy on truly and self-evidently impossible paths toward political change. “Like the Ron Paul movement,” he says. “Lots of libertarians’ effort and millions and millions directed in a way that’s hopeless! For real change [electoral politics is] totally hopeless. Think how much more likely to succeed [libertarians would be] if that amount of resources were put into something that could actually work.” By which he means seasteading. And you have to admit: When you compare it to the likelihood of creating a libertarian world through American politics, seasteading starts to look more and more sensible.
‘We Can’t Build Libertopia’
I have talked to a lot of people about the seasteading concept, normal human beings not particularly familiar with libertarianism or new-country schemes. Everyone offers at least some objections. Friedman and his team have heard them all, and they’ve got answers—or at least suggestive approximations that indicate the various critiques ought not to be deal killers.
Pirates, for example, are far more likely to attack wealthy ships than humble residential platforms. Seasteaders are very likely to have arms and can raise the cost of attacks higher than most pirates will be willing to pay. Storms? You can keep seasteads safe through breakwaters and a spar-and-buoy design in which most of the wave energy hits just a pillar or two while the city sits cozily on a top platform. And yes, tight communal living can be stressful, but residents of places such as Antarctica stations already find a way to muddle through.
Unlike most new-country dreamers, Friedman and his team are winningly scientific, as opposed to scientistic. They are scrupulous about avoiding claims that such-and-such technical solution must work. They are wary of oceandreamer concepts such as “seament” or “ocean thermal energy conversion,” which are based on the premise that both building materials and energy are easily gleanable from the open seas themselves.
And although he remains a happy anarchovisionary, Friedman knows that he and his confederates must take baby steps. He just wants to see marginal improvements in governance, and he is sure “dynamic geography” is the key. Thus, while the goal is to be totally free-floating, he is willing to let seasteads be encased in breakwaters if that’s the cheapest way to keep them safe from the ocean’s ravages.
“We can’t build libertopia,” he says. “Whatever we build will have to have security forces who will bust in your door if they think you’re designing nuclear weapons or funding terrorism.”
This concession is based not on principle but on the pragmatic concern that nukes and terrorism would make seasteads sitting ducks for nation-states. “It will be a bummer,” Friedman adds, “and not what I want ultimately, but with that constraint we can get a lot of freedom, a lot more than we have now.”
Friedman comes across as a consistently calm and reasonable man. So reasonable, in fact, that dealing with the rest of the world’s passions and irrationalities have come to bore and annoy him.That’s why he embraced seasteading to begin with.
As Milton’s grandson says at the conference, the best thing about seasteading is that it doesn’t require any proselytizing to the masses. “Niche social and political movements [try to] argue with everyone they run across and convince the whole country,” he notes, but that’s “stressful and hopeless.” Why not just do it: build a version of the world you want to live in. Then you get to live in it, regardless of whether anyone else is convinced it’s proper or makes sense.
‘We Just Want to Create a Laboratory’
In his introductory talk at the seasteading conference, Friedman calmly tells a series of maddening stories: of men dying of cancer in prison because of stupid immigration restrictions, of tens of millions murdered by states in the 20th century, of people imprisoned and impoverished because of their choice of recreation. The context and political intent are clear: We have to figure out a way to escape governments.
As of this writing, seasteading is still mostly talk and dreams. Raising more money is in abeyance, as the Seasteading Institute doesn’t even have official nonprofit status yet. (The Internal Revenue Service is processing the paperwork.) The patent on the first hotel-casino design is still pending. The publicity generated by the article in Wired, seasteading’s first extensive major print media hit, more than doubled Friedman’s volunteer base within a few weeks.
The current economic crisis, everyone involved notes, makes the institute’s prospects both better and worse in the short term. It’s easier to sell the notion that the world desperately needs some new political and economic systems, but it’s harder to convince people to be charitable, especially toward experimental long shots.
The first real, physical thing the seasteaders plan is a fall 2009 event in the San Francisco Bay called Ephemerisle, a sort of aquatic Burning Man (the annual desert art festival in which Friedman is an enthusiastic participant). They plan to experiment with some flotation designs and begin to feel what a free life at sea might be like.
“You can read all the books you want that say freedom is a better system, but if people in their daily lives are surrounded by cops with guns, where government supplies emergency services, where every product has been regulated and tested by government, it’s hard to wrap your head around the crazy idea that all these things can be provided by a free market,” Friedman tells me. “So let’s do it. Let’s live it. It could be a disaster. People might die. But living it makes it so much more powerful than talking about it.” Through Burning Man, he adds, he’s “seen the power of experience to shape people’s perceptions about what’s possible.”
What will the experience of living on a seastead be like? What social structures will arise on a liberated ocean? Friedman recognizes that it is neither possible nor necessary for him to know. In his words, it’s “an enormous relief to realize that we can just throw up our hands and safely leave some of the questions philosophers have been discussing for millennia unresolved. We just want to create a laboratory for experimenting with social contracts, and a world in which people are free to create societies with groups of like-minded compatriots. The details of those societies are up to you.”
Senior Editor Brian Doherty is the author of This is Burning Man (BenBella), Radicals for Capitalism (PublicAffairs), and Gun Control on Trial (Cato Institute).
Bipartisan WMD Panel Criticizes Obama Plan To Fund Flu Vaccine
Bipartisan WMD Panel Criticizes Obama Plan To Fund Flu Vaccine. By Spencer S. Hsu
Washington Post, Monday, June 8, 2009
President Obama's contingency plan to help finance production of a swine flu vaccine with funds set aside to develop defenses against biological attacks would weaken the nation's preparedness for terrorism, the leaders of a bipartisan commission on weapons of mass destruction said yesterday.
The White House asked Congress on Tuesday for authority to spend up to $9 billion more for an H1N1 flu vaccine and other preparations against the novel flu strain that first appeared in April.
Of the total, the administration asked Congress to provide $2 billion in "contingent" funding. Another $3 billion could come from the Project BioShield Special Reserve Fund, created in 2004 to field countermeasures against nuclear, biological or chemical threats; $3.1 billion from stimulus funds appropriated to spur economic recovery; and $800 million from the Department of Health and Human Services.
"Using BioShield funds for flu preparedness will severely diminish the nation's efforts to prepare for WMD events and will leave the nation less, not more, prepared," the commission's chairman, former senator Bob Graham (D-Fla.), and vice chairman, former senator James M. Talent (R-Mo.), wrote to Obama in a letter sent yesterday and in another dated Wednesday to his budget director, Peter Orszag.
Raiding BioShield would weaken the ability of private firms to raise credit and sustain long-term research and development on drugs to respond to bioterror threats, for which there is no private market, industry officials said. The former lawmakers said the H1N1 influenza virus poses a public health threat that merits its own funding.
They also encouraged Obama to name Vice President Biden to take charge of the administration's efforts to counter weapons proliferation and WMD terrorism.
"You already know what he offers: long experience working on WMD, an understanding of how to move the levers of power to meet urgent goals, and most important, the unique credibility and stature of his office," Graham and Talent wrote.
The Commission on the Prevention of Weapons of Mass Destruction Proliferation and Terrorism, created by Congress in 2007, warned in December that an attack involving such weapons was more likely than not to occur somewhere in the world by the end of 2013, probably involving a biological weapon.
The commission's opposition followed other criticism of the administration's flu vaccine funding plans. Congressional Republicans attacked the White House's request for authority to use up to 1 percent of $311 billion in discretionary stimulus funds, or $3.1 billion, saying Democrats were using the economic recovery money as a "slush fund."
"It's not necessarily the policy issue that we're concerned about," said Jennifer Hing, minority spokeswoman for the House Appropriations Committee. "It's the concern that this could potentially open the door for stimulus monies to be used for other Democratic priorities that turn up, instead of having extra money lying around being used to pay down the deficit."
White House officials said they expect that the request for $2 billion marked "Unanticipated Needs for Influenza" will be adequate for flu preparations, when combined with another $1.5 billion to $2.05 billion that Congress is already set to approve. HHS officials have already committed to spending $1.4 billion and said last month that plans were moving forward to develop as many as two doses of H1N1 flu vaccine for each American, or about 600 million doses, although a formal decision has not been made.
But the president asked for the additional BioShield, stimulus and HHS discretionary funds as a matter of prudence in case the virus mutates into a much more lethal form and a swift and massive response is needed in coming months, Obama aides said.
"Except in extraordinary circumstances, BioShield funds will not be accessed," said Kenneth S. Baer, spokesman for the Office of Management and Budget.
The BioShield fund has $3 billion left of $5.6 billion it was given to spend over 10 years to research and develop medicines to care for Americans after a WMD terrorist attack, an OMB official said.
Washington Post, Monday, June 8, 2009
President Obama's contingency plan to help finance production of a swine flu vaccine with funds set aside to develop defenses against biological attacks would weaken the nation's preparedness for terrorism, the leaders of a bipartisan commission on weapons of mass destruction said yesterday.
The White House asked Congress on Tuesday for authority to spend up to $9 billion more for an H1N1 flu vaccine and other preparations against the novel flu strain that first appeared in April.
Of the total, the administration asked Congress to provide $2 billion in "contingent" funding. Another $3 billion could come from the Project BioShield Special Reserve Fund, created in 2004 to field countermeasures against nuclear, biological or chemical threats; $3.1 billion from stimulus funds appropriated to spur economic recovery; and $800 million from the Department of Health and Human Services.
"Using BioShield funds for flu preparedness will severely diminish the nation's efforts to prepare for WMD events and will leave the nation less, not more, prepared," the commission's chairman, former senator Bob Graham (D-Fla.), and vice chairman, former senator James M. Talent (R-Mo.), wrote to Obama in a letter sent yesterday and in another dated Wednesday to his budget director, Peter Orszag.
Raiding BioShield would weaken the ability of private firms to raise credit and sustain long-term research and development on drugs to respond to bioterror threats, for which there is no private market, industry officials said. The former lawmakers said the H1N1 influenza virus poses a public health threat that merits its own funding.
They also encouraged Obama to name Vice President Biden to take charge of the administration's efforts to counter weapons proliferation and WMD terrorism.
"You already know what he offers: long experience working on WMD, an understanding of how to move the levers of power to meet urgent goals, and most important, the unique credibility and stature of his office," Graham and Talent wrote.
The Commission on the Prevention of Weapons of Mass Destruction Proliferation and Terrorism, created by Congress in 2007, warned in December that an attack involving such weapons was more likely than not to occur somewhere in the world by the end of 2013, probably involving a biological weapon.
The commission's opposition followed other criticism of the administration's flu vaccine funding plans. Congressional Republicans attacked the White House's request for authority to use up to 1 percent of $311 billion in discretionary stimulus funds, or $3.1 billion, saying Democrats were using the economic recovery money as a "slush fund."
"It's not necessarily the policy issue that we're concerned about," said Jennifer Hing, minority spokeswoman for the House Appropriations Committee. "It's the concern that this could potentially open the door for stimulus monies to be used for other Democratic priorities that turn up, instead of having extra money lying around being used to pay down the deficit."
White House officials said they expect that the request for $2 billion marked "Unanticipated Needs for Influenza" will be adequate for flu preparations, when combined with another $1.5 billion to $2.05 billion that Congress is already set to approve. HHS officials have already committed to spending $1.4 billion and said last month that plans were moving forward to develop as many as two doses of H1N1 flu vaccine for each American, or about 600 million doses, although a formal decision has not been made.
But the president asked for the additional BioShield, stimulus and HHS discretionary funds as a matter of prudence in case the virus mutates into a much more lethal form and a swift and massive response is needed in coming months, Obama aides said.
"Except in extraordinary circumstances, BioShield funds will not be accessed," said Kenneth S. Baer, spokesman for the Office of Management and Budget.
The BioShield fund has $3 billion left of $5.6 billion it was given to spend over 10 years to research and develop medicines to care for Americans after a WMD terrorist attack, an OMB official said.
WaPo Editorial: President Obama's first foray into the details of health-care reform
A Few Symptoms. WaPo Editorial
President Obama's first foray into the details of health-care reform
WaPo, Monday, June 8, 2009
THROUGHOUT the first months of his administration, President Obama was resolutely fuzzy about the details of health-care reform. Last week, he modified that strategy, which was designed to avoid a repetition of the dictated-from-on-high approach of the Clinton health-care debacle. In a letter to Sens. Edward M. Kennedy (D-Mass.) and Max Baucus (D-Mont.), who are leading the legislative process in the Senate, Mr. Obama laid down more specific markers than he had previously about his preferences.
One of the most important was the president's reaffirmation that health-care reform must be fully paid for. "Health care reform must not add to our deficits over the next 10 years -- it must be at least deficit neutral and put America on a path to reducing its deficit over time," Mr. Obama wrote.
Mr. Obama was less clear, however, on how the bill should be paid. The administration's budget identified $635 billion in spending cuts and tax increases over the next decade -- about half the amount needed. But half of that half -- a proposal to generate $326 billion by limiting the value of deductions of those in the top tax bracket -- landed with a thud on Capitol Hill; lawmakers ought to reconsider their opposition to it.
Mr. Obama, for his part, ought to reconsider his aversion to changing the unfair and counterproductive arrangement by which employer-provided health insurance is not treated as income for tax purposes. Following a White House meeting, Mr. Baucus reported that the president was open to limiting the value of this tax-free benefit, and we hope that is what the president meant when he referred in the letter to "appropriate proposals to generate additional revenues." As to the rest of the funding, Mr. Obama spoke vaguely about another $200 to $300 billion in Medicare and Medicaid savings. Details of these savings are supposed to be unveiled this week; we look forward to seeing them but wonder why, if sensible and achievable, they were not included in the administration's original plan. Perhaps of even greater long-run significance, Mr. Obama proposed a kind of supersizing of a group called the Medicare Payment Advisory Commission (MedPAC). This advisory group annually recommends smart changes that would improve Medicare and save money -- and annually sees most of its recommendations ignored by lawmakers who have no appetite for the political heat those changes would generate. Mr. Obama would have MedPAC operate on the model of the military base-closing commission, with its proposals subject to a fast-tracked, up-or-down vote. This would professionalize a process now driven more by politics and lobbying than by sensible health policy, helping control costs of private plans as well as Medicare.
More disappointing was Mr. Obama's restated commitment to a public health insurance option as part of the array of available plans. A public plan is not necessary to maintain a competitive market in health insurance, but including a public plan is almost certain to doom what Mr. Obama says are his hopes for a bipartisan agreement. Given the high stakes involved in an overhaul of this magnitude, it would be unfortunate indeed if health reform were to be a one-party endeavor.
President Obama's first foray into the details of health-care reform
WaPo, Monday, June 8, 2009
THROUGHOUT the first months of his administration, President Obama was resolutely fuzzy about the details of health-care reform. Last week, he modified that strategy, which was designed to avoid a repetition of the dictated-from-on-high approach of the Clinton health-care debacle. In a letter to Sens. Edward M. Kennedy (D-Mass.) and Max Baucus (D-Mont.), who are leading the legislative process in the Senate, Mr. Obama laid down more specific markers than he had previously about his preferences.
One of the most important was the president's reaffirmation that health-care reform must be fully paid for. "Health care reform must not add to our deficits over the next 10 years -- it must be at least deficit neutral and put America on a path to reducing its deficit over time," Mr. Obama wrote.
Mr. Obama was less clear, however, on how the bill should be paid. The administration's budget identified $635 billion in spending cuts and tax increases over the next decade -- about half the amount needed. But half of that half -- a proposal to generate $326 billion by limiting the value of deductions of those in the top tax bracket -- landed with a thud on Capitol Hill; lawmakers ought to reconsider their opposition to it.
Mr. Obama, for his part, ought to reconsider his aversion to changing the unfair and counterproductive arrangement by which employer-provided health insurance is not treated as income for tax purposes. Following a White House meeting, Mr. Baucus reported that the president was open to limiting the value of this tax-free benefit, and we hope that is what the president meant when he referred in the letter to "appropriate proposals to generate additional revenues." As to the rest of the funding, Mr. Obama spoke vaguely about another $200 to $300 billion in Medicare and Medicaid savings. Details of these savings are supposed to be unveiled this week; we look forward to seeing them but wonder why, if sensible and achievable, they were not included in the administration's original plan. Perhaps of even greater long-run significance, Mr. Obama proposed a kind of supersizing of a group called the Medicare Payment Advisory Commission (MedPAC). This advisory group annually recommends smart changes that would improve Medicare and save money -- and annually sees most of its recommendations ignored by lawmakers who have no appetite for the political heat those changes would generate. Mr. Obama would have MedPAC operate on the model of the military base-closing commission, with its proposals subject to a fast-tracked, up-or-down vote. This would professionalize a process now driven more by politics and lobbying than by sensible health policy, helping control costs of private plans as well as Medicare.
