Fall of the Berlin Wall

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pages: 254 words: 68,133

The Age of Illusions: How America Squandered Its Cold War Victory by Andrew J. Bacevich

affirmative action, Affordable Care Act / Obamacare, anti-communist, Berlin Wall, Bernie Sanders, clean water, Columbian Exchange, Credit Default Swap, cuban missile crisis, David Brooks, deindustrialization, Donald Trump, Fall of the Berlin Wall, Francis Fukuyama: the end of history, friendly fire, gig economy, global village, Gordon Gekko, greed is good, illegal immigration, income inequality, Jeff Bezos, Kickstarter, Marshall McLuhan, mass incarceration, Mikhail Gorbachev, Monroe Doctrine, Norman Mailer, obamacare, Occupy movement, planetary scale, plutocrats, Plutocrats, Potemkin village, price stability, Project for a New American Century, Ronald Reagan, Ronald Reagan: Tear down this wall, Saturday Night Live, school choice, Silicon Valley, Thomas L Friedman, too big to fail, trickle-down economics, WikiLeaks

In sum, the imperative of addressing climate change may one day offer a suitable replacement for the disastrously misguided consensus foisted on the American people after the fall of the Berlin Wall. Here, in sum, are the makings of a suitable answer to Rabbit Angstrom’s question. That Donald Trump is oblivious to all of this goes without saying. Yet such matters may lie beyond any president’s purview. When all is said and done, presidents don’t shape the country; the country shapes the presidency—or at least it defines the parameters within which presidents operate. Over the course of the last few decades, in our headlong quest to reach the Emerald City, those parameters have become increasingly at odds with the collective well-being of the American people, not to mention of the planet as a whole. Considered in retrospect, it becomes apparent that the fall of the Berlin Wall did not mark the “end of history.” Nor did it constitute a turning point in the history of the United States.

By turning their country over to Donald Trump, those Americans signaled their repudiation of that very consensus. That Trump himself did not offer anything remotely like a reasoned alternative made his elevation to the presidency all the more remarkable. He was a protest candidate elected by a protest vote. In that regard, the 2016 presidential election marked a historical turning point comparable in significance to the fall of the Berlin Wall a quarter century earlier. The Age of Illusions seeks to understand what occurred between those two milestones. The quotation from the writer James Baldwin that introduces this book aptly expresses its overarching theme: promises made, but not kept; expectations raised, but unfulfilled; outraged citizens left with no place to stand. 1 AL, FRED, AND HOMER’S AMERICA—AND MINE Donald Trump was born in June 1946, the son of a wealthy New York real estate developer.

he wondered.9 Back in New York, ABC’s Sam Donaldson announced that the Wall itself had “all but vanished” and, as a result, “freedom’s light is shining.”10 Connie Chung of CBS affirmed the Wall’s sudden transformation from an ugly symbol of repression into “a monument to the abiding dream of people to be free.”11 Print commentary duly echoed such sentiments. According to New York Times columnist Tom Wicker, the fall of the Berlin Wall signified a “glorious victory for the West and the burial of Communism.”12 Reporting from the scene, Times correspondent Serge Schmemann wrote that events there seemed “to sweep away much of the common wisdom and presumptions of the postwar world.” Whatever might happen next, the one sure thing was that “something essential had changed [and] that things would not be the same again.”13 According to the New Republic, “excitement bordering on ecstasy” constituted the only allowable response to the breaching of the Berlin Wall.


pages: 391 words: 102,301

Zero-Sum Future: American Power in an Age of Anxiety by Gideon Rachman

Asian financial crisis, bank run, battle of ideas, Berlin Wall, Big bang: deregulation of the City of London, Bonfire of the Vanities, borderless world, Bretton Woods, BRICs, capital controls, centre right, clean water, collapse of Lehman Brothers, colonial rule, currency manipulation / currency intervention, deindustrialization, Deng Xiaoping, Doha Development Round, energy security, failed state, Fall of the Berlin Wall, financial deregulation, Francis Fukuyama: the end of history, full employment, global reserve currency, greed is good, Hernando de Soto, illegal immigration, income inequality, invisible hand, Jeff Bezos, laissez-faire capitalism, Live Aid, market fundamentalism, Martin Wolf, mass immigration, Mexican peso crisis / tequila crisis, Mikhail Gorbachev, moral hazard, mutually assured destruction, Naomi Klein, Nelson Mandela, offshore financial centre, open borders, open economy, Peace of Westphalia, peak oil, pension reform, plutocrats, Plutocrats, popular capitalism, price stability, RAND corporation, reserve currency, rising living standards, road to serfdom, Ronald Reagan, shareholder value, Sinatra Doctrine, sovereign wealth fund, special economic zone, Steve Jobs, Stewart Brand, The Chicago School, The Great Moderation, The Myth of the Rational Market, Thomas Malthus, trickle-down economics, Washington Consensus, Winter of Discontent, zero-sum game

The most dramatic chapter of the Age of Transformation was about to be written. 6 EUROPE, 1989 THE YEAR OF REVOLUTIONS The single most dramatic event of the Age of Transformation was the fall of the Berlin Wall on November 9, 1989. The wall had divided Europe. It had separated the communist world from the capitalist world, and the Soviet bloc from the democratic world. The sight of thousands of East Germans streaming through the wall and into West Berlin on that November night was the sign that the cold war was over. A single global economic and political system was being formed—a “new world order,” as President George H. W. Bush called it. The fall of the Berlin Wall was a victory for the Western powers and for individual freedom. It was also a victory for Western consumerism. The symbol of the failure of East Germany swiftly became the Trabant, the small, unglamorous, underpowered national car of East Germany, which looked so pathetic next to the powerful Mercedes and BMWs that flaunted the economic power of West Germany.

That is why the first two sections of this book are devoted to the international and intellectual history of the past thirty years. Starting the narrative in 1978 may not seem obvious to all readers. Americans, in particular, have tended to regard the defining moments of recent history as the end of the cold war and the al-Qaeda attacks on the United States on September 11, 2001. One of the best recent histories of U.S. foreign policy is subtitled “From 11/9 to 9/11”—the two dates in question marking the fall of the Berlin Wall and the terrorist attack on the United States.12 But the collapse of the Soviet system and 9/11 were part of an even bigger story—the creation of a globalized world economic and political system. The two key events framing that story were the opening of China in 1978 and the 2008 crash. I have divided this thirty-year epoch into two distinct periods. The first section of this book deals with the Age of Transformation, which began in 1978, and explains how and why the world’s major powers all embraced globalization—and how this sparked the rise of China and India.

In Latin America, economic reformers were often at pains to distinguish their modest market-based measures from the “neo-liberalism” of Reagan and Thatcher,25 neither of whom were particularly popular figures south of the Rio Grande after the Falklands War and Reagan’s support of the Contra rebels in Nicaragua. By contrast, Reagan and Thatcher were popular heroes in much of Central and Eastern Europe, a fact that caused a certain amount of pain and confusion to their left-wing and liberal opponents back home. The fall of the Berlin Wall and the collapse of the Soviet Union took place after Reagan left office. Yet these events cast a retrospective glow of vindication over his presidency. Reagan was able to argue with some justice in his memoirs, published in 1990, that the previous decade had witnessed a “stunning renaissance of democracy and economic freedom”26 around the world. Reagan’s attitude to democracy was, as with Thatcher, more equivocal than either leader would later care to acknowledge.


pages: 223 words: 58,732

The Retreat of Western Liberalism by Edward Luce

"Robert Solow", 3D printing, affirmative action, Airbnb, basic income, Berlin Wall, Bernie Sanders, Boris Johnson, Branko Milanovic, Bretton Woods, business cycle, call centre, carried interest, centre right, Charles Lindbergh, cognitive dissonance, colonial exploitation, colonial rule, computer age, corporate raider, cuban missile crisis, currency manipulation / currency intervention, Dissolution of the Soviet Union, Doha Development Round, Donald Trump, double entry bookkeeping, Erik Brynjolfsson, European colonialism, everywhere but in the productivity statistics, Fall of the Berlin Wall, Francis Fukuyama: the end of history, future of work, George Santayana, gig economy, Gini coefficient, global pandemic, global supply chain, illegal immigration, imperial preference, income inequality, informal economy, Internet of things, Jaron Lanier, knowledge economy, lateral thinking, liberal capitalism, Marc Andreessen, Mark Zuckerberg, Martin Wolf, mass immigration, means of production, Monroe Doctrine, moral panic, more computing power than Apollo, mutually assured destruction, new economy, New Urbanism, Norman Mailer, offshore financial centre, one-China policy, Peace of Westphalia, Peter Thiel, plutocrats, Plutocrats, precariat, purchasing power parity, reserve currency, reshoring, Richard Florida, Robert Gordon, Ronald Reagan, Second Machine Age, self-driving car, sharing economy, Silicon Valley, Skype, Snapchat, software is eating the world, South China Sea, Steve Jobs, superstar cities, telepresence, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, Thomas L Friedman, Tyler Cowen: Great Stagnation, universal basic income, unpaid internship, Washington Consensus, We are the 99%, We wanted flying cars, instead we got 140 characters, white flight, World Values Survey, Yogi Berra

On 9 November, the morning after the US presidential election, as I tried to make sense of the dawning new reality I recalled that invitation. By eerie coincidence, it was twenty-seven years to the day since the fall of the Berlin Wall. The worm had turned. America had just elected a president who was a big fan of walls and a big admirer of Vladimir Putin. While Putin was surveying his wrecked world in 1989, and we were racing down the Autobahn, Donald Trump was launching a board game. It was called Trump: The Game. With its fake paper money and property-based rules, it bore an uncanny resemblance to Monopoly – except that the number six on the dice was replaced with the letter T. Unsurprisingly, it was a flop. There is no record that Trump said anything positive or negative about the fall of the Berlin Wall. At any rate, all that seemed a long time ago. America had just elected a man who admired the way politics was done in Russia.

GDP numbers insist we are doing well, at a time when half the country is suffering from personal recessions. The world’s most informative graph is the Elephant Chart.* Devised by Branko Milanovic, a former World Bank staffer, this statistical pachyderm has many virtues. It is intuitively simple and tells you pretty much everything you need to know about the era of high globalisation since the fall of the Berlin Wall. It shows the distribution of more than two decades of growth between different percentiles of the global economy. The global median – the emerging middle classes of China, Vietnam, India and so on – enjoyed income growth of more than 80 per cent in those years. Even the bottom deciles, in Africa and South Asia, saw growth of up to 50 per cent. The key part of the elephant for the Western middle classes is where its trunk slopes downwards – between the seventy-fifth and ninetieth percentiles of the world’s population.

Davos perhaps ought first to have read what people are saying on the internet. As one person quipped about Donald Trump’s Twitter-propelled candidacy, ‘It is like the comments section running for president.’ If this is thought leadership, how does thought followership sound? Davos has become the emblem of a global elite that has lost its ability to listen. I began this book with a reminiscence about the fall of the Berlin Wall. A decade later, I found myself employed as speechwriter to Lawrence Summers, when he was the US Secretary of the Treasury in the Clinton administration. Looking back, I am astonished at that era’s unshakeable self-confidence. This was the high noon of the Washington Consensus. Alongside Alan Greenspan, the chairman of the US Federal Reserve, and Robert Rubin, the previous Treasury Secretary, Summers personified the global intellectual elite.


pages: 323 words: 95,188

The Year That Changed the World: The Untold Story Behind the Fall of the Berlin Wall by Michael Meyer

Ayatollah Khomeini, bank run, Berlin Wall, Bonfire of the Vanities, Bretton Woods, BRICs, call centre, Fall of the Berlin Wall, falling living standards, Francis Fukuyama: the end of history, haute couture, mass immigration, Mikhail Gorbachev, mutually assured destruction, Ronald Reagan, Ronald Reagan: Tear down this wall, union organizing

Also by Michael Meyer The Alexander Complex THE YEAR THAT CHANGED THE WORLD The Untold Story behind the Fall of the Berlin Wall MICHAEL MEYER SCRIBNER A Division of Simon & Schuster, Inc. 1230 Avenue of the Americas New York, NY 10020 www.SimonandSchuster.com Copyright © 2009 by Michael Meyer All rights reserved, including the right to reproduce this book or portions thereof in any form whatsoever. For information, address Scribner Subsidiary Rights Department, 1230 Avenue of the Americas, New York, NY 10020. First Scribner hardcover edition September 2009 SCRIBNER and design are registered trademarks of The Gale Group, Inc., used under license by Simon & Schuster, Inc., the publisher of this work. For information about special discounts for bulk purchases, please contact Simon & Schuster Special Sales: 1-866-506-1949 or business@simonandschuster.com The Simon & Schuster Speakers Bureau can bring authors to your live event.

He could tell a graduating class of West Point cadets in 2006 that, as in the Cold War, America today must “confront” new dangers. Indeed, the word became one of the most popular verbs in his rhetorical arsenal. “We will confront threats… confront new adversaries… confront new enemies… and never back down, never give in, never accept anything less than complete victory.” Again, the Reagan echo with a nod to Winston Churchill. Be resolute, and the enemy will blink. Goodness and light will triumph. The fall of the Berlin Wall serves as proof and inspiration. There’s only one problem—that of disjuncture, a confusion of cause and effect. What if it didn’t happen quite that way? Let us return to that fateful moment. It was the night of November 9, 1989. The place: Checkpoint Charlie, the famous border crossing in the heart of Cold War Berlin. The Wall loomed up, grim and forbidding. In the harsh yellow glare of the frontier’s high-intensity arc lights, strewn round with barbed wire and tank traps, thousands of East Germans faced a thin line of Volkspolizei, the ubiquitous state police.

“I asked him specifically, ‘If we set a date for an election and are voted out, would you intervene as in 1956?’ ” Without a hint of hesitation, Gorbachev answered, “Nyet.” Then he paused and, with a ghost of a smile, added a telling caveat: “At least, not as long as I am sitting in this chair.” This no was of immense importance to Nemeth. “It meant we could go ahead. It opened the way for everything that would follow,” he said, from the creation of a democratic Hungary to, ultimately, the fall of the Berlin Wall. This brief encounter with Gorbachev, coming with the first breath of spring after a long winter, would prove to be a hidden but decisive turning point in the end of the Cold War. Yet Nemeth was not finished. Having accomplished his chief mission, he dropped a second bomb, in some ways even bigger than the first. He told Gorbachev that he wanted to pull Hungary out of the Warsaw Pact, the Soviet military alliance established as a counterweight to NATO.


pages: 627 words: 127,613

Transcending the Cold War: Summits, Statecraft, and the Dissolution of Bipolarity in Europe, 1970–1990 by Kristina Spohr, David Reynolds

anti-communist, bank run, Berlin Wall, Bretton Woods, computer age, conceptual framework, cuban missile crisis, Deng Xiaoping, failed state, Fall of the Berlin Wall, Kickstarter, Kitchen Debate, liberal capitalism, Mikhail Gorbachev, mutually assured destruction, Nixon shock, oil shock, open borders, Ronald Reagan, Ronald Reagan: Tear down this wall, shared worldview, Thomas L Friedman, Yom Kippur War, zero-sum game

GBPL, BSF, Presidential Correspondence, Memcon, Bush’s meeting Deng Xiaoping, 26 February 1989, https://bush41library.tamu.edu/files/memcons-telcons/1989-02-26--Xiaoping.pdf. 31. Mann, About Face, 178. See also ‘Ambassador Winston Lord’, Association for Diplomatic Studies and Training, Foreign Affairs Oral History Project, 28 April 1998, http://www.adst.org/OH%20TOCs/Lord,%20Winston.pdf. 32. Vogel, Deng Xiaoping, 608; Chen Jian, ‘Tiananmen and the Fall of the Berlin Wall: China’s Path toward 1989 and Beyond’, in Jeffrey A. Engel, ed., The Fall of the Berlin Wall: The Revolutionary Legacy of 1989 (New York, 2009), 111–12. 33. Liang Zhang et al., eds, The Tiananmen Papers (New York, 2002), 143. 34. Mikhail Gorbachev, Sobranie Sochinenii, vol. 15 (Moscow, 2010), 261. 35. Zhang Ganghua and Li Peng, Li Peng liu si ri ji zhen xiang: Fu lu Li Peng liu si ri ji yuan wen (Hong Kong, 2010). 36. Oleg Troyanovskii, Cherez Gody i Rasstoyaniya: Istoriya Odnoi Sem’yi (Over Years and Distances) (Moscow, 1997), 373. 37.

., and Donald Brean, ‘Global Summitry: Its Meaning and Scope’, Global Summitry 1, no. 1 (2015), 1–26 Bange, Oliver, ‘The GDR in the Era of Détente: Conflicting Perceptions and Strategies’, in Poul Villaume and Odd Arne Westad, eds, Perforating the Iron Curtain: European Détente, Transatlantic Relations, and the Cold War, 1965–1985 (Copenhagen, 2010), 57–78 Bange, Oliver, ‘The Stasi Confronts Western Strategies for Transformation 1966–1975’, in Jonathan Haslam and Karina Urbach, eds, Secret Intelligence in the European States System, 1918–1989 (Stanford, CA, 2013), 170–208 Bock, Siegfried, and Karl Seidel, ‘Die Außenbeziehungen der DDR in der Periode der Konsolidierung (1955–1972/73)’, in Siegfried Bock, Ingrid Muth, and Hermann Schwiesau, eds, DDR-Außenpolitik im Rückspiegel: Diplomaten im Gespräch (Münster, 2004), 53–68 Bozo, Frédéric, ‘Détente versus Alliance: France, the United States and the Politics of the Harmel Report (1964–1968)’, Contemporary European History 7, no. 3 (1998), 343–60 Brown, Archie, ‘The Gorbachev Revolution and the End of the Cold War’, in Melvyn P. Leffler and Odd Arne Westad, eds, The Cambridge History of the Cold War, vol. III: Endings (Cambridge, 2010), 244–66 Chen, Jian, ‘Tiananmen and the Fall of the Berlin Wall: China’s Path toward 1989 and Beyond’, in Jeffrey A. Engel, ed., The Fall of the Berlin Wall: The Revolutionary Legacy of 1989 (New York, 2009), 96–131 Chen, Jian, ‘China, the Third World and the End of the Cold War’, in Artemy Kalinovsky and Sergey Radchenko, eds, The End of the Cold War and the Third World: New Perspectives on Regional Conflict (London, 2011), 101–21 Colley, Linda, ‘Britishness and Otherness: An Argument’, Journal of British Studies 31, no. 4 (1992), 309–29 Costigliola, Frank, ‘An “Arm Around the Shoulder”: The United States, NATO and German Reunification, 1989–90’, Contemporary European History 3, no. 1 (March 1994), 87–110 Cox, Michael, and Steven Hurst, ‘“His Finest Hour?”

Having paused to take stock of relations with Moscow in the first half of 1989, Bush in turn reoriented his foreign policy towards Europe and engaged seriously with Gorbachev in Malta in December. Their remarks, noted at the start of this introduction, demonstrate a shared eagerness to end the Cold War era, with its spiralling arms race and intense ideological struggle, and even to overcome the division of Europe itself. That meant, above all, addressing the German question. The fall of the Berlin Wall in November put German unification at the top of the political agenda. Over the next few months, as East Germany began to disintegrate, Chancellor Kohl in Bonn moved decisively to absorb the former GDR territories within the Federal Republic. But the prospect of a united Germany at the heart of Europe challenged the foundations of the postwar international order, around which the Cold War had been stabilized in the early 1970s.


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1989 The Berlin Wall: My Part in Its Downfall by Peter Millar

anti-communist, back-to-the-land, Berlin Wall, Fall of the Berlin Wall, Francis Fukuyama: the end of history, glass ceiling, kremlinology, Marshall McLuhan, Mikhail Gorbachev, mutually assured destruction, pre–internet, QWERTY keyboard, Ronald Reagan, Ronald Reagan: Tear down this wall, Sinatra Doctrine, urban sprawl, working-age population

And finally I must acknowledge a huge debt of gratitude to my late mother who throughout that hectic period never failed to cut out her son’s clippings from whichever newspaper I was working for at the time, and to preserve them in a scrapbook for me. Her efforts have made the burden on my memory so much lighter. Foreword One thing needs saying before anything else, at least for those unfamiliar with the autobiographical works of Spike Milligan: I make no claim whatsoever to having been instrumental in the fall of the Berlin Wall any more than any other of the millions of people who experienced life behind it and the tremendous exhilaration of seeing its ugly scar removed from the face of a much-loved city. And a tumour excised from the heart of Europe. From 1981 until 1989 – and beyond – I was an eyewitness, albeit a highly involved one, to the events that shook the communist Soviet empire to its foundations, eventually toppling it, bringing down the Iron Curtain and leaving the way open for a fresh start in a new century.

But then nobody had known it would happen at all. Least of all the intelligence agencies of the West, caught napping on the eve of their greatest ‘victory’, as they would be again on September 11th, 2001, their greatest embarrassment. Not even the men who gave the orders in East Berlin knew it would happen. Not even as they gave them. They had intended something else. Something else entirely. The fall of the Berlin Wall was the triumphant vindication of the ‘cock-up’ theory of history, of what happens when those seemingly immovable objects of political inertia and the status quo get swept away by two irresistible forces: accident and emotion. I had been a hundred miles away on East Germany’s Baltic coast when the first checkpoint on the Wall that for a generation had severed one half of Berlin from the other was suddenly, unexpectedly thrown open.

And for them it really was a family reunion: Kerstin Falkner and her husband Andreas had only weeks before fled their home in East Berlin, via the West German Embassy in Poland, thinking it would be years before they saw the rest of their family again, if ever. Now she was standing arm in arm with her brother Horst and his wife Sylvia, who had only hours before walked through a gap in the Wall they thought would keep them apart forever. If for the world at large the fall of the Berlin Wall was theatre on a grand stage, for me it was as first-hand as a family wedding. Eight years earlier my wife and I had made a decrepit flat in a run-down corner of East Berlin our first family home. I had passed my driving test there. We had made friendships that would last a lifetime, lived alongside the natives in a world of grimy buildings pockmarked by bullet holes, of grey cobbled streets and the tiny Trabant cars with fibreglass bodies in fluorescent orange and apple green that rattled over them.


pages: 561 words: 87,892

Losing Control: The Emerging Threats to Western Prosperity by Stephen D. King

Admiral Zheng, asset-backed security, barriers to entry, Berlin Wall, Bernie Madoff, Bretton Woods, BRICs, British Empire, business cycle, capital controls, Celtic Tiger, central bank independence, collateralized debt obligation, corporate governance, credit crunch, crony capitalism, currency manipulation / currency intervention, currency peg, David Ricardo: comparative advantage, demographic dividend, demographic transition, Deng Xiaoping, Diane Coyle, Fall of the Berlin Wall, financial deregulation, financial innovation, fixed income, Francis Fukuyama: the end of history, full employment, G4S, George Akerlof, German hyperinflation, Gini coefficient, hiring and firing, income inequality, income per capita, inflation targeting, invisible hand, Isaac Newton, knowledge economy, labour market flexibility, labour mobility, liberal capitalism, low skilled workers, market clearing, Martin Wolf, mass immigration, Mexican peso crisis / tequila crisis, Naomi Klein, new economy, old age dependency ratio, Paul Samuelson, Ponzi scheme, price mechanism, price stability, purchasing power parity, rent-seeking, reserve currency, rising living standards, Ronald Reagan, savings glut, Silicon Valley, Simon Kuznets, sovereign wealth fund, spice trade, statistical model, technology bubble, The Great Moderation, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, The Market for Lemons, The Wealth of Nations by Adam Smith, Thomas Malthus, trade route, transaction costs, Washington Consensus, women in the workforce, working-age population, Y2K, Yom Kippur War

The voices of the people went unheeded and unheard. This was a world of empires and imperfect suffrage. Under the influence of self-determination, sponsored by an increasingly powerful US hostile to colonial influence, the empires of the nineteenth century collapsed in the wars and economic crises that followed. The biggest casualty, most obviously, was the British Empire. The Ottoman Empire went the same way and, with the fall of the Berlin Wall in 1989, so did the Soviet Union’s twentieth-century empire. The result was a huge proliferation of nation states. According to Freedom House, there were only fifty-five sovereign countries in 1900, alongside thirteen empires. That compares with the 192 states which, in 2009, were members of the United Nations. Of today’s nations, 113 used to be part of colonial and imperial systems, while a further thirty-three were parts of other states.

The dreams of central planners had turned into nightmares of bureaucracy and corruption, leaving East German consumers with products that wouldn’t survive in a world dominated by free market choice. While the West Germans could whiz around in their Audis, the East Germans had to make do with Trabants. Although the cars are treated with nostalgic affection today, Trabant production lasted only a couple of years after the fall of the Berlin Wall in 1989. Given the choice, East Germans preferred to scrap their heavily polluting and remarkably slow Trabants (0–60mph in 21 seconds) and replace them with second-hand cars from Western Europe. The Trabant was dumped onto the scrapheap of Soviet communism. Those employed making Trabants and other relics of the Soviet era ended up without jobs, and were supported instead by handouts from the wealthy citizens of former West Germany.3 Not all Soviet-era car companies went the same way.

It went on to produce a number of innovative designs in the 1960s and 1970s but could make only limited headway in Western markets, where advances in motor technology and marketing were far greater. Indeed, by the 1980s, the Škoda brand had become something of a joke. In the UK, Škoda gags became very popular.4 (Q: ‘How do you double the value of a Škoda?’ A: ‘Fill its tank with gas’.) With the fall of the Berlin Wall it became clear that Škoda, like the manufacturers of the Trabant, would not be able to survive as an independent company. In 1991, it became part of the Volkswagen Group, alongside Audi and Seat. Since then, its fortunes have been transformed and the jokes have been long forgotten. In 2008, Škoda managed 674,530 sales, the largest number in its long and sometimes turbulent history. Its biggest markets, interestingly, are other emerging economies.


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The End of Alchemy: Money, Banking and the Future of the Global Economy by Mervyn King

"Robert Solow", Andrei Shleifer, Asian financial crisis, asset-backed security, balance sheet recession, bank run, banking crisis, banks create money, Berlin Wall, Bernie Madoff, Big bang: deregulation of the City of London, bitcoin, Black Swan, Bretton Woods, British Empire, business cycle, capital controls, Carmen Reinhart, Cass Sunstein, central bank independence, centre right, collapse of Lehman Brothers, creative destruction, Credit Default Swap, crowdsourcing, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, distributed generation, Doha Development Round, Edmond Halley, Fall of the Berlin Wall, falling living standards, fiat currency, financial innovation, financial intermediation, floating exchange rates, forward guidance, Fractional reserve banking, Francis Fukuyama: the end of history, full employment, German hyperinflation, Hyman Minsky, inflation targeting, invisible hand, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Meriwether, joint-stock company, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, labour market flexibility, large denomination, lateral thinking, liquidity trap, Long Term Capital Management, manufacturing employment, market clearing, Martin Wolf, Mexican peso crisis / tequila crisis, money market fund, money: store of value / unit of account / medium of exchange, moral hazard, Myron Scholes, Nick Leeson, North Sea oil, Northern Rock, oil shale / tar sands, oil shock, open economy, paradox of thrift, Paul Samuelson, Ponzi scheme, price mechanism, price stability, purchasing power parity, quantitative easing, rent-seeking, reserve currency, Richard Thaler, rising living standards, Robert Shiller, Robert Shiller, Satoshi Nakamoto, savings glut, secular stagnation, seigniorage, stem cell, Steve Jobs, The Great Moderation, the payments system, The Rise and Fall of American Growth, Thomas Malthus, too big to fail, transaction costs, Tyler Cowen: Great Stagnation, yield curve, Yom Kippur War, zero-sum game

Their significance will become clear as the argument unfolds, but a brief definition and explanation may be helpful at the outset. Disequilibrium is the absence of a state of balance between the forces acting on a system. As applied to economics, a disequilibrium is a position that is unsustainable, meaning that at some point a large change in the pattern of spending and production will take place as the economy moves to a new equilibrium. The word accurately describes the evolution of the world economy since the fall of the Berlin Wall, which I discuss in Chapter 1. Radical uncertainty refers to uncertainty so profound that it is impossible to represent the future in terms of a knowable and exhaustive list of outcomes to which we can attach probabilities. Economists conventionally assume that ‘rational’ people can construct such probabilities. But when businesses invest, they are not rolling dice with known and finite outcomes on the faces; rather they face a future in which the possibilities are both limitless and impossible to imagine.

The story of the crisis By the start of the twenty-first century it seemed that economic prosperity and democracy went hand in hand. Modern capitalism spawned growing prosperity based on growing trade, free markets and competition, and global banks. In 2008 the system collapsed. To understand why the crisis was so big, and came as such a surprise, we should start at the key turning point – the fall of the Berlin Wall in 1989. At the time it was thought to represent the end of communism, indeed the end of the appeal of socialism and central planning. For some it was the end of history.16 For most, it represented a victory for free market economics. Contrary to the prediction of Marx, capitalism had displaced communism. Yet who would have believed that the fall of the Wall was not just the end of communism but the beginning of the biggest crisis in capitalism since the Great Depression?

In recent years, short-term real interest rates have actually been negative because official interest rates have been less than the rate of inflation. And the savings glut pushed down long-term real interest rates to unprecedentedly low levels.21 In the nineteenth century and most of the twentieth, real rates were positive and moved within a range of 3 to 5 per cent. My estimate is that the average ten-year world real interest rate fell steadily from 4 per cent or so around the fall of the Berlin Wall to 1.5 per cent when the crisis hit, and has since fallen further to around zero.22 As the Asian economies grew and grew, the volume of saving placed in the world capital market by their savers, including the Chinese government, rose and rose. So not only did those countries add millions of people to the pool of labour producing goods to be sold around the world, depressing real wages in other countries, they added billions of dollars to the pool of saving seeking an outlet, depressing real rates of interest in the global capital market.


pages: 559 words: 178,279

The Cold War: Stories From the Big Freeze by Bridget Kendall

anti-communist, Berlin Wall, British Empire, collective bargaining, colonial rule, cuban missile crisis, Deng Xiaoping, Dissolution of the Soviet Union, European colonialism, Fall of the Berlin Wall, Howard Zinn, land reform, Mikhail Gorbachev, Monroe Doctrine, mutually assured destruction, open borders, Ronald Reagan, white flight

Contents Cover About the Book About the Author Title Page Introduction ‘Then all hell broke loose’ The Greek Civil War (1944–9) ‘The Iron Curtain was in place’ The Communist Coup in Czechoslovakia (1948) ‘There were no weapons, only arguments, ideas’ The Italian Election of 1948 ‘We were suddenly shut off’ The Berlin Blockade (1948–9) ‘Then fear replaced pride’ The Fall of Shanghai (1949) ‘The trap shut’ The Korean War (1950–3) ‘The world became a hostile place’ McCarthyism (1950–4) ‘When I saw the light, I had no idea what was happening’ The H-Bomb (1950s) ‘Now it was going to be different’ The East German Uprising (1953) ‘Democracy and freedom became a memory only’ The Iranian Coup (1953) ‘It was the beginning of freedom’ Khrushchev’s Secret Speech (1956) ‘We are not your comrades’ The Hungarian Revolution (1956) ‘They were leaving with only their suitcases, they lost everything’ The Congo Crisis (1960–1) ‘If one went, one couldn’t return’ The Berlin Wall (1961) ‘The world was going to end any time now’ The Cuban Missile Crisis (1962) ‘There was no future’ The Fall of Khrushchev and the Rise of Brezhnev (1964–82) ‘They could accuse you of anything’ The Outbreak of the Chinese Cultural Revolution (1966–7) ‘They didn’t want to live in the dark any more’ The Prague Spring (1968) ‘I can’t wash that stain away’ America’s Vietnam War (1965–73) ‘Everything that you thought is not true any more’ The Coup in Chile (1973) ‘These were just ordinary men marching in the street’ The Fall of Saigon and the Aftermath of the Vietnam War (1975–9) ‘We fell into each other’s arms’ The Cold Peace and Ostpolitik (1969–79) ‘The country was left with no protection at all’ The Angolan Civil War (1975–2002) ‘The newcomer holding a weapon is the enemy’ The Soviet Invasion of Afghanistan (1979–89) ‘We came out victorious’ The Birth of Solidarity in Poland (1980) ‘A threat to our mutual humanity’ The Nuclear Arms Race and CND (1981–7) ‘Everyone wanted change’ Gorbachev’s Perestroika (1985–91) ‘They are not so different from us’ The Fall of the Berlin Wall and German Reunification (1989–90) ‘The greatest value of mankind is their freedom’ The Baltic Republics Leave the Soviet Union (1988–91) ‘The last nail in the coffin’ The Collapse of the Soviet Union (1991) Contributor Biographies Picture Section Further Reading: Contributors’ Publications Further Reading Index of Contributors Index Acknowledgements Picture Credits Copyright About the Book Accompanying a landmark BBC Radio 4 series, The Cold War is essential reading for anyone seeking to understand how the tensions of the last century have shaped the modern world, and what it was like to live through them.

For eight more years, disaffected East Germans still had an escape route via West Berlin, until the Berlin Wall was constructed in 1961 to stop them. Meanwhile, the East German police state tightened its grip. The people would not risk rising up once more against their Communist masters for another 36 years – not until the mass demonstrations of 1989 that began in Leipzig and led to the fall of the Berlin Wall. As part of his National Service, George Flint was dispatched to Berlin to be a driver for BRIXMIS – the British Mission in the Soviet Zone. This gave him, at just 19, an extraordinary close-up view of the troubles of East Germany that led to the uprising. The Soviet zone was very downtrodden. There was no greenery, because all the trees had been cut down and burned for fuel. The shortages were terrible – the shop windows were empty, and there were great big queues outside the butcher’s.

Across the entire Eastern Bloc, the possibility of reform from within had been set back, as it turned out, for two decades. Those who could – some 300,000 in all – fled into emigration. Those who remained in Czechoslovakia battened down the hatches. Most of them gave up political activity, resigning themselves to a dreary and restrictive life under an oppressive Communist government, which annulled almost all the Prague Spring reforms and kept a firm grip on power for the next 20 years, until the fall of the Berlin Wall in 1989 and the collapse of Soviet rule in Eastern Europe. Despite her family’s poverty, Prague-born Zdena Tomin was a true believer in Communism from a very young age. This changed during her teens. By the time I was 14, 15, Hungary happened, 1956, and I woke up and realised what it was that I had been ecstatic about. It was just a shock. I never became a violent anti-Communist, I just realised that what I was living was a religion.


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Grave New World: The End of Globalization, the Return of History by Stephen D. King

9 dash line, Admiral Zheng, air freight, Albert Einstein, Asian financial crisis, bank run, banking crisis, barriers to entry, Berlin Wall, Bernie Sanders, bilateral investment treaty, bitcoin, blockchain, Bonfire of the Vanities, borderless world, Bretton Woods, British Empire, business cycle, capital controls, Capital in the Twenty-First Century by Thomas Piketty, central bank independence, collateralized debt obligation, colonial rule, corporate governance, credit crunch, currency manipulation / currency intervention, currency peg, David Ricardo: comparative advantage, debt deflation, deindustrialization, Deng Xiaoping, Doha Development Round, Donald Trump, Edward Snowden, eurozone crisis, facts on the ground, failed state, Fall of the Berlin Wall, falling living standards, floating exchange rates, Francis Fukuyama: the end of history, full employment, George Akerlof, global supply chain, global value chain, hydraulic fracturing, Hyman Minsky, imperial preference, income inequality, income per capita, incomplete markets, inflation targeting, information asymmetry, Internet of things, invisible hand, joint-stock company, Kickstarter, Long Term Capital Management, Martin Wolf, mass immigration, Mexican peso crisis / tequila crisis, moral hazard, Nixon shock, offshore financial centre, oil shock, old age dependency ratio, paradox of thrift, Peace of Westphalia, plutocrats, Plutocrats, price stability, profit maximization, quantitative easing, race to the bottom, rent-seeking, reserve currency, reshoring, rising living standards, Ronald Reagan, Scramble for Africa, Second Machine Age, Skype, South China Sea, special drawing rights, technology bubble, The Great Moderation, The Market for Lemons, the market place, The Rise and Fall of American Growth, trade liberalization, trade route, Washington Consensus, WikiLeaks, Yom Kippur War, zero-sum game

Victorians would be shocked to find that their beloved British Empire – which provided the essential foundations for nineteenth-century globalization – had more or less disappeared by the late 1940s, by which time the UK itself was on the brink of bankruptcy. Those many fans of the Soviet economic system during the 1930s Depression years would doubtless be astonished to discover that the entire edifice began to crumble following the fall of the Berlin Wall in 1989. SOUTHERN SPAIN Even when patterns of globalization endure for many centuries, they can break down remarkably quickly, leading to dramatic changes in fortune. Consider, for example, the history of Andalucía in southern Spain, a story that veered from one seemingly permanent political structure (Islam) to another (Christianity) within just a handful of years. In AD 711, a Muslim Berber force travelled from North Africa across the Mediterranean to reach southern Spain.

London and Paris eventually established a tougher ‘Dual Control’ system – which understandably provoked a nationalist backlash and an army revolt.13 To be fair, it has not all been reverse gear in Europe. For many years, former Soviet satellites appeared to have found a home in the European Union’s welcoming democratic arms. Poland, for example, went from strength to strength economically following the fall of the Berlin Wall in 1989. Between 1990 and 2015, Polish per capita incomes more than doubled, thanks in large part to major institutional reforms associated with Poland’s efforts to join the EU, a feat it eventually accomplished in 2004. The contrast with Ukraine – stuck in a no man’s land between the European Union and Russia – is striking. In the early 1990s, Ukraine and Poland had roughly similar living standards but, after two decades of both relative and absolute economic decline, Ukrainian per capita incomes had dropped to less than 40 per cent of those in Poland by 2015.14 Yet even in Poland – one of the most visible beneficiaries of Central Europe’s reorientation – developments following the global financial crisis raise doubts about the European Union’s ‘common values’.

This process, however, is not just about efficiency gains: cross-border movement of both labour and capital is also, in part, a process that reduces inequalities of income and opportunity by levelling a previously very steeply inclined playing field. The failures of Soviet-style communism prevented Eastern European countries from making significant economic progress in the decades following the Second World War: their living standards slowly fell behind those in the West. While there has been some renewed convergence since the fall of the Berlin Wall in 1989, a large gap in living standards remains: in 2014, per capita incomes in Hungary, Romania and Bulgaria were less than half those in the Netherlands, Germany, France and the UK. Merging these labour markets should ultimately mean higher levels of output and more investment, in theory making everyone better off. But, as with moves towards free trade, there will also be distributional winners and losers.


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The Secret War Between Downloading and Uploading: Tales of the Computer as Culture Machine by Peter Lunenfeld

Albert Einstein, Andrew Keen, anti-globalists, Apple II, Berlin Wall, British Empire, Brownian motion, Buckminster Fuller, Burning Man, business cycle, butterfly effect, computer age, creative destruction, crowdsourcing, cuban missile crisis, Dissolution of the Soviet Union, don't be evil, Douglas Engelbart, Douglas Engelbart, Dynabook, East Village, Edward Lorenz: Chaos theory, Fall of the Berlin Wall, Francis Fukuyama: the end of history, Frank Gehry, Grace Hopper, gravity well, Guggenheim Bilbao, Honoré de Balzac, Howard Rheingold, invention of movable type, Isaac Newton, Jacquard loom, Jane Jacobs, Jeff Bezos, John Markoff, John von Neumann, Kickstarter, Mark Zuckerberg, Marshall McLuhan, Mercator projection, Metcalfe’s law, Mother of all demos, mutually assured destruction, Nelson Mandela, Network effects, new economy, Norbert Wiener, PageRank, pattern recognition, peer-to-peer, planetary scale, plutocrats, Plutocrats, post-materialism, Potemkin village, RFID, Richard Feynman, Richard Stallman, Robert Metcalfe, Robert X Cringely, Schrödinger's Cat, Search for Extraterrestrial Intelligence, SETI@home, Silicon Valley, Skype, social software, spaced repetition, Steve Ballmer, Steve Jobs, Steve Wozniak, Ted Nelson, the built environment, The Death and Life of Great American Cities, the medium is the message, Thomas L Friedman, Turing machine, Turing test, urban planning, urban renewal, Vannevar Bush, walkable city, Watson beat the top human players on Jeopardy!, William Shockley: the traitorous eight

To delineate the period we are living through, I combine the hopefulness that followed the fall of the Berlin Wall with the fear and rage that followed the attacks on the World Trade Center in 2001. This period I call 89/11 (pronounced “eightynine eleven”), and this section of the book will both define that era’s characteristics and move past the stasis it engendered via the creation of what I term “bespoke futures.”1 What looked like it would be a facile history in 1989—the victory of one sort of built system over another, the triumph of democracy over totalitarianism, capitalism over a command economy—turned out to be vastly more complex. The post-1989 period contained a multitude of features, but one unifying construct was the belief that after the fall of the Berlin Wall and then the Soviet Union itself, not just Communism, but all the countervailing forces against market capitalism were vanquished, and not just for the moment but literally for all time.

Though jeered at by professional planners of her day—one dismissed her work as “bitter coffee-house ramblings”—Jacobs has certainly had the last laugh, with The Death and Life of Great American Cities utterly upending town planning for more than fifty years through its articulation of precisely what makes a neighborhood worth inhabiting. We will spend at least another generation working out how Jacob’s fine-grained mixtures should function within digital environments, but mining her work for insights into the culture machine does not stop there. Just after the fall of the Berlin wall and the breakup of the Soviet Union, Jacobs wrote Systems of Survival: A Dialogue on the Moral Foundations of Commerce and Politics, in which she identifies two complementary and opposing moral syndromes: one based on taking (also known as the guardian syndrome), and the other based on trading (or the commercial syndrome). These two are sometimes mutually reinforcing and sometimes in grave opposition, but 85 CHAPTER 4 both are required for a viable culture.

The tolerant, antistatist, neoliberal tone of established media like the New York Times cried out for lampoons, though none were forthcoming in 1999, a year in which triumphalism dominated (in 103 CHAPTER 5 large measure because the New Economy was so dependent on the fantasies of political and technological omnipotence). The histories we inherit tend to be the stories of conflicts as written by the victors. Discursive excesses aside, 1989 was of central importance to the way we make culture and think about history decades later. That year saw the Czech Velvet Revolution, the fall of the Berlin Wall, the reunification of Germany, the eventual fissioning of the Soviet Union, the emergence of the Baltic states, and the continued extension of market reforms in China (which coincided with the political repression of Tiananmen Square). The Polish trade unionist, journalist, and now capitalist newspaper owner Adam Michnik put it well when he noted in a commemoration that “the revolution of 1989 was a great change without a great utopia.”


On Nature and Language by Noam Chomsky

Alfred Russel Wallace, anti-communist, Berlin Wall, Bretton Woods, complexity theory, dark matter, Fall of the Berlin Wall, Murray Gell-Mann, Steven Pinker, theory of mind, Turing test

What is important is their overwhelming consistency, a fact that has been extensively documented in dissident literature, where it can easily be ignored, as Orwell pointed out in his unknown essay on voluntary censorship in free societies. Although this course is misleading for the reasons mentioned, I will nevertheless illustrate the general pattern with a few current examples. Given the consistency, contemporary examples are rarely hard to find. We are meeting in November 1999, a month that happens to be the tenth anniversary of several important events. One was the fall of the Berlin Wall, which effectively brought the Soviet system to an end. A second was the final large-scale massacre in El Salvador, carried out by US terrorist forces called “the army of El Salvador” – organized, armed, and trained by the reigning superpower, which has long controlled the region in essentially this manner. The worst atrocities were carried out by elite units fresh from renewed US training, very much like the Indonesian commandos who were responsible for shocking atrocities in East Timor, once again, this year – continuing at this very moment, in fact, in camps in Indonesian West Timor.

There is a great deal more to say about the tenth anniversary of the assassination of the Jesuit intellectuals, and the coming twentieth anniversary of the assassination of the Archbishop, and the slaughter of several hundred thousand people in Central America in the years between, mostly by the same hands, with the responsibility tracing back to the centers of power in the self-anointed “enlightened states.” There is also much more to say about the performance of the secular priesthood throughout these awful years and until today. The record has been reviewed in some detail in print, with the usual fate of “unpopular ideas.” There is perhaps little point in reviewing it again, and time is short, so let me turn to the second anniversary: the fall of the Berlin Wall. This too is a rich topic, one that has received a great deal of attention on the tenth anniversary, unlike the destruction of Central America by US terror. Let us consider some of the consequences of the collapse of the Soviet dungeon that largely escaped attention – in the West, not among the traditional victims. One consequence of the collapse of the USSR was an end to nonalignment. When two superpowers ruled the world – one global, the other regional – there was a certain space for nonalignment.

One element of this freedom is access to secret planning documents. The openness does not matter much: the press, and intellectuals generally, commonly adhere to the 172 The secular priesthood and the perils of democracy “general tacit agreement that ‘it wouldn’t do’ to mention” what they reveal. But the information is there, for those who choose to know. I will mention a few recent examples to give the flavor. Immediately after the fall of the Berlin Wall, US global strategy shifted in an instructive way. It is called “deterrence strategy,” because the US only “deters” others, and never attacks. This is an instance of another historical universal, or close to it: in a military conflict, each side is fighting in self-defense, and it is an important task of the secular priesthood, on all sides, to uphold that banner vigorously. At the end of the Cold War, US “deterrence strategy” shifted: from Russia, to the South, the former colonies.


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The Sovereign Individual: How to Survive and Thrive During the Collapse of the Welfare State by James Dale Davidson, Rees Mogg

affirmative action, agricultural Revolution, bank run, barriers to entry, Berlin Wall, borderless world, British Empire, California gold rush, clean water, colonial rule, Columbine, compound rate of return, creative destruction, Danny Hillis, debt deflation, ending welfare as we know it, epigenetics, Fall of the Berlin Wall, falling living standards, feminist movement, financial independence, Francis Fukuyama: the end of history, full employment, George Gilder, Hernando de Soto, illegal immigration, income inequality, informal economy, information retrieval, Isaac Newton, Kevin Kelly, market clearing, Martin Wolf, Menlo Park, money: store of value / unit of account / medium of exchange, new economy, New Urbanism, Norman Macrae, offshore financial centre, Parkinson's law, pattern recognition, phenotype, price mechanism, profit maximization, rent-seeking, reserve currency, road to serfdom, Ronald Coase, Sam Peltzman, school vouchers, seigniorage, Silicon Valley, spice trade, statistical model, telepresence, The Nature of the Firm, the scientific method, The Wealth of Nations by Adam Smith, Thomas L Friedman, Thomas Malthus, trade route, transaction costs, Turing machine, union organizing, very high income, Vilfredo Pareto

This requires that the taxes imposed upon the most productive citizens of the currently rich countries be priced at supermonopoly rates, hundreds or even thousands of times higher than the actual cost of the services that governments provide in return. 92 THE LIFE AND DEATH OF THE NATION-STATE The fall of the Berlin Wall was not just a visible symbol of the death of Communism. It was a defeat for the entire world system of nation-states and a triumph of efficiency and markets. The fulcrum of power underlying history has shifted. We believe that the fall of the Berlin Wall in 1989 culminates the era of the nation-state, a peculiar two-hundred-year phase in history that began with the French Revolution. States have existed for six thousand years. But before the nineteenth century, they accounted for only a small fraction of the world's sovereignties.

This, too, was considered unlikely, if not preposterous. Yet the following seven years brought the most sweeping disarmament since the close of World War I. At a time when experts in North America and Europe were pointing to Japan for support of the view that governments can successfully rig markets, we said otherwise. We forecast that the Japanese financial assets boom would end in a bust. Soon after the fall of the Berlin Wall, the Japanese stock market crashed, losing almost half its value. We continue to believe that its ultimate low could match or exceed the 89 percent loss that Wall Street suffered at the bottom after 1929. At a point when almost everyone, from the middle-class family to the world's largest real estate investors, appeared to believe that property markets could only rise and not fall, we warned that a real estate bust was in the offing.

It was a time when the returns to violence were high and rising. They no longer are. A phase transition of world-historic dimensions has already begun. Indeed, the future Gibbon who chronicles the decline and fall of the once-Modern Age in the next millennium may declare that it had already ended by the time you read this book. Looking back, he may say, as we do, that it ended with the fall of the Berlin Wall in 1989. Or with the death of the Soviet Union in 1991. Either date could come to stand as a defining event in the evolution of civilization, the end of what we now know as the Modern Age. The fourth stage of human development is coming, and perhaps its least predictable feature is the new name under which it will be known. Call it "Post-Modern." Call it the "Cyber Society" or the "Information Age."


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The Collapse: The Accidental Opening of the Berlin Wall by Mary Elise Sarotte

anti-communist, Berlin Wall, conceptual framework, Deng Xiaoping, facts on the ground, Fall of the Berlin Wall, hindsight bias, Mikhail Gorbachev, open borders, Ronald Reagan, Ronald Reagan: Tear down this wall, urban decay, éminence grise

Praise for The Collapse “The fall of the Berlin Wall was one of the landmark events of the twentieth century, but this great change involved accidental and non-violent causes. In wonderfully readable prose, Mary Elise Sarotte tells a compelling story of how history works its surprises.” —Joseph S. Nye, Jr., Harvard University Distinguished Service Professor and author of The Future of Power “In The Collapse, Mary Elise Sarotte provides a needed (and highly readable) reminder that the peaceful culmination to 1989’s dramatic developments was in no way inevitable.” —General Brent Scowcroft, former National Security Advisor “Meticulously researched, judiciously argued, and exceptionally well written, The Collapse describes the fall of the Berlin Wall from an unprecedented perspective.

It will come as a surprise to many that this climactic event in Cold War history resulted not from agreements reached in Washington, Berlin, Moscow, or Bonn, but from the uncoordinated actions of people on both sides of the Berlin divide. The Collapse makes it possible for those who made history in 1989 to speak in their own voices.” —Serhii Plokhy, author of The Last Empire: The Final Days of the Soviet Union “From a remove of 25 years, the fall of the Berlin Wall seems foreordained. In fact, as Mary Elise Sarotte shows, this historic moment was an improbable concatenation of events and decisions triggering in perfect if accidental sequence. Catastrophe at times was just seconds away. As someone who was in Leipzig and Berlin as the crucial events unfolded, I can say that Sarotte gets it exactly right, capturing the fear, confusion, courage, and growing excitement as hitherto ordinary people peacefully toppled the deadly barrier that symbolized the Cold War.”

See the documents on these negotiations in Békés and Kalmár, “Political Transition in Hungary,” 83–84; see also PA-AA, BDE, ZA139.937E, Aug. 18, 1989. 12. On the reburial specifically, see Garton Ash, Magic Lantern, 47–51, and Rudolf L. Tökés, Hungary’s Negotiated Revolution (Cambridge: Cambridge University Press, 1996), 306–308; see also Michael Meyer, The Year That Changed the World: The Untold Story Behind the Fall of the Berlin Wall (New York: Scribner, 2009). In East Germany, the Stasi paid close attention to the reburial; see “Monatsübersicht Nr. 6/89,” BStU, MfS, ZA 5337, 97–98, available online. On the process of reform in Hungary in the late 1980s generally, see M-KS-288-5/1050, reprinted in CWIHPPC; “Memorandum of the International Committee of the Central Committee of the CPSU to Alexander Yakovlev”; Charles Gati, Failed Illusions: Moscow, Washington, Budapest and the 1956 Hungarian Revolt (Stanford, CA: Stanford University Press, 2006), 3–6; and István Horváth, Die Sonne ging in Ungarn auf (Munich: Universitas, 2000), 298–358. 13.


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Global Inequality: A New Approach for the Age of Globalization by Branko Milanovic

"Robert Solow", Asian financial crisis, assortative mating, Berlin Wall, bitcoin, Black Swan, Branko Milanovic, Capital in the Twenty-First Century by Thomas Piketty, centre right, colonial exploitation, colonial rule, David Ricardo: comparative advantage, deglobalization, demographic transition, Deng Xiaoping, discovery of the americas, European colonialism, Fall of the Berlin Wall, Francis Fukuyama: the end of history, full employment, Gini coefficient, Gunnar Myrdal, income inequality, income per capita, invisible hand, labor-force participation, liberal capitalism, low skilled workers, Martin Wolf, means of production, mittelstand, moral hazard, Nash equilibrium, offshore financial centre, oil shock, open borders, Paul Samuelson, place-making, plutocrats, Plutocrats, post scarcity, post-industrial society, profit motive, purchasing power parity, Ralph Nader, Second Machine Age, seigniorage, Silicon Valley, Simon Kuznets, special economic zone, stakhanovite, trade route, transfer pricing, very high income, Vilfredo Pareto, Washington Consensus, women in the workforce

Lakner, Christoph, and Anthony Atkinson. 2014. “Wages, Capital and Top Incomes: The Factor Income Composition of Top Incomes in the USA, 1960–2005.” Unpublished ms., November version. Lakner, Christoph, and Branko Milanovic. 2013. “Global Income Distribution: From the Fall of the Berlin Wall to the Great Recession.” World Bank, Policy Research Working Paper, no. 6719, December. Available at http://elibrary.worldbank.org/doi/pdf/10.1596/1813-9450-6719. Lakner, Christoph, and Branko Milanovic. 2015. “Global Income Distribution: From the Fall of the Berlin Wall to the Great Recession.” World Bank Economic Review, Advance Access published August 12, 2015, doi: 10.1093/wber/lhv039. Landes, David. 1961. “Some Thoughts on the Nature of Economic Imperialism.” Journal of Economic History 21(4): 496–512. Landes, David. 1988.

And national inequality levels, whether increasing in England during the early industrial period or increasing in China and the United States during recent decades, have also had global implications. Reading about global inequality is nothing less than reading about the economic history of the world. This book opens with the description and analysis of the most significant changes in income distributions that have occurred globally since 1988, using data from household surveys. The year 1988 is a convenient starting point because it coincides almost exactly with the fall of the Berlin Wall and reintegration of the then-communist economies into the world economic system. This event was preceded, just a few years earlier, by a similar reintegration of China. These two political changes are not unrelated to the increased availability of household surveys, which are the key source from which we can glean information about changes in global inequality. Chapter 1 documents in particular (1) the rise of what may be called the “global middle class,” most of whom are located in China and other countries in “resurgent Asia,” (2) the stagnation of the groups in the rich world that are globally well-off but nationally middle- or lower-middle class, and (3) the emergence of a global plutocracy.

(People are ranked by after-tax household per capita income expressed in dollars of equal purchasing power; for details of how income comparisons between countries are made, see Excursus 1.1.)1 The vertical axis shows the cumulative growth in real income (income adjusted for inflation and differences in price levels between the countries) between 1988 and 2008. This twenty-year period coincides almost exactly with the years from the fall of the Berlin Wall to the global financial crisis. It covers the period that may be called “high globalization,” an era that has brought into the ambit of the interdependent world economy first China, with a population of more than one billion people, and then the centrally planned economies of the Soviet Union and Eastern Europe, with about half a billion people. Even India can be included, since, with the reforms in the early 1990s, its economy has become more closely integrated with the rest of the world.


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Shadows of Empire: The Anglosphere in British Politics by Michael Kenny, Nick Pearce

battle of ideas, Berlin Wall, Boris Johnson, Bretton Woods, British Empire, colonial rule, corporate governance, Dominic Cummings, Donald Trump, eurozone crisis, Fall of the Berlin Wall, floating exchange rates, Francis Fukuyama: the end of history, full employment, global reserve currency, imperial preference, informal economy, invention of the telegraph, Khartoum Gordon, labour mobility, liberal capitalism, Mahatma Gandhi, mass immigration, Monroe Doctrine, Nixon shock, quantitative easing, reserve currency, Ronald Reagan, trade route, Washington Consensus

The idea lived on in the early twentieth century through debates in high politics about tariff reform versus free trade and came alive again both in arguments over the future of the British Empire between the world wars and in the soul-searching about Britain's place in the world that accompanied decolonisation, the rise of the ‘New Commonwealth’, and Britain's entry to the European Economic Community (EEC). Then, as the ‘short twentieth century’1 came to an end after the fall of the Berlin Wall in 1989, the Anglosphere was reinvented once more, becoming a potent way of imagining Britain's future as a global, deregulated and privatised economy outside the EU. In this guise it forms an important part of the story of how Britain came to take the historic decision, in the summer of 2016, to leave the EU. In this book we offer an account of some of the main political uses to which the idea of the Anglosphere has been put over the last century or more in British politics.

In her address to the English-Speaking Union in 1999 she unequivocally endorsed Conquest's thinking, remarking that ‘such an international alliance … would redefine the political landscape’ and, in the long term, transform ‘politically backward areas [by] creating the conditions for a genuine world community’.44 Like him, she drew a sharp contrast between the dynamism and cultural community associated with the Anglosphere, on the one hand, and the EU, on the other, which lacked the deeper set of shared values that had for so long sustained the Anglo-American and Anglosphere ideals. With tongue slightly in cheek, she reminded her audience that ‘God separated Britain from mainland Europe, and it was for a purpose.’45 She also revisited the vision developed by Churchill of Anglo-America as bedrock for the Western order in the post-war world. But now, with the fall of the Berlin Wall and the demise of the Cold War – both victories that she unequivocally claimed for the English-speaking peoples – Thatcher offered considerable encouragement to those pursuing the Anglosphere as a geo-political and economic alternative to European integration. Thatcher's public commitment to these ideas represented a notable shift in her own outlook and was prompted by her sharp turn against the EU.

Bennett, The Anglosphere Challenge: Why the English-Speaking Nations Will Lead the Way in the Twenty-First Century (Lanham, MD: Rowman & Littlefield, 2007). 48  Ibid. 49  James C. Bennett, ‘The emerging Anglosphere’, Orbis, 46/1 (2002). 50  John O'Sullivan, ‘A British-led Anglosphere in world politics’, The Telegraph, 29 December 2007. 51  Hannan, How We Invented Freedom and Why it Matters. 6 The Eurosceptic Anglosphere Emerges In the two decades after the fall of the Berlin Wall, proponents of the Anglosphere were required to reorientate their ambitions in the wake of some profound shifts in the global economy and the political environments in which they were operating. In the 1990s, American capitalist democracy was indisputably dominant, ideologically and economically. Globalisation under the aegis of American liberalism was the ‘given’ of most economic arguments and political discourse.


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Free World: America, Europe, and the Surprising Future of the West by Timothy Garton Ash

Albert Einstein, battle of ideas, Berlin Wall, BRICs, British Empire, call centre, centre right, clean water, Columbine, continuation of politics by other means, cuban missile crisis, demographic transition, Deng Xiaoping, Doha Development Round, Eratosthenes, European colonialism, failed state, Fall of the Berlin Wall, Francis Fukuyama: the end of history, illegal immigration, income inequality, Intergovernmental Panel on Climate Change (IPCC), James Watt: steam engine, Kickstarter, Mikhail Gorbachev, Nelson Mandela, Peace of Westphalia, postnationalism / post nation state, Project for a New American Century, purchasing power parity, reserve currency, Ronald Reagan, shareholder value, Silicon Valley, Thomas Malthus, trade liberalization, Washington Consensus, working poor, working-age population, World Values Survey

These two themes sounded, like Wagnerian leitmotifs, through all the early debates about European integration. They grew fainter, more confused, in the music of the 1970s and 1980s, when enlargement from six to twelve member states made the European orchestra more polyphonous, and détente softened the conflict between communist East and anticommunist West; but they were still there in the minds of the men and women who shaped the European project. Then came the fall of the Berlin Wall and that year of wonders, 1989, which saw the threat of Soviet communism softly and suddenly vanish away. What an opportunity—and what a crisis! Fifteen years later, the European Union comprises twenty-five enormously diverse European states, including, incredibly, three Baltic republics which in 1989 were still part of the Soviet Union. It stretches from the Atlantic to the Bug River, from the North Cape to Cyprus.

A classic example is Jacques Delors, the French socialist who, as head of the European Commission, presided over dramatic advances in European integration, from the completion of the single market to the Maastricht Treaty, which paved the way for European monetary union. In 1988 Delors published a book entitled La France par l’Europe—the very title is eloquent. It contained this sentence: “Creating Europe is a way of regaining the degree of liberty necessary for a ‘certain idea of France.’ “29 A “certain idea of France” was, of course, de Gaulle’s signature phrase. The fall of the Berlin Wall plunged this strategy into crisis. With the enlargement of the European Union to include the new democracies of central and eastern Europe, Germany, not France, would be at its center. Germany, soon united and fully sovereign, would no longer be prepared to play the horse to France’s rider—a simile that de Gaulle himself is alleged to have used. However skillful its diplomacy, France would not be able to shape European policy in a Europe of twenty-five member states as it had in a Europe of twelve, or, better still, the original six.

At one point during the summit, feeling that he had already talked too much, he indicated to the chairman that he would “pass” on a particular topic. “But Mr. President,” the chairman expostulated, “you are the most powerful man on earth.” As President Bush reflects on this, he comments wryly, “It takes a little time to grow into this job.”1 That could also be said of the whole country, in its new job. After the fall of the Berlin Wall on November 9, 1989 (9/11, European style), America gradually woke up to the realization that it was no longer just one of two competing superpowers. Hyperpower, superduper-power, American empire, new Rome, unipolar world—all these terms attempt to capture the new reality of a global predominance with no precedent in the history of the world. After the fall of the twin towers on September 11, 2001 (9/11, American style), the United States has been wrestling with the revelation that all this plenitude of power could not protect its own innocent civilians from foreign attack in the heart of the American homeland, a trauma Americans had not experienced since British troops sacked the White House in 1814.


pages: 405 words: 109,114

Unfinished Business by Tamim Bayoumi

algorithmic trading, Asian financial crisis, bank run, banking crisis, Basel III, battle of ideas, Ben Bernanke: helicopter money, Berlin Wall, Big bang: deregulation of the City of London, Bretton Woods, British Empire, business cycle, buy and hold, capital controls, Celtic Tiger, central bank independence, collapse of Lehman Brothers, collateralized debt obligation, credit crunch, currency manipulation / currency intervention, currency peg, Doha Development Round, facts on the ground, Fall of the Berlin Wall, financial deregulation, floating exchange rates, full employment, hiring and firing, housing crisis, inflation targeting, Just-in-time delivery, Kenneth Rogoff, liberal capitalism, light touch regulation, London Interbank Offered Rate, Long Term Capital Management, market bubble, Martin Wolf, moral hazard, oil shale / tar sands, oil shock, price stability, prisoner's dilemma, profit maximization, quantitative easing, race to the bottom, random walk, reserve currency, Robert Shiller, Robert Shiller, Rubik’s Cube, savings glut, technology bubble, The Great Moderation, The Myth of the Rational Market, the payments system, The Wisdom of Crowds, too big to fail, trade liberalization, transaction costs, value at risk

It is also crucial to thinking about the future of EMU since exactly the same tensions manifested themselves in Franco-German disagreements about the response to the crisis, with the French wanted to provide emergency support to the crisis countries while the Germans focused on maintaining the discipline implicit in existing rules. The Maastricht Treaty that laid out the road to monetary union was a finely honed compromise that papered over these tensions rather than resolving them. This reflected several dynamics. First, the Treaty was a rushed job that reflected the political imperatives coming from the unexpected fall of the Berlin Wall and the 1989 reunification of Germany. The single currency was created as a defensive reaction to German reunification rather than as a positive affirmation of European integration. Reflecting this speed, the final treaty closely followed the plan created by the earlier Delors Committee that had been dominated by European central bankers. These bankers produced a plan for EMU that focused on ensuring that the new European Central Bank remained independent of political pressures while leaving existing national fiscal and financial arrangements in place.

As one historian of the process has put it, “the outcome looked more like an extension of the principle of international monetary cooperation and coordination—which is exactly what it was”.32 * * * The Maastricht Treaty It was the unanticipated collapse of Soviet control in Eastern Europe later in 1989 that triggered a rapid push for monetary union that embraced the only plan readily available, the one in the Delors Report. On November 28, 1989, just three weeks after the fall of the Berlin Wall, Chancellor Kohl presented a ten-point plan for German unity to the Bundestag without consulting his allies. Two days later, President Mitterrand told German Foreign Minister Hans-Dietrich Genscher that Germany was now a “brake” on European integration and that unless Germany agreed to serious negotiations on a single currency by the end of 1990 it risked a revival of the pre-1913 “triple alliance” between France, Britain, and the Soviet Union.33 Faced with the prospect to diplomatic isolation, Chancellor Kohl agreed to initiate an intergovernmental conference on monetary union at the Strasbourg summit of European leaders on December 8, 1990, just before Mitterrand’s deadline expired.

In the end, supported by a range of special measures and generous statistical interpretations, all of the potential entrants were admitted into monetary union starting on January 1, 1999. * * * The Flawed Single Currency The drive to create a single European currency unexpectedly succeeded largely due to a dose of sheer luck and two underlying dynamics. The good luck was the unexpected fall of the Berlin Wall that created a need to bind a unified Germany more fully to the rest of the European Union, an imperative used to create the single currency. One dynamic was the understanding between Mitterrand and Kohl on the need for progress on greater European monetary integration that allowed crucial decisions to be made without the process getting bogged down in bureaucratic niceties. The other dynamic was that the detailed planning for the single currency was done by technocratic central banks rather than more politicized finance ministries, which allowed the plan to overcome the Economist/Monetarist split that had bedeviled previous efforts to create a single currency.


pages: 322 words: 77,341

I.O.U.: Why Everyone Owes Everyone and No One Can Pay by John Lanchester

asset-backed security, bank run, banking crisis, Berlin Wall, Bernie Madoff, Big bang: deregulation of the City of London, Black-Scholes formula, Blythe Masters, Celtic Tiger, collateralized debt obligation, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, Daniel Kahneman / Amos Tversky, diversified portfolio, double entry bookkeeping, Exxon Valdez, Fall of the Berlin Wall, financial deregulation, financial innovation, fixed income, George Akerlof, greed is good, hedonic treadmill, hindsight bias, housing crisis, Hyman Minsky, intangible asset, interest rate swap, invisible hand, Jane Jacobs, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Meriwether, Kickstarter, laissez-faire capitalism, light touch regulation, liquidity trap, Long Term Capital Management, loss aversion, Martin Wolf, money market fund, mortgage debt, mortgage tax deduction, mutually assured destruction, Myron Scholes, negative equity, new economy, Nick Leeson, Norman Mailer, Northern Rock, Own Your Own Home, Ponzi scheme, quantitative easing, reserve currency, Right to Buy, risk-adjusted returns, Robert Shiller, Robert Shiller, Ronald Reagan, shareholder value, South Sea Bubble, statistical model, The Great Moderation, the payments system, too big to fail, tulip mania, value at risk

How did we get from an economy in which banks and credit function the way they are supposed to, to this place we’re in now, the Reykjavíkization of the world economy? The crisis was based on a problem, a mistake, a failure, and a culture; but before it was any of those things, it arose from a climate—and the climate was that which followed the capitalist world’s victory over communism and the fall of the Berlin Wall. This was especially apparent to me because I grew up in Hong Kong at the time when it was the most unbridled free-market economy in the world. Hong Kong was the economic Wild West. There were no rules, no income taxes (well, eventually there was a top tax of 15 percent), no welfare state, no guarantee of health care or schooling. Shanty-towns sprawled halfway up the hillsides of Hong Kong island; the inhabitants of those shanties had no electricity or running water or medicine or education for their children.

A more modern view would be that free-market capitalism has an inherent propensity for inequality and for cycles of boom and bust—there’s an extensive body of work studying these cycles. We can note that, in the current case, the practice fit the theory. The biggest boom in seventy years turned straight into the biggest bust. The rest of this book tells the story of how that happened, but there was one essential precursor to all the subsequent events, without which the explosion and implosion would not have occurred in the form they did: and that was the fall of the Berlin wall, the collapse of the Soviet Union, and the end of the Cold War. Explicit arguments about the conflict between the West and the Communist bloc were never especially profitable. The camps were too entrenched; the larger philosophical issues tended to be boiled off until nothing but the residue of party politics remained. On the right, it was so obvious that the Communist regimes were mass-murdering prison states that there was nothing further of profit to be discussed.

David Kynaston points out that under communism, children from primary school upward were taught the principles and practice of the system and were thoroughly drilled in how it was supposed to work. There is nothing comparable to that in the capitalist world. The City is, in terms of its basic functioning, a far-off country of which we know little. This climate of thinking informed all subsequent events. With the fall of the Berlin Wall, capitalism began a victory party that ran for almost two decades. Capitalism is not inherently fair: it does not, in and of itself, distribute the rewards of economic growth equitably. Instead it runs on the bases of winner take all and to them that hath shall be given. For several decades after the Second World War, the Western liberal democracies devoted themselves to the question of how to harness capitalism’s potential for economic growth to the political imperative to provide better lives for ordinary people.


pages: 241 words: 75,417

The Last President of Europe: Emmanuel Macron's Race to Revive France and Save the World by William Drozdiak

Berlin Wall, bilateral investment treaty, Boeing 737 MAX, Boris Johnson, centre right, cloud computing, Donald Trump, failed state, Fall of the Berlin Wall, hiring and firing, illegal immigration, immigration reform, income inequality, New Urbanism, offshore financial centre, reserve currency, Silicon Valley, Socratic dialogue, South China Sea, UNCLOS, working poor

That crusade had advanced steadily under the stewardship of de Gaulle and Konrad Adenauer, Valéry Giscard d’Estaing and Helmut Schmidt, and finally François Mitterrand and Helmut Kohl. The rocky relations between Paris and Berlin in recent years, however, had left Europe adrift, struggling to cope with the repercussions of the global financial crisis and the resurgence of big-power competition. “I knew this was the key question of our times,” Macron said, describing the state of the world he faced after his election in May 2017. “Nearly thirty years after the fall of the Berlin Wall, I realized we were at a new inflection point with the rise of China, the return of an aggressive Russia, and the retreat of America from global leadership. So where is Europe? Rather than trapped between these superpowers, as a zone to be fought over by others, I believe Europe needs its own renaissance to leap beyond its past and become an autonomous power equal to others. This cannot be done by any single nation-state, but only at a European level, with France and Germany assuming special responsibility to lead the way.”3 Macron’s grand strategy for his presidency was conceived with three goals in mind: to modernize France, to relaunch the drive toward a more unified continent, and to establish Europe as a major power in a multipolar world.