More disappointing was Mr. Obama's restated commitment to a public health insurance option as part of the array of available plans. A public plan is not necessary to maintain a competitive market in health insurance, but including a public plan is almost certain to doom what Mr. Obama says are his hopes for a bipartisan agreement. Given the high stakes involved in an overhaul of this magnitude, it would be unfortunate indeed if health reform were to be a one-party endeavor.
Wanted: A Smarter Immigration Policy
Wanted: A Smarter Immigration Policy. By EDWARD ALDEN
WSJ, Jun 08, 2009
Log onto the Web site of the U.S. Consulate in Chennai and you will see a snapshot of what visa processing is doing to the competitiveness of American companies and research institutions. Click on the link to "Case Status Report," and there is a list of hundreds of visa applications from Indians who await processing. The oldest dates back to 2005, and dozens of others have been pending for a year or more while Washington plods through security background checks.
In recent months I have been in contact with many individuals caught in this Kafkaesque bureaucracy. Most are scientists and engineers who have earned advanced degrees from U.S. universities and are (or were) working for American companies in Silicon Valley, Wall Street and other centers of the U.S. economy.
One had been a researcher at Intel on the latest generation of chip designs; he'd won a national prize for his Ph.D. dissertation for outstanding research in electronic and photonic materials. Another had lived in the U.S. for more than a decade and was doing post-doctoral research at Emory University on vaccine immunology. Still another was a quantitative analyst for a U.S. hedge fund.
Yet when they returned to India -- to attend a brother's wedding or visit a dying parent or simply take a vacation -- they were informed that they could not come back until the U.S. government had done a security screening. Many arrived in India with only a suitcase. By the time I heard of their stories they had been forced to abandon apartments, cars and families in the U.S. while they waited to hear from the State Department.
Of all the initiatives undertaken in the name of homeland security after 9/11, the visa screening requirements for foreign scientists and engineers have probably done the most lasting damage to America's economy -- particularly in the cutting-edge technology fields that are vital to our economic leadership and national security.
The U.S. scientific enterprise depends enormously on talented foreigners. Foreign students and researchers, especially from India and China, comprise more than half of the scientific researchers in the U.S. They earn 40% of the Ph.D.s in science and engineering, and 65% of the computer science doctorates. If we drive them away, the companies that depend on such expertise will leave with them, taking thousands of other jobs that would have been filled by Americans.
Last week, in an encouraging sign that Washington has started to recognize the damage, the Obama administration pledged to throw enough resources at the problem to reduce the months-long screening to no more than two weeks in most cases. With the improvements that have been made in terrorist watch lists and other security screening tools, a decision on whether a visa applicant -- especially one already living and working here -- poses a threat should not take months.
Equally encouraging, the administration's top officials appear to have recognized the importance of the problem. Secretary of State Hillary Clinton used her commencement speech at New York University last month to pledge that she would "streamline the visa process, particularly for science and technology students, so that even more qualified students will come here." Homeland Security Secretary Janet Napolitano has promised a renewed effort to secure the country's borders "without cutting off legitimate trade and tourism."
A lot of ground has been lost in the past eight years, however. While foreign student applications were up sharply in 2007 and 2008 and have finally surpassed their pre-9/11 levels, the U.S. largely missed out on the biggest boom ever in students studying abroad, especially at the graduate level. Other countries have competed aggressively for those students while the U.S. made it so difficult to come here that many opted not to. Foreign student enrollment is about 25% below what it would have been had pre-9/11 trends continued.
While the pledge to speed up security reviews is encouraging, the administration needs to take a more comprehensive look at the impact of post-9/11 visa and travel restrictions. Do we really need, for instance, to do in-person interviews of everyone who seeks a visa, even if they have already been interviewed for visas in the past, and we already have their fingerprints on U.S. government databases? That only wastes scarce consular resources on low-risk travelers. Is it necessary to pull all male travelers from Muslim countries into the long humiliation of secondary screening at the airport, even those who are frequent visitors well-known to U.S. officials? It is time to reassert some common sense.
When the Department of Homeland Security was created in 2003, it set out to build a "smart border," one that would keep out terrorists, criminals and others who would harm the U.S. without driving away the tourists, students, businessmen and skilled employees the country needs. It was the right goal, but too often the government forgot the "smart" part and simply layered on more onerous security measures. The U.S. economy has suffered unnecessary damage. The administration's move last week on visas needs to be the first of many steps to get back on a smarter path.
Mr. Alden, a senior fellow at the Council on Foreign Relations, is the author of "The Closing of the American Border: Terrorism, Immigration and Security Since 9/11" (HarperCollins, 2008).
WSJ, Jun 08, 2009
Log onto the Web site of the U.S. Consulate in Chennai and you will see a snapshot of what visa processing is doing to the competitiveness of American companies and research institutions. Click on the link to "Case Status Report," and there is a list of hundreds of visa applications from Indians who await processing. The oldest dates back to 2005, and dozens of others have been pending for a year or more while Washington plods through security background checks.
In recent months I have been in contact with many individuals caught in this Kafkaesque bureaucracy. Most are scientists and engineers who have earned advanced degrees from U.S. universities and are (or were) working for American companies in Silicon Valley, Wall Street and other centers of the U.S. economy.
One had been a researcher at Intel on the latest generation of chip designs; he'd won a national prize for his Ph.D. dissertation for outstanding research in electronic and photonic materials. Another had lived in the U.S. for more than a decade and was doing post-doctoral research at Emory University on vaccine immunology. Still another was a quantitative analyst for a U.S. hedge fund.
Yet when they returned to India -- to attend a brother's wedding or visit a dying parent or simply take a vacation -- they were informed that they could not come back until the U.S. government had done a security screening. Many arrived in India with only a suitcase. By the time I heard of their stories they had been forced to abandon apartments, cars and families in the U.S. while they waited to hear from the State Department.
Of all the initiatives undertaken in the name of homeland security after 9/11, the visa screening requirements for foreign scientists and engineers have probably done the most lasting damage to America's economy -- particularly in the cutting-edge technology fields that are vital to our economic leadership and national security.
The U.S. scientific enterprise depends enormously on talented foreigners. Foreign students and researchers, especially from India and China, comprise more than half of the scientific researchers in the U.S. They earn 40% of the Ph.D.s in science and engineering, and 65% of the computer science doctorates. If we drive them away, the companies that depend on such expertise will leave with them, taking thousands of other jobs that would have been filled by Americans.
Last week, in an encouraging sign that Washington has started to recognize the damage, the Obama administration pledged to throw enough resources at the problem to reduce the months-long screening to no more than two weeks in most cases. With the improvements that have been made in terrorist watch lists and other security screening tools, a decision on whether a visa applicant -- especially one already living and working here -- poses a threat should not take months.
Equally encouraging, the administration's top officials appear to have recognized the importance of the problem. Secretary of State Hillary Clinton used her commencement speech at New York University last month to pledge that she would "streamline the visa process, particularly for science and technology students, so that even more qualified students will come here." Homeland Security Secretary Janet Napolitano has promised a renewed effort to secure the country's borders "without cutting off legitimate trade and tourism."
A lot of ground has been lost in the past eight years, however. While foreign student applications were up sharply in 2007 and 2008 and have finally surpassed their pre-9/11 levels, the U.S. largely missed out on the biggest boom ever in students studying abroad, especially at the graduate level. Other countries have competed aggressively for those students while the U.S. made it so difficult to come here that many opted not to. Foreign student enrollment is about 25% below what it would have been had pre-9/11 trends continued.
While the pledge to speed up security reviews is encouraging, the administration needs to take a more comprehensive look at the impact of post-9/11 visa and travel restrictions. Do we really need, for instance, to do in-person interviews of everyone who seeks a visa, even if they have already been interviewed for visas in the past, and we already have their fingerprints on U.S. government databases? That only wastes scarce consular resources on low-risk travelers. Is it necessary to pull all male travelers from Muslim countries into the long humiliation of secondary screening at the airport, even those who are frequent visitors well-known to U.S. officials? It is time to reassert some common sense.
When the Department of Homeland Security was created in 2003, it set out to build a "smart border," one that would keep out terrorists, criminals and others who would harm the U.S. without driving away the tourists, students, businessmen and skilled employees the country needs. It was the right goal, but too often the government forgot the "smart" part and simply layered on more onerous security measures. The U.S. economy has suffered unnecessary damage. The administration's move last week on visas needs to be the first of many steps to get back on a smarter path.
Mr. Alden, a senior fellow at the Council on Foreign Relations, is the author of "The Closing of the American Border: Terrorism, Immigration and Security Since 9/11" (HarperCollins, 2008).
WSJ Editorial Page on Federal President's Health-Care Reform Program
Obama's Health Cost Illusion.WSJ Editorial
WSJ, Jun 08, 2009
The main White House argument for health-care reform goes something like this: If we spend now on a hugely expensive new insurance program for the middle class, we can save later by reducing overall U.S. health spending. This "tastes great, less filling" theory could stand some scrutiny, not least because it is being used to rush through the greatest social spending program in American history.
What if this particular theory turns out to be a political illusion? What if the speculative cost savings never report for duty, while the federal balance sheet is still swamped with new social obligations that will be impossible to repeal? The only possible outcome will be the nationalization of U.S. health markets, which will mean that almost all care will be rationed by politics.
* * *
Since Medicare was created in 1965, U.S. health spending has risen about 2.7% faster than the economy and on current trend would hit 20% of GDP within a decade. Every public or private attempt to arrest this climb has failed: wage and price controls in the 1970s, the insurance industry's "voluntary effort" in the '80s, managed care in the '90s.
Now the White House -- especially budget chief Peter Orszag -- claims there is new cause for hope. The magic key is the dramatic variations in per patient health spending among U.S. regions. Often there is no relationship between spending and the quality of care, according to a vast body of academic research, most of it coming out of Dartmouth College. If the highest spending areas could be sanded down to the lowest spending areas, about 30% in "waste," or $700 billion each year, would be saved. More than enough to pay for ObamaCare. Or so the theory goes.
But -- how? Mr. Orszag's ideas include more health information technology; emphasizing prevention and healthy living; rejiggering reimbursement policies so doctors and hospitals are paid more for quality care; and funding federal research that compares the effectiveness of medical treatments. These are the lovable bromides of all politicians, and some of them may or may not improve health overall. But there's scant evidence that any of them will ever save real money. There's a reason the Congressional Budget Office can't score them.
Think about comparative effectiveness. Why is low-cost, high-quality Minnesota, say, already making more rational decisions than high-cost, lower-quality Texas? It's ridiculous to suggest that doctors in Rochester have access to clinical information that isn't available in Houston. If it's because the former are simply better physicians, well, medicine isn't Lake Wobegon, where everyone is the Mayo Clinic.
The reality is that after three decades of economic research, the reasons that spending varies are still highly uncertain. As in politics, everything is local in health care. Most of the variation is due to the use of services and mix of care that patients receive, while some relates to labor costs and local prices. The abiding mystery is why practice patterns oscillate so widely, even among hospitals in the same city.
Not surprisingly, variation is greatest when doctors don't agree on the best treatments -- as with back injuries, for example. Another part is technology. New therapies are developed at an astonishing pace. Consider the stent, which props open arteries after a heart attack and was barely used in 1994. By 1998 stents were used in a majority of coronary surgeries. Constant innovation means that there must be trial and error, and thus regional spending variation.
* * *
Such technological change is the most important driver of health spending. Modern medicine can do so much more than it could in the past, but this costs a lot even as it has bought a lot in extending and improving lives. In a 2001 study, David Cutler (an Obama adviser) and Mark McClellan (a Bush adviser) found that the benefits of lower infant mortality and better treatment of heart attacks "have been sufficiently great that they alone are about equal to the entire cost increase for medical care over time."
No less an authority than Mr. Orszag admits that stomping out regional variation means constraining this experimentation. "Future increases in spending could be moderated if costly new medical services were adopted more selectively in the future than they have been in the past and if the diffusion of existing costly services was slowed," Mr. Orszag told Congress last year, when he was CBO director. He was careful to note that "savings are possible without a substantial loss of clinical value," but how does he know? Even if health planners in Washington could arbitrarily reduce spending in high-cost areas, low-value treatments may not be what go over the side.
Another complication is that the Dartmouth research shows spending variation in Medicare, for which uniform, common data are available. But similar data don't exist for the entire health system. Richard Cooper, a professor of medicine at the University of Pennsylvania's Wharton School, has studied regional variation in aggregate health spending, rather than Medicare-only. He found that the areas with the highest quality spend the most on medicine, whatever the mix of private and government funding. Areas with disproportionately high Medicare spending, generally in the South, correlate with the lowest quality -- but at the same time, with very low private spending.
Mr. Cooper's assault on the Dartmouth Atlas is controversial but compelling. He argues that the less-is-more theory is based on the flawed premise that when a region's outcomes did not improve as spending increased, the difference is simply classified as "waste" -- even if it isn't. That's the 30% figure Mr. Orszag likes to cite.
In any case, Medicare reflects the entire practice of medicine only as a funhouse mirror. It simply fixes the prices for thousands of services and procedures, usually well below those of private payers. There is no way of knowing if these administered prices are the "right" level, and, either way, marginal costs adapt to what is paid, creating perverse incentives of their own. Congress also regularly uses Medicare to skew the distribution of medical resources, such as extra payments to teaching hospitals or rural areas.
Above all, Medicare is an ocean of money surrounded by people who want some. It is not only an entitlement to beneficiaries, but a de facto revenue entitlement to hospitals, physicians, nursing homes, durable medical equipment suppliers and the rest. Even a tweak to the Medicare fee schedule is the small-scale equivalent of closing a military base or trimming farm subsidies. The system will never be as rational as Mr. Orszag desires unless it is severed from politics.
* * *
A far better alternative is to increase individual responsibility for medical decisions. In 1965, the average American paid more than half of his health care out of pocket. Spending has since increased sevenfold, but the amount that consumers pay directly hasn't even doubled. When people aren't exposed to the true cost of their care -- though it is paid in foregone wages and higher taxes for public programs -- they consume more care. The research of MIT economist Amy Finkelstein suggests that roughly half of the real increase in U.S. health spending between 1950 and 1990 is due to Medicare and the spread of third-party, first-dollar insurance.
Increasing cost-sharing would discipline the health spending curve and give it a more rational bent. As societies grow richer, it makes sense that people will invest more in their own well-being. Health is a superior good, while the utility of wealth is fairly low if you're dead. The U.S. health cost "crisis" is that we spend so much without incentives to weigh the costs against the benefits.
Yet the entire Obama agenda is about increasing political, rather than individual, control of the health markets. Ted Kennedy's draft health-care bill offers insurance subsidies up to 500% of the poverty line -- for a family of four, that's $110,250. In that kind of world, all costs will climb even higher as people use far more "free" care and federal spending will reach epic levels. Bureaucrats watching the bottom line will try to ration care while simultaneously locked in a death match with interest groups guarding their turf. Congress will join the fray and make things worse, as it always does. Caught in the political crossfire will be patients, as they always are.
* * *
None of the complexities surrounding regional health spending variation would matter as much if the Obama Administration were merely trying to defossilize Medicare and save the federal fisc. But instead it is exploiting the looming bankruptcy of our current entitlements as a pretext to pass the largest entitlement expansion since 1965. And it is selling this agenda with a phony cost-control "plan" that doesn't even exist.
The now-famous Obama-Orszag mantra -- "entitlement reform is health-care reform" -- really means that when they're done, all health care will be an entitlement.
WSJ, Jun 08, 2009
The main White House argument for health-care reform goes something like this: If we spend now on a hugely expensive new insurance program for the middle class, we can save later by reducing overall U.S. health spending. This "tastes great, less filling" theory could stand some scrutiny, not least because it is being used to rush through the greatest social spending program in American history.
What if this particular theory turns out to be a political illusion? What if the speculative cost savings never report for duty, while the federal balance sheet is still swamped with new social obligations that will be impossible to repeal? The only possible outcome will be the nationalization of U.S. health markets, which will mean that almost all care will be rationed by politics.
* * *
Since Medicare was created in 1965, U.S. health spending has risen about 2.7% faster than the economy and on current trend would hit 20% of GDP within a decade. Every public or private attempt to arrest this climb has failed: wage and price controls in the 1970s, the insurance industry's "voluntary effort" in the '80s, managed care in the '90s.
Now the White House -- especially budget chief Peter Orszag -- claims there is new cause for hope. The magic key is the dramatic variations in per patient health spending among U.S. regions. Often there is no relationship between spending and the quality of care, according to a vast body of academic research, most of it coming out of Dartmouth College. If the highest spending areas could be sanded down to the lowest spending areas, about 30% in "waste," or $700 billion each year, would be saved. More than enough to pay for ObamaCare. Or so the theory goes.
But -- how? Mr. Orszag's ideas include more health information technology; emphasizing prevention and healthy living; rejiggering reimbursement policies so doctors and hospitals are paid more for quality care; and funding federal research that compares the effectiveness of medical treatments. These are the lovable bromides of all politicians, and some of them may or may not improve health overall. But there's scant evidence that any of them will ever save real money. There's a reason the Congressional Budget Office can't score them.
Think about comparative effectiveness. Why is low-cost, high-quality Minnesota, say, already making more rational decisions than high-cost, lower-quality Texas? It's ridiculous to suggest that doctors in Rochester have access to clinical information that isn't available in Houston. If it's because the former are simply better physicians, well, medicine isn't Lake Wobegon, where everyone is the Mayo Clinic.
The reality is that after three decades of economic research, the reasons that spending varies are still highly uncertain. As in politics, everything is local in health care. Most of the variation is due to the use of services and mix of care that patients receive, while some relates to labor costs and local prices. The abiding mystery is why practice patterns oscillate so widely, even among hospitals in the same city.
Not surprisingly, variation is greatest when doctors don't agree on the best treatments -- as with back injuries, for example. Another part is technology. New therapies are developed at an astonishing pace. Consider the stent, which props open arteries after a heart attack and was barely used in 1994. By 1998 stents were used in a majority of coronary surgeries. Constant innovation means that there must be trial and error, and thus regional spending variation.
* * *
Such technological change is the most important driver of health spending. Modern medicine can do so much more than it could in the past, but this costs a lot even as it has bought a lot in extending and improving lives. In a 2001 study, David Cutler (an Obama adviser) and Mark McClellan (a Bush adviser) found that the benefits of lower infant mortality and better treatment of heart attacks "have been sufficiently great that they alone are about equal to the entire cost increase for medical care over time."
No less an authority than Mr. Orszag admits that stomping out regional variation means constraining this experimentation. "Future increases in spending could be moderated if costly new medical services were adopted more selectively in the future than they have been in the past and if the diffusion of existing costly services was slowed," Mr. Orszag told Congress last year, when he was CBO director. He was careful to note that "savings are possible without a substantial loss of clinical value," but how does he know? Even if health planners in Washington could arbitrarily reduce spending in high-cost areas, low-value treatments may not be what go over the side.
Another complication is that the Dartmouth research shows spending variation in Medicare, for which uniform, common data are available. But similar data don't exist for the entire health system. Richard Cooper, a professor of medicine at the University of Pennsylvania's Wharton School, has studied regional variation in aggregate health spending, rather than Medicare-only. He found that the areas with the highest quality spend the most on medicine, whatever the mix of private and government funding. Areas with disproportionately high Medicare spending, generally in the South, correlate with the lowest quality -- but at the same time, with very low private spending.
Mr. Cooper's assault on the Dartmouth Atlas is controversial but compelling. He argues that the less-is-more theory is based on the flawed premise that when a region's outcomes did not improve as spending increased, the difference is simply classified as "waste" -- even if it isn't. That's the 30% figure Mr. Orszag likes to cite.
In any case, Medicare reflects the entire practice of medicine only as a funhouse mirror. It simply fixes the prices for thousands of services and procedures, usually well below those of private payers. There is no way of knowing if these administered prices are the "right" level, and, either way, marginal costs adapt to what is paid, creating perverse incentives of their own. Congress also regularly uses Medicare to skew the distribution of medical resources, such as extra payments to teaching hospitals or rural areas.
Above all, Medicare is an ocean of money surrounded by people who want some. It is not only an entitlement to beneficiaries, but a de facto revenue entitlement to hospitals, physicians, nursing homes, durable medical equipment suppliers and the rest. Even a tweak to the Medicare fee schedule is the small-scale equivalent of closing a military base or trimming farm subsidies. The system will never be as rational as Mr. Orszag desires unless it is severed from politics.
* * *
A far better alternative is to increase individual responsibility for medical decisions. In 1965, the average American paid more than half of his health care out of pocket. Spending has since increased sevenfold, but the amount that consumers pay directly hasn't even doubled. When people aren't exposed to the true cost of their care -- though it is paid in foregone wages and higher taxes for public programs -- they consume more care. The research of MIT economist Amy Finkelstein suggests that roughly half of the real increase in U.S. health spending between 1950 and 1990 is due to Medicare and the spread of third-party, first-dollar insurance.
Increasing cost-sharing would discipline the health spending curve and give it a more rational bent. As societies grow richer, it makes sense that people will invest more in their own well-being. Health is a superior good, while the utility of wealth is fairly low if you're dead. The U.S. health cost "crisis" is that we spend so much without incentives to weigh the costs against the benefits.
Yet the entire Obama agenda is about increasing political, rather than individual, control of the health markets. Ted Kennedy's draft health-care bill offers insurance subsidies up to 500% of the poverty line -- for a family of four, that's $110,250. In that kind of world, all costs will climb even higher as people use far more "free" care and federal spending will reach epic levels. Bureaucrats watching the bottom line will try to ration care while simultaneously locked in a death match with interest groups guarding their turf. Congress will join the fray and make things worse, as it always does. Caught in the political crossfire will be patients, as they always are.
* * *
None of the complexities surrounding regional health spending variation would matter as much if the Obama Administration were merely trying to defossilize Medicare and save the federal fisc. But instead it is exploiting the looming bankruptcy of our current entitlements as a pretext to pass the largest entitlement expansion since 1965. And it is selling this agenda with a phony cost-control "plan" that doesn't even exist.
The now-famous Obama-Orszag mantra -- "entitlement reform is health-care reform" -- really means that when they're done, all health care will be an entitlement.
Tobacco, the Tort Bar and Wyeth v. Levine
Tobacco and the Tort Bar. By Mark H Berlind
WSJ, Jun 08, 2009
Congress is on the verge of passing sweeping legislation that would empower the Food and Drug Administration (FDA) to regulate tobacco products. Antitobacco activists are cheering, while some tobacco companies are raising the specter of First Amendment violations. Lost in the debate is the fact that this bill will continue to allow consumers to sue manufacturers that fully comply with the FDA's content and labeling rules.
The FDA tobacco legislation was first introduced in 1996 as part of a comprehensive national tobacco settlement negotiated by public-health groups, attorneys general and tobacco companies. What emerged seemed an equitable balance: Manufacturers would submit to stringent regulatory controls, and there would be significant curbs on smokers' ability to sue them. With the FDA in control of the products and their marketing, the idea was that there ought not to be much basis -- absent outright fraud -- to bring lawsuits against companies that legally supply market demand.
Congress couldn't stomach the thought of providing any liability relief to the industry, so it killed the settlement bill. Cigarettes have remained unregulated by the FDA ever since.
In the meantime, federal and state governments have continued to earn more from cigarette excise taxes than the manufacturers do in profits. As governments have relegated the companies to junior-partner status in the enterprise of feeding Americans' tobacco addiction, it has also saddled them with mounting legal liability and vilification from elected officials.
Today's legislation would impose strict limits on tobacco advertising and labeling, mandate stronger warning labels, and require advance FDA approval of any reduced-risk claims. It would also empower the FDA to change cigarettes' content to make them less addictive and lethal.
However, in a little-noticed provision, the bill also expressly provides that "no provision of this chapter . . . shall be construed to modify or otherwise affect . . . the liability of any person under the product liability law of any State." In other words, the regulatory regime that the legislation would establish can't protect companies from tort liability -- even if they rigorously follow every FDA rule.
This is a bizarre pairing of almost total government involvement in an industry without any government responsibility for, or even modest protection from, the damage claims sure to be generated by that industry for following the law.
The FDA legislation builds on the precedent recently established by the Supreme Court in Wyeth v. Levine. In Wyeth, the Court ruled 6-3 that even if the FDA has approved a drug, the drug maker can still be sued by patients in state court. The majority argued that a litigant is still entitled to claim that the company should have used a stronger warning label than the FDA had required.
But as Justice Samuel Alito observed in his dissenting opinion, "the real issue is whether a state tort jury can countermand the FDA's considered judgment."
The president has proclaimed a "new era of responsibility" for America. But these recent FDA developments -- in which government determines the rules, the business community takes the blame, and trial lawyers take their cut -- seems anything but.
Like elevating the rights of unions over those of secured lenders, the FDA tobacco legislation disturbingly suggests that only those disfavored by the administration will actually be held responsible for anything at all. And it's no secret that the trial bar -- among Mr. Obama's most generous campaign supporters -- has already earned billions from tobacco litigation.
If we truly believe in "responsibility" for businesses, government officials, trial lawyers and ordinary citizens, then regulatory compliance should provide a strong defense against tort claims.
Mr. Berlind is a partner at A.T. Kearney, a global management consulting firm.
WSJ, Jun 08, 2009
Congress is on the verge of passing sweeping legislation that would empower the Food and Drug Administration (FDA) to regulate tobacco products. Antitobacco activists are cheering, while some tobacco companies are raising the specter of First Amendment violations. Lost in the debate is the fact that this bill will continue to allow consumers to sue manufacturers that fully comply with the FDA's content and labeling rules.
The FDA tobacco legislation was first introduced in 1996 as part of a comprehensive national tobacco settlement negotiated by public-health groups, attorneys general and tobacco companies. What emerged seemed an equitable balance: Manufacturers would submit to stringent regulatory controls, and there would be significant curbs on smokers' ability to sue them. With the FDA in control of the products and their marketing, the idea was that there ought not to be much basis -- absent outright fraud -- to bring lawsuits against companies that legally supply market demand.
Congress couldn't stomach the thought of providing any liability relief to the industry, so it killed the settlement bill. Cigarettes have remained unregulated by the FDA ever since.
In the meantime, federal and state governments have continued to earn more from cigarette excise taxes than the manufacturers do in profits. As governments have relegated the companies to junior-partner status in the enterprise of feeding Americans' tobacco addiction, it has also saddled them with mounting legal liability and vilification from elected officials.
Today's legislation would impose strict limits on tobacco advertising and labeling, mandate stronger warning labels, and require advance FDA approval of any reduced-risk claims. It would also empower the FDA to change cigarettes' content to make them less addictive and lethal.
However, in a little-noticed provision, the bill also expressly provides that "no provision of this chapter . . . shall be construed to modify or otherwise affect . . . the liability of any person under the product liability law of any State." In other words, the regulatory regime that the legislation would establish can't protect companies from tort liability -- even if they rigorously follow every FDA rule.
This is a bizarre pairing of almost total government involvement in an industry without any government responsibility for, or even modest protection from, the damage claims sure to be generated by that industry for following the law.
The FDA legislation builds on the precedent recently established by the Supreme Court in Wyeth v. Levine. In Wyeth, the Court ruled 6-3 that even if the FDA has approved a drug, the drug maker can still be sued by patients in state court. The majority argued that a litigant is still entitled to claim that the company should have used a stronger warning label than the FDA had required.
But as Justice Samuel Alito observed in his dissenting opinion, "the real issue is whether a state tort jury can countermand the FDA's considered judgment."
The president has proclaimed a "new era of responsibility" for America. But these recent FDA developments -- in which government determines the rules, the business community takes the blame, and trial lawyers take their cut -- seems anything but.
Like elevating the rights of unions over those of secured lenders, the FDA tobacco legislation disturbingly suggests that only those disfavored by the administration will actually be held responsible for anything at all. And it's no secret that the trial bar -- among Mr. Obama's most generous campaign supporters -- has already earned billions from tobacco litigation.
If we truly believe in "responsibility" for businesses, government officials, trial lawyers and ordinary citizens, then regulatory compliance should provide a strong defense against tort claims.
Mr. Berlind is a partner at A.T. Kearney, a global management consulting firm.
WSJ Editorial Page: Intelligence Mudd Bath
Intelligence Mudd Bath. WSJ Editorial
WSJ, Jun 08, 2009
President Obama and CIA Director Leon Panetta have been at pains to say they don't want to punish intelligence officials and agents who had a role in "enhanced interrogation" after 9/11. But tell that to Philip Mudd, who withdrew his nomination late Friday to be the intelligence chief at the Homeland Security Department under pressure from Democrats in Congress.
Mr. Mudd is a well-regarded career intelligence officer who has worked in senior positions at the FBI and CIA, including deputy director of the National Counterterrorism Center. Mr. Obama nominated him on May 4 amid fulsome praise from Homeland Security Secretary Janet Napolitano. But in a statement issued by the White House on the eve of a late spring weekend, Mr. Mudd said he was withdrawing so as not to become "a distraction to the president and his vital agenda."
The truth is that he risked being a distraction to Speaker Nancy Pelosi and Senate Democrats, who suddenly don't want to talk about what they knew about the interrogation techniques they once endorsed and long funded but now denounce. So Ms. Pelosi doesn't have to answer any questions about her changing claims about her CIA briefings, but a foot soldier like Mr. Mudd who did what his country asked him to do to keep the country safe is blackballed.
The White House said Mr. Obama accepted Mr. Mudd's withdrawal "with sadness and regret," but it's clear the President wasn't willing to fight for him. The message that will be heard loud and clear across the intelligence services is that you better not take any risks to keep America safe, because if you get into political trouble Mr. Obama will throw you over the side, albeit with "regret."
WSJ, Jun 08, 2009
President Obama and CIA Director Leon Panetta have been at pains to say they don't want to punish intelligence officials and agents who had a role in "enhanced interrogation" after 9/11. But tell that to Philip Mudd, who withdrew his nomination late Friday to be the intelligence chief at the Homeland Security Department under pressure from Democrats in Congress.
Mr. Mudd is a well-regarded career intelligence officer who has worked in senior positions at the FBI and CIA, including deputy director of the National Counterterrorism Center. Mr. Obama nominated him on May 4 amid fulsome praise from Homeland Security Secretary Janet Napolitano. But in a statement issued by the White House on the eve of a late spring weekend, Mr. Mudd said he was withdrawing so as not to become "a distraction to the president and his vital agenda."
The truth is that he risked being a distraction to Speaker Nancy Pelosi and Senate Democrats, who suddenly don't want to talk about what they knew about the interrogation techniques they once endorsed and long funded but now denounce. So Ms. Pelosi doesn't have to answer any questions about her changing claims about her CIA briefings, but a foot soldier like Mr. Mudd who did what his country asked him to do to keep the country safe is blackballed.
The White House said Mr. Obama accepted Mr. Mudd's withdrawal "with sadness and regret," but it's clear the President wasn't willing to fight for him. The message that will be heard loud and clear across the intelligence services is that you better not take any risks to keep America safe, because if you get into political trouble Mr. Obama will throw you over the side, albeit with "regret."
Sunday, June 7, 2009
Presidential speeches about relationships with Islamic countries
President Obama speech in Cairo:
REMARKS BY THE PRESIDENT ON A NEW BEGINNING
Cairo University Cairo, Egypt, Jun 04, 2009 @1:10 P.M. (Local)http://www.whitehouse.gov/the_press_office/Remarks-by-the-President-at-Cairo-University-6-04-09/
President Bush Attends World Economic Forum
Sharm el Sheikh International Congress Center
Sharm el Sheikh, Egypt, May 18, 2008
http://georgewbush-whitehouse.archives.gov/news/releases/2008/05/20080518-6.html
Both speeches follow:
1 REMARKS BY THE PRESIDENT ON A NEW BEGINNING
Cairo University Cairo, Egypt, Jun 04, 2009 @1:10 P.M. (Local)http://www.whitehouse.gov/the_press_office/Remarks-by-the-President-at-Cairo-University-6-04-09/
PRESIDENT OBAMA: Thank you very much. Good afternoon. I am honored to be in the timeless city of Cairo, and to be hosted by two remarkable institutions. For over a thousand years, Al-Azhar has stood as a beacon of Islamic learning; and for over a century, Cairo University has been a source of Egypt's advancement. And together, you represent the harmony between tradition and progress. I'm grateful for your hospitality, and the hospitality of the people of Egypt. And I'm also proud to carry with me the goodwill of the American people, and a greeting of peace from Muslim communities in my country: Assalaamu alaykum. (Applause.)
We meet at a time of great tension between the United States and Muslims around the world -- tension rooted in historical forces that go beyond any current policy debate. The relationship between Islam and the West includes centuries of coexistence and cooperation, but also conflict and religious wars. More recently, tension has been fed by colonialism that denied rights and opportunities to many Muslims, and a Cold War in which Muslim-majority countries were too often treated as proxies without regard to their own aspirations. Moreover, the sweeping change brought by modernity and globalization led many Muslims to view the West as hostile to the traditions of Islam.