This bloody history seemed to confirm their reputation as “hereditary enemies.” But the postwar vision of building a United States of Europe transformed the destiny of two embattled neighbors. Over the past seventy years, France has provided the political leadership and Germany the economic dynamism that have driven Europe’s remarkable resurrection. Since Germany’s unification after the fall of the Berlin Wall three decades ago, however, that delicate balance of power has shifted. As wartime memories have faded, Germany’s prosperity has made its people more conscious of their own mercantile interests and less willing to make economic sacrifices for their partners. France’s failure to adapt to the rigors of globalized markets has caused its political stature to diminish relative to Germany, whose power has been magnified by an expanded population from formerly communist East Germany.

If Europe was ever going to achieve an enduring strategic partnership with Russia, there would have to be a greater level of cooperation and understanding with Moscow about the uses and abuses of advanced technologies in the future. As one of the West’s youngest and most consequential leaders, Macron felt comfortable thinking in terms of the next three decades, unlike most of his peers. Thirty years after the fall of the Berlin Wall, Macron believes that the world is poised at a new inflection point, one where artificial intelligence and advanced technologies may transform the power relationship between Russia and the West. Under Putin, Moscow has refined hybrid methods of undermining key institutions in the West and managed to achieve high-impact results at very little cost by using Western commercial digital platforms that are readily available to the public.


9-11 by Noam Chomsky

Berlin Wall, failed state, Fall of the Berlin Wall, Howard Zinn, Nelson Mandela, Ralph Nader, Ronald Reagan, War on Poverty, WikiLeaks

Department of Justice, file A28 851 622, A11 861 810. 30. Graham Allison, “How to Stop Nuclear Terror,” Foreign Affairs, January/February 2004. 31. Robertson, Daily Beast, 2011. 9-11 1. Not Since the War of 1812 Based on an interview with Il Manifesto (Italy), September 19, 2001. Q: The fall of the Berlin Wall didn’t claim any victims, but it did profoundly change the geopolitical scene. Do you think that the attacks of 9-11 could have a similar effect? CHOMSKY: The fall of the Berlin Wall was an event of great importance and did change the geopolitical scene, but not in the ways usually assumed, in my opinion. I’ve tried to explain my reasons elsewhere and won’t go into it now. The horrifying atrocities of September 11 are something quite new in world affairs, not in their scale and character, but in the target.


The Age of Turbulence: Adventures in a New World (Hardback) - Common by Alan Greenspan

"Robert Solow", addicted to oil, air freight, airline deregulation, Albert Einstein, asset-backed security, bank run, Berlin Wall, Bretton Woods, business cycle, business process, buy and hold, call centre, capital controls, central bank independence, collateralized debt obligation, collective bargaining, conceptual framework, Corn Laws, corporate governance, corporate raider, correlation coefficient, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, cuban missile crisis, currency peg, Deng Xiaoping, Dissolution of the Soviet Union, Doha Development Round, double entry bookkeeping, equity premium, everywhere but in the productivity statistics, Fall of the Berlin Wall, fiat currency, financial innovation, financial intermediation, full employment, Gini coefficient, Hernando de Soto, income inequality, income per capita, invisible hand, Joseph Schumpeter, labor-force participation, laissez-faire capitalism, land reform, Long Term Capital Management, Mahatma Gandhi, manufacturing employment, market bubble, means of production, Mikhail Gorbachev, moral hazard, mortgage debt, Myron Scholes, Nelson Mandela, new economy, North Sea oil, oil shock, open economy, Pearl River Delta, pets.com, Potemkin village, price mechanism, price stability, Productivity paradox, profit maximization, purchasing power parity, random walk, reserve currency, Right to Buy, risk tolerance, Ronald Reagan, shareholder value, short selling, Silicon Valley, special economic zone, stocks for the long run, the payments system, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, total factor productivity, trade liberalization, trade route, transaction costs, transcontinental railway, urban renewal, working-age population, Y2K, zero-sum game

The postwar liberalization of trade helped open up new low-cost sources of supply; coupled with the development of new financial institutions and products (made possible in part by silicon-based technologies), it facilitated the forward thrust toward global market capitalism even during the years of the cold war. In the following quarter century, the embrace of free-market capitalism helped bring inflation to quiescence and interest rates to single digits globally. The defining moment for the world's economies was the fall of the Berlin Wall in 1989, revealing a state of economic ruin behind the iron curtain far beyond the expectations of the most knowledgeable Western economists. Central planning was exposed as an unredeemable failure; coupled with and supported by the growing disillusionment over the interventionist economic policies of the Western democracies, market capitalism began quietly to displace those policies in much of the world.

"I do not want to see us move so strongly against inflation that we impede growth," he said. Normally such differences would get aired and resolved behind the scenes. I'd been looking toward building the same collaborative relationship with the White House that I'd seen during the Ford administration and that I knew had existed at times between Reagan and Paul Volcker. It was not to be. Great things happened on George Bush's watch: the fall of the Berlin Wall, the end of the cold war, a clear victory in the Persian Gulf, and the negotiation of the NAFTA agreement to free North American trade. But the economy was his Achilles' heel, and as a result we ended up with a terrible relationship. 113 More ebooks visit: http://www.ccebook.cn ccebook-orginal english ebooks This file was collected by ccebook.cn form the internet, the author keeps the copyright.

And in the wake of the collapse of Communism, Russia is struggling with a mild form of Dutch disease today. Over the past thirty-five years, as many countries have labored to liberalize their economies and improve the quality of their policies, global per capita income has risen steadily. This has especially been the case in countries that previously were fully or partially centrally planned and that, since the fall of the Berlin Wall, have embraced some form of market capitalism. I recognize that poverty rates are notoriously hard to quantify, but according to the World Bank, the number of people living on less than $1 per day, a commonly used extreme-poverty threshold, has fallen dramatically from 1,247 million in 1990 to 986 million in 2004. In addition, since 1970, the infant mortality rate has declined by more than half, school enrollment rates have risen steadily, and literacy rates are up.* *Figures on world poverty rates are from t h e World Bank and a 2002 study by Columbia University economist Xavier Sala-i-Martin.


pages: 434 words: 114,583

Faster, Higher, Farther: How One of the World's Largest Automakers Committed a Massive and Stunning Fraud by Jack Ewing

1960s counterculture, Asilomar, asset-backed security, Berlin Wall, cognitive dissonance, collapse of Lehman Brothers, corporate governance, crossover SUV, Fall of the Berlin Wall, full employment, hiring and firing, McMansion, self-driving car, short selling, Silicon Valley, sovereign wealth fund, Steve Jobs

A native of the Sudetenland, which had been part of Austria before World War I and became part of Czechoslovakia afterward, Porsche was already prominent in the fledgling auto industry. He had built a battery-powered car around the turn of the century and during World War I oversaw motorization of Austrian artillery at the Skoda automobile works in what is now the Czech Republic. (Many years later, after the fall of the Berlin Wall, Volkswagen would acquire Skoda.) Between the wars, working mostly as an independent contractor, Porsche designed and built a series of innovative race cars for companies including Daimler-Benz and Auto-Union, which would later become part of Audi. Though he had never earned a university degree and was largely self-taught, Porsche’s reputation as an engineer was such that Josef Stalin tried to lure him to the Soviet Union to oversee vehicle construction there.

Whether the car was idling, climbing a hill, or speeding on a highway, the fuel-air cocktail could be mixed and burned for the best result. The improved motor still had a bit of a growl, but it was no longer prone to blowing clouds of black exhaust like the diesels of old. Volkswagen called the result TDI, or turbocharged direct injection. It took eleven years to perfect. Audi unveiled its first TDI model, an Audi 100 sedan, at the Frankfurt Motor Show in September 1989, a few weeks before the fall of the Berlin Wall. Piëch was proud of the innovation, which used an onboard computer to manage the engine, then a novelty. The five-cylinder engine in the Audi 100 used two liters less fuel per 100 kilometers of driving than the competition, he bragged. At the same time, the car accelerated more quickly and ran more cleanly. Emissions were 30 percent less, according to Piëch. (He did not define which emissions he was referring to, however.)

A similar transformation was taking place at Porsche’s main factory in Stuttgart. As is so often the case with makers of desirable, expensive sports cars, Porsche was not always profitable. Sports cars are luxury goods rather than necessities, and sales can plunge steeply during economic downturns or stock market crashes when potential buyers decide to cancel or postpone purchases. That was especially true before the fall of the Berlin Wall in 1989. Until the 1990s, when markets in Eastern Europe, Russia, and China began to open up, Porsche was dependent on Europe and the United States. When both suffered recessions in the early 1990s, Porsche sales plunged so precipitously that the company suffered three money-losing years in a row and was close to bankruptcy. Like Volkswagen, Porsche recognized that Japanese auto manufacturers were much more efficient and that, to survive, it needed to copy their methods.


Hopes and Prospects by Noam Chomsky

"Robert Solow", Albert Einstein, banking crisis, Berlin Wall, Bretton Woods, British Empire, capital controls, colonial rule, corporate personhood, Credit Default Swap, cuban missile crisis, David Ricardo: comparative advantage, deskilling, en.wikipedia.org, energy security, failed state, Fall of the Berlin Wall, financial deregulation, Firefox, Howard Zinn, Hyman Minsky, invisible hand, liberation theology, market fundamentalism, Martin Wolf, Mikhail Gorbachev, Monroe Doctrine, moral hazard, Nelson Mandela, new economy, nuremberg principles, one-state solution, open borders, Plutonomy: Buying Luxury, Explaining Global Imbalances, Ralph Waldo Emerson, RAND corporation, Ronald Reagan, structural adjustment programs, The Wealth of Nations by Adam Smith, too big to fail, total factor productivity, trade liberalization, uranium enrichment, Washington Consensus

Chapter 12 draws on talks in October to November 2009, in the United Kingdom and Ireland, and at Boston College (November 30), a commemoration of the assassinations of November 16, 1989. PART I Latin America ONE Year 514: Globalization for Whom? Human affairs proceed in their intricate, endlessly varied, and unpredictable paths, but occasionally events occur that are taken to be sharp turning points in history. There have been several in recent years. It is a near platitude in the West that after September 11, 2001, nothing will be the same. The fall of the Berlin wall in 1989 was another event accorded this high status. There is a great deal to say about these two cases, both the myth and the reality. But in referring to the 514th year I of course have something different in mind: the year 1492, which did, undoubtedly, direct world history on a radically new course, with awesome and lasting consequences. As we know, the voyages of Columbus opened the way to the European conquest of the Western hemisphere, with hideous consequences for the indigenous population, and soon for Africans brought here in one of the vilest episodes of history.

TWELVE 1989 and Beyond The month of November 2009 was marked by the joyous twentieth-anniversary celebration of what British historian Timothy Garton Ash calls “the biggest year in world history since 1945.” That remarkable year “changed everything,” thanks primarily to Mikhail Gorbachev’s reforms within Russia and his “breathtaking renunciation of the use of force…a luminous example of the importance of the individual in history,” leading to the partially open Russian elections of March 1989 and culminating in the fall of the Berlin wall on November 9, which opened the way to liberation of Eastern Europe from Russian tyranny. The general mood was captured well by barrister Matthew Ryder, speaking for the “niners,” the generation that is now providing global leadership, with Barack Obama in the lead, their conception of history having been “shaped by a world changed without guns” in 1989, events that gave them confidence in the power of dedication to nonviolence and justice.1 The accolades for November 9 are deserved, and the events are indeed memorable.

Another perspective on the 2009 celebrations is provided by the work of the leading scholar/advocate of “democracy promotion,” neo-Reaganite Thomas Carothers, reviewed earlier. He ruefully concludes that all U.S. leaders have been “schizophrenic,” supporting democracy if and only if it conforms to strategic and economic objectives: hence in Soviet satellites but not U.S. client states.4 These judgments were once again confirmed by the events that reached their culmination in November 1989, and again on the twentieth anniversary. The fall of the Berlin wall was rightly celebrated in November 2009, but there was virtually no notice of what had happened one week later in El Salvador, on November 16, 1989: the brutal assassination of six prominent Latin American intellectuals, Jesuit priests, along with their housekeeper Julia Elba and her daughter Celina, by the elite Atlacatl battalion, armed and trained by Washington. The battalion had just returned from a several-month refresher course at the JFK Special Warfare School at Fort Bragg, and a few days before the murders underwent a further training exercise run by U.S.


pages: 277 words: 41,815

Lonely Planet Pocket Berlin by Lonely Planet, Andrea Schulte-Peevers

Albert Einstein, Berlin Wall, call centre, Fall of the Berlin Wall, Frank Gehry, G4S, haute cuisine, indoor plumbing, Peter Eisenman, Ronald Reagan, Ronald Reagan: Tear down this wall, upwardly mobile, urban planning, urban renewal

As the economic gulf widened, scores of mostly young and educated East Germans decided to seek a future in the west, further straining the economy and leading to the construction of the Berlin Wall in 1961 to stop the exodus. (Read more about it on Click here.) The appointment of Erich Honecker in 1971 opened the way for rapprochement with the west. Honecker fell in line with Soviet politics but his economic approach did improve the East German economy, eventually leading to the collapse of the regime and the fall of the Berlin Wall in November 1989. 5 Berliner Dom Church Offline map Google map Pompous yet majestic, the former royal court church (1905) does triple duty as house of worship, museum and concert hall. The 7269-pipe Sauer organ and the elaborate sarcophagi made for various royals are top draws. Climb the 267 steps to the gallery for glorious city views. (Berlin Cathedral; www.berliner-dom.de; Am Lustgarten; adult/child/concession €7/free/4, audioguide €3; 9am-8pm Mon-Sat, noon-8pm Sun Apr-Sep, to 7pm Oct-Mar; 100, 200, TXL) 6 Bodemuseum Museum Offline map Google map This neobaroque Museum Island beauty shelters Byzantine art, 2700 years worth of coins and, most importantly, a priceless collection of European sculpture by such artists as Donatello, Bernini and Tilmann Riemenschneider.

The volatile, increasingly polarised political climate led to clashes between communists and the emerging NSDAP, led by Adolf Hitler. Soon jackboots, Brownshirts, oppression and fear would dominate daily life in Germany. 4 Story of Berlin Museum Offline map Google map This multimedia museum breaks down 800 years of Berlin history into bite-sized chunks, from the city’s founding in 1237 to the fall of the Berlin Wall. A highlight is a tour of a fully functional Cold War–era atomic bunker beneath the building. Enter through the shopping mall. (www.story-of-berlin.de; Kurfürstendamm 207-208; adult/concession €10/8; 10am-8pm, last admission & bunker tour 6pm; U-Bahn Uhlandstrasse) 5 Zoo Berlin Zoo Offline map Google map Germany’s oldest animal park opened in 1844 with furry and feathered critters from the royal family’s private reserve.


pages: 134 words: 41,085

The Wake-Up Call: Why the Pandemic Has Exposed the Weakness of the West, and How to Fix It by John Micklethwait, Adrian Wooldridge

Admiral Zheng, Affordable Care Act / Obamacare, basic income, battle of ideas, Berlin Wall, Bernie Sanders, Boris Johnson, carried interest, cashless society, central bank independence, Corn Laws, coronavirus, COVID-19, Covid-19, creative destruction, David Ricardo: comparative advantage, Deng Xiaoping, Dominic Cummings, Donald Trump, Etonian, failed state, Fall of the Berlin Wall, global pandemic, Internet of things, invisible hand, Jones Act, knowledge economy, laissez-faire capitalism, McMansion, night-watchman state, offshore financial centre, oil shock, Panopticon Jeremy Bentham, Parkinson's law, pensions crisis, QR code, rent control, road to serfdom, Ronald Reagan, school vouchers, Shoshana Zuboff, Silicon Valley, smart cities, trade route, universal basic income, Washington Consensus

So when we date the decline of the Western state to the 1960s, this comes with the fervent hope that it can still rebound. We have the technology, the power, and the competitive threat to prompt a new beginning. But it won’t be easy. Since the 1960s, government in the West has tried a variety of cures—from a genuine attempt at revolution under Ronald Reagan and Margaret Thatcher to the quack cures of the modern populists. It has had moments of Trajan-like triumph—especially the fall of the Berlin Wall. But even when it was lecturing the rest of the world about the inevitability of globalization in the 1990s, the Western state never regained the confidence at home it had in the 1960s. The public sector has lagged ever further behind the private sector. And gradually the East has begun to catch up. As Gibbon also mused, “Instead of inquiring why the Roman empire was destroyed, we should rather be surprised that it had subsisted so long.”

Lucky or not, she succeeded in changing the country’s direction. The number of employee days lost to strikes fell from 29.5 million in 1979 to under 2 million in 1986. The top rate of tax fell from 98 percent in 1979 to 40 percent.8 And in a wave of “privatisations” she set free forty-six state-owned companies, including British Gas and British Telecom, as well as selling council houses to their occupants.9 The fall of the Berlin Wall in 1989 created a mood of euphoria across the West. The Anglo-American hymn of deregulation, globalization, and privatization rang out across the world. Bill Clinton declared the age of big government to be over, and Tony Blair ditched “Clause Four,” which had committed the Labor Party to nationalization. The likes of Renault and Lufthansa were privatized. New York and London became the symbols of the new era: cosmopolitan, lively, and revitalized by the power of global finance.


pages: 414 words: 121,243

What's Left?: How Liberals Lost Their Way by Nick Cohen

anti-communist, Ayatollah Khomeini, Berlin Wall, Boycotts of Israel, British Empire, centre right, Etonian, failed state, Fall of the Berlin Wall, Farzad Bazoft, feminist movement, haute couture, kremlinology, liberal world order, light touch regulation, mass immigration, moral hazard, Naomi Klein, plutocrats, Plutocrats, post-industrial society, profit motive, Ralph Nader, road to serfdom, Ronald Reagan, Scientific racism, sensible shoes, the scientific method, union organizing, upwardly mobile, Yom Kippur War

The foreign minister of mighty Luxembourg stirred the blood of true believers when he thundered in an indomitable voice, ‘The hour of Europe has come!’ The hour of Europe had done nothing of the sort. Postmodern Paradise had a fatal weakness: it wasn’t prepared to fight for itself or its values. Indeed, its post-modern condition rested on the belief that it had no absolute values that were not open to negotiation. With conflict unimaginable, the leaders of Paradise felt no need to waste money on preparing for war. After the fall of the Berlin Wall, they cashed in on the peace dividend and reduced military spending from 3 to 2 per cent of gross domestic product while the US kept it at 3 per cent. A difference of 1 per cent doesn’t sound a vast gap. But Paradise’s welfare state was becoming ever more expensive as its inhabitants lived longer and had fewer children. The enjoyment of Paradise’s exquisite regional cuisines and the relaxation brought by long holidays at its innumerable resorts were easier to afford without the costs and inconveniences of raising the young.

That apparently insignificant 1 per cent difference in GDP bought a revolution in American military technology. More important than the money was the European mentality. With children rare, their parents weren’t prepared to risk the lives of the young in battle. They reassured themselves that the lesson of recent history was that fighting got you nowhere. The EU had brought peace to Western Europe for fifty years, while the fall of the Berlin Wall had been a miracle. A terrible ideological conflict between opponents equipped with nuclear weapons that had threatened to destroy the planet had ended with barely a shot fired. Unarmed citizens took to the streets of Prague, Berlin and Dresden and – poof – communism was gone. The residents of Paradise didn’t like to think that pressure from the American arms build-up had played a part in finishing the Soviet Union.

The Tories’ friends on the Left made a rickety bridge between the old and the new protest movements. On the one hand, they bellowed the last hurrah of the Marxists of the twentieth century. Milosevic said he was a socialist, and they took him at his word, and insisted that capitalists were using crimes manufactured by the media to justify the break-up of Yugoslavia because it was the last corner of Europe holding out against market economics after the fall of the Berlin Wall. Their conspiracy theory didn’t make the slightest sense. The published diaries of Milosevic lieutenants show that they, not the ‘capitalist’ West, planned the break-up of Yugoslavia. The idea that Serb nationalists were the last socialists in Europe fighting a desperate rearguard action against the forces of the ‘hegemonic’ market was dished by the fact that the Conservative administration of John Major and the equally right-wing Republican administration of George Bush senior refused to stop their ethnic cleansing.


pages: 160 words: 46,449

The Extreme Centre: A Warning by Tariq Ali

Affordable Care Act / Obamacare, Berlin Wall, bonus culture, BRICs, British Empire, centre right, deindustrialization, Edward Snowden, Fall of the Berlin Wall, financial deregulation, first-past-the-post, full employment, labour market flexibility, land reform, light touch regulation, means of production, Mikhail Gorbachev, Monroe Doctrine, mortgage debt, negative equity, Neil Kinnock, North Sea oil, obamacare, offshore financial centre, popular capitalism, reserve currency, Ronald Reagan, South China Sea, The Chicago School, The Wealth of Nations by Adam Smith, trade route, trickle-down economics, Washington Consensus, Westphalian system, Wolfgang Streeck

In practice NATO became a mechanism, controlled by the United States, whereby its European allies were kept under a military umbrella. And yet it is worth noting that throughout the Cold War years, from 1949 to 1990, NATO never fought a single battle. It was neither tried nor tested. Instead, it was a military propaganda organization, designed to control allies rather than punish enemies. Yet things changed following the fall of the Berlin Wall. Where once the purpose was a defensive show of strength, it now became an offensive test of strength, giving rise to operational shifts and corresponding changes in its command structure. This was on public record at the Welsh summit in 2014. There have been two and a half phases in NATO’s development since 1949. The original members comprised the United States, the United Kingdom, Belgium, Canada, France, Denmark, Norway and Iceland.

To think that the military-political leadership of the United States is preparing to go back home after organizing a soft dismantling of its overseas empire is eminently comforting and wholly untrue. The economic situation in the US and Europe is serious, but not terminal. The economic, political and military components of the present crisis are the direct result of the capitalist triumphalism that gripped the West after the fall of the Berlin Wall in 1989. The strategic and economic policies prescribed by the United States and accepted without question by their global allies – the Washington Consensus – were not hasty improvisations. The gleeful governors of the new world order, initially surprised by the speed of the collapse in the Soviet Union, moved rapidly to take full advantage of circumstances. The dawn of the ‘unipolar moment’ was seen in the blitzkrieg of the 1991 Gulf War, which sealed American pre-eminence and exorcized the ghosts of Vietnam.


Super Continent: The Logic of Eurasian Integration by Kent E. Calder

3D printing, air freight, Asian financial crisis, Berlin Wall, blockchain, Bretton Woods, business intelligence, capital controls, Capital in the Twenty-First Century by Thomas Piketty, cloud computing, colonial rule, Credit Default Swap, cuban missile crisis, deindustrialization, demographic transition, Deng Xiaoping, disruptive innovation, Doha Development Round, Donald Trump, energy transition, European colonialism, failed state, Fall of the Berlin Wall, Gini coefficient, housing crisis, income inequality, industrial cluster, industrial robot, interest rate swap, intermodal, Internet of things, invention of movable type, inventory management, John Markoff, liberal world order, Malacca Straits, Mikhail Gorbachev, mittelstand, money market fund, moral hazard, new economy, oil shale / tar sands, oil shock, purchasing power parity, quantitative easing, reserve currency, Ronald Reagan, seigniorage, smart cities, smart grid, South China Sea, sovereign wealth fund, special drawing rights, special economic zone, supply-chain management, Thomas L Friedman, trade liberalization, trade route, transcontinental railway, UNCLOS, UNCLOS, union organizing, Washington Consensus, working-age population, zero-sum game

Classification: LCC HF1583 .C36 2019 | DDC 337.5 — dc23 LC record available at https://lccn.loc.gov/2018038995 Cover design: George Kirkpatrick Typeset by Newgen in 10.5/13.5 Contents List of Figures, Maps, and Tables Preface Introduction vii ix xiii 1 Eurasian Reconnection and Renaissance 1 2 The Silk Road Syndrome 22 3 Eurasia in the Making 49 4 The Logic of Integration 70 5 Quiet Revolution in China 100 6 Southeast Asia: The First Experiment 122 7 Russia: An Unbalanced Entente 140 8 The New Europe: Deepening Synergies 160 9 Shadows and Critical Uncertainties 185 10 Toward a New World Order 206 11 Prospects and Policy Implications 232 Notes Bibliography Index 253 307 313 This page intentionally left blank Figures, Maps, and Tables figures 1.1 The fall (and rise) of Eurasia (1–2015 AD) 3 5.1 China’s rising share among major Eurasian economies 102 5.2 From exports to a domestic driver— changing demand structure in the Chinese economy (2000 –2017) 103 5.3 China’s steel overcapacity 109 5.4 The reorientation of Eurasian trade: from the US toward China 118 7.1 China’s rising economic scale relative to Russia (1992 –2017) 149 8.1 Rising EU reliance on the Chinese market (1990 –2017) 168 8.2 Rising Chinese investment in Europe 169 maps 1.1 Land vs. sea routes 6 1.2 “Continental Drift” brings Europe and Asia closer in the post–Cold War world 14 2.1 The classic Silk Road 27 2.2 China’s Belt and Road Initiative 45 4.1 China dominates continental overland routes to the West 73 viii Figures, Maps, and Tables 4.2 Sino-Russian maritime access dilemmas 75 4.3 India’s tortured overland options 76 4.4 Contrasting energy supply options for Europe and East Asia 79 4.5 Deepening East-West railway routes across Eurasia 90 6.1 The prospective Kunming-Singapore railway network 131 7.1 China’s multiple pipeline options 144 7.2 The new Eurasian Arctic shipping frontier 146 8.1 Expansion of the European Union (1957–2013) 166 8.2 Germany, the Visegrad Four, and the shadow of Cold War divisions 174 8.3 The Orient/East-Mediterranean corridor 176 8.4 The 16+1 Cooperation Framework Nations 180 tables 1.1 Eurasia’s formidable scale in global context 7 1.2 Top ten most populous countries (2017) 8 1.3 The looming challenge of rising energy consumption in developing Eurasia 8 1.4 Systems of international order 18 3.1 Expanding Central Asian trade with Russia, China, and Turkey 58 4.1 Oil reserves, production, and exports (2017) 80 4.2 Natural gas reserves, production, and exports (2017) 80 6.1 The varied patterns of overseas Chinese presence in Southeast Asia (2011) 125 9.1 WMD prominence across Eurasia 196 Preface The expanses of Eurasia have fascinated me ever since I was a boy. As I was growing up, it was terra incognita— exotic, foreign territory, and much of it off-limits to American citizens. As I began my academic career, the continent was in volatile transition, a world of fragile regimes whose demise opened up intriguing new worlds, epitomized by the fall of the Berlin Wall and the collapse of the shah’s regime in Teheran. Today, Eurasia is being reconfigured once again. Its western and eastern poles are moving into an ever-deeper embrace, with global political-economic implications. Those fateful developments, unfolding before our eyes, configure the story presented in the pages to follow. A century ago and more ago, a Super Continent began to rise on American shores, its connectivity assured by ­infrastructure—a transcontinental railway, consolidated by the Golden Spike at Promontory Point (1869), and a canal from the Atlantic to the Pacific, completed across Panama (1914).

Gaidar’s initiatives focused on market-oriented measures like price liberalization and financial stabilization, designed to promote a more favorable environment for capital inflows and deepened interdependence with the industrialized West.20 In other parts of the “near abroad,” officials likewise pursued policies supportive of foreign investment and expanded international trade. New Linkages and Deepened Ties In the more advanced western regions of the former USSR, the major shortterm impact of the USSR’s collapse and the sudden new market orientation was to deepen interdependence between Russia and noncommunist Europe, especially Germany. In the first two decades following the fall of the Berlin Wall, six former members of the Warsaw Pact and three former republics of the USSR itself joined the EU. This post–Cold War expansion of the EU—the direct consequence of Soviet collapse—had major implications for the nature of Europe itself as well as for Europe’s ties to the broader world. It shifted the geographical center of the EU close to a thousand miles east— from France deep into Germany.

Thus, individual states that benefit from deepened interdependence with China, such as poorer states of Eastern and Southern Europe, like Hungary, the Czech Republic, and Greece, are in a position to block efforts to constrain a forceful response to China in many areas, even when core Western members may consider it justified.26 The Security Dimension of Europe’s Transformation The North Atlantic Treaty Organization (NATO) has a provenance even longer than that of the European economic integration process. Formed in response to the Czech coup and Berlin blockade of 1948, it was constituted nearly a decade before the EC was established in 1957. Like the EC, NATO expanded thereafter in several waves, especially following the fall of the Berlin Wall and the collapse of the Warsaw Pact in the 1990s. During the 2000s, it grew still further to include even three former republics of the Soviet Union—Estonia, Latvia, and Lithuania. It includes a few nations, such as Albania, Montenegro, and Turkey, that are not members of the EU, and excludes some neutral countries, like Austria, Finland, Ireland, and Sweden, that are conversely part of the EU.


Betrayal of Trust: The Collapse of Global Public Health by Laurie Garrett

accounting loophole / creative accounting, airport security, Albert Einstein, anti-communist, Ayatollah Khomeini, Berlin Wall, biofilm, clean water, collective bargaining, desegregation, discovery of DNA, discovery of penicillin, Drosophila, employer provided health coverage, Fall of the Berlin Wall, germ theory of disease, global pandemic, illegal immigration, indoor plumbing, Induced demand, John Snow's cholera map, Jones Act, Louis Pasteur, Mahatma Gandhi, mass incarceration, Maui Hawaii, means of production, Menlo Park, Mikhail Gorbachev, mouse model, Nelson Mandela, new economy, nuclear winter, phenotype, profit motive, Project Plowshare, RAND corporation, randomized controlled trial, Right to Buy, Ronald Reagan, sexual politics, Silicon Valley, stem cell, the scientific method, urban decay, urban renewal, War on Poverty, working poor, Works Progress Administration, yellow journalism

Even before the USSR collapsed East German scientists got sobering glimpses of the price they were going to pay for decades of isolation from their more advanced West German peers. In 1989, months before the fall of the Berlin Wall, the Iron Curtain weakened enough to allow some 400,000 Germans from the East to visit the West, and 1 percent of her scientists relocated westward. Those scientists who went west told colleagues back home that they found their skills woefully backward. In particular, the almost complete lack of computer skills and knowledge of computer-driven research tools put the Easterners twenty years behind.155 And after the fall of the Berlin Wall the West German scientists were shocked to see how completely the Communist Party controlled Eastern science, allowing dogma to carry greater weight than such seemingly irrefutable foundations as the law of physics.156 Czechoslovakia awoke from its 1990 Velvet Revolution to the realization that most of its fifteen thousand scientists had been cowed or jailed after the Soviet invasion of 1968.

In Angarsk, which ranked fourth worst, it was 15. No city ranked above a 22—except Noril’sk. Noril’sk was at the extreme end of a Soviet ecological legacy that could be felt from East Berlin all the way to the Pacific Ocean. In Bohemia, the Czech Republic, fifty years of strip mining and coal smelting had devastated what once was the preferred vacation site of the Hapsburgs and aristocracy all over Central Europe. The fall of the Berlin Wall gave West Germans a shocking look at the industrial filth and putrid air of their eastern countrymen. The Central Asian nations of Uzbekistan and Kazakhstan were suffering from an insane irrigation scheme begun by Lenin, draining the vast, landlocked Aral Sea to provide water for cotton fields, resulting in elevated throat cancer due to environmental dust.64 The visual and physical filth was pervasive.

And they had sex in these houses, in the forest, in the cars—anywhere. “Sometimes local people are involved, but the business is run by foreigners. And they don’t provide health care to their prostitutes. They’re all over the Czech Republic, all over Eastern Europe, in fact, and when one [prostitute] gets ill they just replace her. That’s it.” Since the 1989 Velvet Revolution of Czechoslovakia, the 1990 fall of the Berlin Wall, and then the 1991 collapse of the Soviet Union prostitution had transformed in the vast region from a tightly controlled cottage industry into a multibillion-dollar, multinational enterprise controlled by sophisticated organized crime rackets that transported tens of thousands of women—and in all too many cases girls and boys—from the poorest formerly Communist countries to pockets of plenty along the borders of wealthy Western Europe and the Middle East.


pages: 325 words: 99,983

Globish: How the English Language Became the World's Language by Robert McCrum

Alistair Cooke, anti-communist, Berlin Wall, British Empire, call centre, Charles Lindbergh, colonial rule, credit crunch, cuban missile crisis, Deng Xiaoping, Etonian, failed state, Fall of the Berlin Wall, Francis Fukuyama: the end of history, invention of movable type, invention of writing, invisible hand, Isaac Newton, jimmy wales, knowledge economy, Livingstone, I presume, Martin Wolf, Naomi Klein, Norman Mailer, Parag Khanna, Ralph Waldo Emerson, Republic of Letters, Ronald Reagan, sceptred isle, Scramble for Africa, Silicon Valley, Steven Pinker, the new new thing, The Wealth of Nations by Adam Smith, Thomas L Friedman, trade route, transatlantic slave trade, transcontinental railway, upwardly mobile

By the late 1970s the Soviet and American stand-off was nearing its final phase, occasionally referred to as the ‘second Cold War’. Now the Anglo-American hegemony-often hotly disputed by anti-American liberals – was wholly underpinned by rampant capitalism, represented by Margaret Thatcher’s premiership in Britain and Ronald Reagan’s two-term presidency in the United States. After the fall of the Berlin Wall in 1989 this new global culture would morph into the worldwide cultural revolution that would become Globish. The eerie decade that preceded the crisis of 2001 was the first in a century in which the world was no longer in the shadow of war. Francis Fukuyama declared ‘the End of History’. It was during this unreal and optimistic hiatus that the little term coined by Jean-Paul Nerrière in 1995, ‘Globish’ – simple, inelegant and almost universal-first gained currency.

French outrage settled on the news that Disney’s American managers required English to be spoken throughout Mickey’s new French domain. Le Figaro hoped, ‘with all its heart’, that ‘the rebels would set fire to EuroDisney’. The French theatre director Ariane Mnouchkine went further. EuroDisney, she announced, would be ‘a cultural Chernobyl’. These declarations were partly the expressions of a traditional French reflex, but also an indication of a wider European dismay at the unipolar world that took shape after the fall of the Berlin Wall. The logical culmination of the American century, the 1990s seemed to presage the death throes of a distinctive European culture. So this final decade began with increasingly vehement outbursts of anti-Americanism. In July 1992, with the wounds inflicted by EuroDisney still raw, some 250 French personalities and intellectuals, including novelists and poets, signed a petition demanding that Mitterrand’s government enact a law announcing the mandatory use of French in all meetings, seminars and conferences, in all French-sponsored films-indeed, in all transactions conducted on French soil.

London, Boston, San Francisco, Kuala Lumpur, Bangalore: in the new knowledge economy, all these cities could be linked simultaneously, offering a new challenge as much for a modernising India as for a globalising America. ‘My God,’ exclaimed Friedman, ‘he’s telling me the world is flat.’ Armed with this insight, Friedman mobilised himself to explore the many economic aspects of globalisation, from Wal-Mart to Yahoo!, that were contributing to this flattening process. For Friedman, the fall of the Berlin Wall, the rise of the PC, Netscape, outsourcing, and ‘off – shoring’ – his ‘flattening’ forces – combined to enhance a new global awareness. Millions of people [he writes] on different continents suddenly started to feel that something was new. They couldn’t always quite describe what was happening, but by 2000 they sensed that they were in touch with people they’d never been in touch with before, were being challenged by people who had never challenged them before, were competing with people they had never competed with before … In the new millennium ‘what they were feeling’, he concluded, was the ‘flattening of the world’.