Violent extremists have exploited these tensions in a small but potent minority of Muslims. The attacks of September 11, 2001 and the continued efforts of these extremists to engage in violence against civilians has led some in my country to view Islam as inevitably hostile not only to America and Western countries, but also to human rights. All this has bred more fear and more mistrust.
So long as our relationship is defined by our differences, we will empower those who sow hatred rather than peace, those who promote conflict rather than the cooperation that can help all of our people achieve justice and prosperity. And this cycle of suspicion and discord must end.
I've come here to Cairo to seek a new beginning between the United States and Muslims around the world, one based on mutual interest and mutual respect, and one based upon the truth that America and Islam are not exclusive and need not be in competition. Instead, they overlap, and share common principles -- principles of justice and progress; tolerance and the dignity of all human beings.
I do so recognizing that change cannot happen overnight. I know there's been a lot of publicity about this speech, but no single speech can eradicate years of mistrust, nor can I answer in the time that I have this afternoon all the complex questions that brought us to this point. But I am convinced that in order to move forward, we must say openly to each other the things we hold in our hearts and that too often are said only behind closed doors. There must be a sustained effort to listen to each other; to learn from each other; to respect one another; and to seek common ground. As the Holy Koran tells us, "Be conscious of God and speak always the truth." (Applause.) That is what I will try to do today -- to speak the truth as best I can, humbled by the task before us, and firm in my belief that the interests we share as human beings are far more powerful than the forces that drive us apart.
Now part of this conviction is rooted in my own experience. I'm a Christian, but my father came from a Kenyan family that includes generations of Muslims. As a boy, I spent several years in Indonesia and heard the call of the azaan at the break of dawn and at the fall of dusk. As a young man, I worked in Chicago communities where many found dignity and peace in their Muslim faith.
As a student of history, I also know civilization's debt to Islam. It was Islam -- at places like Al-Azhar -- that carried the light of learning through so many centuries, paving the way for Europe's Renaissance and Enlightenment. It was innovation in Muslim communities -- (applause) -- it was innovation in Muslim communities that developed the order of algebra; our magnetic compass and tools of navigation; our mastery of pens and printing; our understanding of how disease spreads and how it can be healed. Islamic culture has given us majestic arches and soaring spires; timeless poetry and cherished music; elegant calligraphy and places of peaceful contemplation. And throughout history, Islam has demonstrated through words and deeds the possibilities of religious tolerance and racial equality. (Applause.)
I also know that Islam has always been a part of America's story. The first nation to recognize my country was Morocco. In signing the Treaty of Tripoli in 1796, our second President, John Adams, wrote, "The United States has in itself no character of enmity against the laws, religion or tranquility of Muslims." And since our founding, American Muslims have enriched the United States. They have fought in our wars, they have served in our government, they have stood for civil rights, they have started businesses, they have taught at our universities, they've excelled in our sports arenas, they've won Nobel Prizes, built our tallest building, and lit the Olympic Torch. And when the first Muslim American was recently elected to Congress, he took the oath to defend our Constitution using the same Holy Koran that one of our Founding Fathers -- Thomas Jefferson -- kept in his personal library. (Applause.)
So I have known Islam on three continents before coming to the region where it was first revealed. That experience guides my conviction that partnership between America and Islam must be based on what Islam is, not what it isn't. And I consider it part of my responsibility as President of the United States to fight against negative stereotypes of Islam wherever they appear. (Applause.)
But that same principle must apply to Muslim perceptions of America. (Applause.) Just as Muslims do not fit a crude stereotype, America is not the crude stereotype of a self-interested empire. The United States has been one of the greatest sources of progress that the world has ever known. We were born out of revolution against an empire. We were founded upon the ideal that all are created equal, and we have shed blood and struggled for centuries to give meaning to those words -- within our borders, and around the world. We are shaped by every culture, drawn from every end of the Earth, and dedicated to a simple concept: E pluribus unum -- "Out of many, one."
Now, much has been made of the fact that an African American with the name Barack Hussein Obama could be elected President. (Applause.) But my personal story is not so unique. The dream of opportunity for all people has not come true for everyone in America, but its promise exists for all who come to our shores -- and that includes nearly 7 million American Muslims in our country today who, by the way, enjoy incomes and educational levels that are higher than the American average. (Applause.)
Moreover, freedom in America is indivisible from the freedom to practice one's religion. That is why there is a mosque in every state in our union, and over 1,200 mosques within our borders. That's why the United States government has gone to court to protect the right of women and girls to wear the hijab and to punish those who would deny it. (Applause.)
So let there be no doubt: Islam is a part of America. And I believe that America holds within her the truth that regardless of race, religion, or station in life, all of us share common aspirations -- to live in peace and security; to get an education and to work with dignity; to love our families, our communities, and our God. These things we share. This is the hope of all humanity.
Of course, recognizing our common humanity is only the beginning of our task. Words alone cannot meet the needs of our people. These needs will be met only if we act boldly in the years ahead; and if we understand that the challenges we face are shared, and our failure to meet them will hurt us all.
For we have learned from recent experience that when a financial system weakens in one country, prosperity is hurt everywhere. When a new flu infects one human being, all are at risk. When one nation pursues a nuclear weapon, the risk of nuclear attack rises for all nations. When violent extremists operate in one stretch of mountains, people are endangered across an ocean. When innocents in Bosnia and Darfur are slaughtered, that is a stain on our collective conscience. (Applause.) That is what it means to share this world in the 21st century. That is the responsibility we have to one another as human beings.
And this is a difficult responsibility to embrace. For human history has often been a record of nations and tribes -- and, yes, religions -- subjugating one another in pursuit of their own interests. Yet in this new age, such attitudes are self-defeating. Given our interdependence, any world order that elevates one nation or group of people over another will inevitably fail. So whatever we think of the past, we must not be prisoners to it. Our problems must be dealt with through partnership; our progress must be shared. (Applause.)
Now, that does not mean we should ignore sources of tension. Indeed, it suggests the opposite: We must face these tensions squarely. And so in that spirit, let me speak as clearly and as plainly as I can about some specific issues that I believe we must finally confront together.
The first issue that we have to confront is violent extremism in all of its forms.
In Ankara, I made clear that America is not -- and never will be -- at war with Islam. (Applause.) We will, however, relentlessly confront violent extremists who pose a grave threat to our security -- because we reject the same thing that people of all faiths reject: the killing of innocent men, women, and children. And it is my first duty as President to protect the American people.
The situation in Afghanistan demonstrates America's goals, and our need to work together. Over seven years ago, the United States pursued al Qaeda and the Taliban with broad international support. We did not go by choice; we went because of necessity. I'm aware that there's still some who would question or even justify the events of 9/11. But let us be clear: Al Qaeda killed nearly 3,000 people on that day. The victims were innocent men, women and children from America and many other nations who had done nothing to harm anybody. And yet al Qaeda chose to ruthlessly murder these people, claimed credit for the attack, and even now states their determination to kill on a massive scale. They have affiliates in many countries and are trying to expand their reach. These are not opinions to be debated; these are facts to be dealt with.
Now, make no mistake: We do not want to keep our troops in Afghanistan. We see no military -- we seek no military bases there. It is agonizing for America to lose our young men and women. It is costly and politically difficult to continue this conflict. We would gladly bring every single one of our troops home if we could be confident that there were not violent extremists in Afghanistan and now Pakistan determined to kill as many Americans as they possibly can. But that is not yet the case.
And that's why we're partnering with a coalition of 46 countries. And despite the costs involved, America's commitment will not weaken. Indeed, none of us should tolerate these extremists. They have killed in many countries. They have killed people of different faiths -- but more than any other, they have killed Muslims. Their actions are irreconcilable with the rights of human beings, the progress of nations, and with Islam. The Holy Koran teaches that whoever kills an innocent is as -- it is as if he has killed all mankind. (Applause.) And the Holy Koran also says whoever saves a person, it is as if he has saved all mankind. (Applause.) The enduring faith of over a billion people is so much bigger than the narrow hatred of a few. Islam is not part of the problem in combating violent extremism -- it is an important part of promoting peace.
Now, we also know that military power alone is not going to solve the problems in Afghanistan and Pakistan. That's why we plan to invest $1.5 billion each year over the next five years to partner with Pakistanis to build schools and hospitals, roads and businesses, and hundreds of millions to help those who've been displaced. That's why we are providing more than $2.8 billion to help Afghans develop their economy and deliver services that people depend on.
Let me also address the issue of Iraq. Unlike Afghanistan, Iraq was a war of choice that provoked strong differences in my country and around the world. Although I believe that the Iraqi people are ultimately better off without the tyranny of Saddam Hussein, I also believe that events in Iraq have reminded America of the need to use diplomacy and build international consensus to resolve our problems whenever possible. (Applause.) Indeed, we can recall the words of Thomas Jefferson, who said: "I hope that our wisdom will grow with our power, and teach us that the less we use our power the greater it will be."
Today, America has a dual responsibility: to help Iraq forge a better future -- and to leave Iraq to Iraqis. And I have made it clear to the Iraqi people -- (applause) -- I have made it clear to the Iraqi people that we pursue no bases, and no claim on their territory or resources. Iraq's sovereignty is its own. And that's why I ordered the removal of our combat brigades by next August. That is why we will honor our agreement with Iraq's democratically elected government to remove combat troops from Iraqi cities by July, and to remove all of our troops from Iraq by 2012. (Applause.) We will help Iraq train its security forces and develop its economy. But we will support a secure and united Iraq as a partner, and never as a patron.
And finally, just as America can never tolerate violence by extremists, we must never alter or forget our principles. Nine-eleven was an enormous trauma to our country. The fear and anger that it provoked was understandable, but in some cases, it led us to act contrary to our traditions and our ideals. We are taking concrete actions to change course. I have unequivocally prohibited the use of torture by the United States, and I have ordered the prison at Guantanamo Bay closed by early next year. (Applause.)
So America will defend itself, respectful of the sovereignty of nations and the rule of law. And we will do so in partnership with Muslim communities which are also threatened. The sooner the extremists are isolated and unwelcome in Muslim communities, the sooner we will all be safer.
The second major source of tension that we need to discuss is the situation between Israelis, Palestinians and the Arab world.
America's strong bonds with Israel are well known. This bond is unbreakable. It is based upon cultural and historical ties, and the recognition that the aspiration for a Jewish homeland is rooted in a tragic history that cannot be denied.
Around the world, the Jewish people were persecuted for centuries, and anti-Semitism in Europe culminated in an unprecedented Holocaust. Tomorrow, I will visit Buchenwald, which was part of a network of camps where Jews were enslaved, tortured, shot and gassed to death by the Third Reich. Six million Jews were killed -- more than the entire Jewish population of Israel today. Denying that fact is baseless, it is ignorant, and it is hateful. Threatening Israel with destruction -- or repeating vile stereotypes about Jews -- is deeply wrong, and only serves to evoke in the minds of Israelis this most painful of memories while preventing the peace that the people of this region deserve.
On the other hand, it is also undeniable that the Palestinian people -- Muslims and Christians -- have suffered in pursuit of a homeland. For more than 60 years they've endured the pain of dislocation. Many wait in refugee camps in the West Bank, Gaza, and neighboring lands for a life of peace and security that they have never been able to lead. They endure the daily humiliations -- large and small -- that come with occupation. So let there be no doubt: The situation for the Palestinian people is intolerable. And America will not turn our backs on the legitimate Palestinian aspiration for dignity, opportunity, and a state of their own. (Applause.)
For decades then, there has been a stalemate: two peoples with legitimate aspirations, each with a painful history that makes compromise elusive. It's easy to point fingers -- for Palestinians to point to the displacement brought about by Israel's founding, and for Israelis to point to the constant hostility and attacks throughout its history from within its borders as well as beyond. But if we see this conflict only from one side or the other, then we will be blind to the truth: The only resolution is for the aspirations of both sides to be met through two states, where Israelis and Palestinians each live in peace and security. (Applause.)
That is in Israel's interest, Palestine's interest, America's interest, and the world's interest. And that is why I intend to personally pursue this outcome with all the patience and dedication that the task requires. (Applause.) The obligations -- the obligations that the parties have agreed to under the road map are clear. For peace to come, it is time for them -- and all of us -- to live up to our responsibilities.
Palestinians must abandon violence. Resistance through violence and killing is wrong and it does not succeed. For centuries, black people in America suffered the lash of the whip as slaves and the humiliation of segregation. But it was not violence that won full and equal rights. It was a peaceful and determined insistence upon the ideals at the center of America's founding. This same story can be told by people from South Africa to South Asia; from Eastern Europe to Indonesia. It's a story with a simple truth: that violence is a dead end. It is a sign neither of courage nor power to shoot rockets at sleeping children, or to blow up old women on a bus. That's not how moral authority is claimed; that's how it is surrendered.
Now is the time for Palestinians to focus on what they can build. The Palestinian Authority must develop its capacity to govern, with institutions that serve the needs of its people. Hamas does have support among some Palestinians, but they also have to recognize they have responsibilities. To play a role in fulfilling Palestinian aspirations, to unify the Palestinian people, Hamas must put an end to violence, recognize past agreements, recognize Israel's right to exist.
At the same time, Israelis must acknowledge that just as Israel's right to exist cannot be denied, neither can Palestine's. The United States does not accept the legitimacy of continued Israeli settlements. (Applause.) This construction violates previous agreements and undermines efforts to achieve peace. It is time for these settlements to stop. (Applause.)
And Israel must also live up to its obligation to ensure that Palestinians can live and work and develop their society. Just as it devastates Palestinian families, the continuing humanitarian crisis in Gaza does not serve Israel's security; neither does the continuing lack of opportunity in the West Bank. Progress in the daily lives of the Palestinian people must be a critical part of a road to peace, and Israel must take concrete steps to enable such progress.
And finally, the Arab states must recognize that the Arab Peace Initiative was an important beginning, but not the end of their responsibilities. The Arab-Israeli conflict should no longer be used to distract the people of Arab nations from other problems. Instead, it must be a cause for action to help the Palestinian people develop the institutions that will sustain their state, to recognize Israel's legitimacy, and to choose progress over a self-defeating focus on the past.
America will align our policies with those who pursue peace, and we will say in public what we say in private to Israelis and Palestinians and Arabs. (Applause.) We cannot impose peace. But privately, many Muslims recognize that Israel will not go away. Likewise, many Israelis recognize the need for a Palestinian state. It is time for us to act on what everyone knows to be true.
Too many tears have been shed. Too much blood has been shed. All of us have a responsibility to work for the day when the mothers of Israelis and Palestinians can see their children grow up without fear; when the Holy Land of the three great faiths is the place of peace that God intended it to be; when Jerusalem is a secure and lasting home for Jews and Christians and Muslims, and a place for all of the children of Abraham to mingle peacefully together as in the story of Isra -- (applause) -- as in the story of Isra, when Moses, Jesus, and Mohammed, peace be upon them, joined in prayer. (Applause.)
The third source of tension is our shared interest in the rights and responsibilities of nations on nuclear weapons.
This issue has been a source of tension between the United States and the Islamic Republic of Iran. For many years, Iran has defined itself in part by its opposition to my country, and there is in fact a tumultuous history between us. In the middle of the Cold War, the United States played a role in the overthrow of a democratically elected Iranian government. Since the Islamic Revolution, Iran has played a role in acts of hostage-taking and violence against U.S. troops and civilians. This history is well known. Rather than remain trapped in the past, I've made it clear to Iran's leaders and people that my country is prepared to move forward. The question now is not what Iran is against, but rather what future it wants to build.
I recognize it will be hard to overcome decades of mistrust, but we will proceed with courage, rectitude, and resolve. There will be many issues to discuss between our two countries, and we are willing to move forward without preconditions on the basis of mutual respect. But it is clear to all concerned that when it comes to nuclear weapons, we have reached a decisive point. This is not simply about America's interests. It's about preventing a nuclear arms race in the Middle East that could lead this region and the world down a hugely dangerous path.
I understand those who protest that some countries have weapons that others do not. No single nation should pick and choose which nation holds nuclear weapons. And that's why I strongly reaffirmed America's commitment to seek a world in which no nations hold nuclear weapons. (Applause.) And any nation -- including Iran -- should have the right to access peaceful nuclear power if it complies with its responsibilities under the nuclear Non-Proliferation Treaty. That commitment is at the core of the treaty, and it must be kept for all who fully abide by it. And I'm hopeful that all countries in the region can share in this goal.
The fourth issue that I will address is democracy. (Applause.)