Rogue States by Noam Chomsky

anti-communist, Asian financial crisis, Berlin Wall, Branko Milanovic, Bretton Woods, business cycle, capital controls, collective bargaining, colonial rule, creative destruction, cuban missile crisis, declining real wages, deskilling, Edward Snowden, experimental subject, Fall of the Berlin Wall, floating exchange rates, land reform, liberation theology, Mikhail Gorbachev, Monroe Doctrine, new economy, oil shock, RAND corporation, Silicon Valley, strikebreaker, structural adjustment programs, Tobin tax, union organizing, Washington Consensus

Also needed are intervention forces aimed at the Middle East, where in past years, “the threats to our interests” that required military intervention “could not be laid at the Kremlin’s door,” contrary to half a century of propaganda, now quietly shelved. Rather, the threats were “radical nationalism,” meaning intolerable independence. With the clouds lifted, the sun shone through briefly, but has been ignored. With Russian support for Cuba ending, the US stepped up its economic warfare, hoping to move in for the kill. Meanwhile within US domains, matters continued routinely. A week after the fall of the Berlin Wall, ending the Cold War, six leading Latin American intellectuals, Jesuit priests, were murdered by an elite Salvadoran battalion, armed and trained by the US, and fresh from renewed US training, acting on direct orders of the High Command. There was little notice, in accord with the Orwellian principle. They were not honored dissidents, just more unpeople, in Orwellian parlance. A few weeks later the US invaded Panama killing unknown numbers of people in the slums that were heavily bombarded, thousands according to Central American human rights organizations.

That ended the Cold War as far as any sane person was concerned. In October 1989, a month before, the Bush administration had released a secret national security directive, now public, in which it called for support for our great friend Saddam Hussein and other comparable figures in the Middle East in defense against the Russians. That was October 1989. In March 1990—that’s four months after the fall of the Berlin Wall—the White House had to make its annual presentation to Congress calling for a huge military budget, which was the same as in all earlier years, except for the pretexts. Now it wasn’t because the Russians are coming, because obviously the Russians aren’t coming, it was because of what they called the “technological sophistication” of Third World powers. With regard to the Middle East, instructions had been changed from October—then, it was: “the Russians are coming.”

With regard to the Middle East, instructions had been changed from October—then, it was: “the Russians are coming.” In March, it was: our intervention forces have to be aimed at the Middle East as before, where the threat to our interests “could not be laid at the Kremlin’s door,” contrary to the lies of the last 40 years. Case by case, the pretext changed, the policies remained—but were now without restraints. That was immediately obvious in Latin America. A month after the fall of the Berlin Wall the US invaded Panama, killing a couple of hundred or maybe a couple of thousand people, destroying poor neighborhoods, reinstating a regime of bankers and narcotraffickers—drug peddling and money laundering shot way up, as congressional research bureaus soon advised—and so on. That’s normal, a footnote to history, but there were two differences: one difference is that the pretexts were different.


Powers and Prospects by Noam Chomsky

anti-communist, Berlin Wall, Bretton Woods, colonial rule, declining real wages, deindustrialization, deskilling, Fall of the Berlin Wall, invisible hand, Jacques de Vaucanson, John von Neumann, liberation theology, Monroe Doctrine, old-boy network, RAND corporation, Ronald Reagan, South China Sea, theory of mind, Tobin tax, Turing test

Nor are they likely to be subjected to the results of a 1994 Gallup poll, considered to be the first independent and scientific survey, published in the Miami Spanish-language press but apparently not elsewhere: that 88 per cent said they were ‘proud of being Cuban’ and 58 per cent that ‘the revolution’s successes outstrip its failures’, 69 per cent identified themselves as ‘revolutionaries’ (but only 21 per cent as ‘Communist’ or ‘socialist’), 76 per cent said they were ‘satisfied with their personal life’, and 3 per cent said that ‘political problems’ were the key problems facing the country. If such Communist atrocities were to be known, it might be aecessary to nuke Havana instead of simply trying to kill as many people as possible from starvation and disease to bring ‘democracy’. That became the new pretext for strangling Cuba after the fall of the Berlin wall, the ideological institutions not missing a beat as they shifted gears. No longer was Cuba an agent of the Kremlin, bent on taking over Latin America and conquering the United States, trembling in terror. The lies of 30 years can be quietly shelved: terror and economic warfare have always been an attempt to bring democracy, in the revised standard version. Therefore we must tighten the embargo that ‘has contributed to an increase in hunger, illness, death and to one of the world’s largest neurological epidemics in the past century’, according to health experts writing in US medical journals in October 1994.

Many times, in fact, though the US has sometimes been able to mobilise El Salvador, Romania, and a few others to the cause of justice and freedom; and in the Security Council, Britain is fairly reliable, taking second place in vetoes (France a distant third) since the 1960s, when Moscow’s dominance became intolerable to true democrats.4 As Kennedy’s ‘monolithic and ruthless conspiracy’ engaged in world conquest faded from the scene in the 1980s, the search was on for new aggressors threatening our borders and our lives. Libya, disliked and defenceless, served as a particularly useful punching bag for courageous Reaganites. Other candidates include crazed Arabs generally, international terrorists, or whoever else can be conjured up. When George Bush celebrated the fall of the Berlin Wall by invading Panama, it was not in defence against Communism; rather, the demon Noriega, captured, tried, and condemned for his crimes, almost all committed while he was on the CIA payroll. At this moment, half of US military aid goes to Colombia, the hemisphere’s leading human rights violator, with a shocking record of atrocities. The pattern is typical, but the pretext is not; this time, it is defence against narcotraffickers.

And when one participant suggested that others might be doing the Russians’ work for them, President Eisenhower took ‘vigorous exception’, the record reveals.15 We need hardly argue the point any longer; it is coming to be conceded, even officially, the pretext no longer serving any useful purpose. The transition was rapid. Well into 1989, the US was defending itself against global Communist aggression. By the year’s end that was not what it was (or even had been) doing. In March 1990, the White House made its regular presentation to Congress to explain why the Pentagon budget must be kept at its colossal level, the first presentation after the fall of the Berlin Wall in November 1989. The conclusion was the usual one, but the reasons were now different: the threat was not the Kremlin, but the ‘growing technological sophistication’ of the Third World. In particular, the US must maintain its intervention forces aimed at the Middle East because of ‘the free world’s reliance on energy supplies from this pivotal region’, where the ‘threats to our interests could not be laid at the Kremlin’s door’ in recent years.


pages: 171 words: 54,334

Barefoot Into Cyberspace: Adventures in Search of Techno-Utopia by Becky Hogge, Damien Morris, Christopher Scally

A Declaration of the Independence of Cyberspace, back-to-the-land, Berlin Wall, Buckminster Fuller, Chelsea Manning, citizen journalism, cloud computing, corporate social responsibility, disintermediation, Douglas Engelbart, Douglas Engelbart, Electric Kool-Aid Acid Test, Fall of the Berlin Wall, game design, Hacker Ethic, informal economy, information asymmetry, Jacob Appelbaum, jimmy wales, John Markoff, Julian Assange, Kevin Kelly, mass immigration, Menlo Park, Mitch Kapor, MITM: man-in-the-middle, moral panic, Mother of all demos, Naomi Klein, Nelson Mandela, Network effects, New Journalism, Norbert Wiener, peer-to-peer, Richard Stallman, Silicon Valley, Skype, Socratic dialogue, Steve Jobs, Steve Wozniak, Steven Levy, Stewart Brand, technoutopianism, Telecommunications Act of 1996, The Hackers Conference, Vannevar Bush, Whole Earth Catalog, Whole Earth Review, WikiLeaks

Fierce Dancing filled in the blanks, it told the stories of the alternative cultures – pagans, new age travellers, punks and drop-outs – that had coalesced around this scene and contributed to its vibrancy. It told tales of women who gardened vegetable plots in no knickers, tepee valleys in the depths of Wales, and how to make poppy tea. It was, in that most adolescent sense, a revelation. And to an adolescent growing up in the consumerist nineties, seven years after the fall of the Berlin Wall and seventeen years into the rule of Margaret Thatcher’s Conservative party where alternative ideas about how to live seemed only to exist to sell ice cream and health drinks, it was also an escape. I’d often wondered what had happened to all the hippies. My favourite film at that time was Easy Rider. The legacy of the counterculture was celebrated in books and on TV, but, outside of the odd rave, the world around me seemed to contain little of the freedom, the rebellion and the exuberance that the sixties had supposedly promised.

Watching over us, across the snowy moonscape of eastern Berlin, is the Alexanderplatz television tower. A flying saucer spiked on a giant needle, it is the perfect vision of Soviet futurism. Twenty yards from the door at which it looks like my journey will end prematurely, a flock of municipal exhibition stands have come to rest on Alexanderplatz, commemorating the 20th anniversary of the fall of the Berlin Wall. Black and white photos of GDR rebels – crouched over printing presses pumping out samizdat, or else in small groups, smoking – look nonchalantly into the lens of posterity. Who took these photos? Which of their fellow freedom fighters knew we would want to look back on this congregation of young minds which changed the course of history? The photos are captioned in French, English and German, interspersed with grainy pictures of officials from the regime, the tortuous surveillance equipment of the Stasi, or the bright, art-punk graphics of the underground magazines that spread the rebels’ message of freedom.


Gorbachev by William Taubman

active measures, affirmative action, Albert Einstein, anti-communist, Berlin Wall, British Empire, card file, conceptual framework, Deng Xiaoping, Donald Trump, Fall of the Berlin Wall, fear of failure, haute couture, indoor plumbing, means of production, Mikhail Gorbachev, Neil Kinnock, Potemkin village, RAND corporation, Ronald Reagan, Ronald Reagan: Tear down this wall, Saturday Night Live, Stanislav Petrov, trade liberalization, young professional

And, as Gorbachev would discover in 1989, the wider world, too, was uglier than the vision of it proclaimed in his UN speech. CHAPTER 12 1989: TRIUMPH AND TROUBLE AT HOME NINETEEN EIGHTY-NINE WAS a pivotal year in the history of Communism and of the whole twentieth century. The liberation of Eastern Europe—a “velvet revolution” in Czechoslovakia, remarkably smooth transitions in Poland and Hungary, bloody in Romania—and the fall of the Berlin Wall led with startling swiftness to the unification of Germany and its accession to NATO the next year. By then, if not before, most observers would agree, the cold war was really over. But the epochal events of 1989 abroad would not have occurred without the domestic developments that preceded and accompanied them in the Soviet Union. Gorbachev’s innovations at home encouraged East Europeans to reform their own versions of Communist rule, or even to free themselves from Communism entirely.

That’s all I have to say.”83 After this public confession, Yeltsin fell ill for two weeks and canceled several public appearances, while aides informed him that his popularity rating had dropped sharply.84 Well might Gorbachev have felt, as the end of the year approached, that at least the Yeltsin threat had receded. But not for long. CHAPTER 13 1989: TRIUMPH AND TROUBLE ABROAD IN THE LONG RUN, THE FALL of the Berlin Wall was inevitable. How could Germans remain forever separated when they were so attached (occasionally too attached) to their shared nationhood? But when and how the wall fell was not predictable. It did not fall because in the summer of 1987 President Reagan declared, “Mr. Gorbachev, tear down this wall!” Nor because Gorbachev decided on his own to order the East Germans to do so. Rather, the actual fall resembled the theater of the absurd.1 Under pressure from massive opposition demonstrations in early November 1989, the East German Politburo opted for new, temporary travel rules permitting “permanent exit” from the German Democratic Republic.

Chernyaev added tellingly in his diary, “The recognition and understanding he gets ‘over there’ reinforces and reassures him—in contrast to the worthless treatment he gets from his own people.”83 And now the GDR had a new leader! Under whom the GDR could proceed to establish its own version of reformed socialism! On November 1 in Moscow, Gorbachev gave Krenz a warm welcome and urged him to undertake “radical reform and not just a cosmetic repair job.”84 THE FALL OF THE BERLIN WALL eventually changed almost everything. Until then, Gorbachev was the prime initiator of change, launching reforms in his own country, delighted when they spilled into Eastern Europe, pushing Western leaders toward a new world order. Afterward, he had to react to changes initiated by others—by masses of people on the ground in the GDR, by East European politicians moving beyond Communism, by West European and American leaders ignoring or challenging Gorbachev’s vision.


pages: 353 words: 355

The Long Boom: A Vision for the Coming Age of Prosperity by Peter Schwartz, Peter Leyden, Joel Hyatt

American ideology, Asian financial crisis, Berlin Wall, centre right, computer age, crony capitalism, cross-subsidies, Deng Xiaoping, Dissolution of the Soviet Union, European colonialism, Fall of the Berlin Wall, financial innovation, hydrogen economy, industrial cluster, informal economy, intangible asset, Just-in-time delivery, knowledge economy, knowledge worker, life extension, market bubble, mass immigration, megacity, Mikhail Gorbachev, Nelson Mandela, new economy, oil shock, open borders, Productivity paradox, QR code, Ronald Reagan, shareholder value, Silicon Valley, Steve Jobs, the scientific method, upwardly mobile, Washington Consensus, Y2K

But this book is more than just a story—it's a political vision. In the wake of the Cold War, no global vision has emerged that gives people hope about how we can collectively improve the world. We spent much of the twentieth century in great intellectual battles and real wars over which systems—capitalism or socialism, communism or democracy, totalitarianism or anarchy—would be better for all people. Ten years have passed since the fall of the Berlin Wall and still we define current thinking in terms of what it Is not: "Post-Cold War." We still don't have any agreed-upon term to call the current era, yet our era is not derivative of any other. We need a new vision to fit these very different times. This year at the World Economic Forum in Davos—a gathering of many of the world's most powerful business and political leaders—President Bill Clinton was asked after his keynote address what he thought was the most important thing the world needs today.

They must adopt the rigorous new economy policies and then build on that framework while finding ways to mitigate the social damage that powerful economic change will inevitably bring. They must stay centered all the time. Contribution 2: From a historical point of view, Europeans also have been involved in a process of economic, financial, and perhaps political integration that will have long-term repercussions for the rest of the world. Since the fall of the Berlin Wall in 1989, Europe has been going through a massive east-west reintegration. The European Union, now numbering fifteen nations, is well on its way to expanding the economic community by as many as ten eastern and central European nations by 2003. Certainly half of them, including the key nations of Poland, Hungary, and the Czech Republic, will be accepted by that time. In slightly more than a decade, Europe will have taken two sides of a highly divided world and fused them together into a workable whole.


pages: 410 words: 106,931

Age of Anger: A History of the Present by Pankaj Mishra

anti-communist, Asian financial crisis, Ayatollah Khomeini, Berlin Wall, British Empire, colonial rule, continuation of politics by other means, creative destruction, Donald Trump, Edward Snowden, Fall of the Berlin Wall, Fellow of the Royal Society, Francis Fukuyama: the end of history, George Santayana, global village, Gunnar Myrdal, informal economy, invisible hand, liberal capitalism, Mahatma Gandhi, Marshall McLuhan, Martin Wolf, mass immigration, Nelson Mandela, Peter Thiel, Philip Mirowski, planetary scale, plutocrats, Plutocrats, precariat, Republic of Letters, Scientific racism, Silicon Valley, smart cities, Snapchat, stem cell, the scientific method, The Wealth of Nations by Adam Smith, trade route, traveling salesman, urban planning, Vilfredo Pareto, wage slave, women in the workforce, zero-sum game

They have counterbalanced their loss of nerve before the political challenge of terrorism with overreaction, launching military campaigns, often without bothering to secure the consent of a frightened people, and while supporting despotic leaders they talk endlessly of their superior ‘values’ – a rhetoric that has now blended into a white-supremacist hatred, lucratively exploited by Trump, of immigrants, refugees and Muslims (and, often, those who just ‘look’ Muslim). Meanwhile, selfie-seeking young murderers everywhere confound the leaden stalkers of ‘extremist ideology’, retaliating to bombs from the air with choreographed slaughter on the ground. How did we get trapped in this danse macabre? Many readers of this book will remember the hopeful period that followed the fall of the Berlin Wall in 1989. With the collapse of Soviet Communism, the universal triumph of liberal capitalism and democracy seemed assured. Free markets and human rights appeared to be the right formula for the billions trying to overcome degrading poverty and political oppression; the words ‘globalization’ and ‘internet’ inspired, in that age of innocence, more hope than anxiety as they entered common speech.

In a massive and under-appreciated shift worldwide, people understand themselves in public life primarily as individuals with rights, desires and interests, even if they don’t go as far as Margaret Thatcher in thinking that ‘there is no such thing as society’. In most of the world since 1945, planned and protected economic growth within sovereign nation states had been the chosen means to broad uplift and such specific goals as gender equality. In the age of globalization that dawned after the fall of the Berlin Wall, political life became steadily clamorous with unlimited demands for individual freedoms and satisfactions. Beginning in the 1990s, a democratic revolution of aspiration – of the kind Tocqueville witnessed with many forebodings in early nineteenth-century America – swept across the world, sparking longings for wealth, status and power, in addition to ordinary desires for stability and contentment, in the most unpromising circumstances.

An existential resentment of other people’s being, caused by an intense mix of envy and sense of humiliation and powerlessness, ressentiment, as it lingers and deepens, poisons civil society and undermines political liberty, and is presently making for a global turn to authoritarianism and toxic forms of chauvinism. * * * Our perplexity, as simultaneously globalized and over-socialized individuals, is greater since no statutory warning came with the promises of world improvement in the hopeful period after the fall of the Berlin Wall: that societies organized for the interplay of individual self-interest can collapse into manic tribalism, if not nihilistic violence. It was simply assumed by the powerful and the influential among us that with socialism dead and buried, buoyant entrepreneurs in free markets would guarantee swift economic growth and worldwide prosperity, and that Asian, Latin American and African societies would become, like Europe and America, more secular and rational as economic growth accelerated.


pages: 258 words: 63,367

Making the Future: The Unipolar Imperial Moment by Noam Chomsky

"Robert Solow", Albert Einstein, Berlin Wall, Bretton Woods, British Empire, capital controls, collective bargaining, corporate governance, corporate personhood, creative destruction, deindustrialization, energy security, failed state, Fall of the Berlin Wall, financial deregulation, Frank Gehry, full employment, Howard Zinn, Joseph Schumpeter, kremlinology, liberation theology, Long Term Capital Management, market fundamentalism, Mikhail Gorbachev, Nelson Mandela, Occupy movement, oil shale / tar sands, precariat, RAND corporation, Ronald Reagan, structural adjustment programs, The Great Moderation, too big to fail, uranium enrichment, Washington Consensus, WikiLeaks, working poor

By such actions, repeated by others everywhere as best they can, the prospects for peace edge closer to hopes. The Legacy of 1989 in Two Hemispheres December 1, 2009 November [2009] marked the anniversary of major events in 1989: “the biggest year in world history since 1945,” as British historian Timothy Garton Ash describes it. That year “changed everything,” Garton Ash writes. Mikhail Gorbachev’s reforms within Russia and his “breathtaking renunciation of the use of force” led to the fall of the Berlin Wall on November 9—and to the liberation of Eastern Europe from Russian tyranny. The accolades are deserved; the events, memorable. But alternative perspectives may be revealing. German chancellor Angela Merkel provided such a perspective—unintentionally—when she called on all of us to “use this invaluable gift of freedom . . . to overcome the walls of our time.” One way to follow her good advice would be to dismantle the massive wall, dwarfing the Berlin wall in scale and length, now snaking through Palestinian territory in violation of international law.

Another perspective on 1989 comes from Thomas Carothers, a scholar who served in “democracy enhancement” programs in the administration of former President Ronald Reagan. After reviewing the record, Carothers concludes that all U.S. leaders have been “schizophrenic”—supporting democracy if it conforms to U.S. strategic and economic objectives, thus in Soviet satellites but not in U.S. client states. This perspective is dramatically confirmed by the recent commemoration of the events of November 1989. The fall of the Berlin wall was rightly celebrated, but there was little notice of what happened one week later: on November 16, in El Salvador, the assassination of six leading Latin American intellectuals, Jesuit priests, along with their housekeeper and her daughter, by the elite, U.S.-armed Atlacatl battalion, fresh from renewed training at the JFK Special Warfare School in Fort Bragg, North Carolina. The battalion and its cohorts had already compiled a bloody record through the grisly decade in El Salvador that began in 1980 with the assassination, by much the same hands, of Archbishop Oscar Romero, known as “the voice of the voiceless.”


pages: 221 words: 55,901

The Globalization of Inequality by François Bourguignon

Berlin Wall, Branko Milanovic, Capital in the Twenty-First Century by Thomas Piketty, collective bargaining, Credit Default Swap, deglobalization, deindustrialization, Doha Development Round, Edward Glaeser, European colonialism, Fall of the Berlin Wall, financial deregulation, financial intermediation, gender pay gap, Gini coefficient, income inequality, income per capita, labor-force participation, liberal capitalism, minimum wage unemployment, offshore financial centre, open economy, Pareto efficiency, purchasing power parity, race to the bottom, Robert Gordon, Simon Kuznets, structural adjustment programs, The Spirit Level, too big to fail, very high income, Washington Consensus

In fact, once we stop normalizing and use the original household survey data, estimates of global distribution show a slightly slower reversal in inequality trends. The acceleration then takes place in the 2000s rather than the mid-­ 1990s.16 Since this represents a more recent phenomenon, maybe it has not registered for everyone yet. See table 2 in the appendix to this chapter. Using a different database, Christoph Lakner and Branko Milanovic (“Global Income Distribution: From the Fall of the Berlin Wall to the Great Recession,” World Bank Policy Research Working Paper No. 6719, Washington, DC, 2013) found the same drop in inequality in the 2000s, although less pronounced than in table 2. Two recent draft papers reach the same conclusion. The first one, by Miguel Niño-­Zarazay, Laurence Roopez, and Finn Tarp, “Global Interpersonal Inequality: Trends and Measurement” (WIDER Working Paper 2014/004) based on GDP per capita normalized data finds that the drop in global inequality may have started around 1980.

The defining institutional change in the last quarter of the twentieth century was undoubtedly the deregulation of markets and the process of economic liberalization, launched at the end of the 1970s in the United States by the Reagan administration and in the United Kingdom by the Thatcher government. This would later spread to the rest of the world, with a significant acceleration after the fall of the Berlin Wall in 1989. These reforms sought to relax what were seen as the overly strict regulations that states had placed on markets in the aftermath of the finan- 92 Chapter 3 cial crisis of the 1930s and the Second World War, and to liberate individual initiative from what were seen as stifling levels of taxation and regulation. The economic climate— national economies were adapting to a changing world economy, which had just undergone its first major postwar shock with the oil price crises of the 1970s—made the implementation of these reforms politically feasible.


The Global Citizen: A Guide to Creating an International Life and Career by Elizabeth Kruempelmann

Berlin Wall, business climate, corporate governance, different worldview, Fall of the Berlin Wall, follow your passion, global village, job satisfaction, Menlo Park, money market fund, Nelson Mandela, young professional

To help you work through and reflect on your life abroad, it can be rewarding to share your experiences, pictures, and memories with other global citizens who also have exciting C U LT U R E P R E P : A M I N I - C O U R S E FOR THE C U LT U R A L L Y C H A L L E N G E D 55 Reverse Culture Shock by Elizabeth Kruempelmann (ekruempe@hotmail.com) I experienced reverse culture shock when I returned to the States after a year studying abroad in Denmark and Germany. My senses were overloaded the whole time I was abroad. In addition to my business studies and field trips, I traveled to fifteen countries, experienced the fall of the Berlin Wall, learned two languages, and lived with a Danish family, Danish students, and a German family. My senses were stimulated almost every minute. When I returned home, there was simply nothing that stimulated my senses anymore. My mind had been programmed to speak foreign languages every day. Suddenly I had no outlet for all the words I was used to using regularly. My body had been accustomed to soaking up different sights and sounds, and suddenly I had to readjust to life on Maple Street.

Access to professors may also be different than what you are used to at your home university. My Danish professors occasionally joined the students after class at the local pub, and one professor even invited the entire class to his house for tea. Being able to chat with the professors in a casual manner about topics both related and unrelated to our course was so educational. We discussed a variety of topics affecting Europe at the time, from the fall of the Berlin Wall to the economic and political issues facing the European Union. The learning opportunities that exist outside the classroom can sometimes be even more rewarding than those in the classroom. A P P R E C I AT E D I F F E R E N T C U LT U R E S During a learning-abroad program you will interact on a daily basis with your host family, other students, teachers, and a local community that may deal with daily matters much differently than you.

BRING GIFTS A small gift from your homeland is a great way to start building lifelong relationships. If you are staying with a host family, bring a picture book of your own country to show them where you are from, or some local food and drink. And depending on where your travels take you, barter goods might come in handy. When my studyabroad class from Copenhagen visited Eastern Europe and Russia after the fall of the Berlin Wall, we brought cigarettes to pay for taxi cabs, candy for the kids, and items we knew the locals would want to trade for, like Levi jeans and perfume. In return, we received handpainted babushka dolls, Russian soldier uniforms, big furry hats, and worthless rubles. Having things to trade made it easy to strike up conversations with locals. We all learned a bit about each other and came away with treasured keepsakes.


pages: 403 words: 111,119

Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist by Kate Raworth

"Robert Solow", 3D printing, Asian financial crisis, bank run, basic income, battle of ideas, Berlin Wall, bitcoin, blockchain, Branko Milanovic, Bretton Woods, Buckminster Fuller, business cycle, call centre, Capital in the Twenty-First Century by Thomas Piketty, Cass Sunstein, choice architecture, clean water, cognitive bias, collapse of Lehman Brothers, complexity theory, creative destruction, crowdsourcing, cryptocurrency, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, dematerialisation, disruptive innovation, Douglas Engelbart, Douglas Engelbart, en.wikipedia.org, energy transition, Erik Brynjolfsson, Ethereum, ethereum blockchain, Eugene Fama: efficient market hypothesis, experimental economics, Exxon Valdez, Fall of the Berlin Wall, financial deregulation, Financial Instability Hypothesis, full employment, global supply chain, global village, Henri Poincaré, hiring and firing, Howard Zinn, Hyman Minsky, income inequality, Intergovernmental Panel on Climate Change (IPCC), invention of writing, invisible hand, Isaac Newton, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, Kickstarter, land reform, land value tax, Landlord’s Game, loss aversion, low skilled workers, M-Pesa, Mahatma Gandhi, market fundamentalism, Martin Wolf, means of production, megacity, mobile money, Mont Pelerin Society, Myron Scholes, neoliberal agenda, Network effects, Occupy movement, off grid, offshore financial centre, oil shale / tar sands, out of africa, Paul Samuelson, peer-to-peer, planetary scale, price mechanism, quantitative easing, randomized controlled trial, Richard Thaler, Ronald Reagan, Second Machine Age, secular stagnation, shareholder value, sharing economy, Silicon Valley, Simon Kuznets, smart cities, smart meter, Social Responsibility of Business Is to Increase Its Profits, South Sea Bubble, statistical model, Steve Ballmer, The Chicago School, The Great Moderation, the map is not the territory, the market place, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, too big to fail, Torches of Freedom, trickle-down economics, ultimatum game, universal basic income, Upton Sinclair, Vilfredo Pareto, wikimedia commons

Many events that first appear to be sudden and external – what mainstream economists often describe as ‘exogenous shocks’ – are far better understood as arising from endogenous change. In the words of the political economist Orit Gal, ‘complexity theory teaches us that major events are the manifestation of maturing and converging underlying trends: they reflect change that has already occurred within the system’.11 From this perspective, the 1989 fall of the Berlin Wall, the 2008 collapse of Lehman Brothers and the imminent collapse of the Greenland ice sheet have much in common. All three are reported in the news as sudden events but are actually visible tipping points that result from slowly accumulated pressure in the system – be it the gradual build-up of political protest in Eastern Europe, the build-up of sub-prime mortgages in a bank’s asset portfolio, or the build-up of greenhouse gases in the atmosphere.

Talk given at Connecting For Change: Bioneers by the Bay conference, the Marion Institute, 28 October 2012, available at: https://www.youtube.com/watch?v=MIIzogiUHFY 83. Pearce, J. (2015) ‘Quantifying the value of open source hardware development’, Modern Economy, 6, pp. 1–11. 84. Bauwens, M. (2012) Blueprint for P2P Society: The Partner State and Ethical Society, http://www.shareable.net/blog/blueprint-for-p2p-society-the-partner-state-ethical-economy 85. Lakner, C. and Milanovic, B. (2015) ‘Global income distribution: from the fall of the Berlin Wall to the Great Recession’, The World Bank Economic Review, pp. 1–30. 86. OECD (2014) Detailed Final 2013 Aid Figures Released by OECD/DAC. http://www.oecd.org/dac/stats/final2013oda.htm 87. OECD (2015) ‘Non-ODA flows to developing countries: remittances’, available at: http://www.oecd.org/dac/stats/beyond-oda-remittances.htm 88. Financial Inclusion Insights (2015) Kenya: Country Context. http://finclusion.org/country-pages/kenya-country-page/ 89.

Kumhof, M. and Rancière, R. (2010) Inequality, Leverage and Crises. IMF Working Paper, WP/10/268, Washington, DC: IMF. Kuznets, S. (1955) ‘Economic growth and income inequality’, American Economic Review, 45: 1, pp. 1–28. Lacy, P. and Rutqvist, J. (2015) Waste to Wealth: the circular economy advantage. New York: Palgrave Macmillan. Lakner, C. and Milanovic, B. (2015) ‘Global income distribution: from the fall of the Berlin Wall to the Great Recession’, World Bank Economic Review, 1–30. Lakoff, G. (2014) The All New Don’t Think of an Elephant. White River Junction, VT: Chelsea Green Publishing. Lakoff, G. and Johnson, M. (1980) Metaphors We Live By. Chicago: University of Chicago Press. Leach, M., Raworth, K. and Rockström, J. (2013) Between Social and Planetary Boundaries: Navigating Pathways in the Safe and Just Space for Humanity, World Social Science Report.


pages: 453 words: 117,893

What Would the Great Economists Do?: How Twelve Brilliant Minds Would Solve Today's Biggest Problems by Linda Yueh

"Robert Solow", 3D printing, additive manufacturing, Asian financial crisis, augmented reality, bank run, banking crisis, basic income, Ben Bernanke: helicopter money, Berlin Wall, Bernie Sanders, Big bang: deregulation of the City of London, bitcoin, Branko Milanovic, Bretton Woods, BRICs, business cycle, Capital in the Twenty-First Century by Thomas Piketty, clean water, collective bargaining, computer age, Corn Laws, creative destruction, credit crunch, Credit Default Swap, cryptocurrency, currency peg, dark matter, David Ricardo: comparative advantage, debt deflation, declining real wages, deindustrialization, Deng Xiaoping, Doha Development Round, Donald Trump, endogenous growth, everywhere but in the productivity statistics, Fall of the Berlin Wall, fear of failure, financial deregulation, financial innovation, Financial Instability Hypothesis, fixed income, forward guidance, full employment, Gini coefficient, global supply chain, Gunnar Myrdal, Hyman Minsky, income inequality, index card, indoor plumbing, industrial robot, information asymmetry, intangible asset, invisible hand, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, joint-stock company, Joseph Schumpeter, laissez-faire capitalism, land reform, lateral thinking, life extension, low-wage service sector, manufacturing employment, market bubble, means of production, mittelstand, Mont Pelerin Society, moral hazard, mortgage debt, negative equity, Nelson Mandela, non-tariff barriers, Northern Rock, Occupy movement, oil shale / tar sands, open economy, paradox of thrift, Paul Samuelson, price mechanism, price stability, Productivity paradox, purchasing power parity, quantitative easing, RAND corporation, rent control, rent-seeking, reserve currency, reshoring, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, school vouchers, secular stagnation, Shenzhen was a fishing village, Silicon Valley, Simon Kuznets, special economic zone, Steve Jobs, The Chicago School, The Wealth of Nations by Adam Smith, Thomas Malthus, too big to fail, total factor productivity, trade liberalization, universal basic income, unorthodox policies, Washington Consensus, We are the 99%, women in the workforce, working-age population

From Russia to China, communism took hold in some form as these nations sought an alternative to the US-led capitalist model at the start of the twentieth century. The notions of economic equality and communal effort were among the reasons Russia turned to Marx. Their communist revolution in 1917 led to the establishment of the Soviet Union, which vied with the capitalist United States as the economic model du jour during the Cold War which lasted from the end of the Second World War until the fall of the Berlin Wall in the late 1980s. Marx’s most notable success is communist China. The world’s second largest economy and its most populous nation adopted communism after its 1949 revolution and has remained governed by the Chinese Communist Party ever since. But starting in 1979, when economic stagnation led its leader Deng Xiaoping to adopt reforms, China has moved away from a planned economy towards a more market-based one.

They reflected the widespread public anger in the aftermath of the 2008 global financial crisis. The protesters called for financial reform, a fairer distribution of income and wealth and a rejection of austerity. The Occupy movement reflected the modern version of a struggle that had been ongoing since the previous century. The twentieth century had witnessed an ideological battle between socialism and welfare state capitalism, culminating in the triumph of the latter with the fall of the Berlin Wall and the lifting of the Iron Curtain in 1989, which led to the break-up of the Soviet Union in 1991. Economics Nobel laureate Milton Friedman had observed: There is no figure who had more of an influence on the intellectuals behind the Iron Curtain than Friedrich Hayek. His books were translated and published by the underground and black market editions, read widely, and undoubtedly influenced the climate of opinion that ultimately brought about the collapse of the Soviet Union.1 In the aftermath of the global financial crisis, the future of capitalism was once again up for debate.