I know -- I know there has been controversy about the promotion of democracy in recent years, and much of this controversy is connected to the war in Iraq. So let me be clear: No system of government can or should be imposed by one nation by any other. That does not lessen my commitment, however, to governments that reflect the will of the people. Each nation gives life to this principle in its own way, grounded in the traditions of its own people. America does not presume to know what is best for everyone, just as we would not presume to pick the outcome of a peaceful election. But I do have an unyielding belief that all people yearn for certain things: the ability to speak your mind and have a say in how you are governed; confidence in the rule of law and the equal administration of justice; government that is transparent and doesn't steal from the people; the freedom to live as you choose. These are not just American ideas; they are human rights. And that is why we will support them everywhere. (Applause.)
Now, there is no straight line to realize this promise. But this much is clear: Governments that protect these rights are ultimately more stable, successful and secure. Suppressing ideas never succeeds in making them go away. America respects the right of all peaceful and law-abiding voices to be heard around the world, even if we disagree with them. And we will welcome all elected, peaceful governments -- provided they govern with respect for all their people.
This last point is important because there are some who advocate for democracy only when they're out of power; once in power, they are ruthless in suppressing the rights of others. (Applause.) So no matter where it takes hold, government of the people and by the people sets a single standard for all who would hold power: You must maintain your power through consent, not coercion; you must respect the rights of minorities, and participate with a spirit of tolerance and compromise; you must place the interests of your people and the legitimate workings of the political process above your party. Without these ingredients, elections alone do not make true democracy.
AUDIENCE MEMBER: Barack Obama, we love you!
PRESIDENT OBAMA: Thank you. (Applause.) The fifth issue that we must address together is religious freedom.
Islam has a proud tradition of tolerance. We see it in the history of Andalusia and Cordoba during the Inquisition. I saw it firsthand as a child in Indonesia, where devout Christians worshiped freely in an overwhelmingly Muslim country. That is the spirit we need today. People in every country should be free to choose and live their faith based upon the persuasion of the mind and the heart and the soul. This tolerance is essential for religion to thrive, but it's being challenged in many different ways.
Among some Muslims, there's a disturbing tendency to measure one's own faith by the rejection of somebody else's faith. The richness of religious diversity must be upheld -- whether it is for Maronites in Lebanon or the Copts in Egypt. (Applause.) And if we are being honest, fault lines must be closed among Muslims, as well, as the divisions between Sunni and Shia have led to tragic violence, particularly in Iraq.
Freedom of religion is central to the ability of peoples to live together. We must always examine the ways in which we protect it. For instance, in the United States, rules on charitable giving have made it harder for Muslims to fulfill their religious obligation. That's why I'm committed to working with American Muslims to ensure that they can fulfill zakat.
Likewise, it is important for Western countries to avoid impeding Muslim citizens from practicing religion as they see fit -- for instance, by dictating what clothes a Muslim woman should wear. We can't disguise hostility towards any religion behind the pretence of liberalism. In fact, faith should bring us together. And that's why we're forging service projects in America to bring together Christians, Muslims, and Jews. That's why we welcome efforts like Saudi Arabian King Abdullah's interfaith dialogue and Turkey's leadership in the Alliance of Civilizations. Around the world, we can turn dialogue into interfaith service, so bridges between peoples lead to action -- whether it is combating malaria in Africa, or providing relief after a natural disaster.
The sixth issue -- the sixth issue that I want to address is women's rights. (Applause.) I know –- I know -- and you can tell from this audience, that there is a healthy debate about this issue. I reject the view of some in the West that a woman who chooses to cover her hair is somehow less equal, but I do believe that a woman who is denied an education is denied equality. (Applause.) And it is no coincidence that countries where women are well educated are far more likely to be prosperous.
Now, let me be clear: Issues of women's equality are by no means simply an issue for Islam. In Turkey, Pakistan, Bangladesh, Indonesia, we've seen Muslim-majority countries elect a woman to lead. Meanwhile, the struggle for women's equality continues in many aspects of American life, and in countries around the world.
I am convinced that our daughters can contribute just as much to society as our sons. (Applause.) Our common prosperity will be advanced by allowing all humanity -- men and women -- to reach their full potential. I do not believe that women must make the same choices as men in order to be equal, and I respect those women who choose to live their lives in traditional roles. But it should be their choice. And that is why the United States will partner with any Muslim-majority country to support expanded literacy for girls, and to help young women pursue employment through micro-financing that helps people live their dreams. (Applause.)
Finally, I want to discuss economic development and opportunity.
I know that for many, the face of globalization is contradictory. The Internet and television can bring knowledge and information, but also offensive sexuality and mindless violence into the home. Trade can bring new wealth and opportunities, but also huge disruptions and change in communities. In all nations -- including America -- this change can bring fear. Fear that because of modernity we lose control over our economic choices, our politics, and most importantly our identities -- those things we most cherish about our communities, our families, our traditions, and our faith.
But I also know that human progress cannot be denied. There need not be contradictions between development and tradition. Countries like Japan and South Korea grew their economies enormously while maintaining distinct cultures. The same is true for the astonishing progress within Muslim-majority countries from Kuala Lumpur to Dubai. In ancient times and in our times, Muslim communities have been at the forefront of innovation and education.
And this is important because no development strategy can be based only upon what comes out of the ground, nor can it be sustained while young people are out of work. Many Gulf states have enjoyed great wealth as a consequence of oil, and some are beginning to focus it on broader development. But all of us must recognize that education and innovation will be the currency of the 21st century -- (applause) -- and in too many Muslim communities, there remains underinvestment in these areas. I'm emphasizing such investment within my own country. And while America in the past has focused on oil and gas when it comes to this part of the world, we now seek a broader engagement.
On education, we will expand exchange programs, and increase scholarships, like the one that brought my father to America. (Applause.) At the same time, we will encourage more Americans to study in Muslim communities. And we will match promising Muslim students with internships in America; invest in online learning for teachers and children around the world; and create a new online network, so a young person in Kansas can communicate instantly with a young person in Cairo.
On economic development, we will create a new corps of business volunteers to partner with counterparts in Muslim-majority countries. And I will host a Summit on Entrepreneurship this year to identify how we can deepen ties between business leaders, foundations and social entrepreneurs in the United States and Muslim communities around the world.
On science and technology, we will launch a new fund to support technological development in Muslim-majority countries, and to help transfer ideas to the marketplace so they can create more jobs. We'll open centers of scientific excellence in Africa, the Middle East and Southeast Asia, and appoint new science envoys to collaborate on programs that develop new sources of energy, create green jobs, digitize records, clean water, grow new crops. Today I'm announcing a new global effort with the Organization of the Islamic Conference to eradicate polio. And we will also expand partnerships with Muslim communities to promote child and maternal health.
All these things must be done in partnership. Americans are ready to join with citizens and governments; community organizations, religious leaders, and businesses in Muslim communities around the world to help our people pursue a better life.
The issues that I have described will not be easy to address. But we have a responsibility to join together on behalf of the world that we seek -- a world where extremists no longer threaten our people, and American troops have come home; a world where Israelis and Palestinians are each secure in a state of their own, and nuclear energy is used for peaceful purposes; a world where governments serve their citizens, and the rights of all God's children are respected. Those are mutual interests. That is the world we seek. But we can only achieve it together.
I know there are many -- Muslim and non-Muslim -- who question whether we can forge this new beginning. Some are eager to stoke the flames of division, and to stand in the way of progress. Some suggest that it isn't worth the effort -- that we are fated to disagree, and civilizations are doomed to clash. Many more are simply skeptical that real change can occur. There's so much fear, so much mistrust that has built up over the years. But if we choose to be bound by the past, we will never move forward. And I want to particularly say this to young people of every faith, in every country -- you, more than anyone, have the ability to reimagine the world, to remake this world.
All of us share this world for but a brief moment in time. The question is whether we spend that time focused on what pushes us apart, or whether we commit ourselves to an effort -- a sustained effort -- to find common ground, to focus on the future we seek for our children, and to respect the dignity of all human beings.
It's easier to start wars than to end them. It's easier to blame others than to look inward. It's easier to see what is different about someone than to find the things we share. But we should choose the right path, not just the easy path. There's one rule that lies at the heart of every religion -- that we do unto others as we would have them do unto us. (Applause.) This truth transcends nations and peoples -- a belief that isn't new; that isn't black or white or brown; that isn't Christian or Muslim or Jew. It's a belief that pulsed in the cradle of civilization, and that still beats in the hearts of billions around the world. It's a faith in other people, and it's what brought me here today.
We have the power to make the world we seek, but only if we have the courage to make a new beginning, keeping in mind what has been written.
The Holy Koran tells us: "O mankind! We have created you male and a female; and we have made you into nations and tribes so that you may know one another."
The Talmud tells us: "The whole of the Torah is for the purpose of promoting peace."
The Holy Bible tells us: "Blessed are the peacemakers, for they shall be called sons of God." (Applause.)
The people of the world can live together in peace. We know that is God's vision. Now that must be our work here on Earth.
Thank you. And may God's peace be upon you. Thank you very much. Thank you. (Applause.)
END 2:05 P.M. (Local)
2 President Bush Attends World Economic Forum
Sharm el Sheikh International Congress Center
Sharm el Sheikh, Egypt, May 18, 2008
http://georgewbush-whitehouse.archives.gov/news/releases/2008/05/20080518-6.html
THE PRESIDENT: Klaus, thank you very much. Thanks for inviting me. Klaus said, it's about time you showed up. Proud to be here. Laura and I are so honored that, Klaus, you gave us a chance to come. I do want to thank President Mubarak and Mrs. Mubarak for their wonderful hospitality. I want to thank the members of Congress who are here. I appreciate the heads of state who have joined us. I thank the foreign ministers who are here, including my own, Secretary of State Condoleezza Rice. And I want to thank the members of the Diplomatic Corps.
Laura and I are delighted to be in Egypt, and we bring the warm wishes of the American people. We're proud of our long friendship with your citizens. We respect your remarkable history. And we're humbled to walk in the ancient land of pharaohs, where a great civilization took root and wrote some of the first chapters in the epic story of humanity.
America is a much younger nation, but we've made our mark by advancing ideals as old as the pyramids. Those ideals of liberty and justice have sparked a revolution across much of the world. This hopeful movement made its way to places where dictators once reigned and peaceful democracies seemed unimaginable: places like Chile and Indonesia and Poland and the Philippines and South Korea. These nations have different histories and different traditions. Yet each made the same democratic transition, and they did it on their own terms. In these countries, millions every year are rising from poverty. Women are realizing overdue opportunities. And people of faith are finding the blessing of worshiping God in peace.
All these changes took place in the second half of the 20th century. I strongly believe that if leaders like those of you in this room act with vision and resolve, the first half of 21st century can be the time when similar advances reach the Middle East. This region is home to energetic people, a powerful spirit of enterprise, and tremendous resources. It is capable of a very bright future -- a future in which the Middle East is a place of innovation and discovery, driven by free men and women.
In recent years, we've seen hopeful beginnings toward this vision. Turkey, a nation with a majority Muslim population, is a prosperous modern democracy. Afghanistan under the leadership of President Karzai is overcoming the Taliban and building a free society. Iraq under the leadership of Prime Minister Maliki is establishing a multi-ethnic democracy. We have seen the stirrings of reform from Morocco and Algeria to Jordan and the Gulf States. And isolation from the outside world is being overcome by the most democratic of innovations: the cell phone and the Internet. America appreciates the challenges facing the Middle East. Yet the light of liberty is beginning to shine.
There is much to do to build on this momentum. From diversifying your economies, to investing in your people, to extending the reach of freedom, nations across the region have an opportunity to move forward with bold and confident reforms -- and lead the Middle East to its rightful place as a center of progress and achievement.
Taking your place as a center of progress and achievement requires economic reform. This is a time of strength for many of your nations' economies. Since 2004, economic growth in the region has averaged more than 5 percent. Trade has expanded significantly. Technology has advanced rapidly. Foreign investment has increased dramatically. And unemployment rates have decreased in many nations. Egypt, for example, has posted strong economic growth, developed some of the world's fastest growing telecommunications companies, and made major investments that will boost tourism and trade. In order for this economic progress to result in permanent prosperity and an Egypt that reaches its full potential, however, economic reform must be accompanied by political reform. And I continue to hope that Egypt can lead the region in political reform.
This is also a time to prepare for the economic changes ahead. Rising price of oil has brought great wealth to some in this region, but the supply of oil is limited, and nations like mine are aggressively developing alternatives to oil. Over time, as the world becomes less dependent on oil, nations in the Middle East will have to build more diverse and more dynamic economies.
Your greatest asset in this quest is the entrepreneurial spirit of your people. The best way to take advantage of that spirit is to make reforms that unleash individual creativity and innovation. Your economies will be more vibrant when citizens who dream of starting their own companies can do so quickly, without high regulatory and registration costs. Your economies will be more dynamic when property rights are protected and risk-taking is encouraged -- not punished -- by law. Your economies will be more resilient when you adopt modern agricultural techniques that make farmers more productive and the food supply more secure. And your economies will have greater long-term prosperity when taxes are low and all your citizens know that their innovation and hard work will be rewarded.
One of the most powerful drivers of economic growth is free trade. So nations in this region would benefit greatly from breaking down barriers to trade with each other. And America will continue working to open up trade at every level. In recent years, the United States has completed free trade agreements with Jordan, Oman, Morocco, and Bahrain. America will continue to negotiate bilateral free trade agreements in the region. We strongly supported Saudi Arabia's accession to the World Trade Organization, and we will continue to support nations making the reforms necessary to join the institutions of a global economy. To break down trade barriers and ignite economic growth around the world, we will work tirelessly for a successful outcome to the Doha Round this year.
As we seek to open new markets abroad, America will keep our markets open at home. There are voices in my country that urge America to adopt measures that would isolate us from the global economy. I firmly reject these calls for protectionism. We will continue to welcome foreign investment and trade. And the United States of America will stay open for business.
Taking your place as a center of progress and achievement requires investing in your people. Some analysts believe the Middle East and North Africa will need to create up to 100 million new jobs over the next 10 to 15 years just to keep up with population growth. The key to realizing this goal is an educated workforce.
This starts early on, with primary schools that teach basic skills, such as reading and math, rather than indoctrinating children with ideologies of hatred. An educated workforce also requires good high schools and universities, where students are exposed to a variety of ideas, learn to think for themselves, and develop the capacity to innovate. Not long ago the region marked a hopeful milestone in higher education. In our meeting yesterday, President Karzai told me he recently handed out diplomas to university graduates, including 300 degrees in medicine, and a hundred degrees in engineering, and a lot of degrees to lawyers, and many of the recipients were women. (Applause.)
People of the Middle East can count on the United States to be a strong partner in improving your educational systems. We are sponsoring training programs for teachers and administrators in nations like Jordan and Morocco and Lebanon. We sponsored English language programs where students can go for intensive language instruction. We have translated more than 80 children's books into Arabic. And we have developed new online curricula for students from kindergarten through high school.
It is also in America's interest to continue welcoming aspiring young adults from this region for higher education to the United States. There were understandable concerns about student visas after 9/11. My administration has worked hard to improve the visa process. And I'm pleased to report that we are issuing a growing numbers of student visas to young people from the Middle East. And that's the way it should be. And we'll continue to work to expand educational exchanges, because we benefit from the contribution of foreign students who study in America because we're proud to train the world's leaders of tomorrow and because we know there is no better antidote to the propaganda of our enemies than firsthand experience with life in the United States of America.
Building powerful economies also requires expanding the role of women in society. This is a matter of morality and of basic math. No nation that cuts off half its population from opportunities will be as productive or prosperous as it could be. Women are a formidable force, as I have seen in my own family -- (laughter and applause) -- and my own administration. (Applause.) As the nations of the Middle East open up their laws and their societies to women, they are learning the same thing.
I applaud Egypt. Egypt is a model for the development of professional women. In Afghanistan, girls who were once denied even a basic education are now going to school, and a whole generation of Afghans will grow up with the intellectual tools to lead their nation toward prosperity. In Iraq and Kuwait, women are joining political parties and running campaigns and serving in public office. In some Gulf States, women entrepreneurs are making a living and a name for themselves in the business world.
Recently, I learned of a woman in Bahrain who owns her own shipping company. She started with a small office and two employees. When she first tried to register her business in her own name, she was turned down. She attended a business training class and was the only woman to participate. And when she applied for a customs license, officials expressed surprise because no woman had ever asked for one before.
And yet with hard work and determination, she turned her small company into a $2 million enterprise. And this year, Huda Janahi was named one of the 50 most powerful businesswomen in the Arab world. (Applause.) Huda is an inspiring example for the whole region. And America's message to other women in the Middle East is this: You have a great deal to contribute, you should have a strong voice in leading your countries, and my nation looks to the day when you have the rights and privileges you deserve.
Taking your place as a center of progress and achievement requires extending the reach of freedom. Expanding freedom is vital to turning temporary wealth into lasting prosperity. Free societies stimulate competition in the marketplace. Free societies give people access to information they need to make informed and responsible decisions. And free societies give citizens the rule of law, which exposes corruption and builds confidence in the future.
Freedom is also the basis for a democratic system of government, which is the only fair and just ordering of society and the only way to guarantee the God-given rights of all people. Democracies do not take the same shape; they develop at different speeds and in different ways, and they reflect the unique cultures and traditions of their people. There are skeptics about democracy in this part of the world, I understand that. But as more people in the Middle East gain firsthand experience from freedom, many of the arguments against democracy are being discredited.
For example, some say that democracy is a Western value that America seeks to impose on unwilling citizens. This is a condescending form of moral relativism. The truth is that freedom is a universal right -- the Almighty's gift to every man, woman, and child on the face of Earth. And as we've seen time and time again, when people are allowed to make a choice between freedom and the alternative, they choose freedom. In Afghanistan, 8 million people defied the terrorist threats to vote for a democratic President. In Iraq, 12 million people waved ink-stained fingers to celebrate the first democratic election in decades. And in a recent survey of the Muslim world, there was overwhelming support for one of the central tenets of democracy, freedom of speech: 99 percent in Lebanon, 94 percent here in Egypt, and 92 percent in Iran.
There are people who claim that democracy is incompatible with Islam. But the truth is that democracies, by definition, make a place for people of religious belief. America is one of the most -- is one of the world's leading democracies, and we're also one of the most religious nations in the world. More than three-quarters of our citizens believe in a higher power. Millions worship every week and pray every day. And they do so without fear of reprisal from the state. In our democracy, we would never punish a person for owning a Koran. We would never issue a death sentence to someone for converting to Islam. Democracy does not threaten Islam or any religion. Democracy is the only system of government that guarantees their protection.
Some say any state that holds an election is a democracy. But true democracy requires vigorous political parties allowed to engage in free and lively debate. True democracy requires the establishment of civic institutions that ensure an election's legitimacy and hold leaders accountable. And true democracy requires competitive elections in which opposition candidates are allowed to campaign without fear or intimidation.
Too often in the Middle East, politics has consisted of one leader in power and the opposition in jail. America is deeply concerned about the plight of political prisoners in this region, as well as democratic activists who are intimidated or repressed, newspapers and civil society organizations that are shut down, and dissidents whose voices are stifled. The time has come for nations across the Middle East to abandon these practices, and treat their people with dignity and the respect they deserve. I call on all nations to release their prisoners of conscience, open up their political debate, and trust their people to chart their future. (Applause.)
The vision I have outlined today is shared by many in this region -- but unfortunately, there are some spoilers who stand in the way. Terrorist organizations and their state sponsors know they cannot survive in a free society, so they create chaos and take innocent lives in an effort to stop democracy from taking root. They are on the wrong side in a great ideological struggle -- and every nation committed to freedom and progress in the Middle East must stand together to defeat them.
We must stand with the Palestinian people, who have suffered for decades and earned the right to be a homeland of their own -- have a homeland of their own. I strongly support a two-state solution -- a democratic Palestine based on law and justice that will live with peace and security alongside a democrat Israel. I believe that the Palestinian people will build a thriving democracy in which entrepreneurs pursue their dreams, and families own their homes in lively communities, and young people grow up with hope in the future.
Last year at Annapolis, we made a hopeful beginning toward a peace negotiation that will outline what this nation of Palestine will look like -- a contiguous state where Palestinians live in prosperity and dignity. A peace agreement is in the Palestinians' interests, it is in Israel's interests, it is in Arab states' interests, and it is in the world's interests. And I firmly believe that with leadership and courage, we can reach that peace agreement this year. (Applause.)
This is a demanding task. It requires action on all sides. Palestinians must fight terror and continue to build the institutions of a free and peaceful society. Israel must make tough sacrifices for peace and ease the restrictions on the Palestinians. Arab states, especially oil-rich nations, must seize this opportunity to invest aggressively in the Palestinian people and to move past their old resentments against Israel. And all nations in the region must stand together in confronting Hamas, which is attempting to undermine efforts at peace with acts of terror and violence.
We must stand with the people of Lebanon in their struggle to build a sovereign and independent democracy. This means opposing Hezbollah terrorists, funded by Iran, who recently revealed their true intentions by taking up arms against the Lebanese people. It is now clearer than ever that Hezbollah militias are the enemy of a free Lebanon -- and all nations, especially neighbors in the region, have an interest to help the Lebanese people prevail. (Applause.)
We must stand with the people of Iraq and Afghanistan and other nations in the region fighting against al Qaeda and other extremists. Bin Laden and his followers have made clear that anyone who does not share their extremist ideology is fit for murder. That means every government in the Middle East is a target of al Qaeda. And America is a target too. And together, we will confront and we will defeat this threat to civilization.
We must stand with the good and decent people of Iran and Syria, who deserve so much better than the life they have today. Every peaceful nation in the region has an interest in stopping these nations from supporting terrorism. And every peaceful nation in the region has an interest in opposing Iran's nuclear weapons ambitions. To allow the world's leading sponsor of terror to gain the world's deadliest weapon would be an unforgivable betrayal of future generations. For the sake of peace, the world must not allow Iran to have a nuclear weapon. (Applause.)
The changes I have discussed today will not come easily -- change never does. But the reform movement in the Middle East has a powerful engine: demographics. Sixty percent of the population is under 30 years old. Many of these young people surf the web, own cell phones, have satellite televisions. They have access to unprecedented amounts of information. They see what freedom has brought to millions of others and contrast that to what they have at home.
Today, I have a message for these young people: Some tell -- some will tell you change is impossible, but history has a way of surprising us, and change can happen more quickly than we expect. In the past century, one concept has transcended borders, cultures, and languages. In Arabic, "hurriyya" -- in English, "freedom." Across the world, the call for freedom lives in our hearts, endures in our prayers, and joins humanity as one.
I know these are trying times, but the future is in your hands -- and freedom and peace are within your grasp. Just imagine what this region could look like in 60 years. The Palestinian people will have the homeland they have long dreamed of and deserve -- a democratic state that is governed by law, respects human rights, and rejects terror. Israel will be celebrating its 120 anniversary as one of the world's great democracies -- a secure and flourishing homeland for the Jewish people.
From Cairo, Riyadh, Baghdad to Beirut, people will live in free and independent societies, where a desire for peace is reinforced by ties of diplomacy and tourism and trade. Iran and Syria will be peaceful nations, where today's oppression is a distant memory and people are free to speak their minds and develop their talents. Al Qaeda, Hezbollah, and Hamas will be defeated, as Muslims across the region recognize the emptiness of the terrorists' vision and the injustice of their cause.
This vision is the same one I outlined in my address to the Israeli Knesset. Yet it's not a Jewish vision or a Muslim vision, not an American vision or an Arab vision. It is a universal vision, based on the timeless principles of dignity and tolerance and justice -- and it unites all who yearn for freedom and peace in this ancient land.
Realizing this vision will not be easy. It will take time, and sacrifice, and resolve. Yet there is no doubt in my mind that you are up to the challenge -- and with your ingenuity and your enterprise and your courage, this historic vision for the Middle East will be realized. May God be with you on the journey, and the United States of America always will be at your side.
Thank you for having me.
END 3:25 P.M. (Local)
REMARKS BY THE PRESIDENT ON A NEW BEGINNING
Cairo University Cairo, Egypt, Jun 04, 2009 @1:10 P.M. (Local)http://www.whitehouse.gov/the_press_office/Remarks-by-the-President-at-Cairo-University-6-04-09/
President Bush Attends World Economic Forum
Sharm el Sheikh International Congress Center
Sharm el Sheikh, Egypt, May 18, 2008
http://georgewbush-whitehouse.archives.gov/news/releases/2008/05/20080518-6.html
Both speeches follow:
1 REMARKS BY THE PRESIDENT ON A NEW BEGINNING
Cairo University Cairo, Egypt, Jun 04, 2009 @1:10 P.M. (Local)http://www.whitehouse.gov/the_press_office/Remarks-by-the-President-at-Cairo-University-6-04-09/
PRESIDENT OBAMA: Thank you very much. Good afternoon. I am honored to be in the timeless city of Cairo, and to be hosted by two remarkable institutions. For over a thousand years, Al-Azhar has stood as a beacon of Islamic learning; and for over a century, Cairo University has been a source of Egypt's advancement. And together, you represent the harmony between tradition and progress. I'm grateful for your hospitality, and the hospitality of the people of Egypt. And I'm also proud to carry with me the goodwill of the American people, and a greeting of peace from Muslim communities in my country: Assalaamu alaykum. (Applause.)
We meet at a time of great tension between the United States and Muslims around the world -- tension rooted in historical forces that go beyond any current policy debate. The relationship between Islam and the West includes centuries of coexistence and cooperation, but also conflict and religious wars. More recently, tension has been fed by colonialism that denied rights and opportunities to many Muslims, and a Cold War in which Muslim-majority countries were too often treated as proxies without regard to their own aspirations. Moreover, the sweeping change brought by modernity and globalization led many Muslims to view the West as hostile to the traditions of Islam.
Violent extremists have exploited these tensions in a small but potent minority of Muslims. The attacks of September 11, 2001 and the continued efforts of these extremists to engage in violence against civilians has led some in my country to view Islam as inevitably hostile not only to America and Western countries, but also to human rights. All this has bred more fear and more mistrust.
So long as our relationship is defined by our differences, we will empower those who sow hatred rather than peace, those who promote conflict rather than the cooperation that can help all of our people achieve justice and prosperity. And this cycle of suspicion and discord must end.
I've come here to Cairo to seek a new beginning between the United States and Muslims around the world, one based on mutual interest and mutual respect, and one based upon the truth that America and Islam are not exclusive and need not be in competition. Instead, they overlap, and share common principles -- principles of justice and progress; tolerance and the dignity of all human beings.
I do so recognizing that change cannot happen overnight. I know there's been a lot of publicity about this speech, but no single speech can eradicate years of mistrust, nor can I answer in the time that I have this afternoon all the complex questions that brought us to this point. But I am convinced that in order to move forward, we must say openly to each other the things we hold in our hearts and that too often are said only behind closed doors. There must be a sustained effort to listen to each other; to learn from each other; to respect one another; and to seek common ground. As the Holy Koran tells us, "Be conscious of God and speak always the truth." (Applause.) That is what I will try to do today -- to speak the truth as best I can, humbled by the task before us, and firm in my belief that the interests we share as human beings are far more powerful than the forces that drive us apart.
Now part of this conviction is rooted in my own experience. I'm a Christian, but my father came from a Kenyan family that includes generations of Muslims. As a boy, I spent several years in Indonesia and heard the call of the azaan at the break of dawn and at the fall of dusk. As a young man, I worked in Chicago communities where many found dignity and peace in their Muslim faith.
As a student of history, I also know civilization's debt to Islam. It was Islam -- at places like Al-Azhar -- that carried the light of learning through so many centuries, paving the way for Europe's Renaissance and Enlightenment. It was innovation in Muslim communities -- (applause) -- it was innovation in Muslim communities that developed the order of algebra; our magnetic compass and tools of navigation; our mastery of pens and printing; our understanding of how disease spreads and how it can be healed. Islamic culture has given us majestic arches and soaring spires; timeless poetry and cherished music; elegant calligraphy and places of peaceful contemplation. And throughout history, Islam has demonstrated through words and deeds the possibilities of religious tolerance and racial equality. (Applause.)
I also know that Islam has always been a part of America's story. The first nation to recognize my country was Morocco. In signing the Treaty of Tripoli in 1796, our second President, John Adams, wrote, "The United States has in itself no character of enmity against the laws, religion or tranquility of Muslims." And since our founding, American Muslims have enriched the United States. They have fought in our wars, they have served in our government, they have stood for civil rights, they have started businesses, they have taught at our universities, they've excelled in our sports arenas, they've won Nobel Prizes, built our tallest building, and lit the Olympic Torch. And when the first Muslim American was recently elected to Congress, he took the oath to defend our Constitution using the same Holy Koran that one of our Founding Fathers -- Thomas Jefferson -- kept in his personal library. (Applause.)
So I have known Islam on three continents before coming to the region where it was first revealed. That experience guides my conviction that partnership between America and Islam must be based on what Islam is, not what it isn't. And I consider it part of my responsibility as President of the United States to fight against negative stereotypes of Islam wherever they appear. (Applause.)
But that same principle must apply to Muslim perceptions of America. (Applause.) Just as Muslims do not fit a crude stereotype, America is not the crude stereotype of a self-interested empire. The United States has been one of the greatest sources of progress that the world has ever known. We were born out of revolution against an empire. We were founded upon the ideal that all are created equal, and we have shed blood and struggled for centuries to give meaning to those words -- within our borders, and around the world. We are shaped by every culture, drawn from every end of the Earth, and dedicated to a simple concept: E pluribus unum -- "Out of many, one."
Now, much has been made of the fact that an African American with the name Barack Hussein Obama could be elected President. (Applause.) But my personal story is not so unique. The dream of opportunity for all people has not come true for everyone in America, but its promise exists for all who come to our shores -- and that includes nearly 7 million American Muslims in our country today who, by the way, enjoy incomes and educational levels that are higher than the American average. (Applause.)
Moreover, freedom in America is indivisible from the freedom to practice one's religion. That is why there is a mosque in every state in our union, and over 1,200 mosques within our borders. That's why the United States government has gone to court to protect the right of women and girls to wear the hijab and to punish those who would deny it. (Applause.)
So let there be no doubt: Islam is a part of America. And I believe that America holds within her the truth that regardless of race, religion, or station in life, all of us share common aspirations -- to live in peace and security; to get an education and to work with dignity; to love our families, our communities, and our God. These things we share. This is the hope of all humanity.
Of course, recognizing our common humanity is only the beginning of our task. Words alone cannot meet the needs of our people. These needs will be met only if we act boldly in the years ahead; and if we understand that the challenges we face are shared, and our failure to meet them will hurt us all.
For we have learned from recent experience that when a financial system weakens in one country, prosperity is hurt everywhere. When a new flu infects one human being, all are at risk. When one nation pursues a nuclear weapon, the risk of nuclear attack rises for all nations. When violent extremists operate in one stretch of mountains, people are endangered across an ocean. When innocents in Bosnia and Darfur are slaughtered, that is a stain on our collective conscience. (Applause.) That is what it means to share this world in the 21st century. That is the responsibility we have to one another as human beings.
And this is a difficult responsibility to embrace. For human history has often been a record of nations and tribes -- and, yes, religions -- subjugating one another in pursuit of their own interests. Yet in this new age, such attitudes are self-defeating. Given our interdependence, any world order that elevates one nation or group of people over another will inevitably fail. So whatever we think of the past, we must not be prisoners to it. Our problems must be dealt with through partnership; our progress must be shared. (Applause.)
Now, that does not mean we should ignore sources of tension. Indeed, it suggests the opposite: We must face these tensions squarely. And so in that spirit, let me speak as clearly and as plainly as I can about some specific issues that I believe we must finally confront together.
The first issue that we have to confront is violent extremism in all of its forms.
In Ankara, I made clear that America is not -- and never will be -- at war with Islam. (Applause.) We will, however, relentlessly confront violent extremists who pose a grave threat to our security -- because we reject the same thing that people of all faiths reject: the killing of innocent men, women, and children. And it is my first duty as President to protect the American people.
The situation in Afghanistan demonstrates America's goals, and our need to work together. Over seven years ago, the United States pursued al Qaeda and the Taliban with broad international support. We did not go by choice; we went because of necessity. I'm aware that there's still some who would question or even justify the events of 9/11. But let us be clear: Al Qaeda killed nearly 3,000 people on that day. The victims were innocent men, women and children from America and many other nations who had done nothing to harm anybody. And yet al Qaeda chose to ruthlessly murder these people, claimed credit for the attack, and even now states their determination to kill on a massive scale. They have affiliates in many countries and are trying to expand their reach. These are not opinions to be debated; these are facts to be dealt with.
Now, make no mistake: We do not want to keep our troops in Afghanistan. We see no military -- we seek no military bases there. It is agonizing for America to lose our young men and women. It is costly and politically difficult to continue this conflict. We would gladly bring every single one of our troops home if we could be confident that there were not violent extremists in Afghanistan and now Pakistan determined to kill as many Americans as they possibly can. But that is not yet the case.