Thus the whole economic order rested on the fact that by using prices as a guide, or as signals, we were led to serve the demands and enlist the powers and capacities of people of whom we knew nothing … Basically, the insight that prices were signals bringing about the unforeseen coordination of the efforts of thousands of individuals … became the leading idea behind my work.20 In essence, Hayek had built on Adam Smith’s ‘invisible hand’ and specifically homed in on the role of prices in determining the value of goods and services in an economy. With a knowledge of prices, people can choose to produce certain goods or work in certain industries. The economy as a whole operates efficiently even though no one has coordinated their efforts. The book was seven years in the making, and not well received. It marked the end of his professional career. A year later, it was tremendously fitting that Hayek would witness the fall of the Berlin Wall and the disintegration of the Soviet Union that followed it. He lived long enough to see the victory of capitalism over communism, but only just. In 1992 he died at the age of ninety-two. Hayek and the global financial crisis At the time of his passing, Hayek had seen the dominance of capitalism over communism at the end of the Cold War between the Soviet Union and the United States.


pages: 374 words: 113,126

The Great Economists: How Their Ideas Can Help Us Today by Linda Yueh

"Robert Solow", 3D printing, additive manufacturing, Asian financial crisis, augmented reality, bank run, banking crisis, basic income, Ben Bernanke: helicopter money, Berlin Wall, Bernie Sanders, Big bang: deregulation of the City of London, bitcoin, Branko Milanovic, Bretton Woods, BRICs, business cycle, Capital in the Twenty-First Century by Thomas Piketty, clean water, collective bargaining, computer age, Corn Laws, creative destruction, credit crunch, Credit Default Swap, cryptocurrency, currency peg, dark matter, David Ricardo: comparative advantage, debt deflation, declining real wages, deindustrialization, Deng Xiaoping, Doha Development Round, Donald Trump, endogenous growth, everywhere but in the productivity statistics, Fall of the Berlin Wall, fear of failure, financial deregulation, financial innovation, Financial Instability Hypothesis, fixed income, forward guidance, full employment, Gini coefficient, global supply chain, Gunnar Myrdal, Hyman Minsky, income inequality, index card, indoor plumbing, industrial robot, information asymmetry, intangible asset, invisible hand, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, joint-stock company, Joseph Schumpeter, laissez-faire capitalism, land reform, lateral thinking, life extension, manufacturing employment, market bubble, means of production, mittelstand, Mont Pelerin Society, moral hazard, mortgage debt, negative equity, Nelson Mandela, non-tariff barriers, Northern Rock, Occupy movement, oil shale / tar sands, open economy, paradox of thrift, Paul Samuelson, price mechanism, price stability, Productivity paradox, purchasing power parity, quantitative easing, RAND corporation, rent control, rent-seeking, reserve currency, reshoring, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, school vouchers, secular stagnation, Shenzhen was a fishing village, Silicon Valley, Simon Kuznets, special economic zone, Steve Jobs, The Chicago School, The Wealth of Nations by Adam Smith, Thomas Malthus, too big to fail, total factor productivity, trade liberalization, universal basic income, unorthodox policies, Washington Consensus, We are the 99%, women in the workforce, working-age population

From Russia to China, communism took hold in some form as these nations sought an alternative to the US-led capitalist model at the start of the twentieth century. The notions of economic equality and communal effort were among the reasons Russia turned to Marx. Their communist revolution in 1917 led to the establishment of the Soviet Union, which vied with the capitalist United States as the economic model du jour during the Cold War which lasted from the end of the Second World War until the fall of the Berlin Wall in the late 1980s. Marx’s most notable success is communist China. The world’s second largest economy and its most populous nation adopted communism after its 1949 revolution and has remained governed by the Chinese Communist Party ever since. But starting in 1979, when economic stagnation led its leader Deng Xiaoping to adopt reforms, China has moved away from a planned economy towards a more market-based one.

They reflected the widespread public anger in the aftermath of the 2008 global financial crisis. The protesters called for financial reform, a fairer distribution of income and wealth and a rejection of austerity. The Occupy movement reflected the modern version of a struggle that had been ongoing since the previous century. The twentieth century had witnessed an ideological battle between socialism and welfare state capitalism, culminating in the triumph of the latter with the fall of the Berlin Wall and the lifting of the Iron Curtain in 1989, which led to the break-up of the Soviet Union in 1991. Economics Nobel laureate Milton Friedman had observed: There is no figure who had more of an influence on the intellectuals behind the Iron Curtain than Friedrich Hayek. His books were translated and published by the underground and black market editions, read widely, and undoubtedly influenced the climate of opinion that ultimately brought about the collapse of the Soviet Union.1 In the aftermath of the global financial crisis, the future of capitalism was once again up for debate.

Thus the whole economic order rested on the fact that by using prices as a guide, or as signals, we were led to serve the demands and enlist the powers and capacities of people of whom we knew nothing … Basically, the insight that prices were signals bringing about the unforeseen coordination of the efforts of thousands of individuals … became the leading idea behind my work.20 In essence, Hayek had built on Adam Smith’s ‘invisible hand’ and specifically homed in on the role of prices in determining the value of goods and services in an economy. With a knowledge of prices, people can choose to produce certain goods or work in certain industries. The economy as a whole operates efficiently even though no one has coordinated their efforts. The book was seven years in the making, and not well received. It marked the end of his professional career. A year later, it was tremendously fitting that Hayek would witness the fall of the Berlin Wall and the disintegration of the Soviet Union that followed it. He lived long enough to see the victory of capitalism over communism, but only just. In 1992 he died at the age of ninety-two. Hayek and the global financial crisis At the time of his passing, Hayek had seen the dominance of capitalism over communism at the end of the Cold War between the Soviet Union and the United States.


pages: 523 words: 111,615

The Economics of Enough: How to Run the Economy as if the Future Matters by Diane Coyle

"Robert Solow", accounting loophole / creative accounting, affirmative action, bank run, banking crisis, Berlin Wall, bonus culture, Branko Milanovic, BRICs, business cycle, call centre, Cass Sunstein, central bank independence, collapse of Lehman Brothers, conceptual framework, corporate governance, correlation does not imply causation, Credit Default Swap, deindustrialization, demographic transition, Diane Coyle, different worldview, disintermediation, Edward Glaeser, endogenous growth, Eugene Fama: efficient market hypothesis, experimental economics, Fall of the Berlin Wall, Financial Instability Hypothesis, Francis Fukuyama: the end of history, George Akerlof, Gini coefficient, global supply chain, Gordon Gekko, greed is good, happiness index / gross national happiness, hedonic treadmill, Hyman Minsky, If something cannot go on forever, it will stop - Herbert Stein's Law, illegal immigration, income inequality, income per capita, industrial cluster, information asymmetry, intangible asset, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Jane Jacobs, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, knowledge economy, light touch regulation, low skilled workers, market bubble, market design, market fundamentalism, megacity, Network effects, new economy, night-watchman state, Northern Rock, oil shock, Pareto efficiency, principal–agent problem, profit motive, purchasing power parity, railway mania, rising living standards, Ronald Reagan, selective serotonin reuptake inhibitor (SSRI), Silicon Valley, South Sea Bubble, Steven Pinker, The Design of Experiments, The Fortune at the Bottom of the Pyramid, The Market for Lemons, The Myth of the Rational Market, The Spirit Level, transaction costs, transfer pricing, tulip mania, ultimatum game, University of East Anglia, web application, web of trust, winner-take-all economy, World Values Survey, zero-sum game

The upward trend in the number of natural disasters around the world seems an apt reflection of the financial and economic crisis, and the sense of crisis so many people in many countries feel about their political and business elites.1 We’ve reached the point of Enough. The recent experience of economic growth is that it has destroyed opportunities, either for particular social groups or for future generations. Can it be reshaped in order to continue without incurring such untenable costs? One possible conclusion would be that this point marks the end of the triumphant free market capitalism that has ruled economic policy since the fall of the Berlin Wall and collapse of communism. The financial crisis and subsequent recession have certainly made the role of government more prominent, but mainly as a result of crisis management. Many commentators have argued that the state should reenter economic management in a more deliberate way, given the staggering demonstrations of market failure we’ve experienced.2 I will indeed go on in this part of the book to discuss the many ways in which markets fail, and the policy conclusions to which pervasive market failures point.

But that raises the question of when efficiency and markets should rule, and when by contrast other considerations matter more. There is no definitive answer. It will depend on circumstances. However, the circumstances are changing. The changing structure of the economy is affecting the way markets should be organized. HOW MARKETS FAIL Two decades after the crisis of communism, capitalism seems to be in crisis. Or so it is widely believed. To mark the twentieth anniversary of the fall of the Berlin Wall—and around the first anniversary of the onset of the massive financial crisis—the BBC’s World Service commissioned a survey about capitalism covering more than twenty-nine thousand people in twenty-seven countries. Only in two countries—the United States and Pakistan—did more than a fifth of respondents agree that capitalism is working well. Across all twenty-seven countries, only 11 percent thought the system works well as it stands, while 23 percent said it is fatally flawed—rising to 43 percent in France and 38 percent in Mexico.

The last chapter discussed the need for better information to guide policy, and this chapter has discussed the need for clarity about values if social welfare is to be well served by policymakers. The third leg of the Economy of Enough is a set of institutions that ensure that society is governed well, and this is the subject of the next chapter. How might we respond to a general crisis of governance? EIGHT Institutions The recent anniversary of the November 1989 fall of the Berlin Wall brought back emotional memories for Europeans of my generation. Like many children growing up in the Cold War 1960s, I had nuclear nightmares: grey landscapes of ash and devastation with no one else left alive, and the ticking of Geiger counters counting out the rest of eternity. The postwar division of Europe dominated the cultural landscape too. Literature and the arts were shaped by it, as much as politics and diplomacy.


pages: 393 words: 115,178

The Jakarta Method: Washington's Anticommunist Crusade and the Mass Murder Program That Shaped Our World by Vincent Bevins

Albert Einstein, American ideology, anti-communist, Berlin Wall, Branko Milanovic, British Empire, centre right, colonial rule, crony capitalism, cuban missile crisis, Deng Xiaoping, European colonialism, Fall of the Berlin Wall, feminist movement, Gini coefficient, income inequality, land reform, market fundamentalism, megacity, Nelson Mandela, RAND corporation, Ronald Reagan, sexual politics, South China Sea, structural adjustment programs, union organizing

Even the anticommunists’ great enemy, the supposed reason for all this terror, did not deploy this kind of violence. Using numbers compiled by the US-funded Freedom House organization, historian John Coatsworth concluded that from 1960 to 1990, the number of victims of US-backed violence in Latin America “vastly exceeded” the number of people killed in the Soviet Union and the Eastern Bloc over the same period of time.60 The Fall The violence in Central America raged on until the fall of the Berlin wall, and then kept going. From 1989 to 1991, the Soviet Union fell apart spectacularly, along with all the states that Moscow directly established in the wake of World War II. The Second World was no more, and its residents experienced this as the literal collapse of their governments. For the rest of the planet, most of which had somehow been affected by the Cold War, some things changed, and some things did not.

In Chile, Pinochet had been removed from power by national plebiscite in 1988, but he remained Army commander in chief until 1998, when he became a senator for life. For the two biggest anticommunist governments ever set up in the former Third World, the end of the Cold War had an indirect effect. Both Indonesia and Brazil transitioned from authoritarian rule to multiparty democracy. They did so at different times—Brazil started the process well before the fall of the Berlin wall, and Suharto left power almost a decade after it fell. Crucially, however, they both did it the same way. In Brazil and Indonesia, the transition from military dictatorship was carried out in a controlled manner. Negotiated transfers of power both maintained the fundamental social structure the dictatorships were set up to protect and provided impunity for the rulers, who remained wealthy and influential.

But what about their citizens, the regular, suffering peoples of the communist world? Did the triumph of global capitalism mean victory for them too? Were they rewarded with prosperity and democracy? Economist Branko Milanovic, one of the world’s foremost experts on global inequality, born and raised in communist Yugoslavia, asked those questions on the twenty-fifth anniversary of the fall of the Berlin wall. We can probably guess that no, they didn’t all get that. But it was certainly the idea back in 1991, and in many ways it was the promise that was made to the suffering peoples of the communist world, including to Milanovic himself. What happened instead was a devastating Great Depression.4 Milanovic, in a short essay titled “For Whom the Wall Fell?,” looked at postcommunist countries in 2014.


pages: 228 words: 68,880

Revolting!: How the Establishment Are Undermining Democracy and What They're Afraid Of by Mick Hume

anti-communist, battle of ideas, Berlin Wall, Boris Johnson, central bank independence, colonial rule, David Brooks, Donald Trump, eurozone crisis, Fall of the Berlin Wall, Francis Fukuyama: the end of history, Martin Wolf, mass immigration, non-tariff barriers, Occupy movement, open borders, plutocrats, Plutocrats, Slavoj Žižek, the scientific method, We are the 99%, World Values Survey

In the UK and Europe, a Left that was losing touch with the working class and turning on its popular base would help pioneer the displacement of politics into the undemocratic world of Euro courts and commissions. Some forty-five years after the Second World War, Western capitalist democracy arguably reached its highest point of historical supremacy with the end of the Cold War and the collapse of the rival Soviet bloc. Yet even after the fall of the Berlin Wall, there was little evidence of any renewed faith in democracy among the rulers of the Western world. In 1989 American author Francis Fukuyama’s ‘End of History’ thesis was hailed as a statement of the historic triumph of liberal democratic capitalism. Yet there was little real triumphalism in Fukuyama’s argument. He based his case rather on the fact that all the alternatives had been discredited and collapsed.

Yet in 2016 left-wing Labour leader Jeremy Corbyn – a former acolyte of the late Tony Benn and long-term opponent of the EU – signed up to the Remain campaign, along with most of his party’s MPs, members and celebrity fans. What happened in the forty years between to explain this change? The shorthand version of what happened is that the Left in the UK and across Europe lost the political war at home, and so sought refuge in the EU. The defeat of the powerful trade union movement in the 1980s, most notably in the 1984–5 miners’ strike, was followed by the fall of the Berlin Wall and the collapse of the Soviet Union. That not only destroyed Stalinism, but also dealt a heavy blow to all those on the Left whose politics rested on a paler version of Soviet-style state socialism. Finding it harder to win an argument or connect with a working-class constituency in the UK, the Left seized upon the peaceful pastures of Europe’s courts and commissions as a more fruitful field to work in.


pages: 281 words: 71,242

World Without Mind: The Existential Threat of Big Tech by Franklin Foer

artificial general intelligence, back-to-the-land, Berlin Wall, big data - Walmart - Pop Tarts, big-box store, Buckminster Fuller, citizen journalism, Colonization of Mars, computer age, creative destruction, crowdsourcing, data is the new oil, don't be evil, Donald Trump, Double Irish / Dutch Sandwich, Douglas Engelbart, Edward Snowden, Electric Kool-Aid Acid Test, Elon Musk, Fall of the Berlin Wall, Filter Bubble, global village, Google Glasses, Haight Ashbury, hive mind, income inequality, intangible asset, Jeff Bezos, job automation, John Markoff, Kevin Kelly, knowledge economy, Law of Accelerating Returns, Marc Andreessen, Mark Zuckerberg, Marshall McLuhan, means of production, move fast and break things, move fast and break things, new economy, New Journalism, Norbert Wiener, offshore financial centre, PageRank, Peace of Westphalia, Peter Thiel, planetary scale, Ray Kurzweil, self-driving car, Silicon Valley, Singularitarianism, software is eating the world, Steve Jobs, Steven Levy, Stewart Brand, strong AI, supply-chain management, the medium is the message, the scientific method, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, Thomas L Friedman, Thorstein Veblen, Upton Sinclair, Vernor Vinge, Whole Earth Catalog, yellow journalism

The health of our democracy demands that we consider treating Facebook, Google, and Amazon with the same firm hand that led government to wage war on AT&T, IBM, and Microsoft—even dismembering them into smaller companies if circumstances (and the law) demand a forceful response. While it has been several generations since we wielded antitrust laws with such vigor, we should remember that these cases created the conditions that nurtured the invention of an open, gloriously innovative Internet in the first place. Nearly thirty years after the fall of the Berlin Wall, after a terrible recession, and decades of growing inequality, regulation hasn’t regained its reputation. In some ways, its stature has receded even further. Large swaths of the left now share the right’s distaste for the regulatory state, a broad sense of indignation over corporations capturing the apparatus of the state. Instead of defending the people against big business, government becomes its servant.

When government uses its power to achieve clear moral ends, it has a strong record. There are notable failures, for sure. But our automobiles are safer, our environment is cleaner, our food doesn’t poison us, our financial system is fairer and less prone to catastrophic collapse, even though those protective provisions have imposed meaningful costs on the private sector. In the libertarian fervor that followed the fall of the Berlin Wall, we lost sight of this moral vision. The Internet is amazing, but we shouldn’t treat it as if it exists outside history or is exempt from our moral structures, especially when the stakes are nothing less than the fate of individuality and the fitness of democracy. Ten THE ORGANIC MIND WE KNOW FROM THE RECENT past that Silicon Valley is not destiny. It’s possible to turn away from its monopolies.


pages: 247 words: 68,918

The End of the Free Market: Who Wins the War Between States and Corporations? by Ian Bremmer

affirmative action, Asian financial crisis, banking crisis, Berlin Wall, BRICs, British Empire, centre right, collective bargaining, corporate governance, creative destruction, credit crunch, Credit Default Swap, cuban missile crisis, Deng Xiaoping, diversified portfolio, Doha Development Round, Exxon Valdez, failed state, Fall of the Berlin Wall, Francis Fukuyama: the end of history, global reserve currency, global supply chain, invisible hand, joint-stock company, Joseph Schumpeter, Kickstarter, laissez-faire capitalism, low skilled workers, mass immigration, means of production, megacity, Mikhail Gorbachev, mutually assured destruction, Naomi Klein, Nelson Mandela, new economy, offshore financial centre, open economy, race to the bottom, reserve currency, risk tolerance, shareholder value, South Sea Bubble, sovereign wealth fund, special economic zone, spice trade, The Wealth of Nations by Adam Smith, too big to fail, trade liberalization, trade route, tulip mania, uranium enrichment, Washington Consensus, Yom Kippur War, zero-sum game

Before Margaret Thatcher privatized a long list of large companies, British Airways, British Gas, British Steel, British Telecom, and British Petroleum, as well as large shipbuilders, regional water and electricity companies, airport operators, parts of the nuclear and coal industries, and even Rolls-Royce were all publicly owned. Even Thatcher would not privatize Britain’s National Health Service, however, which remains Europe’s largest employer with more than 1.5 million names on the payroll. Mercantilism Had the fall of the Berlin Wall truly marked the final triumph of free-market democracy, the term state capitalism might have quietly passed from the scene. But these words have now taken on a distinctly new meaning, one that will become enormously important for international politics and the global economy over the next ten years. This book defines twenty-first-century state capitalism as “a system in which the state plays the role of leading economic actor and uses markets primarily for political gain.”

Russia and the other captive nations of the Soviet Union remained burdened with an unsustainable political and economic system. China stood on the brink of civil war, and India was still a British possession. Africa and Latin America had not yet shed the shackles of colonialism. America set aside an isolationist past to take on global leadership and to preach the gospel of free-market capitalism. With the end of the Cold War and the collapse of communism, America appeared to have no credible rival. But the fall of the Berlin Wall did not signal the end of authoritarian government, and those who rely on tight political control still need an economic system they can use to ensure that they don’t join the Bolsheviks atop the ash heap of history. Successive U.S. presidential administrations have used the power that Washington wields within international financial institutions like the World Bank and International Monetary Fund to condition much-needed aid packages on the willingness of recipient governments to swallow America’s medicine and to emulate its economic model.


pages: 276 words: 78,061

Worth Dying For: The Power and Politics of Flags by Tim Marshall

anti-communist, Ayatollah Khomeini, Berlin Wall, British Empire, colonial rule, Donald Trump, drone strike, European colonialism, failed state, Fall of the Berlin Wall, Francis Fukuyama: the end of history, full employment, Johann Wolfgang von Goethe, Mahatma Gandhi, Malacca Straits, mass immigration, megacity, Nelson Mandela, Ronald Reagan, sceptred isle, Scramble for Africa, South China Sea, sovereign wealth fund, trade route, white picket fence

This is in part reflected in the continuing power of the national flag in each country. The relatively new concept of European identity finds itself battling with national identities and symbols that have been forged over centuries. Flags, and the importance nation states and peoples attach to them, give the lie to the famous theory of the American thinker Francis Fukuyama in his The End of History and the Last Man, published in 1992. Dr Fukuyama argued that the fall of the Berlin Wall was not ‘just the end of the Cold War but the end of history as such: that is, the end point of mankind’s ideological evolution and the universalization of Western liberal democracy as the final form of human government’. This damaging idea continues to influence generations of foreign-policy thinkers who appear oblivious to the patterns of history and the political direction of Russia, the Middle East, China, swathes of Central Asia and elsewhere.

The two Germanys had sent a joint team to the Olympic Games of 1956 and as their flags were identical there had been no flag issue; but now there was. Happily, it was settled with the compromise that the joint team would march under the black, red and gold but with the Olympic rings on the red, which is what happened in 1960 and 1964. In 1968 separate teams were entered but each complied with the compromise agreed earlier, and after that each used their national flag. After the fall of the Berlin Wall in 1989 and German reunification the following year, the problem was solved. Many East Germans made their feelings plain in the heady days when the Wall came down by cutting out the coat of arms from the flag. They drew inspiration from the Hungarians, who in 1956 had done the same during their uprising against Soviet occupation. The Romanians followed suit in late 1989. The recently reunified Germans took a while to warm to their newly reintroduced colours, but this was due to a suspicion of flag-waving born of the experience of the Nazi years.


pages: 249 words: 79,740

The Next Decade: Where We've Been . . . And Where We're Going by George Friedman

airport security, Ayatollah Khomeini, Berlin Wall, British Empire, business cycle, continuation of politics by other means, creative destruction, Deng Xiaoping, facts on the ground, Fall of the Berlin Wall, full employment, hydraulic fracturing, illegal immigration, Monroe Doctrine, Ronald Reagan, South China Sea

Certainly the Americans and the British had supported these NGOs, and the consultants who were now managing the campaigns of some of the pro-Western candidates in Ukraine had formerly managed elections in the United States. Western money from multiple sources clearly was going into the country, but from the American point of view, there was nothing covert or menacing in any of this. The United States was simply doing what it had done since the fall of the Berlin Wall: working with democratic groups to build democracies. This is where the United States and Russia profoundly parted company. Ukraine was divided between pro-Russian and anti-Russian factions, but the Americans merely saw themselves as supporting democrats. That the factions seen as democratic by the Americans were also the ones that were anti-Russian was, for the Americans, incidental. For the Russians, it was not incidental.

Its antecedents reach back to the early 1950s and the European Steel and Coal Community, a narrowly focused entity whose leaders spoke of it even then as the foundation for a European federation. It is coincidental but extremely important that while the EU idea originated during the Cold War, it emerged as a response to the Cold War’s end. In the west, the overwhelming presence of NATO and its controls over defense and foreign policy loosened dramatically. In the east, the fall of the Berlin Wall and the collapse of the Soviet Union found sovereign nations coming out of the shadows. It was at this point that Europe regained the sovereignty it had lost but that it is now struggling to define. The EU was envisioned to serve two purposes. The first was the integration of western Europe into a limited federation, solving the problem of Germany by binding it together with France, thereby limiting the threat of war.


pages: 270 words: 73,485

Hubris: Why Economists Failed to Predict the Crisis and How to Avoid the Next One by Meghnad Desai

"Robert Solow", 3D printing, bank run, banking crisis, Berlin Wall, Big bang: deregulation of the City of London, Bretton Woods, BRICs, British Empire, business cycle, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, central bank independence, collapse of Lehman Brothers, collateralized debt obligation, correlation coefficient, correlation does not imply causation, creative destruction, Credit Default Swap, credit default swaps / collateralized debt obligations, David Ricardo: comparative advantage, deindustrialization, demographic dividend, Eugene Fama: efficient market hypothesis, eurozone crisis, experimental economics, Fall of the Berlin Wall, financial innovation, Financial Instability Hypothesis, floating exchange rates, full employment, German hyperinflation, Gunnar Myrdal, Home mortgage interest deduction, imperial preference, income inequality, inflation targeting, invisible hand, Isaac Newton, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, laissez-faire capitalism, liquidity trap, Long Term Capital Management, market bubble, market clearing, means of production, Mexican peso crisis / tequila crisis, mortgage debt, Myron Scholes, negative equity, Northern Rock, oil shale / tar sands, oil shock, open economy, Paul Samuelson, price stability, purchasing power parity, pushing on a string, quantitative easing, reserve currency, rising living standards, risk/return, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, secular stagnation, seigniorage, Silicon Valley, Simon Kuznets, The Chicago School, The Great Moderation, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, The Wealth of Nations by Adam Smith, Tobin tax, too big to fail, women in the workforce

Could it be that what we had for three-quarters of a century – guaranteed prosperity and rising living standards – are about to disappear and become the experience of these countries who have been stuck in misery for the same long period? As they emerge, are we submerging? Is this the consequence of what is called globalization? Globalization became a buzzword in the 1990s sometime after the fall of the Berlin Wall. It opened up an era of freer capital movements and freer trade across the world. It is hard to remember now that between 1992 and 2007 the developed and emerging economies enjoyed an unprecedentedly long period of growth with low inflation. These good things were attributed to globalization just as much as it is being blamed for the present slump. This was the period economists call the Great Moderation as quarrels among them about how the economy worked ceased after 30 years of debate (of course, they have resumed now).

They rely on a combination of longer run forces such as demographic trends and cycles, or bursts of innovation, such as the discovery of gold and silver (relevant for the Gold Standard during the nineteenth century) or innovations in credit creation, as happened in the late twentieth century, or oil/shale discoveries, and also political events which may change the geography of the markets, as the fall of the Berlin Wall did. Kondratieff did, however, cover data going back to the Industrial Revolution. The first Kondratieff cycle has an upswing from the 1780s to 1810/17 and a downward phase from 1810/17 to 1844/51.The next long cycle peaked somewhere between 1870 and 1875 and then entered a downward phase which ended in the 1890s. It is not difficult to bring these projections up to date as I did in Chapter 2 on cycles.


pages: 333 words: 76,990

The Long Good Buy: Analysing Cycles in Markets by Peter Oppenheimer

"Robert Solow", asset allocation, banking crisis, banks create money, barriers to entry, Berlin Wall, Big bang: deregulation of the City of London, Bretton Woods, business cycle, buy and hold, Cass Sunstein, central bank independence, collective bargaining, computer age, credit crunch, debt deflation, decarbonisation, diversification, dividend-yielding stocks, equity premium, Fall of the Berlin Wall, financial innovation, fixed income, Flash crash, forward guidance, Francis Fukuyama: the end of history, George Akerlof, housing crisis, index fund, invention of the printing press, Isaac Newton, James Watt: steam engine, joint-stock company, Joseph Schumpeter, Kickstarter, liberal capitalism, light touch regulation, liquidity trap, Live Aid, market bubble, Mikhail Gorbachev, mortgage debt, negative equity, Network effects, new economy, Nikolai Kondratiev, Nixon shock, oil shock, open economy, price stability, private sector deleveraging, Productivity paradox, quantitative easing, railway mania, random walk, Richard Thaler, risk tolerance, risk-adjusted returns, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, secular stagnation, Simon Kuznets, South Sea Bubble, special economic zone, stocks for the long run, technology bubble, The Great Moderation, too big to fail, total factor productivity, trade route, tulip mania, yield curve

Following the landmark 1978 Chinese reforms that started the ‘household responsibility system’ in the countryside, giving some farmers ownership of their products for the first time, the first ‘special economic zone’ was formed in Shenzhen in 1980. This concept allowed for the introduction and experimentation of more flexible market policies. Although the reforms were slow and not without controversy, by 1984 it became permissible to form individual enterprises with fewer than eight people and, by 1990, a year after the fall of the Berlin Wall, the first stock markets were opened in Shenzhen and Shanghai. The broadening reach of market capitalism seemed assured. The changes of the times brought with them many investment opportunities and a more interconnected world, sparking an optimism that infected stock markets. In 1985, during my first year at work, the Dow Jones stock index in the US rallied by just over 27%, the strongest single year since 1975 (the year of recovery from the crash that followed the oil crisis and deep recession of 1973/1974).

Companies in public ownership in the UK accounted for 12% of GDP in 1979 but only about 2% by 1997.6 By the mid-1990s the trend for privatisation had spread to the rest of Europe, even reaching Socialist-led governments such as that of Lionel Jospin in France, which launched a $7.1 billion initial offering of France Telecom in 1997 and made a $10.4 billion secondary offering a year later (as the fervor for telecom companies accelerated around the expanding technology bubble). The secular trend was punctuated temporarily by a (sharp but short-lived) crash in 1987 before lower interest rates and a continuation of economic growth pushed equities to all-time highs. The continuation of the re-rating of equities was spurred by the fall of the Berlin Wall in 1989 and, soon after, the unravelling of the Soviet Bloc. The Dax, the main German stock market index, surged by 30% between October 1989 and July 1990. As a consequence, a more integrated global economy emerged in the 1990s. Throughout this period, equity markets enjoyed a decline in the discount rate; not only did interest rates stay low as a result of the purging of global high inflation but also the end of the Cold War helped push the equity risk premium down further (the required hurdle rate for investing in risky assets compared with low-risk bonds).


pages: 538 words: 141,822

The Net Delusion: The Dark Side of Internet Freedom by Evgeny Morozov

"Robert Solow", A Declaration of the Independence of Cyberspace, Ayatollah Khomeini, Berlin Wall, borderless world, Buckminster Fuller, Cass Sunstein, citizen journalism, cloud computing, cognitive dissonance, Columbine, computer age, conceptual framework, crowdsourcing, Dissolution of the Soviet Union, don't be evil, failed state, Fall of the Berlin Wall, Francis Fukuyama: the end of history, global village, Google Earth, illegal immigration, invention of radio, invention of the printing press, invisible hand, John Markoff, John von Neumann, Marshall McLuhan, Mitch Kapor, Naomi Klein, Network effects, new economy, New Urbanism, Panopticon Jeremy Bentham, peer-to-peer, pirate software, pre–internet, Productivity paradox, RAND corporation, Ronald Reagan, Ronald Reagan: Tear down this wall, Silicon Valley, Silicon Valley startup, Sinatra Doctrine, Skype, Slavoj Žižek, social graph, Steve Jobs, technoutopianism, The Wisdom of Crowds, urban planning, Washington Consensus, WikiLeaks, women in the workforce

There were too many buzzwords—“deficiencies in the current market for innovation,” “harnessing the power of connection technologies,” “long-term dividends from modest investments in innovation”—but such, perhaps, was the cost of trying to look cool in front of the Silicon Valley audience. Excessive optimism and empty McKinsey-speak aside, it was Clinton’s creative use of recent history that really stood out. Clinton drew a parallel between the challenges of promoting Internet freedom and the experiences of supporting dissidents during the Cold War. Speaking of her recent visit to Germany to commemorate the twentieth anniversary of the fall of the Berlin Wall, Clinton mentioned “the courageous men and women” who “made the case against oppression by circulating small pamphlets called samizdat,” which “helped pierce the concrete and concertina wire of the Iron Curtain.” (Newseum was a very appropriate venue to give in to Cold War nostalgia. It happens to house the largest display of sections of the Berlin Wall outside of Germany). Something very similar is happening today, argued Clinton, adding that “as networks spread to nations around the globe, virtual walls are cropping up in place of visible walls.”

Seeing the internet as an ally, Bush, always keen to flaunt his credentials as the dissidents’ best friend—he met more than a hundred of them while in office—agreed to host a gathering of what he called “global cyber-dissidents” in, of all places, Texas. Featuring half a dozen political bloggers from countries like Syria, Cuba, Colombia, and Iran, the conference was one of the first major public events organized by the newly inaugurated George W. Bush Institute. The pomposity of its lineup, with panels like “Freedom Stories from the Front Lines” and “Global Lessons in eFreedom,” suggested that even two decades after the fall of the Berlin Wall, its veterans are still fluent in Manichean rhetoric. But the Texas conference was not just a gathering of disgruntled and unemployed neoconservatives; respected Internet experts, like Ethan Zuckerman and Hal Roberts of Harvard’s Berkman Center for Internet and Society, were in attendance as well. A senior official from the State Department—technically an Obama man—was also dispatched to Texas.

Much of the early scholarship on the subject greatly underestimated the need for entertainment and overestimated the need for information, especially of the political variety. Whatever external pressures, most people eventually find a way to accustom themselves to the most brutal political realities, whether by means of television, art, or sex. Furthermore, the fact that the media did such a superb job at covering the fall of the Berlin Wall may have influenced many observers to believe that it played a similarly benevolent role throughout the entire history of the Cold War. But this was just a utopian dream: Whatever noble roles media take on during extraordinary crisis situations should not be generalized, for their everyday functions are strikingly different and are much more likely to be geared toward entertainment (if only because it sells better).


Year 501 by Noam Chomsky

"Robert Solow", anti-communist, Bartolomé de las Casas, Berlin Wall, Bolshevik threat, Bretton Woods, British Empire, business cycle, capital controls, colonial rule, corporate governance, cuban missile crisis, declining real wages, Deng Xiaoping, deskilling, Dissolution of the Soviet Union, European colonialism, experimental subject, Fall of the Berlin Wall, Howard Zinn, invisible hand, land reform, land tenure, long peace, mass incarceration, means of production, Monroe Doctrine, non-tariff barriers, offshore financial centre, plutocrats, Plutocrats, price stability, Ralph Nader, Ralph Waldo Emerson, RAND corporation, Ronald Reagan, Simon Kuznets, strikebreaker, structural adjustment programs, the scientific method, The Wealth of Nations by Adam Smith, trade liberalization, trickle-down economics, union organizing, War on Poverty, working poor

In a 1988 end-of-year analysis of the Cold War in the New York Times, Dimitri Simes wrote that the impending disappearance of the Soviet enemy offers the US three advantages: first, we can shift NATO costs to European competitors; second, we can end “the manipulation of America by third world nations,” “resist unwarranted third world demands for assistance,” and strike a harder bargain with “defiant third world debtors”; and third, military power can be used more freely “as a United States foreign policy instrument...against those who contemplate challenging important American interests,” with no fear of “triggering counterintervention,” the deterrent having been removed. In brief, the US can regain some power within the rich men’s club, tighten the screws on the Third World, and resort more freely to violence against defenseless victims. The senior associate of the Carnegie Endowment for International Peace was right on target.30 The fall of the Berlin wall in November 1989 can be taken as the symbolic end of the Cold War. After that, it took real dedication to conjure up the Soviet threat, though habits die slowly. Thus, in early 1990, much excitement was generated by a document published anonymously by University of California Sovietologist Martin Malia, railing about how Brezhnev had “intervened at will throughout the Third World” and “Russia bestrode the world” while “the liberal-to-radical mainstream of Anglo-American Sovietology” regarded Stalinism as having “a democratic cast,” indulging in “blatant fantasies...about democratic Stalinism” and “puerile fetishization of Lenin,” along with a host of similar insights apparently picked up in some Paris café.

The banner is now democracy and human rights, upheld by political leaders and moralists who have demonstrated their commitment to these values with such integrity over the years, for example, during the murderous US crusade against the Church and others who dared organize the undeserving public in Central America through the 1980s. It would not be easy to invent a clearer demonstration of the fraudulence of the Cold War pretext; being doctrinally unacceptable, the conclusions remain invisible (see chapter 6). US opposition to Haitian independence for two centuries also continued, quite independently of the Cold War. Events of the 1980s, notably after the fall of the Berlin wall, also illustrate with much clarity traditional US distaste for democracy and indifference to human rights. We return to details (chapter 8). Another instructive example is Saddam Hussein, a favored friend and trading partner of the West right through his worst atrocities. As the Berlin wall was tottering in October 1989, the White House intervened directly, in a highly secret meeting, to ensure that Iraq would receive another $1 billion in loan guarantees, overcoming Treasury and Commerce department objections that Iraq was not creditworthy.

The principled US opposition to the use of force in international affairs was revealed again through the 1980s; for example, by Washington’s decisive support for Israel’s invasion of Lebanon and the accompanying slaughter, the government-media reaction to the World Court judgment in 1986 ordering the US to desist from its “unlawful use of force” against Nicaragua, Bush’s invasion of Panama to celebrate the fall of the Berlin wall and the end of the Cold War, and much else.28 According to the USG-Times version, Washington “refused to normalize relations as long as a Vietnamese-backed Government in Cambodia resisted a negotiated settlement to its civil war” (Steven Greenhouse); that is, the conflict with the Khmer Rouge, supplied by China and Thailand (and, indirectly, the US and its allies), and attacking Cambodian rural areas from their Thai sanctuaries.29 The reality is a bit different.


pages: 250 words: 87,722

Flash Boys: A Wall Street Revolt by Michael Lewis

automated trading system, bash_history, Berlin Wall, Bernie Madoff, collateralized debt obligation, computerized markets, drone strike, Fall of the Berlin Wall, financial intermediation, Flash crash, High speed trading, latency arbitrage, pattern recognition, risk tolerance, Rubik’s Cube, Sergey Aleynikov, Small Order Execution System, Spread Networks laid a new fibre optics cable between New York and Chicago, the new new thing, too big to fail, trade route, transaction costs, Vanguard fund

.” ** Those nine banks, in order of their (fairly evenly distributed) 2011 market share, from highest to lowest: Credit Suisse, Morgan Stanley, Bank of America, Merrill Lynch, Goldman Sachs, J.P. Morgan, Barclays, UBS, Citi, Deutsche Bank. †† Stampfli has not been charged with any wrongdoing. CHAPTER FIVE PUTTING A FACE ON HFT Sergey Aleynikov wasn’t the world’s most eager immigrant to America, or, for that matter, to Wall Street. He’d left Russia in 1990, the year after the fall of the Berlin Wall, but more in sadness than in hope. “When I was nineteen I haven’t imagined leaving it,” he says. “I was very patriotic about Russia. I cried when Brezhnev died. And I always hated English. I thought I was completely incapable of learning languages.” His problem with Russia was that its government wouldn’t allow him to study what he wanted to study. He wasn’t religious in any conventional sense, but he’d been born a Jew, which had been noted on his Russian passport to remind everyone of the fact.

“People learn to work around the system. The more you cultivate a class of people who know how to work around the system, the more people you will have who know how to do it well. All of the Soviet Union for seventy years were people who are skilled at working around the system.” The population was thus well suited to exploit megatrends in both computers and the United States financial markets. After the fall of the Berlin Wall, a lot of Russians fled to the United States without a lot of English; one way to make a living without having to converse with the locals was to program their computers. “I know people who never programmed computers but when they get here they say they are computer programmers,” said Constantine. A Russian also tended to be quicker than most to see holes built into the U.S. stock exchanges, even if those holes were unintentional, because he had been raised by parents, in turn raised by their own parents, to game a flawed system.


pages: 361 words: 81,068

The Internet Is Not the Answer by Andrew Keen

"Robert Solow", 3D printing, A Declaration of the Independence of Cyberspace, Airbnb, AltaVista, Andrew Keen, augmented reality, Bay Area Rapid Transit, Berlin Wall, bitcoin, Black Swan, Bob Geldof, Burning Man, Cass Sunstein, citizen journalism, Clayton Christensen, clean water, cloud computing, collective bargaining, Colonization of Mars, computer age, connected car, creative destruction, cuban missile crisis, David Brooks, disintermediation, disruptive innovation, Donald Davies, Downton Abbey, Edward Snowden, Elon Musk, Erik Brynjolfsson, Fall of the Berlin Wall, Filter Bubble, Francis Fukuyama: the end of history, Frank Gehry, Frederick Winslow Taylor, frictionless, full employment, future of work, gig economy, global village, Google bus, Google Glasses, Hacker Ethic, happiness index / gross national happiness, income inequality, index card, informal economy, information trail, Innovator's Dilemma, Internet of things, Isaac Newton, Jaron Lanier, Jeff Bezos, job automation, Joi Ito, Joseph Schumpeter, Julian Assange, Kevin Kelly, Kickstarter, Kodak vs Instagram, Lean Startup, libertarian paternalism, lifelogging, Lyft, Marc Andreessen, Mark Zuckerberg, Marshall McLuhan, Martin Wolf, Metcalfe’s law, move fast and break things, move fast and break things, Nate Silver, Nelson Mandela, Network effects, new economy, Nicholas Carr, nonsequential writing, Norbert Wiener, Norman Mailer, Occupy movement, packet switching, PageRank, Panopticon Jeremy Bentham, Paul Graham, peer-to-peer, peer-to-peer rental, Peter Thiel, plutocrats, Plutocrats, Potemkin village, precariat, pre–internet, RAND corporation, Ray Kurzweil, ride hailing / ride sharing, Robert Metcalfe, Second Machine Age, self-driving car, sharing economy, Silicon Valley, Silicon Valley ideology, Skype, smart cities, Snapchat, social web, South of Market, San Francisco, Steve Jobs, Steve Wozniak, Steven Levy, Stewart Brand, TaskRabbit, Ted Nelson, telemarketer, The Future of Employment, the medium is the message, the new new thing, Thomas L Friedman, Travis Kalanick, Tyler Cowen: Great Stagnation, Uber for X, uber lyft, urban planning, Vannevar Bush, Whole Earth Catalog, WikiLeaks, winner-take-all economy, working poor, Y Combinator

These were the same mills that produced the cloth that my great-grandfather sold in Berwick Street market in the early twentieth century. And they are the same kind of mills that will be radically “disintermediated” in the makers’ 3.0 economy. Victor Falber had a nephew named Reuben Falber. I always knew him as Uncle Reuben, but the world remembers him quite differently. Reuben Falber was the longtime assistant secretary of the Communist Party of Great Britain, who was exposed after the fall of the Berlin Wall and the collapse of the Soviet Union as the official responsible for laundering large amounts of Soviet cash into Britain to finance the communist revolution.70 But my own memories of Reuben Falber were of a scholarly man who would use quotes from Marx to explain to me why the collapse of capitalism was inevitable. One of his favorite quotes was from Marx’s 18th Brumaire of Louis Bonaparte.

The Internet has, indeed, become a crystal republic for crystal man. We shape our architecture; and thereafter it shapes us. CHAPTER EIGHT EPIC FAIL FailCon Big Brother might be dead, but one department of the old totalitarian state remains in robust health. Orwell’s Ministry of Truth—in fact, of course, the Ministry of Propaganda—was supposed to have gone out of business in 1989 with the fall of the Berlin Wall. But, like other failed twentieth-century institutions, the ministry has relocated its operations to the west coast of America. It has moved to the epicenter of twenty-first-century innovation—to Silicon Valley, a place so radically disruptive that it is even reinventing failure as the new model of success. On the list of all-time greatest lies, the idea that FAILURE IS SUCCESS doesn’t quite match the Orwellian trinity of WAR IS PEACE, FREEDOM IS SLAVERY, or IGNORANCE IS STRENGTH, but it’s still an astonishing perfidy, worthy of the best Ministry of Truth propagandist.


Rethinking Money: How New Currencies Turn Scarcity Into Prosperity by Bernard Lietaer, Jacqui Dunne

3D printing, agricultural Revolution, Albert Einstein, Asian financial crisis, banking crisis, Berlin Wall, BRICs, business climate, business cycle, business process, butterfly effect, carbon footprint, Carmen Reinhart, clockwork universe, collapse of Lehman Brothers, complexity theory, conceptual framework, credit crunch, different worldview, discounted cash flows, en.wikipedia.org, Fall of the Berlin Wall, fear of failure, fiat currency, financial innovation, Fractional reserve banking, full employment, German hyperinflation, happiness index / gross national happiness, job satisfaction, liberation theology, Marshall McLuhan, microcredit, mobile money, money: store of value / unit of account / medium of exchange, more computing power than Apollo, new economy, Occupy movement, price stability, reserve currency, Silicon Valley, the payments system, too big to fail, transaction costs, trickle-down economics, urban decay, War on Poverty, working poor

Those who succeed are free to take their share of the profits after taxes, and those who suffer losses have to bear consequences such as humiliation, bankruptcy, and possible litigation. This has brought about unmatched attainment of wealth, facilitated through competitive markets and driven by a competitive financial system, which, in turn, has spurred on even greater striving for more innovation, ingenuity, and originality. This is the underpinning of the great American dream, which has been triumphantly exported to the rest of the world after the fall of the Berlin Wall and rise of the Iron Curtain. Today, for instance, China, India, Brazil, and Poland, with their meteoric growth and the rise of their own meritocracies, are prime examples. That dream, however, has turned into a nightmare. We now have scientific proof that the monoculture of a single type of currency is a root cause of the repeated monetary and financial instabilities that have manifested throughout modern history.

Minorities were used as scapegoats by ethnic leaders to redirect anger away from themselves and toward a common enemy, providing the sociopolitical context for extreme nationalist leaders to gain power in the process. Within days of the 1998 monetary crisis in Indonesia, mobs were incited to violence against Chinese and other minorities. Similarly, in Russia, discrimination against minorities was aggravated by the financial collapse of the 1990s. With the fall of the Berlin Wall and the collapse of Soviet communism, it could be argued that the identified archenemy of the United States has now been supplanted with a new foe, immigrants and the poor. Today in the United States, there are some 1,018 identified hate groups compared to only 602 in 2000.18 Another important lesson, and an expensive one in terms of human misery with regard to cooperative currencies, is revealed by the more recent economic crisis in Argentina.


pages: 304 words: 84,396

Bounce: Mozart, Federer, Picasso, Beckham, and the Science of Success by Matthew Syed

barriers to entry, battle of ideas, Berlin Wall, combinatorial explosion, deliberate practice, desegregation, Fall of the Berlin Wall, fear of failure, Isaac Newton, Norman Mailer, pattern recognition, placebo effect, zero-sum game

I look from the face of the man in the shop to the face of the woman in the photo and the truth is strange but unmistakable: they are one and the same person. It took many years for Andreas Krieger—the name Heidi chose following her sex-change operation in 1997—to discover what had been perpetrated at the Berlin Dynamo Club. Top-secret documents relating to the sporting system in East Germany were uncovered only after the fall of the Berlin Wall, and it took almost a decade to excavate the full, mind-bending story. At the heart of the infamy were those bright blue pills. Krieger discovered that they were not vitamin tablets but anabolic steroids called Oral-Turinabol: powerful prescription drugs that built muscle and induced male characteristics. Krieger was not unusual in having been fed those pills: according to secret files uncovered at a military hospital on the outskirts of Berlin, more than ten thousand athletes were doped with Oral-Turinabol over a twenty-year period.

One way to eliminate drug cheating, of course, would be to legalize drug taking (without rules to break, cheating would cease to exist by definition), but this would surely be an intolerable solution. Success would be determined not by ability and hard work but by a willingness to trade future life expectancy for present glory. The dangers of excessive doping were comprehensively demonstrated during the doping trials after the fall of the Berlin Wall, as we have seen. The question, therefore, is whether there is a middle road between prohibition and full-scale legalization. According to Julian Savulescu, professor of practical ethics at Oxford University, there is. In a radical new approach, he argues that we should not legalize all performance-enhancing drugs; rather we should legalize safe enhancers. That way the dangers of former athletes developing medical complications are eliminated (or, at least, minimized), and at the same time, the way is paved to greater transparency in the way drugs are administered and detected.


pages: 283 words: 87,166

Reaching for Utopia: Making Sense of an Age of Upheaval by Jason Cowley

anti-communist, Berlin Wall, Bernie Sanders, Big bang: deregulation of the City of London, Boris Johnson, centre right, Charles Lindbergh, coherent worldview, Corn Laws, corporate governance, crony capitalism, David Brooks, deindustrialization, deskilling, Donald Trump, Etonian, eurozone crisis, Fall of the Berlin Wall, illegal immigration, liberal world order, Neil Kinnock, Occupy movement, offshore financial centre, old-boy network, open borders, plutocrats, Plutocrats, Right to Buy, Robert Mercer, Ronald Reagan, University of East Anglia

In Koba the Dread, his 2002 book about Stalin and the British left’s historic reluctance to condemn the crimes of the Soviet Union and its satellites, Amis suggests that his old friend began to mature as a writer, his prose gaining in ‘burnish and authority’, only after the fall of the Berlin Wall in 1989, as if before then he had been aesthetically restrained and compromised by a self-imposed demand to hold a fixed ideological line, even at the expense of truth-telling. My view is different. I think Hitchens was liberated as a political writer long before the fall of the Berlin Wall – through moving, in his early thirties, first to New York and then to Washington, DC. There, after some early struggles, he found his voice and signature style, contributing to Harper’s and the Nation and, later, as a well-paid deluxe contrarian, to Vanity Fair and the Atlantic.


pages: 322 words: 84,580

The Economics of Belonging: A Radical Plan to Win Back the Left Behind and Achieve Prosperity for All by Martin Sandbu

"Robert Solow", Airbnb, autonomous vehicles, balance sheet recession, bank run, banking crisis, basic income, Berlin Wall, Bernie Sanders, Boris Johnson, Branko Milanovic, Bretton Woods, business cycle, call centre, capital controls, carbon footprint, Carmen Reinhart, centre right, collective bargaining, debt deflation, deindustrialization, deskilling, Diane Coyle, Donald Trump, Edward Glaeser, eurozone crisis, Fall of the Berlin Wall, financial intermediation, full employment, future of work, gig economy, Gini coefficient, hiring and firing, income inequality, income per capita, industrial robot, intangible asset, job automation, John Maynard Keynes: technological unemployment, Kenneth Rogoff, knowledge economy, knowledge worker, labour market flexibility, liquidity trap, longitudinal study, low skilled workers, manufacturing employment, Martin Wolf, meta analysis, meta-analysis, mini-job, mortgage debt, new economy, offshore financial centre, oil shock, open economy, pattern recognition, pink-collar, precariat, quantitative easing, race to the bottom, Richard Florida, Robert Shiller, Robert Shiller, Ronald Reagan, secular stagnation, social intelligence, TaskRabbit, total factor productivity, universal basic income, very high income, winner-take-all economy, working poor

Whoever is blamed, the idea of usurpation is central to this message, which fringe political figures have been promoting for decades (and indeed regularly throughout the West’s modern history). But it took an elephant to make the usurpation story go mainstream. FIGURE 2.1. Income growth, 1988–2008, for each 5 per cent global income group and top 1 per cent. Source: Christoph Lakner and Branko Milanovic, “Global Income Distribution: From the Fall of the Berlin Wall to the Great Recession,” World Bank Economic Review 30, no. 2 (July 2016): 203–232, https://elibrary.worldbank.org/doi/abs/10.1093/wber/lhv039. This elephant first appeared a few years after the global financial crisis, in a statistical graphic developed by economists Christoph Lakner and Branko Milanovic (Figure 2.1). Summarising hundreds of surveys of living standards around the world, the “elephant chart” depicts how each segment of the global income distribution—from the world’s very poorest to the global top 1 per cent—has fared over the last few decades.

PART III The Way Forward 12 Globalisation with a Human Face Bliss was it in that dawn to be alive, But to be young was very heaven! —WILLIAM WORDSWORTH William Wordsworth’s admiring verses about the 1789 French Revolution still reverberated exactly two hundred years after he wrote them, during another world-historical event. For those—like me—who came of age around 1989, those lines could just as well have been written about the fall of the Berlin Wall, the collapse of communism, and the return to the West of the half of Europe that had been locked up behind the Iron Curtain for forty years. At the time it was possible to dream of a new world, where the three pillars of the Western liberal order would be adopted by all countries and borders between nations would gradually fade away. Democracy and free expression for all; Western living standards everywhere; and the ability to work, travel, and love unconstrained by borders.


pages: 263 words: 80,594

Stolen: How to Save the World From Financialisation by Grace Blakeley

"Robert Solow", activist fund / activist shareholder / activist investor, asset-backed security, balance sheet recession, bank run, banking crisis, banks create money, Basel III, basic income, battle of ideas, Berlin Wall, Big bang: deregulation of the City of London, bitcoin, Bretton Woods, business cycle, call centre, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, central bank independence, collapse of Lehman Brothers, collective bargaining, corporate governance, corporate raider, credit crunch, Credit Default Swap, cryptocurrency, currency peg, David Graeber, debt deflation, decarbonisation, Donald Trump, eurozone crisis, Fall of the Berlin Wall, falling living standards, financial deregulation, financial innovation, Financial Instability Hypothesis, financial intermediation, fixed income, full employment, G4S, gender pay gap, gig economy, Gini coefficient, global reserve currency, global supply chain, housing crisis, Hyman Minsky, income inequality, inflation targeting, Intergovernmental Panel on Climate Change (IPCC), Kenneth Rogoff, Kickstarter, land value tax, light touch regulation, low skilled workers, market clearing, means of production, money market fund, Mont Pelerin Society, moral hazard, mortgage debt, negative equity, neoliberal agenda, new economy, Northern Rock, offshore financial centre, paradox of thrift, payday loans, pensions crisis, Ponzi scheme, price mechanism, principal–agent problem, profit motive, quantitative easing, race to the bottom, regulatory arbitrage, reserve currency, Right to Buy, rising living standards, risk-adjusted returns, road to serfdom, savings glut, secular stagnation, shareholder value, Social Responsibility of Business Is to Increase Its Profits, sovereign wealth fund, the built environment, The Great Moderation, too big to fail, transfer pricing, universal basic income, Winter of Discontent, working-age population, yield curve, zero-sum game

This group by no means represents a majority of British society, but they have emerged as an exceptionally powerful minority. Today we know that from the 1990s, the UK was sleepwalking into a debt crisis — one that would end in a much bigger crash than that of 1989.45 But at the time, the country was blissfully unaware of the problems that were being stored up for the future. To many people, the avalanche of cheap credit seemed like a gift from the heavens. This boom coincided with the fall of the Berlin Wall and a new era of globalisation, during which cheap consumer goods from all over the world would become more readily available than ever before in history. Working people were able to afford plasma screen TVs, mobile phones, and video game consoles. But peoples’ experiences of the long boom differed depending upon their class position. On the one hand, the new property-owning classes were able to release equity from their homes to finance consumption.

Collective sense-making, supervised by a media out of touch with the conditions faced by ordinary people, has broken down. In its place, new narratives have emerged among new political communities — whether white supremacists on the internet, or climate strikers in their schools. All around the world, people are turning to one another and saying the same thing: “things cannot go on as they are”. The gravity of this moment is hard to grasp for those who lived through the period of stability following the fall of the Berlin Wall. But perhaps the most important lesson to have emerged from the events of the last decades is that no capitalist system can remain stable for long. The global economy does not operate according to the predictable laws of neoclassical economics, thrown off course only by external shocks. Instead, capitalism engenders complexity, meaning that even the best organised capitalist economies inevitably tend towards chaos.


pages: 585 words: 151,239

Capitalism in America: A History by Adrian Wooldridge, Alan Greenspan

"Robert Solow", 2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, Affordable Care Act / Obamacare, agricultural Revolution, air freight, Airbnb, airline deregulation, American Society of Civil Engineers: Report Card, Asian financial crisis, bank run, barriers to entry, Berlin Wall, Bonfire of the Vanities, Bretton Woods, British Empire, business climate, business cycle, business process, California gold rush, Charles Lindbergh, cloud computing, collateralized debt obligation, collective bargaining, Corn Laws, corporate governance, corporate raider, creative destruction, credit crunch, debt deflation, Deng Xiaoping, disruptive innovation, Donald Trump, edge city, Elon Musk, equal pay for equal work, Everybody Ought to Be Rich, Fall of the Berlin Wall, fiat currency, financial deregulation, financial innovation, fixed income, full employment, George Gilder, germ theory of disease, global supply chain, hiring and firing, income per capita, indoor plumbing, informal economy, interchangeable parts, invention of the telegraph, invention of the telephone, Isaac Newton, Jeff Bezos, jimmy wales, John Maynard Keynes: technological unemployment, Joseph Schumpeter, Kenneth Rogoff, Kitchen Debate, knowledge economy, knowledge worker, labor-force participation, Louis Pasteur, low skilled workers, manufacturing employment, market bubble, Mason jar, mass immigration, means of production, Menlo Park, Mexican peso crisis / tequila crisis, minimum wage unemployment, mortgage debt, Myron Scholes, Network effects, new economy, New Urbanism, Northern Rock, oil rush, oil shale / tar sands, oil shock, Peter Thiel, plutocrats, Plutocrats, popular capitalism, post-industrial society, postindustrial economy, price stability, Productivity paradox, purchasing power parity, Ralph Nader, Ralph Waldo Emerson, RAND corporation, refrigerator car, reserve currency, rising living standards, road to serfdom, Robert Gordon, Ronald Reagan, Sand Hill Road, savings glut, secular stagnation, Silicon Valley, Silicon Valley startup, Simon Kuznets, Social Responsibility of Business Is to Increase Its Profits, South Sea Bubble, sovereign wealth fund, stem cell, Steve Jobs, Steve Wozniak, strikebreaker, supply-chain management, The Great Moderation, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, too big to fail, total factor productivity, trade route, transcontinental railway, tulip mania, Tyler Cowen: Great Stagnation, union organizing, Unsafe at Any Speed, Upton Sinclair, urban sprawl, Vannevar Bush, War on Poverty, washing machines reduced drudgery, Washington Consensus, white flight, wikimedia commons, William Shockley: the traitorous eight, women in the workforce, Works Progress Administration, Yom Kippur War, young professional

THE ROOTS OF THE CRISIS The origins of the crisis can be traced back to the exuberance that followed the end of the cold war. The fall of the Berlin Wall in 1989 exposed the grotesque incompetence of the Soviet system of central planning for all but the blind to see. Not only had millions died to build the Soviet regime, the Soviet paradise turned out to be a squalid hell. In the closest thing we’ve seen to a controlled experiment in economic regimes, Communist East Germany—the jewel in the Soviet crown—had achieved only a third of the level of productivity of capitalist West Germany. The Soviet Union was even further behind the West. All but a handful of fanatics realized that they had been mistaken about central planning and government control. “Between the fall of the Berlin Wall in 1989 and the collapse of the Soviet Union in 1991,” a senior Indian mandarin recalled, “I felt as though I were awakening from a thirty-five-year dream.

The result was an explosion of economic growth that sent shock waves through the global economy: real GDP growth in the developing world was more than double real GDP growth in the developed world from 2000 to 2007, as global multinationals opened facilities in the emerging world and emerging-market companies sprang from nowhere. The International Monetary Fund estimates that the world added about 500 million workers to the export-oriented economy between the fall of the Berlin Wall and 2005. In addition, hundreds of millions were brought under the sway of competitive forces, especially in the former Soviet Union. Consumption in the developing world did not keep pace with the surge in income. Most emerging countries had a long tradition of saving, driven by fear of illness and destitution, and systems of consumer finance were rudimentary. The Asian economic crisis in 1997 had also reminded people of the virtues of saving.


When the Money Runs Out: The End of Western Affluence by Stephen D. King

Albert Einstein, Asian financial crisis, asset-backed security, banking crisis, Basel III, Berlin Wall, Bernie Madoff, British Empire, business cycle, capital controls, central bank independence, collapse of Lehman Brothers, collateralized debt obligation, congestion charging, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, cross-subsidies, debt deflation, Deng Xiaoping, Diane Coyle, endowment effect, eurozone crisis, Fall of the Berlin Wall, financial innovation, financial repression, fixed income, floating exchange rates, full employment, George Akerlof, German hyperinflation, Hyman Minsky, income inequality, income per capita, inflation targeting, invisible hand, John Maynard Keynes: Economic Possibilities for our Grandchildren, joint-stock company, Kickstarter, liquidationism / Banker’s doctrine / the Treasury view, liquidity trap, London Interbank Offered Rate, loss aversion, market clearing, mass immigration, moral hazard, mortgage debt, new economy, New Urbanism, Nick Leeson, Northern Rock, Occupy movement, oil shale / tar sands, oil shock, old age dependency ratio, price mechanism, price stability, quantitative easing, railway mania, rent-seeking, reserve currency, rising living standards, South Sea Bubble, sovereign wealth fund, technology bubble, The Market for Lemons, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, Tobin tax, too big to fail, trade route, trickle-down economics, Washington Consensus, women in the workforce, working-age population

The resulting increase in consumer demand encouraged industry to deliver substantial economies of scale, with mass production becoming ever more commonplace. Social security systems designed to prevent a repeat of the terrible impoverishment of the 1930s became increasingly widespread, reducing the need for households to stuff cash under the mattress for unforeseen emergencies: they could thus spend more freely. With the reforms initiated by Deng Xiaoping at the end of the 1970s and the fall of the Berlin Wall in 1989, countries that had been trapped in the economic equivalent of a deep-­freeze were able to come in from the cold, creating new opportunities for trade and investment: trade between China and the US, for example, expanded massively. Women, sorely underrepresented in the workforce through lack of opportunity and lack of pay, suddenly found themselves in gainful employment thanks to sex discrimination legislation.

In the event of subsequent setback, the ancien régime gets the blame. De Tocqueville’s view thus allows for the role of expectations and the impact on the political system if those expectations are not met. De Tocqueville’s view of expectations and their impact on political stability captures many of the upheavals seen in the non-­democratic world since the end of the 1980s, including the fall of the Berlin Wall, the subsequent collapse of the Soviet empire and the Arab Spring. But de Tocqueville also has something useful to say about the problems now facing Western economies. Economic stagnation need not make anyone worse off but it certainly has left expectations unmet. Reductions in public spending plans, rises in education costs, increased retirement age, bigger pension contributions and lower stock-­market returns are all part of the same story: stagnation 152 4099.indd 152 29/03/13 2:23 PM Three Schisms prevents us from delivering on the promises we have made to ourselves.


pages: 355 words: 92,571

Capitalism: Money, Morals and Markets by John Plender

activist fund / activist shareholder / activist investor, Andrei Shleifer, asset-backed security, bank run, Berlin Wall, Big bang: deregulation of the City of London, Black Swan, bonus culture, Bretton Woods, business climate, business cycle, Capital in the Twenty-First Century by Thomas Piketty, central bank independence, collapse of Lehman Brothers, collective bargaining, computer age, Corn Laws, corporate governance, creative destruction, credit crunch, Credit Default Swap, David Ricardo: comparative advantage, deindustrialization, Deng Xiaoping, discovery of the americas, diversification, Eugene Fama: efficient market hypothesis, eurozone crisis, failed state, Fall of the Berlin Wall, fiat currency, financial innovation, financial intermediation, Fractional reserve banking, full employment, God and Mammon, Gordon Gekko, greed is good, Hyman Minsky, income inequality, inflation targeting, information asymmetry, invention of the wheel, invisible hand, Isaac Newton, James Watt: steam engine, Johann Wolfgang von Goethe, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Meriwether, joint-stock company, Joseph Schumpeter, labour market flexibility, liberal capitalism, light touch regulation, London Interbank Offered Rate, London Whale, Long Term Capital Management, manufacturing employment, Mark Zuckerberg, market bubble, market fundamentalism, mass immigration, means of production, Menlo Park, money market fund, moral hazard, moveable type in China, Myron Scholes, Nick Leeson, Northern Rock, Occupy movement, offshore financial centre, paradox of thrift, Paul Samuelson, plutocrats, Plutocrats, price stability, principal–agent problem, profit motive, quantitative easing, railway mania, regulatory arbitrage, Richard Thaler, rising living standards, risk-adjusted returns, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, shareholder value, short selling, Silicon Valley, South Sea Bubble, spice trade, Steve Jobs, technology bubble, The Chicago School, The Great Moderation, the map is not the territory, The Wealth of Nations by Adam Smith, Thorstein Veblen, time value of money, too big to fail, tulip mania, Upton Sinclair, Veblen good, We are the 99%, Wolfgang Streeck, zero-sum game

INTRODUCTION The great financial crisis that began in 2008 with the collapse of Lehman Brothers, the US investment bank, has been the worst since the Wall Street Crash of 1929. Unlike that earlier crisis, it has not put the survival of the capitalist system in doubt. Indeed, the Great Recession that began shortly before the Lehman debacle was the first modern crisis in which no systemic alternative to capitalism was on offer. No one, after all, is looking to North Korea for an alternative vision of the future. Since the fall of the Berlin Wall, the only question has been about the extent of the market orientation of capitalism. What the crisis did do was provoke intense soul searching about the merits and defects of an entrenched capitalist system. The merits are clear enough. Capitalism, by which I mean a market-based system where private ownership of industry and commerce is supported by property rights, has lifted millions out of poverty.

The Austrian-born economist worried that capitalism’s tendency to monopolistic gigantism, inequality and the encouragement of envy would, with the connivance of an anti-capitalist intellectual elite, drive the world to state socialism. What has changed since Schumpeter’s time is that while those tendencies still exist, there is no longer any systemic alternative to capitalism. Since the fall of the Berlin Wall, comprehensive public ownership of the means of production is discredited. To the extent that systemic choices are available, they lie on a spectrum that runs from the market-driven model of capitalism in the US, via the social democratic models of Europe, to the heavily statist, authoritarian form of capitalism that prevails in China and much of the rest of the developing world – a model nonetheless characterised by extensive exposure to the global trading system.


Inside British Intelligence by Gordon Thomas

active measures, Albert Einstein, Ayatollah Khomeini, Berlin Wall, British Empire, cuban missile crisis, Etonian, Fall of the Berlin Wall, job satisfaction, Khyber Pass, kremlinology, lateral thinking, license plate recognition, Mikhail Gorbachev, Nelson Mandela, old-boy network, Ronald Reagan, sensible shoes, Silicon Valley, South China Sea, University of East Anglia, uranium enrichment, Yom Kippur War

On their workstation screens at Fort Meade, people had watched the dramatic fall of the Berlin Wall in 1989 and listened to President Mikhail Gorbachev say that Russia still had “its proper place as a superpower.” For his listeners it was sufficient reason for them to continue spying on an old enemy. At GCHQ the annual budget was increased to £600 million, making it by far the largest slice of the British intelligence funding, and it also received money to work on NSA black projects from funds hidden inside the costs of other U.S. defense projects. WITH HIS MUTED TEXAS accent and his “sexual orientation” listed as “straight” in his naval records, Studeman had taken over the NSA weeks after the fall of the Berlin Wall. His background as a hard-nosed intelligence officer had preceded him. He had served as operations intelligence chief with the Seventh Fleet during the Vietnam War before becoming commander at the Naval Operational Intelligence Center in Washington.

Three days after Scarlett’s appointment as JIC chairman, 9/11 happened. Scarlett saw how the grimly effective simplicity of the attack on the World Trade Center and the Pentagon had struck with numbing abruptness within the U.S. intelligence community. He wrote that what clearly emerged from the disaster was “a devastating pointer to U.S. intelligence failure.” Yet the signs had been there: the fall of the Berlin Wall in November 1989, the First Gulf War, Operation Desert Storm, Operation Iraqi Freedom, the collapse of Soviet Communism, the slide into anarchy in the Balkans, the emergence of al-Qaeda, the revolt of militants against the regimes in power across the Muslim world, and the rise of religious ideology into a powerful cohesive force that was daily expanding not only among the urban poor but to middle-class professionals.


pages: 353 words: 98,267

The Price of Everything: And the Hidden Logic of Value by Eduardo Porter

Alvin Roth, Asian financial crisis, Ayatollah Khomeini, banking crisis, barriers to entry, Berlin Wall, British Empire, capital controls, Carmen Reinhart, Cass Sunstein, clean water, Credit Default Swap, Deng Xiaoping, Edward Glaeser, European colonialism, Fall of the Berlin Wall, financial deregulation, Ford paid five dollars a day, full employment, George Akerlof, Gordon Gekko, guest worker program, happiness index / gross national happiness, housing crisis, illegal immigration, immigration reform, income inequality, income per capita, informal economy, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Jean Tirole, John Maynard Keynes: technological unemployment, Joshua Gans and Andrew Leigh, Kenneth Rogoff, labor-force participation, laissez-faire capitalism, longitudinal study, loss aversion, low skilled workers, Martin Wolf, means of production, Menlo Park, Mexican peso crisis / tequila crisis, Monkeys Reject Unequal Pay, new economy, New Urbanism, peer-to-peer, pension reform, Peter Singer: altruism, pets.com, placebo effect, price discrimination, price stability, rent-seeking, Richard Thaler, rising living standards, risk tolerance, Robert Shiller, Robert Shiller, Ronald Reagan, Silicon Valley, stem cell, Steve Jobs, Stewart Brand, superstar cities, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, trade route, transatlantic slave trade, ultimatum game, unpaid internship, urban planning, Veblen good, women in the workforce, World Values Survey, Yom Kippur War, young professional, zero-sum game

Apparently, it has to do with the left’s guilt. A study by psychologists at New York University found that the right-left happiness gap increases with deepening income inequality. This suggests people on the right are better at rationalizing inequality as a normal feature of life and feel less guilty about it. But improve people’s economic outlook and chances are you will make them happier. More than a decade after the fall of the Berlin Wall in November 1989, former East Germans remained unhappier than their fellow citizens from the western side. They would have been even less satisfied were it not for the income boost following unification. East Germans’ satisfaction with life rose about 20 percent between 1991 and 2001. Much of that jump was due to the freedoms gained with the demise of their police state. But a 60 percent increase in household income also played a part.

In the former Soviet satellites of Eastern Europe, four decades of government control over all production and distribution instilled a worldview that is quite different from opinions common in the West. East Germans are more likely to say that success is the product of external social circumstances, while West Germans attribute it to individual effort. In 1997, nearly a decade after the fall of the Berlin Wall, “Ossies” were much more likely than “Wessies” to say government should provide for people’s financial security. But views are changing along with economic realities. Researchers suggest that the differences in preferences between East and West are likely to disappear entirely within the next twenty years. WHO CAN AFFORD ANIMAL RIGHTS? We choose cultural traits we can afford. Large families are the so-called cultural norm in countries where many kids die before the age of five and those who survive are needed for their labor.


Who Rules the World? by Noam Chomsky

"Robert Solow", Albert Einstein, anti-communist, Ayatollah Khomeini, Berlin Wall, Bretton Woods, British Empire, capital controls, corporate governance, corporate personhood, cuban missile crisis, deindustrialization, Donald Trump, Doomsday Clock, Edward Snowden, en.wikipedia.org, facts on the ground, failed state, Fall of the Berlin Wall, Howard Zinn, illegal immigration, Intergovernmental Panel on Climate Change (IPCC), invisible hand, liberation theology, Malacca Straits, Martin Wolf, Mikhail Gorbachev, Monroe Doctrine, Nelson Mandela, nuclear winter, Occupy movement, oil shale / tar sands, one-state solution, Plutonomy: Buying Luxury, Explaining Global Imbalances, precariat, Ralph Waldo Emerson, Ronald Reagan, South China Sea, Stanislav Petrov, structural adjustment programs, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, trade route, union organizing, uranium enrichment, wage slave, WikiLeaks, working-age population

Twenty years earlier, he was the criminal leader of one of the world’s “more notorious terrorist groups,” according to a Pentagon report.12 That is why President Reagan had to support the apartheid regime, increasing trade with South Africa in violation of congressional sanctions and supporting South Africa’s depredations in neighboring countries, which led, according to a UN study, to 1.5 million deaths.13 That was only one episode in the war on terrorism that Reagan declared to combat “the plague of the modern age,” or, as Secretary of State George Shultz had it, “a return to barbarism in the modern age.”14 We may add hundreds of thousands of corpses in Central America and tens of thousands more in the Middle East, among other achievements. Small wonder that the Great Communicator is worshipped by Hoover Institution scholars as a colossus whose “spirit seems to stride the country, watching us like a warm and friendly ghost.”15 The Latin American case is revealing. Those who called for freedom and justice in Latin America are not admitted to the pantheon of honored dissidents. For example, a week after the fall of the Berlin Wall, six leading Latin American intellectuals, all Jesuit priests, had their heads blown off on the direct orders of the Salvadoran high command. The perpetrators were from an elite battalion armed and trained by Washington that had already left a gruesome trail of blood and terror. The murdered priests are not commemorated as honored dissidents, nor are others like them throughout the hemisphere.