And that's why we're partnering with a coalition of 46 countries. And despite the costs involved, America's commitment will not weaken. Indeed, none of us should tolerate these extremists. They have killed in many countries. They have killed people of different faiths -- but more than any other, they have killed Muslims. Their actions are irreconcilable with the rights of human beings, the progress of nations, and with Islam. The Holy Koran teaches that whoever kills an innocent is as -- it is as if he has killed all mankind. (Applause.) And the Holy Koran also says whoever saves a person, it is as if he has saved all mankind. (Applause.) The enduring faith of over a billion people is so much bigger than the narrow hatred of a few. Islam is not part of the problem in combating violent extremism -- it is an important part of promoting peace.
Now, we also know that military power alone is not going to solve the problems in Afghanistan and Pakistan. That's why we plan to invest $1.5 billion each year over the next five years to partner with Pakistanis to build schools and hospitals, roads and businesses, and hundreds of millions to help those who've been displaced. That's why we are providing more than $2.8 billion to help Afghans develop their economy and deliver services that people depend on.
Let me also address the issue of Iraq. Unlike Afghanistan, Iraq was a war of choice that provoked strong differences in my country and around the world. Although I believe that the Iraqi people are ultimately better off without the tyranny of Saddam Hussein, I also believe that events in Iraq have reminded America of the need to use diplomacy and build international consensus to resolve our problems whenever possible. (Applause.) Indeed, we can recall the words of Thomas Jefferson, who said: "I hope that our wisdom will grow with our power, and teach us that the less we use our power the greater it will be."
Today, America has a dual responsibility: to help Iraq forge a better future -- and to leave Iraq to Iraqis. And I have made it clear to the Iraqi people -- (applause) -- I have made it clear to the Iraqi people that we pursue no bases, and no claim on their territory or resources. Iraq's sovereignty is its own. And that's why I ordered the removal of our combat brigades by next August. That is why we will honor our agreement with Iraq's democratically elected government to remove combat troops from Iraqi cities by July, and to remove all of our troops from Iraq by 2012. (Applause.) We will help Iraq train its security forces and develop its economy. But we will support a secure and united Iraq as a partner, and never as a patron.
And finally, just as America can never tolerate violence by extremists, we must never alter or forget our principles. Nine-eleven was an enormous trauma to our country. The fear and anger that it provoked was understandable, but in some cases, it led us to act contrary to our traditions and our ideals. We are taking concrete actions to change course. I have unequivocally prohibited the use of torture by the United States, and I have ordered the prison at Guantanamo Bay closed by early next year. (Applause.)
So America will defend itself, respectful of the sovereignty of nations and the rule of law. And we will do so in partnership with Muslim communities which are also threatened. The sooner the extremists are isolated and unwelcome in Muslim communities, the sooner we will all be safer.
The second major source of tension that we need to discuss is the situation between Israelis, Palestinians and the Arab world.
America's strong bonds with Israel are well known. This bond is unbreakable. It is based upon cultural and historical ties, and the recognition that the aspiration for a Jewish homeland is rooted in a tragic history that cannot be denied.
Around the world, the Jewish people were persecuted for centuries, and anti-Semitism in Europe culminated in an unprecedented Holocaust. Tomorrow, I will visit Buchenwald, which was part of a network of camps where Jews were enslaved, tortured, shot and gassed to death by the Third Reich. Six million Jews were killed -- more than the entire Jewish population of Israel today. Denying that fact is baseless, it is ignorant, and it is hateful. Threatening Israel with destruction -- or repeating vile stereotypes about Jews -- is deeply wrong, and only serves to evoke in the minds of Israelis this most painful of memories while preventing the peace that the people of this region deserve.
On the other hand, it is also undeniable that the Palestinian people -- Muslims and Christians -- have suffered in pursuit of a homeland. For more than 60 years they've endured the pain of dislocation. Many wait in refugee camps in the West Bank, Gaza, and neighboring lands for a life of peace and security that they have never been able to lead. They endure the daily humiliations -- large and small -- that come with occupation. So let there be no doubt: The situation for the Palestinian people is intolerable. And America will not turn our backs on the legitimate Palestinian aspiration for dignity, opportunity, and a state of their own. (Applause.)
For decades then, there has been a stalemate: two peoples with legitimate aspirations, each with a painful history that makes compromise elusive. It's easy to point fingers -- for Palestinians to point to the displacement brought about by Israel's founding, and for Israelis to point to the constant hostility and attacks throughout its history from within its borders as well as beyond. But if we see this conflict only from one side or the other, then we will be blind to the truth: The only resolution is for the aspirations of both sides to be met through two states, where Israelis and Palestinians each live in peace and security. (Applause.)
That is in Israel's interest, Palestine's interest, America's interest, and the world's interest. And that is why I intend to personally pursue this outcome with all the patience and dedication that the task requires. (Applause.) The obligations -- the obligations that the parties have agreed to under the road map are clear. For peace to come, it is time for them -- and all of us -- to live up to our responsibilities.
Palestinians must abandon violence. Resistance through violence and killing is wrong and it does not succeed. For centuries, black people in America suffered the lash of the whip as slaves and the humiliation of segregation. But it was not violence that won full and equal rights. It was a peaceful and determined insistence upon the ideals at the center of America's founding. This same story can be told by people from South Africa to South Asia; from Eastern Europe to Indonesia. It's a story with a simple truth: that violence is a dead end. It is a sign neither of courage nor power to shoot rockets at sleeping children, or to blow up old women on a bus. That's not how moral authority is claimed; that's how it is surrendered.
Now is the time for Palestinians to focus on what they can build. The Palestinian Authority must develop its capacity to govern, with institutions that serve the needs of its people. Hamas does have support among some Palestinians, but they also have to recognize they have responsibilities. To play a role in fulfilling Palestinian aspirations, to unify the Palestinian people, Hamas must put an end to violence, recognize past agreements, recognize Israel's right to exist.
At the same time, Israelis must acknowledge that just as Israel's right to exist cannot be denied, neither can Palestine's. The United States does not accept the legitimacy of continued Israeli settlements. (Applause.) This construction violates previous agreements and undermines efforts to achieve peace. It is time for these settlements to stop. (Applause.)
And Israel must also live up to its obligation to ensure that Palestinians can live and work and develop their society. Just as it devastates Palestinian families, the continuing humanitarian crisis in Gaza does not serve Israel's security; neither does the continuing lack of opportunity in the West Bank. Progress in the daily lives of the Palestinian people must be a critical part of a road to peace, and Israel must take concrete steps to enable such progress.
And finally, the Arab states must recognize that the Arab Peace Initiative was an important beginning, but not the end of their responsibilities. The Arab-Israeli conflict should no longer be used to distract the people of Arab nations from other problems. Instead, it must be a cause for action to help the Palestinian people develop the institutions that will sustain their state, to recognize Israel's legitimacy, and to choose progress over a self-defeating focus on the past.
America will align our policies with those who pursue peace, and we will say in public what we say in private to Israelis and Palestinians and Arabs. (Applause.) We cannot impose peace. But privately, many Muslims recognize that Israel will not go away. Likewise, many Israelis recognize the need for a Palestinian state. It is time for us to act on what everyone knows to be true.
Too many tears have been shed. Too much blood has been shed. All of us have a responsibility to work for the day when the mothers of Israelis and Palestinians can see their children grow up without fear; when the Holy Land of the three great faiths is the place of peace that God intended it to be; when Jerusalem is a secure and lasting home for Jews and Christians and Muslims, and a place for all of the children of Abraham to mingle peacefully together as in the story of Isra -- (applause) -- as in the story of Isra, when Moses, Jesus, and Mohammed, peace be upon them, joined in prayer. (Applause.)
The third source of tension is our shared interest in the rights and responsibilities of nations on nuclear weapons.
This issue has been a source of tension between the United States and the Islamic Republic of Iran. For many years, Iran has defined itself in part by its opposition to my country, and there is in fact a tumultuous history between us. In the middle of the Cold War, the United States played a role in the overthrow of a democratically elected Iranian government. Since the Islamic Revolution, Iran has played a role in acts of hostage-taking and violence against U.S. troops and civilians. This history is well known. Rather than remain trapped in the past, I've made it clear to Iran's leaders and people that my country is prepared to move forward. The question now is not what Iran is against, but rather what future it wants to build.
I recognize it will be hard to overcome decades of mistrust, but we will proceed with courage, rectitude, and resolve. There will be many issues to discuss between our two countries, and we are willing to move forward without preconditions on the basis of mutual respect. But it is clear to all concerned that when it comes to nuclear weapons, we have reached a decisive point. This is not simply about America's interests. It's about preventing a nuclear arms race in the Middle East that could lead this region and the world down a hugely dangerous path.
I understand those who protest that some countries have weapons that others do not. No single nation should pick and choose which nation holds nuclear weapons. And that's why I strongly reaffirmed America's commitment to seek a world in which no nations hold nuclear weapons. (Applause.) And any nation -- including Iran -- should have the right to access peaceful nuclear power if it complies with its responsibilities under the nuclear Non-Proliferation Treaty. That commitment is at the core of the treaty, and it must be kept for all who fully abide by it. And I'm hopeful that all countries in the region can share in this goal.
The fourth issue that I will address is democracy. (Applause.)
I know -- I know there has been controversy about the promotion of democracy in recent years, and much of this controversy is connected to the war in Iraq. So let me be clear: No system of government can or should be imposed by one nation by any other. That does not lessen my commitment, however, to governments that reflect the will of the people. Each nation gives life to this principle in its own way, grounded in the traditions of its own people. America does not presume to know what is best for everyone, just as we would not presume to pick the outcome of a peaceful election. But I do have an unyielding belief that all people yearn for certain things: the ability to speak your mind and have a say in how you are governed; confidence in the rule of law and the equal administration of justice; government that is transparent and doesn't steal from the people; the freedom to live as you choose. These are not just American ideas; they are human rights. And that is why we will support them everywhere. (Applause.)
Now, there is no straight line to realize this promise. But this much is clear: Governments that protect these rights are ultimately more stable, successful and secure. Suppressing ideas never succeeds in making them go away. America respects the right of all peaceful and law-abiding voices to be heard around the world, even if we disagree with them. And we will welcome all elected, peaceful governments -- provided they govern with respect for all their people.
This last point is important because there are some who advocate for democracy only when they're out of power; once in power, they are ruthless in suppressing the rights of others. (Applause.) So no matter where it takes hold, government of the people and by the people sets a single standard for all who would hold power: You must maintain your power through consent, not coercion; you must respect the rights of minorities, and participate with a spirit of tolerance and compromise; you must place the interests of your people and the legitimate workings of the political process above your party. Without these ingredients, elections alone do not make true democracy.
AUDIENCE MEMBER: Barack Obama, we love you!
PRESIDENT OBAMA: Thank you. (Applause.) The fifth issue that we must address together is religious freedom.
Islam has a proud tradition of tolerance. We see it in the history of Andalusia and Cordoba during the Inquisition. I saw it firsthand as a child in Indonesia, where devout Christians worshiped freely in an overwhelmingly Muslim country. That is the spirit we need today. People in every country should be free to choose and live their faith based upon the persuasion of the mind and the heart and the soul. This tolerance is essential for religion to thrive, but it's being challenged in many different ways.
Among some Muslims, there's a disturbing tendency to measure one's own faith by the rejection of somebody else's faith. The richness of religious diversity must be upheld -- whether it is for Maronites in Lebanon or the Copts in Egypt. (Applause.) And if we are being honest, fault lines must be closed among Muslims, as well, as the divisions between Sunni and Shia have led to tragic violence, particularly in Iraq.
Freedom of religion is central to the ability of peoples to live together. We must always examine the ways in which we protect it. For instance, in the United States, rules on charitable giving have made it harder for Muslims to fulfill their religious obligation. That's why I'm committed to working with American Muslims to ensure that they can fulfill zakat.
Likewise, it is important for Western countries to avoid impeding Muslim citizens from practicing religion as they see fit -- for instance, by dictating what clothes a Muslim woman should wear. We can't disguise hostility towards any religion behind the pretence of liberalism. In fact, faith should bring us together. And that's why we're forging service projects in America to bring together Christians, Muslims, and Jews. That's why we welcome efforts like Saudi Arabian King Abdullah's interfaith dialogue and Turkey's leadership in the Alliance of Civilizations. Around the world, we can turn dialogue into interfaith service, so bridges between peoples lead to action -- whether it is combating malaria in Africa, or providing relief after a natural disaster.
The sixth issue -- the sixth issue that I want to address is women's rights. (Applause.) I know –- I know -- and you can tell from this audience, that there is a healthy debate about this issue. I reject the view of some in the West that a woman who chooses to cover her hair is somehow less equal, but I do believe that a woman who is denied an education is denied equality. (Applause.) And it is no coincidence that countries where women are well educated are far more likely to be prosperous.
Now, let me be clear: Issues of women's equality are by no means simply an issue for Islam. In Turkey, Pakistan, Bangladesh, Indonesia, we've seen Muslim-majority countries elect a woman to lead. Meanwhile, the struggle for women's equality continues in many aspects of American life, and in countries around the world.
I am convinced that our daughters can contribute just as much to society as our sons. (Applause.) Our common prosperity will be advanced by allowing all humanity -- men and women -- to reach their full potential. I do not believe that women must make the same choices as men in order to be equal, and I respect those women who choose to live their lives in traditional roles. But it should be their choice. And that is why the United States will partner with any Muslim-majority country to support expanded literacy for girls, and to help young women pursue employment through micro-financing that helps people live their dreams. (Applause.)
Finally, I want to discuss economic development and opportunity.
I know that for many, the face of globalization is contradictory. The Internet and television can bring knowledge and information, but also offensive sexuality and mindless violence into the home. Trade can bring new wealth and opportunities, but also huge disruptions and change in communities. In all nations -- including America -- this change can bring fear. Fear that because of modernity we lose control over our economic choices, our politics, and most importantly our identities -- those things we most cherish about our communities, our families, our traditions, and our faith.
But I also know that human progress cannot be denied. There need not be contradictions between development and tradition. Countries like Japan and South Korea grew their economies enormously while maintaining distinct cultures. The same is true for the astonishing progress within Muslim-majority countries from Kuala Lumpur to Dubai. In ancient times and in our times, Muslim communities have been at the forefront of innovation and education.
And this is important because no development strategy can be based only upon what comes out of the ground, nor can it be sustained while young people are out of work. Many Gulf states have enjoyed great wealth as a consequence of oil, and some are beginning to focus it on broader development. But all of us must recognize that education and innovation will be the currency of the 21st century -- (applause) -- and in too many Muslim communities, there remains underinvestment in these areas. I'm emphasizing such investment within my own country. And while America in the past has focused on oil and gas when it comes to this part of the world, we now seek a broader engagement.
On education, we will expand exchange programs, and increase scholarships, like the one that brought my father to America. (Applause.) At the same time, we will encourage more Americans to study in Muslim communities. And we will match promising Muslim students with internships in America; invest in online learning for teachers and children around the world; and create a new online network, so a young person in Kansas can communicate instantly with a young person in Cairo.
On economic development, we will create a new corps of business volunteers to partner with counterparts in Muslim-majority countries. And I will host a Summit on Entrepreneurship this year to identify how we can deepen ties between business leaders, foundations and social entrepreneurs in the United States and Muslim communities around the world.
On science and technology, we will launch a new fund to support technological development in Muslim-majority countries, and to help transfer ideas to the marketplace so they can create more jobs. We'll open centers of scientific excellence in Africa, the Middle East and Southeast Asia, and appoint new science envoys to collaborate on programs that develop new sources of energy, create green jobs, digitize records, clean water, grow new crops. Today I'm announcing a new global effort with the Organization of the Islamic Conference to eradicate polio. And we will also expand partnerships with Muslim communities to promote child and maternal health.
All these things must be done in partnership. Americans are ready to join with citizens and governments; community organizations, religious leaders, and businesses in Muslim communities around the world to help our people pursue a better life.
The issues that I have described will not be easy to address. But we have a responsibility to join together on behalf of the world that we seek -- a world where extremists no longer threaten our people, and American troops have come home; a world where Israelis and Palestinians are each secure in a state of their own, and nuclear energy is used for peaceful purposes; a world where governments serve their citizens, and the rights of all God's children are respected. Those are mutual interests. That is the world we seek. But we can only achieve it together.
I know there are many -- Muslim and non-Muslim -- who question whether we can forge this new beginning. Some are eager to stoke the flames of division, and to stand in the way of progress. Some suggest that it isn't worth the effort -- that we are fated to disagree, and civilizations are doomed to clash. Many more are simply skeptical that real change can occur. There's so much fear, so much mistrust that has built up over the years. But if we choose to be bound by the past, we will never move forward. And I want to particularly say this to young people of every faith, in every country -- you, more than anyone, have the ability to reimagine the world, to remake this world.