Contrary to fifty years of deceit, it was quietly conceded that the main concern in this region was not the Russians, but rather what is called “radical nationalism,” meaning independent nationalism not under U.S. control.3 All of this has evident bearing on the received standard version, but it passed unnoticed—or, perhaps, therefore it passed unnoticed. Other important events took place immediately after the fall of the Berlin Wall, ending the Cold War. One was in El Salvador, the leading recipient of U.S. military aid—apart from Israel and Egypt, a separate category—and with one of the worst human rights records anywhere. That is a familiar and very close correlation. The Salvadoran high command ordered the Atlacatl Battalion to invade the Jesuit university and murder six leading Latin American intellectuals, all Jesuit priests, including the rector, Fr.


Rogue State: A Guide to the World's Only Superpower by William Blum

anti-communist, Ayatollah Khomeini, Berlin Wall, British Empire, collective bargaining, Columbine, experimental subject, Fall of the Berlin Wall, Johann Wolfgang von Goethe, Joseph Schumpeter, land reform, Monroe Doctrine, Nelson Mandela, profit motive, Ronald Reagan, union organizing

It was the cleverest protection racket since men convinced women that they needed men to protect them—if all the men vanished overnight, how many women would be afraid to walk the streets? And if the people of any foreign land were benighted enough to not realize that they needed to be saved, if they failed to appreciate the underlying nobility of American motives, they were warned that they would burn in Communist Hell. Or a CIA facsimile thereof. And they would be saved nonetheless. A decade after the fall of the Berlin Wall, America is still saving countries and peoples from one danger or another. The scorecard reads as follows: From 1945 to the end of the century, the United States attempted to overthrow more than 40 foreign governments, and to crush more than 30 populist-nationalist movements struggling against intolerable regimes. In the process, the US caused the end of life for several million people, and condemned many millions more to a life of agony and despair.

When the Fiji coup took place, Rabuka and his supporters pointed to the Libyan "threat" as justifying the coup.51 There are more of such "coincidences" in this drama, including appearances in Fiji before the coup of the National Endowment for Democracy (q.v.) and its funding, some of the CIAs labor mafia, and units of the US military in the Pacific.52 The day after the coup, a Pentagon source, while denying US involvement, declared: "We're kinda delighted.. .All of a sudden our ships couldn't go to Fiji, and now all of a sudden they can."53 Panama, 1989 Less than two weeks after the fall of the Berlin Wall, the United States showed its joy that a new era of world peace was now possible by invading Panama, as Washington's mad bombers struck again. On December 20, 1989, a large tenement barrio in Panama City was wiped out; 15,000 people were left homeless. Counting several days of ground fighting between US and Panamanian forces, 500-something natives dead was the official body count—i.e., what the United States and the new US-installed Panamanian government admitted to.


pages: 493 words: 98,982

The Tyranny of Merit: What’s Become of the Common Good? by Michael J. Sandel

affirmative action, Affordable Care Act / Obamacare, anti-communist, Berlin Wall, Bernie Sanders, Boris Johnson, Capital in the Twenty-First Century by Thomas Piketty, centre right, coronavirus, COVID-19, Credit Default Swap, Deng Xiaoping, Donald Trump, ending welfare as we know it, facts on the ground, Fall of the Berlin Wall, financial deregulation, financial innovation, global supply chain, helicopter parent, High speed trading, immigration reform, income inequality, Khan Academy, laissez-faire capitalism, meta analysis, meta-analysis, Nate Silver, new economy, obamacare, Occupy movement, plutocrats, Plutocrats, Ronald Reagan, smart grid, Steve Jobs, Steven Levy, the market place, The Wealth of Nations by Adam Smith, Washington Consensus

Bill Clinton used it twenty-five times during his presidency, Barack Obama thirty-two times. 56 Sometimes Obama used it as Bush and Cheney had done, in describing the struggle against radical Islamic terrorism: “Al Qaida and its affiliates are small men on the wrong side of history,” Obama declared in a speech at the U.S. Military Academy in West Point. Addressing the U.S. Air Force Academy, he said that ISIL terrorists would never be “strong enough to destroy Americans or our way of life,” in part “because we’re on the right side of history.” 57 But Clinton and Obama also used this triumphalist rhetoric in other contexts. This reflected their confidence, following the fall of the Berlin Wall and the breakup of the Soviet Union, that history was moving ineluctably toward the spread of liberal democracy and free markets. In 1994, Clinton expressed optimism for the prospects of Boris Yeltsin, Russia’s first democratically elected president, saying, “He believes in democracy. He’s on the right side of history.” Responding to democratic stirrings in the Muslim world, Obama, in his first inaugural address, issued a stern warning to tyrants and despots: “To those who cling to power through corruption and deceit and the silencing of dissent, know that you are on the wrong side of history.” 58 When, in 2009, Iranians engaged in street protests against their repressive regime, Obama praised them, saying, “Those who stand up for justice are always on the right side of history.”

Ere long all America will tremble. 61 In King’s hands, as in Parker’s, the faith that the arc of the moral universe bends toward justice is a stirring, prophetic call to act against injustice. But the same providential faith that inspires hope among the powerless can prompt hubris among the powerful. This can be seen in the changing sensibility of liberalism in recent decades, as the moral urgency of the civil rights era gave way to a complacent triumphalism in the aftermath of the Cold War. The collapse of the Soviet Union and the fall of the Berlin Wall led many in the West to assume that history had vindicated their model of liberal democracy and free-market capitalism. Empowered by this assumption, they promoted a neoliberal version of globalization that included free-trade agreements, the deregulation of finance, and other measures to ease the flow of goods, capital, and people across national boundaries. They confidently expected that the expansion of global markets would increase global interdependence, lessen the likelihood of war among nations, temper nationalist identities, and promote respect for human rights.


pages: 93 words: 30,572

How to Stop Brexit (And Make Britain Great Again) by Nick Clegg

Berlin Wall, Boris Johnson, collapse of Lehman Brothers, Dominic Cummings, Donald Trump, eurozone crisis, Fall of the Berlin Wall, Francis Fukuyama: the end of history, offshore financial centre, sceptred isle, Snapchat

For France and Germany and the other founding member states (Belgium, Italy, Luxembourg and the Netherlands), taking the first steps towards European partnership was a way of proving that war would not ravage the continent again; that lasting peace finally beckoned. For Spain (which found its initial attempt to join the EEC rejected, because of objections to Franco’s authoritarian rule), EEC membership, when it finally came in 1986, was a symbol of democracy’s victory over fascism. And for the many central and eastern European nations that began the process of applying for membership after the fall of the Berlin Wall in 1989, becoming part of the EU was a demonstration of their new-found freedom from the grip of Soviet-era communism. In all these cases, formally agreeing to work with European neighbours, to build partnerships and to strengthen institutional and economic ties was both a symbolic and a practical step towards a brighter and better future. Membership of the European club said something big and positive about these countries’ own national identity.


pages: 100 words: 31,338

After Europe by Ivan Krastev

affirmative action, bank run, Berlin Wall, central bank independence, clean water, conceptual framework, creative destruction, deindustrialization, Donald Trump, eurozone crisis, failed state, Fall of the Berlin Wall, Francis Fukuyama: the end of history, illegal immigration, job automation, mass immigration, moral panic, open borders, post-work, postnationalism / post nation state, Silicon Valley, Slavoj Žižek, too big to fail, Wolfgang Streeck, World Values Survey, Y Combinator

“But why are there only three of you then?” they are asked. “Because only three of us stayed; the rest are all abroad.” Official statistics tell us that 2.1 million Bulgarians were living outside the country in 2011. The figure is exceptionally high for a country with just slightly more than seven million persons. The opening of the borders was both the best and the worst thing to happen to Bulgarian society after the fall of the Berlin Wall. “I can only love what I am free to leave,” wrote East German dissident Wolf Biermann in the 1970s.29 For half a century, Bulgarians were asked to love a country they were not free to leave, so opening the borders was understandably a welcome development. An opinion poll twenty-five years after the fall of the Wall showed Bulgarians consider the opening of the borders the greatest achievement of the postcommunist period.


Social Capital and Civil Society by Francis Fukuyama

Berlin Wall, blue-collar work, Fall of the Berlin Wall, feminist movement, Francis Fukuyama: the end of history, George Akerlof, German hyperinflation, Jane Jacobs, Joseph Schumpeter, Kevin Kelly, labor-force participation, low skilled workers, p-value, Pareto efficiency, postindustrial economy, principal–agent problem, RAND corporation, Silicon Valley, The Death and Life of Great American Cities, transaction costs, World Values Survey

He is a member of the American Association for the Advancement of Slavic Studies and the Council on Foreign Relations; the editor, with Andrez Korbonski, of T h e Soviet Union and the Third W o r l d : T h e Last Three Decades (1987) ; and book review editor at Foreign A f a i r s . His publications include T h e End of History and the Last M a n ( 1 9 9 2 ), which received the Premio Capri and the Book Critics Award (from the Los Angeles T i m e s ) , and Trust : T h e Social Virtues and the Creation of Prosperity (1995), which was named “business book of the year” by European. LECTURE I. THE GREAT DISRUPTION Since the fall of the Berlin Wall, there has been an extraordinary amount of attention paid to the interrelated issues of social capital, civil society, trust, and social norms as central issues for contemporary democracies. The propensity for civil society was said to be an essential condition for the transition to stable democracy in Eastern Europe, and the decline in social capital in the United States is said to be a major problem for American democracy today.


pages: 1,034 words: 241,773

Enlightenment Now: The Case for Reason, Science, Humanism, and Progress by Steven Pinker

3D printing, access to a mobile phone, affirmative action, Affordable Care Act / Obamacare, agricultural Revolution, Albert Einstein, Alfred Russel Wallace, anti-communist, Anton Chekhov, Arthur Eddington, artificial general intelligence, availability heuristic, Ayatollah Khomeini, basic income, Berlin Wall, Bernie Sanders, Black Swan, Bonfire of the Vanities, business cycle, capital controls, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, clean water, clockwork universe, cognitive bias, cognitive dissonance, Columbine, conceptual framework, correlation does not imply causation, creative destruction, crowdsourcing, cuban missile crisis, Daniel Kahneman / Amos Tversky, dark matter, decarbonisation, deindustrialization, dematerialisation, demographic transition, Deng Xiaoping, distributed generation, diversified portfolio, Donald Trump, Doomsday Clock, double helix, effective altruism, Elon Musk, en.wikipedia.org, end world poverty, endogenous growth, energy transition, European colonialism, experimental subject, Exxon Valdez, facts on the ground, Fall of the Berlin Wall, first-past-the-post, Flynn Effect, food miles, Francis Fukuyama: the end of history, frictionless, frictionless market, germ theory of disease, Gini coefficient, Hans Rosling, hedonic treadmill, helicopter parent, Hobbesian trap, humanitarian revolution, Ignaz Semmelweis: hand washing, income inequality, income per capita, Indoor air pollution, Intergovernmental Panel on Climate Change (IPCC), invention of writing, Jaron Lanier, Joan Didion, job automation, Johannes Kepler, John Snow's cholera map, Kevin Kelly, Khan Academy, knowledge economy, l'esprit de l'escalier, Laplace demon, life extension, long peace, longitudinal study, Louis Pasteur, Martin Wolf, mass incarceration, meta analysis, meta-analysis, Mikhail Gorbachev, minimum wage unemployment, moral hazard, mutually assured destruction, Naomi Klein, Nate Silver, Nathan Meyer Rothschild: antibiotics, Nelson Mandela, New Journalism, Norman Mailer, nuclear winter, obamacare, open economy, Paul Graham, peak oil, Peter Singer: altruism, Peter Thiel, precision agriculture, prediction markets, purchasing power parity, Ralph Nader, randomized controlled trial, Ray Kurzweil, rent control, Republic of Letters, Richard Feynman, road to serfdom, Robert Gordon, Rodney Brooks, rolodex, Ronald Reagan, Rory Sutherland, Saturday Night Live, science of happiness, Scientific racism, Second Machine Age, secular stagnation, self-driving car, sharing economy, Silicon Valley, Silicon Valley ideology, Simon Kuznets, Skype, smart grid, sovereign wealth fund, stem cell, Stephen Hawking, Steven Pinker, Stewart Brand, Stuxnet, supervolcano, technological singularity, Ted Kaczynski, The Rise and Fall of American Growth, the scientific method, The Signal and the Noise by Nate Silver, The Spirit Level, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, Thomas Kuhn: the structure of scientific revolutions, Thomas Malthus, total factor productivity, union organizing, universal basic income, University of East Anglia, Unsafe at Any Speed, Upton Sinclair, uranium enrichment, urban renewal, War on Poverty, We wanted flying cars, instead we got 140 characters, women in the workforce, working poor, World Values Survey, Y2K

Milanović has combined the two inequality trends of the past thirty years—declining inequality worldwide, increasing inequality within rich countries—into a single graph which pleasingly takes the shape of an elephant (figure 9-5). This “growth incidence curve” sorts the world’s population into twenty numerical bins or quantiles, from poorest to richest, and plots how much each bin gained or lost in real income per capita between 1988 (just before the fall of the Berlin Wall) and 2008 (just before the Great Recession). Figure 9-5: Income gains, 1988–2008 Source: Milanović 2016, fig. 1.3. The cliché about globalization is that it creates winners and losers, and the elephant curve displays them as peaks and valleys. It reveals that the winners include most of humanity. The elephant’s bulk (its body and head), which includes about seven-tenths of the world’s population, consists of the “emerging global middle class,” mainly in Asia.

Sure enough, trade as a proportion of GDP shot up in the postwar era, and quantitative analyses have confirmed that trading countries are less likely to go to war, holding all else constant.21 Another brainchild of the Enlightenment is the theory that democratic government serves as a brake on glory-drunk leaders who would drag their countries into pointless wars. Starting in the 1970s, and accelerating after the fall of the Berlin Wall in 1989, more countries gave democracy a chance (chapter 14). While the categorical statement that no two democracies have ever gone to war is dubious, the data support a graded version of the Democratic Peace theory, in which pairs of countries that are more democratic are less likely to confront each other in militarized disputes.22 The Long Peace was also helped along by some realpolitik.

Scores are summed over sovereign states with a population greater than 500,000, and range from –10 for a complete autocracy to 10 for a perfect democracy. The arrow points to 2008, the last year plotted in fig. 5–23 of Pinker 2011. The graph shows that the third wave of democratization is far from over, let alone ebbing, even if it has not continued to surge at the rate of the years surrounding the fall of the Berlin Wall in 1989. At that time, the world had 52 democracies (defined by the Polity Project as countries with a score of 6 or higher on their scale), up from 31 in 1971. After swelling in the 1990s, this third wave spilled into the 21st century in a rainbow of “color revolutions” including Croatia (2000), Serbia (2000), Georgia (2003), Ukraine (2004), and Kyrgyzstan (2005), bringing the total at the start of the Obama presidency in 2009 to 87.14 Belying the image of a rollback or meltdown under his watch, the number continued to grow.


pages: 102 words: 33,345

24/7: Late Capitalism and the Ends of Sleep by Jonathan Crary

augmented reality, Berlin Wall, dematerialisation, Dissolution of the Soviet Union, Fall of the Berlin Wall, invention of movable type, Kevin Kelly, late capitalism, mass incarceration, megacity, planetary scale, Ponzi scheme

“Beyond a legacy of old books and old buildings . . . there remains nothing, in culture or in nature, which has not been transformed and polluted, according to the means and interests of modern industry.”8 At the time, Debord and Deleuze were writing against the grain. The “short twentieth century” was coming to an abrupt end, between 1989 and 1991, with what to many seemed like hopeful developments, including the fall of the Berlin Wall and the dissolution of a bipolar, Cold War world. Along with the triumphalist narratives of globalization and the facile declarations of the historical end of competing world-systems were the widely promoted “paradigms” for a post-political and post-ideological era. Twenty years later, it is difficult to recall the seriousness with which these fatuous claims were made on behalf of a West that seemed poised to effortlessly occupy and refashion the entire planet.


pages: 121 words: 34,193

The Hidden Wealth of Nations: The Scourge of Tax Havens by Gabriel Zucman, Teresa Lavender Fagan, Thomas Piketty

Berlin Wall, Bretton Woods, British Empire, Capital in the Twenty-First Century by Thomas Piketty, dematerialisation, Fall of the Berlin Wall, financial innovation, financial intermediation, high net worth, income inequality, means of production, new economy, offshore financial centre, transfer pricing

Ferdy Adam, “Impact de l’échange automatique d’informations en matière de produits financiers: Une tentative d’évaluation macro-économique appliquée au Luxembourg,” Statec working paper no. 73, 2014. 15. James S. Henry, “The Price of Offshore Revisited: New Estimates for ‘Missing’ Global Private Wealth, Income, Inequality, and Lost Taxes,” Tax Justice Network, July 2012, http://www.taxjustice.net/cms/upload/pdf/Price_of_Offshore_Revisited_120722.pdf. 16. Ruth Judson, “Crisis and Calm: Demand for U.S. Currency at Home and Abroad from the Fall of the Berlin Wall to 2011,” IFDP working paper of the Board of Governors of the Federal Reserve System, November 2012, http://www.federalreserve.gov/pubs/ifdp/2012/1058/ifdp1058.pdf. 17. Adam, “Impact de l’échange automatique d’informations.” 18. See, for instance, Credit Suisse, Global Wealth Report 2013, https://publications.credit-suisse.com/tasks/render/file/?fileID=BCDB1364-A105-0560-1332EC9100FF5C83. 19.


pages: 335 words: 104,850

Conscious Capitalism, With a New Preface by the Authors: Liberating the Heroic Spirit of Business by John Mackey, Rajendra Sisodia, Bill George

Berlin Wall, Buckminster Fuller, business process, carbon footprint, collective bargaining, corporate governance, corporate social responsibility, creative destruction, crony capitalism, cross-subsidies, en.wikipedia.org, Everything should be made as simple as possible, Fall of the Berlin Wall, fear of failure, Flynn Effect, income per capita, invisible hand, Jeff Bezos, job satisfaction, lone genius, Mahatma Gandhi, microcredit, Nelson Mandela, Occupy movement, profit maximization, Ralph Waldo Emerson, shareholder value, six sigma, social intelligence, Social Responsibility of Business Is to Increase Its Profits, Steve Jobs, Steven Pinker, The Fortune at the Bottom of the Pyramid, The Wealth of Nations by Adam Smith, too big to fail, union organizing, wealth creators, women in the workforce, zero-sum game

Much of the twentieth century can be seen as an extended intellectual war between two diametrically opposed social and economic philosophies—free-enterprise capitalism (free markets and free people) and communism (dictatorship and governmental economic control). By every objective measure, free-enterprise capitalism has won this battle. The United States was far more economically dynamic and socially evolved than the Soviet Union, its chief communist rival. The same held true for West Germany versus East Germany; South Korea versus North Korea; and Taiwan, Hong Kong, and Singapore versus China. With the fall of the Berlin Wall in 1989, country after country began to turn toward greater political and economic freedom in the 1990s and 2000s, as the dismal economic and societal results of the various socialistic experiments conducted in the twentieth century became better known. As this transition to greater freedom took root, many countries experienced rapid economic growth, and hundreds of millions of poor people were able to escape grinding poverty.

This was unprecedented in human history; for the first time, ordinary people were masters of their own destiny as a matter of law, and could through diligence and enterprise rise from nothing to great heights of material prosperity and social esteem. Another almost equally historic year occurred more recently in 1989, which marked several epochal changes in society and technology. Consider three momentous events that took place that year. The Fall of the Wall Preceded by the dramatic but failed Chinese uprising in Tiananmen Square in June, the fall of the Berlin Wall on November 9, 1989, triggered the collapse of communist regimes all over Europe, something that was unthinkable just a few years before. Without a shot being fired, the defining ideological debate of the twentieth century between competing systems for organizing human society was suddenly over. Capitalism and democracy decidedly won that epic battle, and the debates that remained were about the types of democracy and the degree of economic freedom that worked best.


pages: 370 words: 107,791

Burning Down the Haus: Punk Rock, Revolution, and the Fall of the Berlin Wall by Tim Mohr

anti-communist, Berlin Wall, cuban missile crisis, Edward Snowden, Fall of the Berlin Wall, Mikhail Gorbachev, mutually assured destruction, place-making, Ronald Reagan, Ronald Reagan: Tear down this wall, sexual politics, side project

Police mugshots of East German punks Federal Commissioner for the Records of the State Security Service of the Former German Democratic Republic (BStU) Burning Down The Haus Punk Rock, Revolution, and the Fall of the Berlin Wall By Tim Mohr ALGONQUIN BOOKS OF CHAPEL HILL 2018 Contents Preface Introduction I: Too Much Future II: Oh Bondage Up Yours! III: Combat Rock IV: Rise Above V: Burning from the Inside VI: Disintegration VII: Lust for Life Acknowledgments Bibliography About the Author Preface When I arrived in the eastern section of Berlin in 1992, I’d never seen any place like it. I’d never been to Germany or Eastern Europe before, and here I was in a high-rise student housing complex out near East Berlin’s zoo, Tierpark. At first the city seemed to fit the East Bloc stereotypes I’d grown up with in suburban America: it was the grayest place I’d ever seen, cloudy and cold, shrouded in coal smoke.

And it was in those clubs, during those years, that I first met East German punks and learned about the secret history of punk rock under the dictatorship. Ostpunks, or Eastern punks, ran or worked at most of the places I hung out; they had set up nearly all the first bars and clubs in the East and established in the process the ethos of the fledgling new society being built almost from scratch after the fall of the Berlin Wall. This kaleidoscopic world I had fallen in love with was their world, their creation. At the time I had no idea I would eventually become a writer. But to an American reflexively skeptical toward the Reagan mythology surrounding the end of the Cold War, the story of East German punk seemed unbelievably important—perhaps more important than even the participants themselves realized. Here were the people who had actually fought and sacrificed to bring down the Berlin Wall.


pages: 444 words: 107,664

The Secret Lives of Buildings: From the Ruins of the Parthenon to the Vegas Strip in Thirteen Stories by Edward Hollis

A Pattern Language, battle of ideas, Berlin Wall, facts on the ground, Fall of the Berlin Wall, Francis Fukuyama: the end of history, Frank Gehry, place-making, South China Sea, the scientific method, Wunderkammern

The Architect’s Dream is the very image of such a process, in which building follows building in a sequence of improvements, from the pharaoh’s authoritarian tomb to the cathedral made by the willing hands of inspired craftsmen. Once the final revolution had been enacted and the human condition perfected, history itself would come to an end. Then the architect could rest on his column and gaze upon a world made complete, in which nothing need ever change again. History did come to an end of sorts, but not quite as the Marxists or the modernists had planned. The fall of the Berlin Wall on 10 November 1989 concluded what the historian Eric Hobsbawm calls “the little twentieth century,” which began with the assassination of Archduke Franz Ferdinand in 1914, ran through the horrors of the trenches, Auschwitz, and Hiroshima, through Nuremberg and the Prague Spring, and finished in Berlin. The events of that night represent the end of history, a term invented by the political economist Francis Fukuyama.

Wilson, Hugh, and Lewis Womersley. Hulme 5 Redevelopment: Report on Design. City of Manchester, 1965. THE BERLIN WALL Beevor, Anthony. Berlin: The Downfall, 1945. Penguin, 2002. “The Berlin Wall: The Best and Sexiest Wall Ever Existed!!” http://berlin-wall.org/. Bernauerstraße Wall Museum. http://www.berlinermauerdokumentationszentrum.de/eng/index_dokz.html. Buckley, William. The Fall of the Berlin Wall. Wiley, 2004. Calvin University German Propaganda Archive. http://www.calvin.edu/academic/cas/gpa/wall.htm. City Guide to the Wall. http://www.stadtentwicklung.berlin.de/bauen/wanderungen/en/strecke4.shtml. East Side Gallery. http://www.eastsidegallery.com. Funder, Anna. Stasiland: True Stories from Behind the Berlin Wall. Granta, 2003. The Günther Schabowski Conference. http://www.coldwarfiles.org/files/Documents/1989–1109_press%20conference.pdf.


pages: 408 words: 108,985

Rewriting the Rules of the European Economy: An Agenda for Growth and Shared Prosperity by Joseph E. Stiglitz

Airbnb, balance sheet recession, bank run, banking crisis, barriers to entry, Basel III, basic income, Berlin Wall, bilateral investment treaty, business cycle, business process, Capital in the Twenty-First Century by Thomas Piketty, central bank independence, collapse of Lehman Brothers, collective bargaining, corporate governance, corporate raider, corporate social responsibility, creative destruction, credit crunch, deindustrialization, discovery of DNA, diversified portfolio, Donald Trump, eurozone crisis, Fall of the Berlin Wall, financial intermediation, Francis Fukuyama: the end of history, full employment, gender pay gap, George Akerlof, gig economy, Gini coefficient, hiring and firing, housing crisis, Hyman Minsky, income inequality, inflation targeting, informal economy, information asymmetry, intangible asset, investor state dispute settlement, invisible hand, Isaac Newton, labor-force participation, liberal capitalism, low skilled workers, market fundamentalism, mini-job, moral hazard, non-tariff barriers, offshore financial centre, open economy, patent troll, pension reform, price mechanism, price stability, purchasing power parity, quantitative easing, race to the bottom, regulatory arbitrage, rent-seeking, Robert Shiller, Robert Shiller, Ronald Reagan, selection bias, shareholder value, Silicon Valley, sovereign wealth fund, TaskRabbit, too big to fail, trade liberalization, transaction costs, transfer pricing, trickle-down economics, tulip mania, universal basic income, unorthodox policies, zero-sum game

Decisions were often guided by the belief that markets, on their own, would lead to economic efficiency so long as governments kept spending, deficits, debts, and inflation low. It is worth recalling how these decisions were attached to—indeed, contingent upon—a particular moment in history. It was a moment of capitalist triumphalism. Those economic beliefs enjoyed a moment of popularity in the years after the fall of the Berlin Wall. However, to say the market economy accounted for the collapse of authoritarian regimes from Warsaw, to Bucharest, to Moscow is to misread history. Instead, it was the failure of a deeply flawed Communist system, pushed to the brink by the American devotion to a high-tech arms race, combined with a human yearning for freedom. It was a moment between crises. Had the Eurozone been formed a few years later, when economic shocks rattled fast-growing East Asian economies, the perils of the formula would have been clearer.

Part II Making Markets Work for Fairness and Efficiency Chapter 4 Promoting Competitive Markets: Incentives, Regulations, and Innovation Among Western nations, markets have long played a central role in organizing the production and distribution of goods and services. Europe has maintained a mixed economy—a balance between private enterprise, government (at many different levels), and a mix of other institutional arrangements, including foundations, cooperatives, and not-for-profit organizations. However, the aggressive free-market approach of Margaret Thatcher and the fall of the Berlin Wall resulted in a major change in this balance, based on an excessive confidence in markets. In the clash between two competing systems, Communism and capitalism, the latter seemed to have triumphed absolutely. Some, like Francis Fukuyama, went so far as to proclaim “the end of history,” prophesying that the entire world would eventually appreciate the wisdom of liberalism, capitalism, and democracy.


Capitalism, Alone: The Future of the System That Rules the World by Branko Milanovic

"Robert Solow", affirmative action, Asian financial crisis, assortative mating, barriers to entry, basic income, Berlin Wall, bilateral investment treaty, Black Swan, Branko Milanovic, capital controls, Capital in the Twenty-First Century by Thomas Piketty, carried interest, colonial rule, corporate governance, creative destruction, crony capitalism, deindustrialization, dematerialisation, Deng Xiaoping, discovery of the americas, European colonialism, Fall of the Berlin Wall, financial deregulation, Francis Fukuyama: the end of history, full employment, ghettoisation, gig economy, Gini coefficient, global supply chain, global value chain, high net worth, income inequality, income per capita, invention of the wheel, invisible hand, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph Schumpeter, labor-force participation, laissez-faire capitalism, land reform, liberal capitalism, low skilled workers, Lyft, means of production, new economy, offshore financial centre, Paul Samuelson, plutocrats, Plutocrats, post-materialism, purchasing power parity, remote working, rent-seeking, ride hailing / ride sharing, Silicon Valley, single-payer health, special economic zone, The Wealth of Nations by Adam Smith, Thorstein Veblen, uber lyft, universal basic income, Vilfredo Pareto, Washington Consensus, women in the workforce, working-age population, Xiaogang Anhui farmers

This is the key stumbling block of the liberal explanation of twentieth-century history, and the weak explanations (or complete lack of an explanation) for the rise of fascism and communism follow directly from it. Since the liberal view of history cannot explain the outbreak of the war, it likewise treats the existence of fascism and communism (both, indeed, outcomes of the war) cavalierly, as “mistakes.” Saying that something is a mistake is not a satisfactory historical explanation. Liberal theory thus tends to ignore the entire short twentieth century and to go directly from 1914 to the fall of the Berlin Wall in 1989, almost as if nothing had happened in between—1989 brings the world back to the path it was on in 1914, before it slipped in error. This is why liberal explanations for the outbreak of the war are nonexistent, and the explanations proffered are based on politics (Fritz Fischer, Niall Ferguson), the remaining influence of aristocratic societies (Joseph Schumpeter), or, least convincing of all, the idiosyncrasies of individual actors, mistakes, and accidents (A.

May 11, 2018. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3014361. Lakner, Christoph. 2014. “Wages, Capital and Top Incomes: The Factor Income Composition of Top Incomes in the USA, 1960–2005.” Chap. 2 of “The Determinants of Incomes and Inequality: Evidence from Poor and Rich Countries.” PhD diss., Oxford University. Lakner, Christoph, and Branko Milanovic. 2016. “Global Income Distribution: From the Fall of the Berlin Wall to the Great Recession.” World Bank Economic Review 30(2): 203–232. Landes, David. 1998. The Wealth and Poverty of Nations: Why Some Are So Rich and Some So Poor. New York: Norton. Leijonhufvud, Axel. 1985. “Capitalism and the Factory System.” In Economics as a Process: Essays in the New Institutional Economics, ed. Richard N. Langlois. Cambridge: Cambridge University Press. Levy, Harold O., and Peg Tyre. 2018.


The Last Empire: The Final Days of the Soviet Union by Serhii Plokhy

affirmative action, Anton Chekhov, Berlin Wall, bilateral investment treaty, cuban missile crisis, Dissolution of the Soviet Union, Fall of the Berlin Wall, Francis Fukuyama: the end of history, land reform, Mikhail Gorbachev, mutually assured destruction, Potemkin village, RAND corporation, Ronald Reagan, Sinatra Doctrine, Stanislav Petrov, Transnistria

START I, or the Strategic Arms Reduction Treaty, which was finally ready for signature after nine years of negotiations, called for the reduction of overall nuclear arsenals by roughly 30 percent and of Soviet intercontinental missiles, largely aimed at the United States, by up to 50 percent. In the forty-seven-page treaty, accompanied by seven hundred pages of protocols, the two presidents would agree not just to curb the arms race but also to begin reversing it.2 The confrontation between the world’s two most powerful countries, which began soon after World War II and had brought the planet to the brink of nuclear Armageddon, was now all but over. With the fall of the Berlin Wall in November 1989, German reunification under way, and Mikhail Gorbachev adopting the “Sinatra doctrine,” which allowed Moscow’s East European clients to “do it their way” and eventually leave the Kremlin’s embrace, the conflict at the core of the Cold War was resolved. Soviet troops began to leave East Germany and other countries of the region. But the nuclear arsenals were virtually unaffected by these changes in the political climate.

Robert Gates wrote in his memoirs that in the months leading up to the coup the administration was following the approach summarized by Brent Scowcroft at a national security briefing for the president on May 31, 1991: “Our goal is to keep Gorby in power for as long as possible, while doing what we can to help head him in the right direction—and doing what is best for us in foreign policy.” Now that Gorbachev was out of power, the task was not to forfeit what had been achieved during his tenure. The fall of the Berlin Wall in 1989 had led to the reunification of the two German states and symbolized the end of communism in Eastern Europe. Could the old walls dividing East and West be rebuilt by the new leaders in the Kremlin? No one knew. On August 19, 1991, the same day George Bush dictated his warm and compassionate virtual letter to Gorbachev, he also dictated the following into his tape recorder: “I think what we must do is see that the progress made under Gorbachev is not turned around.

The agreement to call a conference was reached during George H. W. Bush’s visit to Moscow in July. Paving the road to Madrid had begun eight months earlier in Paris. European heads of state met there in November 1990 with the leaders of the United States and Canada for what was dubbed the peace conference of the Cold War. They took advantage of recent developments in Eastern Europe, the fall of the Berlin Wall, and the disappearance of the Iron Curtain to approve the Charter of Paris for a New Europe—a document that bridged the East-West divide in institutional and ideological terms, laying solid foundations for the establishment of the Organization for Security and Cooperation in Europe.2 James Baker believed that it was there and then that the Cold War had indeed come to an end. His belief was based not so much on the signed Charter of Paris as on the actions of the Soviet Union, whose leaders had agreed for the first time since the Yalta Conference of 1945 to work together with the United States in solving a major international crisis—the invasion of Kuwait by Saddam Hussein’s Iraq a few months earlier.


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Post Wall: Rebuilding the World After 1989 by Kristina Spohr

American Legislative Exchange Council, Andrei Shleifer, anti-communist, banking crisis, Berlin Wall, Bonfire of the Vanities, Bretton Woods, central bank independence, colonial exploitation, Deng Xiaoping, Dissolution of the Soviet Union, Donald Trump, Doomsday Clock, facts on the ground, failed state, Fall of the Berlin Wall, Francis Fukuyama: the end of history, G4S, Kickstarter, mass immigration, means of production, Mikhail Gorbachev, open economy, price stability, rising living standards, Ronald Reagan, Ronald Reagan: Tear down this wall, software patent, South China Sea, special economic zone, Thomas L Friedman, Transnistria, uranium enrichment, zero-coupon bond

The two chief catalysts of change were a new Russian leader, with a new political vision, and popular protest in the streets of Eastern Europe. People power was explosive, but not in the military sense – the demonstrators of 1989 demanded democracy and reform, they disarmed governments that had seemed impregnable and, in a human tide of travellers and migrants, they broke open the once-impenetrable Iron Curtain. The symbolic moment that captured the drama of those months was the fall of the Berlin Wall on the night of 9 November. In 1989, everything seemed in flux. Currents of revolutionary change surged up from below, while the wielders of power attempted political reform at the top.[2] The Marxist–Leninist ideology of Soviet communism, once the mental architecture of the Soviet bloc, haemorrhaged credibility and rapidly lost grip. Liberal capitalist democracy now seemed like the wave of the future: while the ‘East’ embarked on a ‘catch-up’ transformation in Western Europe’s image, the world appeared set on a path of convergence around American values.