All of us share this world for but a brief moment in time. The question is whether we spend that time focused on what pushes us apart, or whether we commit ourselves to an effort -- a sustained effort -- to find common ground, to focus on the future we seek for our children, and to respect the dignity of all human beings.
It's easier to start wars than to end them. It's easier to blame others than to look inward. It's easier to see what is different about someone than to find the things we share. But we should choose the right path, not just the easy path. There's one rule that lies at the heart of every religion -- that we do unto others as we would have them do unto us. (Applause.) This truth transcends nations and peoples -- a belief that isn't new; that isn't black or white or brown; that isn't Christian or Muslim or Jew. It's a belief that pulsed in the cradle of civilization, and that still beats in the hearts of billions around the world. It's a faith in other people, and it's what brought me here today.
We have the power to make the world we seek, but only if we have the courage to make a new beginning, keeping in mind what has been written.
The Holy Koran tells us: "O mankind! We have created you male and a female; and we have made you into nations and tribes so that you may know one another."
The Talmud tells us: "The whole of the Torah is for the purpose of promoting peace."
The Holy Bible tells us: "Blessed are the peacemakers, for they shall be called sons of God." (Applause.)
The people of the world can live together in peace. We know that is God's vision. Now that must be our work here on Earth.
Thank you. And may God's peace be upon you. Thank you very much. Thank you. (Applause.)
END 2:05 P.M. (Local)
2 President Bush Attends World Economic Forum
Sharm el Sheikh International Congress Center
Sharm el Sheikh, Egypt, May 18, 2008
http://georgewbush-whitehouse.archives.gov/news/releases/2008/05/20080518-6.html
THE PRESIDENT: Klaus, thank you very much. Thanks for inviting me. Klaus said, it's about time you showed up. Proud to be here. Laura and I are so honored that, Klaus, you gave us a chance to come. I do want to thank President Mubarak and Mrs. Mubarak for their wonderful hospitality. I want to thank the members of Congress who are here. I appreciate the heads of state who have joined us. I thank the foreign ministers who are here, including my own, Secretary of State Condoleezza Rice. And I want to thank the members of the Diplomatic Corps.
Laura and I are delighted to be in Egypt, and we bring the warm wishes of the American people. We're proud of our long friendship with your citizens. We respect your remarkable history. And we're humbled to walk in the ancient land of pharaohs, where a great civilization took root and wrote some of the first chapters in the epic story of humanity.
America is a much younger nation, but we've made our mark by advancing ideals as old as the pyramids. Those ideals of liberty and justice have sparked a revolution across much of the world. This hopeful movement made its way to places where dictators once reigned and peaceful democracies seemed unimaginable: places like Chile and Indonesia and Poland and the Philippines and South Korea. These nations have different histories and different traditions. Yet each made the same democratic transition, and they did it on their own terms. In these countries, millions every year are rising from poverty. Women are realizing overdue opportunities. And people of faith are finding the blessing of worshiping God in peace.
All these changes took place in the second half of the 20th century. I strongly believe that if leaders like those of you in this room act with vision and resolve, the first half of 21st century can be the time when similar advances reach the Middle East. This region is home to energetic people, a powerful spirit of enterprise, and tremendous resources. It is capable of a very bright future -- a future in which the Middle East is a place of innovation and discovery, driven by free men and women.
In recent years, we've seen hopeful beginnings toward this vision. Turkey, a nation with a majority Muslim population, is a prosperous modern democracy. Afghanistan under the leadership of President Karzai is overcoming the Taliban and building a free society. Iraq under the leadership of Prime Minister Maliki is establishing a multi-ethnic democracy. We have seen the stirrings of reform from Morocco and Algeria to Jordan and the Gulf States. And isolation from the outside world is being overcome by the most democratic of innovations: the cell phone and the Internet. America appreciates the challenges facing the Middle East. Yet the light of liberty is beginning to shine.
There is much to do to build on this momentum. From diversifying your economies, to investing in your people, to extending the reach of freedom, nations across the region have an opportunity to move forward with bold and confident reforms -- and lead the Middle East to its rightful place as a center of progress and achievement.
Taking your place as a center of progress and achievement requires economic reform. This is a time of strength for many of your nations' economies. Since 2004, economic growth in the region has averaged more than 5 percent. Trade has expanded significantly. Technology has advanced rapidly. Foreign investment has increased dramatically. And unemployment rates have decreased in many nations. Egypt, for example, has posted strong economic growth, developed some of the world's fastest growing telecommunications companies, and made major investments that will boost tourism and trade. In order for this economic progress to result in permanent prosperity and an Egypt that reaches its full potential, however, economic reform must be accompanied by political reform. And I continue to hope that Egypt can lead the region in political reform.
This is also a time to prepare for the economic changes ahead. Rising price of oil has brought great wealth to some in this region, but the supply of oil is limited, and nations like mine are aggressively developing alternatives to oil. Over time, as the world becomes less dependent on oil, nations in the Middle East will have to build more diverse and more dynamic economies.
Your greatest asset in this quest is the entrepreneurial spirit of your people. The best way to take advantage of that spirit is to make reforms that unleash individual creativity and innovation. Your economies will be more vibrant when citizens who dream of starting their own companies can do so quickly, without high regulatory and registration costs. Your economies will be more dynamic when property rights are protected and risk-taking is encouraged -- not punished -- by law. Your economies will be more resilient when you adopt modern agricultural techniques that make farmers more productive and the food supply more secure. And your economies will have greater long-term prosperity when taxes are low and all your citizens know that their innovation and hard work will be rewarded.
One of the most powerful drivers of economic growth is free trade. So nations in this region would benefit greatly from breaking down barriers to trade with each other. And America will continue working to open up trade at every level. In recent years, the United States has completed free trade agreements with Jordan, Oman, Morocco, and Bahrain. America will continue to negotiate bilateral free trade agreements in the region. We strongly supported Saudi Arabia's accession to the World Trade Organization, and we will continue to support nations making the reforms necessary to join the institutions of a global economy. To break down trade barriers and ignite economic growth around the world, we will work tirelessly for a successful outcome to the Doha Round this year.
As we seek to open new markets abroad, America will keep our markets open at home. There are voices in my country that urge America to adopt measures that would isolate us from the global economy. I firmly reject these calls for protectionism. We will continue to welcome foreign investment and trade. And the United States of America will stay open for business.
Taking your place as a center of progress and achievement requires investing in your people. Some analysts believe the Middle East and North Africa will need to create up to 100 million new jobs over the next 10 to 15 years just to keep up with population growth. The key to realizing this goal is an educated workforce.
This starts early on, with primary schools that teach basic skills, such as reading and math, rather than indoctrinating children with ideologies of hatred. An educated workforce also requires good high schools and universities, where students are exposed to a variety of ideas, learn to think for themselves, and develop the capacity to innovate. Not long ago the region marked a hopeful milestone in higher education. In our meeting yesterday, President Karzai told me he recently handed out diplomas to university graduates, including 300 degrees in medicine, and a hundred degrees in engineering, and a lot of degrees to lawyers, and many of the recipients were women. (Applause.)
People of the Middle East can count on the United States to be a strong partner in improving your educational systems. We are sponsoring training programs for teachers and administrators in nations like Jordan and Morocco and Lebanon. We sponsored English language programs where students can go for intensive language instruction. We have translated more than 80 children's books into Arabic. And we have developed new online curricula for students from kindergarten through high school.
It is also in America's interest to continue welcoming aspiring young adults from this region for higher education to the United States. There were understandable concerns about student visas after 9/11. My administration has worked hard to improve the visa process. And I'm pleased to report that we are issuing a growing numbers of student visas to young people from the Middle East. And that's the way it should be. And we'll continue to work to expand educational exchanges, because we benefit from the contribution of foreign students who study in America because we're proud to train the world's leaders of tomorrow and because we know there is no better antidote to the propaganda of our enemies than firsthand experience with life in the United States of America.
Building powerful economies also requires expanding the role of women in society. This is a matter of morality and of basic math. No nation that cuts off half its population from opportunities will be as productive or prosperous as it could be. Women are a formidable force, as I have seen in my own family -- (laughter and applause) -- and my own administration. (Applause.) As the nations of the Middle East open up their laws and their societies to women, they are learning the same thing.
I applaud Egypt. Egypt is a model for the development of professional women. In Afghanistan, girls who were once denied even a basic education are now going to school, and a whole generation of Afghans will grow up with the intellectual tools to lead their nation toward prosperity. In Iraq and Kuwait, women are joining political parties and running campaigns and serving in public office. In some Gulf States, women entrepreneurs are making a living and a name for themselves in the business world.
Recently, I learned of a woman in Bahrain who owns her own shipping company. She started with a small office and two employees. When she first tried to register her business in her own name, she was turned down. She attended a business training class and was the only woman to participate. And when she applied for a customs license, officials expressed surprise because no woman had ever asked for one before.
And yet with hard work and determination, she turned her small company into a $2 million enterprise. And this year, Huda Janahi was named one of the 50 most powerful businesswomen in the Arab world. (Applause.) Huda is an inspiring example for the whole region. And America's message to other women in the Middle East is this: You have a great deal to contribute, you should have a strong voice in leading your countries, and my nation looks to the day when you have the rights and privileges you deserve.
Taking your place as a center of progress and achievement requires extending the reach of freedom. Expanding freedom is vital to turning temporary wealth into lasting prosperity. Free societies stimulate competition in the marketplace. Free societies give people access to information they need to make informed and responsible decisions. And free societies give citizens the rule of law, which exposes corruption and builds confidence in the future.
Freedom is also the basis for a democratic system of government, which is the only fair and just ordering of society and the only way to guarantee the God-given rights of all people. Democracies do not take the same shape; they develop at different speeds and in different ways, and they reflect the unique cultures and traditions of their people. There are skeptics about democracy in this part of the world, I understand that. But as more people in the Middle East gain firsthand experience from freedom, many of the arguments against democracy are being discredited.
For example, some say that democracy is a Western value that America seeks to impose on unwilling citizens. This is a condescending form of moral relativism. The truth is that freedom is a universal right -- the Almighty's gift to every man, woman, and child on the face of Earth. And as we've seen time and time again, when people are allowed to make a choice between freedom and the alternative, they choose freedom. In Afghanistan, 8 million people defied the terrorist threats to vote for a democratic President. In Iraq, 12 million people waved ink-stained fingers to celebrate the first democratic election in decades. And in a recent survey of the Muslim world, there was overwhelming support for one of the central tenets of democracy, freedom of speech: 99 percent in Lebanon, 94 percent here in Egypt, and 92 percent in Iran.
There are people who claim that democracy is incompatible with Islam. But the truth is that democracies, by definition, make a place for people of religious belief. America is one of the most -- is one of the world's leading democracies, and we're also one of the most religious nations in the world. More than three-quarters of our citizens believe in a higher power. Millions worship every week and pray every day. And they do so without fear of reprisal from the state. In our democracy, we would never punish a person for owning a Koran. We would never issue a death sentence to someone for converting to Islam. Democracy does not threaten Islam or any religion. Democracy is the only system of government that guarantees their protection.
Some say any state that holds an election is a democracy. But true democracy requires vigorous political parties allowed to engage in free and lively debate. True democracy requires the establishment of civic institutions that ensure an election's legitimacy and hold leaders accountable. And true democracy requires competitive elections in which opposition candidates are allowed to campaign without fear or intimidation.
Too often in the Middle East, politics has consisted of one leader in power and the opposition in jail. America is deeply concerned about the plight of political prisoners in this region, as well as democratic activists who are intimidated or repressed, newspapers and civil society organizations that are shut down, and dissidents whose voices are stifled. The time has come for nations across the Middle East to abandon these practices, and treat their people with dignity and the respect they deserve. I call on all nations to release their prisoners of conscience, open up their political debate, and trust their people to chart their future. (Applause.)
The vision I have outlined today is shared by many in this region -- but unfortunately, there are some spoilers who stand in the way. Terrorist organizations and their state sponsors know they cannot survive in a free society, so they create chaos and take innocent lives in an effort to stop democracy from taking root. They are on the wrong side in a great ideological struggle -- and every nation committed to freedom and progress in the Middle East must stand together to defeat them.
We must stand with the Palestinian people, who have suffered for decades and earned the right to be a homeland of their own -- have a homeland of their own. I strongly support a two-state solution -- a democratic Palestine based on law and justice that will live with peace and security alongside a democrat Israel. I believe that the Palestinian people will build a thriving democracy in which entrepreneurs pursue their dreams, and families own their homes in lively communities, and young people grow up with hope in the future.
Last year at Annapolis, we made a hopeful beginning toward a peace negotiation that will outline what this nation of Palestine will look like -- a contiguous state where Palestinians live in prosperity and dignity. A peace agreement is in the Palestinians' interests, it is in Israel's interests, it is in Arab states' interests, and it is in the world's interests. And I firmly believe that with leadership and courage, we can reach that peace agreement this year. (Applause.)
This is a demanding task. It requires action on all sides. Palestinians must fight terror and continue to build the institutions of a free and peaceful society. Israel must make tough sacrifices for peace and ease the restrictions on the Palestinians. Arab states, especially oil-rich nations, must seize this opportunity to invest aggressively in the Palestinian people and to move past their old resentments against Israel. And all nations in the region must stand together in confronting Hamas, which is attempting to undermine efforts at peace with acts of terror and violence.
We must stand with the people of Lebanon in their struggle to build a sovereign and independent democracy. This means opposing Hezbollah terrorists, funded by Iran, who recently revealed their true intentions by taking up arms against the Lebanese people. It is now clearer than ever that Hezbollah militias are the enemy of a free Lebanon -- and all nations, especially neighbors in the region, have an interest to help the Lebanese people prevail. (Applause.)
We must stand with the people of Iraq and Afghanistan and other nations in the region fighting against al Qaeda and other extremists. Bin Laden and his followers have made clear that anyone who does not share their extremist ideology is fit for murder. That means every government in the Middle East is a target of al Qaeda. And America is a target too. And together, we will confront and we will defeat this threat to civilization.
We must stand with the good and decent people of Iran and Syria, who deserve so much better than the life they have today. Every peaceful nation in the region has an interest in stopping these nations from supporting terrorism. And every peaceful nation in the region has an interest in opposing Iran's nuclear weapons ambitions. To allow the world's leading sponsor of terror to gain the world's deadliest weapon would be an unforgivable betrayal of future generations. For the sake of peace, the world must not allow Iran to have a nuclear weapon. (Applause.)
The changes I have discussed today will not come easily -- change never does. But the reform movement in the Middle East has a powerful engine: demographics. Sixty percent of the population is under 30 years old. Many of these young people surf the web, own cell phones, have satellite televisions. They have access to unprecedented amounts of information. They see what freedom has brought to millions of others and contrast that to what they have at home.
Today, I have a message for these young people: Some tell -- some will tell you change is impossible, but history has a way of surprising us, and change can happen more quickly than we expect. In the past century, one concept has transcended borders, cultures, and languages. In Arabic, "hurriyya" -- in English, "freedom." Across the world, the call for freedom lives in our hearts, endures in our prayers, and joins humanity as one.
I know these are trying times, but the future is in your hands -- and freedom and peace are within your grasp. Just imagine what this region could look like in 60 years. The Palestinian people will have the homeland they have long dreamed of and deserve -- a democratic state that is governed by law, respects human rights, and rejects terror. Israel will be celebrating its 120 anniversary as one of the world's great democracies -- a secure and flourishing homeland for the Jewish people.
From Cairo, Riyadh, Baghdad to Beirut, people will live in free and independent societies, where a desire for peace is reinforced by ties of diplomacy and tourism and trade. Iran and Syria will be peaceful nations, where today's oppression is a distant memory and people are free to speak their minds and develop their talents. Al Qaeda, Hezbollah, and Hamas will be defeated, as Muslims across the region recognize the emptiness of the terrorists' vision and the injustice of their cause.
This vision is the same one I outlined in my address to the Israeli Knesset. Yet it's not a Jewish vision or a Muslim vision, not an American vision or an Arab vision. It is a universal vision, based on the timeless principles of dignity and tolerance and justice -- and it unites all who yearn for freedom and peace in this ancient land.
Realizing this vision will not be easy. It will take time, and sacrifice, and resolve. Yet there is no doubt in my mind that you are up to the challenge -- and with your ingenuity and your enterprise and your courage, this historic vision for the Middle East will be realized. May God be with you on the journey, and the United States of America always will be at your side.
Thank you for having me.
END 3:25 P.M. (Local)
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