It is noteworthy that most of them (Kohl and Mitterrand were exceptions) also lost power in 1990–2, so they were never obliged to confront in a sustained way – as political leaders – with the fallout from their actions. My first three chapters deal with the headline-grabbing upheavals of 1989 – the cutting of Hungary’s Iron Curtain with Austria, the bloodbath in Tiananmen Square, the accidental fall of the Berlin Wall. But the main focus is on what happened in the exhilarating yet alarming era that followed: the era of the post-Wall and the post-Square. The hope that humankind was entering a new age of freedom and sustained peace competed with the dawning recognition that the bipolar stability of the Cold War era was already giving way to something less binary and more dangerous.[11] The core of the book traces the story of how in 1990–1 the world was reshaped by conservative diplomacy – adapting the institutions of the Cold War to a new era.

‘These are historically significant years,’ he told Mikhail Gorbachev during their Moscow summit in July 1990. ‘Such years come and go. The opportunities have to be used. If one does not act, they will pass by.’ Citing the famous phrase of Otto von Bismarck, he told the Soviet leader, ‘you have to grab the mantle of history’. Gorbachev agreed: he too was anxious to seize ‘the great opportunities that had opened up’ after the fall of the Berlin Wall.[3] Bush, Kohl and Gorbachev were just three among a cohort of historical actors who navigated the drama of 1988–92 together, each seeking to influence and shape events. All of these leaders had to make choices. In doing so, they contributed to outcomes that none of them had planned or foreseen, and under domestic constraints whose compass varied from case to case. Each was improvising, responding to surges of popular will, while striving to keep his own agenda in view – trying to channel the turmoil, crafting agreements to restore stability, helping to consolidate new democracies, and adapting old institutions or designing new ones.


pages: 935 words: 267,358

Capital in the Twenty-First Century by Thomas Piketty

"Robert Solow", accounting loophole / creative accounting, Asian financial crisis, banking crisis, banks create money, Berlin Wall, Branko Milanovic, British Empire, business cycle, capital controls, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, central bank independence, centre right, circulation of elites, collapse of Lehman Brothers, conceptual framework, corporate governance, correlation coefficient, David Ricardo: comparative advantage, demographic transition, distributed generation, diversification, diversified portfolio, European colonialism, eurozone crisis, Fall of the Berlin Wall, financial intermediation, full employment, German hyperinflation, Gini coefficient, high net worth, Honoré de Balzac, immigration reform, income inequality, income per capita, index card, inflation targeting, informal economy, invention of the steam engine, invisible hand, joint-stock company, Joseph Schumpeter, Kenneth Arrow, market bubble, means of production, mortgage debt, mortgage tax deduction, new economy, New Urbanism, offshore financial centre, open economy, Paul Samuelson, pension reform, purchasing power parity, race to the bottom, randomized controlled trial, refrigerator car, regulatory arbitrage, rent control, rent-seeking, Robert Gordon, Ronald Reagan, Simon Kuznets, sovereign wealth fund, Steve Jobs, The Nature of the Firm, the payments system, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, trade liberalization, twin studies, very high income, Vilfredo Pareto, We are the 99%, zero-sum game

At the global level, the most extensive privatization in recent decades, and indeed in the entire history of capital, obviously took place in the countries of the former Soviet bloc. The highly imperfect estimates available to us indicate that private wealth in Russia and the former Eastern bloc countries stood at about four years of national income in the late 2000s and early 2010s, and net public wealth was extremely low, just as in the rich countries. Available estimates for the 1970s and 1980s, prior to the fall of the Berlin Wall and the collapse of the Communist regimes, are even more imperfect, but all signs are that the distribution was strictly the opposite: private wealth was insignificant (limited to individual plots of land and perhaps some housing in the Communist countries least averse to private property but in all cases less than a year’s national income), and public capital represented the totality of industrial capital and the lion’s share of national capital, amounting, as a first approximation, to between three and four years of national income.

How did Europe come to create—for the first time in human history on such a vast scale—a currency without a state? Since Europe’s GDP accounted for nearly one-quarter of global GDP in 2013, the question is of interest not just to inhabitants of the Eurozone but to the entire world. The usual answer to this question is that the creation of the euro—agreed on in the 1992 Maastricht Treaty in the wake of the fall of the Berlin Wall and the reunification of Germany and made a reality on January 1, 2002, when automatic teller machines across the Eurozone first began to dispense euro notes—is but one step in a lengthy process. Monetary union is supposed to lead naturally to political, fiscal, and budgetary union, to ever closer cooperation among the member states. Patience is essential, and union must proceed step by step.

But the fact remains that no one knows for now how these challenges will be met or what role governments will play in preventing the degradation of our natural capital in the years ahead. Economic Transparency and Democratic Control of Capital More generally, it is important, I think, to insist that one of the most important issues in coming years will be the development of new forms of property and democratic control of capital. The dividing line between public capital and private capital is by no means as clear as some have believed since the fall of the Berlin Wall. As noted, there are already many areas, such as education, health, culture, and the media, in which the dominant forms of organization and ownership have little to do with the polar paradigms of purely private capital (modeled on the joint-stock company entirely owned by its shareholders) and purely public capital (based on a similar top-down logic in which the sovereign government decides on all investments).


EuroTragedy: A Drama in Nine Acts by Ashoka Mody

"Robert Solow", Andrei Shleifer, asset-backed security, availability heuristic, bank run, banking crisis, Basel III, Berlin Wall, book scanning, Bretton Woods, call centre, capital controls, Carmen Reinhart, Celtic Tiger, central bank independence, centre right, credit crunch, Daniel Kahneman / Amos Tversky, debt deflation, Donald Trump, eurozone crisis, Fall of the Berlin Wall, financial intermediation, floating exchange rates, forward guidance, George Akerlof, German hyperinflation, global supply chain, global value chain, hiring and firing, Home mortgage interest deduction, income inequality, inflation targeting, Irish property bubble, Isaac Newton, job automation, Johann Wolfgang von Goethe, Johannes Kepler, Kenneth Rogoff, Kickstarter, liberal capitalism, light touch regulation, liquidity trap, loadsamoney, London Interbank Offered Rate, Long Term Capital Management, low-wage service sector, Mikhail Gorbachev, mittelstand, money market fund, moral hazard, mortgage tax deduction, neoliberal agenda, offshore financial centre, oil shock, open borders, pension reform, premature optimization, price stability, purchasing power parity, quantitative easing, rent-seeking, Republic of Letters, Robert Gordon, Robert Shiller, Robert Shiller, short selling, Silicon Valley, The Great Moderation, The Rise and Fall of American Growth, too big to fail, total factor productivity, trade liberalization, transaction costs, urban renewal, working-age population, Yogi Berra

Merkel was born on July 17, 1954, in Hamburg, West Germany.28 When she was just a few weeks old, her father, a Protestant minister, moved the family to East Germany. Merkel grew up in a decaying, Communist East Germany, but there she led a reasonably privileged life, kept her head down, excelled at Russian and the sciences in school, and went on to receive a doctorate in quantum chemistry. She started her career as a research scientist, writing technical papers with other East German researchers. In December 1989, a month after the fall of the Berlin Wall, she wandered into the neighborhood offices of a political group called Democratic Awakening and volunteered to help. From that first step onward, it was an astonishing rise. In December 1990, she won a seat as a CDU member of the Bundestag. She then became a resentful cabinet member under an overbearing Chancellor Helmut Kohl. In December 1999, she turned Kohl’s political assassin after it became apparent that he had taken illegal campaign contributions.

Together with other leaders of the European institutions, he presented a number of proposals for centralized euro-​area governance, such as eurobonds and a common fiscal capacity, both as president of the Eurogroup and later as president of the European Commission. Helmut Kohl (1930–​ 2017). German politician (Christian Democratic Union). Minister-​ president of Rhineland-​ Palatinate (1969–​ 1976), chancellor of the Federal Republic of Germany, before (1982–​1990) and after (1990–​1998) reunification. After the unanticipated fall of the Berlin Wall in November 1989, Kohl used the historic moment to reunify East and West Germany. Although he was aware of the economic disadvantages of a single currency, as the chancellor of a unified Germany, Kohl ensured the creation of the euro. Christine Lagarde (1956–​). French lawyer and politician (Union for a Popular Movement). Commerce minister (2005–​2007), agriculture minister (2007), finance minister (2007–​2011), managing director of the IMF (2011–​).

Even in his “glass half full” assessment, Humboldt University’s Michael Burda (2009) is clear that the conversion rate created a severe burden. University of Chicago economist Harald Uhlig (2008) is harsher. He concluded that East Germany had settled into a steady state of low labor productivity, high unemployment, and high emigration. With its young and best qualified leaving, he described the East as a dying region turning into a wasteland. By 2014, a quarter century after the fall of the Berlin Wall, migration out of the former East Germany finally stopped but possibly only “because everybody who wanted to go west has gone” (Wagstyl 2014). Unemployment rates remained about twice as high, and productivity was still only about three-​quarters that of the West. 79. Allen-​Mills 1990. 80. Allen-​Mills 1990. 81. Kinzer 1990. 82. Eisenhammer 1990a. 83. Allen-​Mills 1990. 84. Dyson and Featherstone 1999, 375. 85.


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Home Game: An Accidental Guide to Fatherhood by Michael Lewis

airport security, Berlin Wall, Fall of the Berlin Wall, psychological pricing, the new new thing

Not the special love from his child, who, no matter how many times he fed and changed and wiped and walked her, would always prefer her mother in a pinch. Not even the admiration of the body politic, who pushed him into signing the deal. Women may smile at a man pushing a baby stroller, but it is with the gentle condescension of a high officer of an army toward a village that surrendered without a fight. Men just look away in shame. And so the American father now finds himself in roughly the same position as Gorbachev after the fall of the Berlin Wall. Having shocked the world by doing the decent thing and ceding power without bloodshed for the sake of principle, he is viewed mainly with disdain. The world looks at him schlepping and fetching and sagging and moaning beneath his new burdens and thinks: OH…YOU…POOR…BASTARD. But I digress. I came home one night, relieved the babysitter, and found that Quinn had three bright red spots on her forehead and, for the first time in her life, a fever.


pages: 428 words: 117,419

Cyclopedia by William Fotheringham

Berlin Wall, British Empire, carbon footprint, Fall of the Berlin Wall, intermodal, Kickstarter, Northern Rock, éminence grise

If, after reading it, you want to try something new, go to a race, or buy a book or DVD that you might not have known about, it will have served its purpose. Enjoy the ride. William Fotheringham, July 2010 A ABDUZHAPAROV, Djamolidin (b. Uzbekistan, 1964) Squat, tree-trunk thighed sprinter from Uzbekistan who was one of the biggest stars to emerge from the Eastern bloc after the fall of the Berlin Wall. Abdu’ first came to prominence in the British MILK RACE, winning three stages in 1986, but it was in the 1991 TOUR DE FRANCE where his unique style grabbed world headlines: he put his head down low over the front wheel—a style later adopted to great effect by MARK CAVENDISH—and zigzagged up the finish straight, terrifying opponents and onlookers. He took two stages in the 1991 Tour but came to grief in dramatic style as a third win beckoned on the Champs-Elysées: after colliding with an oversized cardboard Coke can standing against the barriers he somersaulted over the bars and rolled down the road.

The next 30 years were stable, almost backward: professional road racing was largely dominated by riders from the European heartland, sponsors were mainly interested in their own domestic markets, the calendar changed little, and a small number of major stars raced most of the big events taking their teams with them. That all began to change in the 1980s, as first the English-speaking nations arrived led by the FOREIGN LEGION, followed after the fall of the Berlin Wall by waves of former “amateurs” from EASTERN EUROPE. At the same time, the Tour de France began to dominate the calendar thanks to a massive expansion in television rights and coverage. Sponsors with world interests such as T-Mobile and Panasonic appeared, and the last constructors’ teams, RALEIGH and PEUGEOT, went under. Prize money and salaries mushroomed: in 1983 LAURENT FIGNON received £20,000 from his first Tour win, while 16 years later LANCE ARMSTRONG made over $7 million from his first Tour win.1 The sport remains in a state of flux.


pages: 489 words: 111,305

How the World Works by Noam Chomsky, Arthur Naiman, David Barsamian

affirmative action, anti-communist, Ayatollah Khomeini, Berlin Wall, Bernie Sanders, Bretton Woods, British Empire, business climate, capital controls, clean water, corporate governance, deindustrialization, Fall of the Berlin Wall, feminist movement, glass ceiling, Howard Zinn, income inequality, interchangeable parts, Isaac Newton, joint-stock company, land reform, liberation theology, Monroe Doctrine, offshore financial centre, plutocrats, Plutocrats, race to the bottom, Ralph Nader, Ronald Reagan, Rosa Parks, single-payer health, strikebreaker, Telecommunications Act of 1996, transfer pricing, union organizing, War on Poverty, working poor

Washington imposed economic sanctions that virtually destroyed the economy, the main burden falling on the poor nonwhite majority. They too came to hate Noriega, not least because he was responsible for the economic warfare (which was illegal, if anyone cares) that was causing their children to starve. Next, a military coup was tried, but failed. Then, in December 1989, the US celebrated the fall of the Berlin wall and the end of the Cold War by invading Panama outright, killing hundreds or perhaps thousands of civilians (no one knows, and few north of the Rio Grande care enough to inquire). This restored power to the rich white elite that had been displaced by the Torrijos coup—just in time to ensure a compliant government for the administrative changeover of the Canal on January 1, 1990 (as noted by the right-wing European press).

With the collapse of Soviet tyranny, much of the region can be expected to return to its traditional status, with the former higher echelons of the bureaucracy playing the role of the Third World elites that enrich themselves while serving the interests of foreign investors. But while this particular phase has ended, North-South conflicts continue. One side may have called off the game, but the US is proceeding as before—more freely, in fact, with Soviet deterrence a thing of the past. It should have surprised no one that [the first] President Bush celebrated the symbolic end of the Cold War, the fall of the Berlin Wall, by immediately invading Panama and announcing loud and clear that the US would subvert Nicaragua’s election by maintaining its economic stranglehold and military attack unless “our side” won. Nor did it take great insight for Elliott Abrams to observe that the US invasion of Panama was unusual because it could be conducted without fear of a Soviet reaction anywhere, or for numerous commentators during the Gulf crisis to add that the US and Britain were now free to use unlimited force against its Third World enemy, since they were no longer inhibited by the Soviet deterrent.


pages: 397 words: 112,034

What's Next?: Unconventional Wisdom on the Future of the World Economy by David Hale, Lyric Hughes Hale

affirmative action, Asian financial crisis, asset-backed security, bank run, banking crisis, Basel III, Berlin Wall, Black Swan, Bretton Woods, business cycle, capital controls, Cass Sunstein, central bank independence, cognitive bias, collapse of Lehman Brothers, collateralized debt obligation, corporate governance, corporate social responsibility, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency manipulation / currency intervention, currency peg, Daniel Kahneman / Amos Tversky, debt deflation, declining real wages, deindustrialization, diversification, energy security, Erik Brynjolfsson, Fall of the Berlin Wall, financial innovation, floating exchange rates, full employment, Gini coefficient, global reserve currency, global village, high net worth, Home mortgage interest deduction, housing crisis, index fund, inflation targeting, information asymmetry, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Just-in-time delivery, Kenneth Rogoff, Long Term Capital Management, Mahatma Gandhi, Martin Wolf, Mexican peso crisis / tequila crisis, Mikhail Gorbachev, money market fund, money: store of value / unit of account / medium of exchange, mortgage tax deduction, Network effects, new economy, Nicholas Carr, oil shale / tar sands, oil shock, open economy, passive investing, payday loans, peak oil, Ponzi scheme, post-oil, price stability, private sector deleveraging, purchasing power parity, quantitative easing, race to the bottom, regulatory arbitrage, rent-seeking, reserve currency, Richard Thaler, risk/return, Robert Shiller, Robert Shiller, Ronald Reagan, sovereign wealth fund, special drawing rights, technology bubble, The Great Moderation, Thomas Kuhn: the structure of scientific revolutions, Tobin tax, too big to fail, total factor productivity, trade liberalization, Washington Consensus, Westphalian system, WikiLeaks, women in the workforce, yield curve

It may therefore be only a matter of time before some combination of greater debt and higher inflation precipitates a crash in the JGB and yen markets. 8 JAPAN: THE INTERREGNUM GOES ON Richard B. Katz No Political Stability without Economic Prosperity; No Prosperity without Structural Reform The long political interregnum that began in 1989—with the peak of the 1980s financial bubble and the fall of the Berlin Wall—seems destined to continue for at least several more years. In 2009, hopes were raised that the smashing victory of the Democratic Party of Japan (DPJ) in the Lower House elections would usher in at least a few years of political stability and some substantial progress on economic reform. Not only did the DPJ throw out the Liberal Democratic Party (LDP), which had ruled virtually uninterrupted for nearly six decades (making the 2009 election the first time voters had ever affected a change in government in postwar Japan), but it did so in an unprecedented landslide.

While there are some hereditary seats in the DPJ, the share is far smaller, particularly among those who were elected to the Diet for the first time as part of the DPJ rather than as defectors from the LDP or some other party. All of this begs the question, If one-party democracy is maladaptive for modern economies, how did the LDP and its precursor parties manage to rule in all but two of the sixty-five years following the end of World War II? The answer is that, for a long time, the LDP served Japan very well. For one thing, it kept Japan in the Western camp during the Cold War. Recall that until the fall of the Berlin Wall and the collapse of the Soviet Union, the primary opposition parties were the Socialists and Communists who, unlike the pro-Western Social Democrats of Western Europe, oriented toward Moscow, Beijing, and even Pyongyang. As long as the Socialists and Communists remained the voice of the opposition, the LDP was safe. Not until the LDP split in 1993, when a nonsocialist opposition emerged, was there a genuine alternative to LDP rule that was acceptable to the typical Japanese voter.


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Dark Towers: Deutsche Bank, Donald Trump, and an Epic Trail of Destruction by David Enrich

Affordable Care Act / Obamacare, anti-globalists, Asian financial crisis, banking crisis, Berlin Wall, buy low sell high, collateralized debt obligation, commoditize, corporate governance, Credit Default Swap, credit default swaps / collateralized debt obligations, Donald Trump, East Village, estate planning, Fall of the Berlin Wall, financial innovation, forensic accounting, high net worth, housing crisis, interest rate derivative, interest rate swap, Jeffrey Epstein, London Interbank Offered Rate, Lyft, Mikhail Gorbachev, NetJets, obamacare, offshore financial centre, post-materialism, Ralph Waldo Emerson, Renaissance Technologies, risk tolerance, Robert Mercer, rolodex, sovereign wealth fund, too big to fail, transcontinental railway, yield curve

He was a leading German voice for the economic integration of Europe and an advocate for forgiving the debts of third-world countries. He became a confidant of Helmut Kohl, the German chancellor, he dined with Mikhail Gorbachev, and he was a guest in the Connecticut home of Henry Kissinger. Perched on the thirtieth floor of one of Deutsche’s skyscrapers, the fifty-nine-year-old Herrhausen looked down on the rest of the German financial capital. In November 1989, a week after the fall of the Berlin Wall appeared to vindicate much of Herrhausen’s liberal free-market ideology, a leading German newspaper, Der Spiegel, gushed: “Hardly ever before has one person ruled the economic scene the way Deutsche Bank chief executive Alfred Herrhausen does at the present time. The banker is all-powerful.” Herrhausen then made a play for even more power. Back in 1984, Deutsche had purchased a 5 percent stake in a venerable British investment bank, Morgan Grenfell.

Shrapnel and the copper plate streaked into the street, scoring a direct hit on the rear half of Herrhausen’s car, where he was seated. The impact threw the car several yards into the air, smashing its windows, and blasting off its doors, trunk, and hood. The copper projectile severed Herrhausen’s legs. Before fire trucks or ambulances arrived, he bled to death in the backseat. The assassination shocked Germany, which had been in a celebratory mood following the fall of the Berlin Wall. Chancellor Kohl, visiting a Düsseldorf trade fair, cried. “It is a threat to our democracy,” the future finance minister Wolfgang Schäuble told the German parliament. Some 10,000 business and government leaders from around the world showed up for Herrhausen’s funeral. The site of the bombing became a shrine of flowers and burning candles. The murder was the work of the Red Army Faction, a group of Marxist terrorists.


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Britain's Europe: A Thousand Years of Conflict and Cooperation by Brendan Simms

anti-communist, Berlin Wall, Big bang: deregulation of the City of London, Boris Johnson, Bretton Woods, BRICs, British Empire, business cycle, capital controls, Corn Laws, credit crunch, eurozone crisis, Fall of the Berlin Wall, first-past-the-post, imperial preference, land reform, Monroe Doctrine, moral panic, oil shock, open economy, plutocrats, Plutocrats, race to the bottom, Ronald Reagan, sceptred isle, South Sea Bubble, trade route, éminence grise

In short, while economics mattered deeply to Thatcher, the core of her anxiety about Europe was political. She feared the loss of British sovereignty and the prospect of German domination either directly or by European proxy. For this reason, Thatcher signalled that she not merely did not wish to participate in further integration herself but that she opposed it for the rest of the Community as well. The fall of the Berlin Wall in November 1989, the collapse of communism across Europe and the prospect of German unification brought matters to a head. First, there was the German Question, now back on the agenda in the most dramatic possible way. With reunification on the cards, Margaret Thatcher feared that Germany ‘would, once again, dominate the whole of Europe’.77 She summoned a special conference of experts to the prime minister’s country residence of Chequers to brief her on whether a united Germany could be ‘trusted’.

In the Middle Ages, the main enemy was France; in the sixteenth century and early seventeenth centuries, it was Spain; from the late seventeenth to the early nineteenth centuries, it was France again; in the mid- to late nineteenth century, it was Tsarist Russia; in the early and mid-twentieth century, it was first the Kaiser and then Hitler’s Germany; and then Russia again – with a brief interruption after the fall of the Berlin Wall – from the end of the Second World War down to the present day. Very often, the danger was also ideological, from continental heresy in the Middle Ages, through Counter-Reformation Catholicism (which also became a synonym for absolutism and continental tyranny) in the sixteenth and seventeenth centuries, Jacobinism in the late eighteenth century, continental autocracy in the nineteenth century, right- and left-wing totalitarianism in the twentieth century, to Islamist terrorists arriving from Europe as migrants.


Poisoned Wells: The Dirty Politics of African Oil by Nicholas Shaxson

Asian financial crisis, Berlin Wall, blood diamonds, business climate, clean water, colonial rule, energy security, Exxon Valdez, failed state, Fall of the Berlin Wall, Hernando de Soto, income per capita, inflation targeting, Kickstarter, Martin Wolf, mobile money, Nelson Mandela, offshore financial centre, old-boy network, Ronald Reagan, Scramble for Africa, Yom Kippur War, zero-sum game

You can often spot Corsicans because their names, while French, sound Italian: Marchiani, Tarallo, Tomi, Leandri, Guélfi, Feliciaggi. “These mandarin . . . strands of power had become tightly intertwined in a network that has been dubbed ‘France Inc.,’” wrote Ignatius. “The ruling clans needed each other—and they protected each other.”14 Normally Bidermann’s case would have been quietly dropped. But Joly was an outsider, and French politics was in flux after the fall of the Berlin Wall. The French left and right, as well as the foreign and domestic secret services, were engaged in giant, tentacular struggles, which were generating press leaks and anonymous tip-offs for the magistrates. Elf was being privatized then, too, and the new head of the company lodged a formal complaint with the magistrates against his predecessor, hoping to mark a clean break with Elf ’s dirty past.15 French president Jacques Chirac, who took power in 1995, also wanted to tarnish the image of his predecessor, François Mitterrand, and his people were adding to the leaks.

Milongo rose to greet me just inside the entrance. Though nearly 70, he was handsome and sprightly, and wore a collarless brown suit and a thick, loose, chain bracelet. After the pleasantries, he began his story, a Shakespearean tragedy with many human actors, and one huge, shadowy non-human lurking offstage, influencing everyone. “Oil? Yes,” he said. “It is behind all these problems.” His tale began with the fall of the Berlin Wall in 1989. “Marxism was a pretext—a religion,” he said. “They ruled Congo with it, but not always in the people’s interests. It failed in the Soviet Union, and failed here, too.” By 1990 political pressure was rising from the streets like heat haze, and president Dénis Sassou Nguesso, a Freemason who had been in power since 1979, was forced to accept big changes. He remained president but lost most of his powers to Milongo, who was popular partly because he had 105 P o i s o n e d We l l s been out of Congo for ten years, and was consequently not so tainted with the incestuous world of Françafrique.


pages: 372 words: 115,094

Reagan at Reykjavik: Forty-Eight Hours That Ended the Cold War by Ken Adelman

anti-communist, Berlin Wall, British Empire, cuban missile crisis, Deng Xiaoping, Dissolution of the Soviet Union, Donald Trump, F. W. de Klerk, Fall of the Berlin Wall, Haight Ashbury, Kitchen Debate, kremlinology, Mikhail Gorbachev, mutually assured destruction, Nelson Mandela, old-boy network, Ronald Reagan, Ronald Reagan: Tear down this wall, Saturday Night Live, Sinatra Doctrine, War on Poverty, Yogi Berra

The session was nearly universally condemned, even by those as astute in foreign policy as Richard Nixon, who declared, “No summit since Yalta has threatened Western interests so much as the two days at Reykjavik.” The following year, 1987, Reykjavik received some acclaim when agreements reached over that weekend were signed in the White House as part of a sweeping arms control treaty. Since then—despite the earth-shattering events of the fall of the Berlin Wall, the demise of Communism in Eastern Europe, the collapse of the Soviet Union, and end of the Cold War—Reykjavik has mostly been relegated to a footnote in history, something akin to the Glassboro summit of 1967 between U.S. president Lyndon Johnson and Soviet premier Aleksey Kosygin. Specialists have debated the summit’s significance, particularly at four conferences held on its anniversaries, but their debates have largely remained there—among specialists at conferences.

When probed on what might replace it, he replied cleverly, “The Sinatra doctrine,” referring to “My Way,” the crooner’s signature song. “Every country decides on its own which road to take,” Gerasimov said smiling. Taking the cue, the East German people did it their way. They summarily ousted Honecker, who was replaced by Egon Krenz, who summarily ousted his entire cabinet. However, none of this was enough for the protestors. For the Wall was still there. 9/11 AND 11/9 WERE seminal dates in modern history. The fall of the Berlin Wall on 11/9/89 was one of the biggest events between President Kennedy’s 1963 assassination and the 2001 terrorist attacks of 9/11. Like many Americans, I can remember where I was on each of these days. On 11/9/89, I was heading for Budapest to attend a conference on nuclear disarmament. By then, Hungary had become a new country. Its Communist Party had been disbanded, its parliamentary members had been replaced, and its constitution was being rewritten to assure civil liberties.


pages: 356 words: 112,271

Brexit and Ireland: The Dangers, the Opportunities, and the Inside Story of the Irish Response by Tony Connelly

air freight, Berlin Wall, Big bang: deregulation of the City of London, Boris Johnson, call centre, centre right, Double Irish / Dutch Sandwich, eurozone crisis, Fall of the Berlin Wall, knowledge economy, LNG terminal, low skilled workers, non-tariff barriers, open borders, personalized medicine, race to the bottom, regulatory arbitrage, éminence grise

He reached for the totems of Easter 1916, the ‘struggle for independence’, the quest for economic prosperity. But every patriotic reference point was couched in terms of Ireland’s European destiny. ‘The 1916 Proclamation,’ he said, ‘recognized that Ireland’s place in the world will always be defined by our relationship with Europe, as well as with the United States and with Britain.’ The fall of the Berlin Wall meant that the most divisive border left in Europe was that ‘between Dundalk and Derry’. Theresa May’s name was not invoked once. ‘Brexit,’ he declared, ‘is a British policy, not an Irish policy or an EU policy. I continue to believe it is bad for Britain, for Ireland and for Europe.’ Avoiding a hard border was ‘a political matter, not a legal or technical matter’. But, he said: ‘let me also make one thing absolutely clear – Ireland will be on the EU side of the table when the negotiations begin.

The remarks were welcomed by Sinn Féin Leader Gerry Adams, but were dismissed as ‘mischievous’ by the DUP’s Ian Paisley Junior. The issue then disappeared. But the German parallel was kept within the ether. A senior Irish official confirmed to the author the following December that it was still being looked at, but that the government didn’t necessarily want to draw attention to it. ‘The model is Germany after the fall of the Berlin Wall,’ he said. ‘The principle is that nothing is disturbed [in the event of Irish unity]. No one is contesting this. But there’s no need to put it up in lights.’ But it was being discussed at the highest level. A confidential memo, dated 26 October 2016, was circulated among senior officials in the Departments of the Taoiseach and Foreign Affairs, spelling out the German parallel and the key role Ireland had played in 1990.


Cultural Backlash: Trump, Brexit, and Authoritarian Populism by Pippa Norris, Ronald Inglehart

affirmative action, Affordable Care Act / Obamacare, bank run, banking crisis, Berlin Wall, Bernie Sanders, Boris Johnson, Cass Sunstein, centre right, cognitive dissonance, conceptual framework, declining real wages, desegregation, Donald Trump, eurozone crisis, Fall of the Berlin Wall, feminist movement, first-past-the-post, illegal immigration, immigration reform, income inequality, job automation, knowledge economy, labor-force participation, land reform, liberal world order, longitudinal study, low skilled workers, mass immigration, meta analysis, meta-analysis, obamacare, open borders, open economy, post-industrial society, post-materialism, precariat, purchasing power parity, rising living standards, Ronald Reagan, sexual politics, Silicon Valley, statistical model, stem cell, War on Poverty, white flight, winner-take-all economy, women in the workforce, working-age population, World Values Survey, zero-sum game

The influx of immigrants from the Global South is likely to have profound consequences not just for contemporary European societies but also for the future, because the aging white populations have much lower fertility rates than the immigrant families from developing societies.23 By contrast, immigration was slower in Mediterranean Europe, while Eastern Europe saw a steady loss of migrants for two decades after the fall of the Berlin Wall, until the numbers stabilized at a lower level. Migration can be driven by many factors, including (1) opportunities to work, study, and live in other countries, and (2) to flee civil wars, economic crises, and the breakdown of political order in countries like Somalia, Libya, Sudan, 42 The Cultural Backlash Theory Eritrea, or Nigeria. The overall total of migrants includes a number who are at greatest risk – the refugees, asylum seekers, and stateless persons, 6.2 million of whom live in Europe.24 Period Effects Interact with Structural Change Generational replacement, rising educational levels, growing ethnic diversity, gender equality, and urban growth all contribute to value change.

On this basis, this study identifies four main generational groups: • • The Interwar cohort that lived through two World Wars and the Great Depression (born before 1945); Baby Boomers who came of age during the growing affluence and expansion of the welfare state during the post-­World War II era (1946–1964); The Backlash Against the Silent Revolution 92 • • Generation X socialized during the counter-­culture era of sexual liberalization and student protest (1965–1979); and Millennials who came of age under the era of neo-­liberalism economics and globalization associated with Reagan and Thatcher (1980–1996). These cohorts reflect major historical watersheds common across many Western societies, making them suitable for pooled analysis. There are also other major events that could be turning points in specific societies, such as the fall of dictators and subsequent periods of democratization during the 1970s in Spain and Portugal, the era of the military junta in Greece, the 1989 fall of the Berlin Wall and reunification in Germany, the Thatcherite years in the UK, and the impact of 9/11 in the United States. The transition from Communist party rule during the 1990s had a decisive impact on the politics of Central and Eastern Europe, with divergent pathways of regime change in countries such as Ukraine, Slovakia, Latvia, and Bulgaria. Not every generation marches in lockstep. But the periods used in this study were chosen to reflect major shared events that impacted on a large number of post-industrial societies.

West European nations and Scandinavia had the greatest influx. This movement of people from the global South to Europe will have profound consequences not only for contemporary European societies but also for the future, because the aging white populations have much lower fertility rates than the younger immigrant families from developing societies.14 Eastern Europe saw a steady loss of migrants for two decades after the fall of the Berlin Wall, until the numbers stabilized at a lower level. Migration is driven by many factors, including opportunities to work and study in other countries, and to flee civil wars, economic crises, and the breakdown of political order. Refugees, asylum seekers, and stateless persons are at greatest risk, and 6.2 million of them live in Europe.15 Israel United Kingdom Ukraine Turkey Switzerland Sweden Slovenia Luxembourg Finland Note: Net migration is defined as the total number of people moving into a country (immigrants) minus the total number of people leaving a country (emigrants), including citizens and non-­citizens, for the five-­year period.


pages: 1,293 words: 357,735

The Coming Plague: Newly Emerging Diseases in a World Out of Balance by Laurie Garrett

Albert Einstein, Berlin Wall, biofilm, British Empire, Buckminster Fuller, clean water, correlation does not imply causation, discovery of penicillin, double helix, European colonialism, Fall of the Berlin Wall, germ theory of disease, global pandemic, global village, indoor plumbing, invention of air conditioning, John Snow's cholera map, land reform, Live Aid, Louis Pasteur, Marshall McLuhan, mass incarceration, megacity, Menlo Park, Mikhail Gorbachev, Nelson Mandela, New Urbanism, phenotype, price mechanism, Ralph Nader, Ronald Reagan, Rosa Parks, South China Sea, the scientific method, trade route, transfer pricing, upwardly mobile, urban renewal, urban sprawl, Zimmermann PGP

Table of Contents Title Page Preface Introduction 1 - Machupo 2 - Health Transition I II 3 - Monkey Kidneys and the Ebbing Tides I II III 4 - Into the Woods 5 - Yambuku I II III IV V VI VII VIII IX X 6 - The American Bicentennial I II III IV V VI 7 - N’zara 8 - Revolution 9 - Microbe Magnets I II III 10 - Distant Thunder I II III 11 - Hatari: Vinidogodogo (Danger: A Very Little Thing) PRELUDE I II III IV 12 - Feminine Hygiene (As Debated, Mostly, by Men) 13 - The Revenge of the Germs, or Just Keep Inventing New Drugs I II III IV 14 - Thirdworldization I II III 15 - All in Good Haste 16 - Nature and Homo sapiens 17 - Searching for Solutions Afterword Notes Acknowledgments Index Notes Copyright Page Preface We always want to believe that history happened only to “them,” “in the past,” and that somehow we are outside history, rather than enmeshed within it. Many aspects of history are unanticipated and unforeseen, predictable only in retrospect: the fall of the Berlin Wall is a single recent example. Yet in one vital area, the emergence and spread of new infectious diseases, we can already predict the future—and it is threatening and dangerous to us all. The history of our time will be marked by recurrent eruptions of newly discovered diseases (most recently, hantavirus in the American West); epidemics of diseases migrating to new areas (for example, cholera in Latin America); diseases which become important through human technologies (as certain menstrual tampons favored toxic shock syndrome and water cooling towers provided an opportunity for Legionnaires’ Disease); and diseases which spring from insects and animals to humans, through manmade disruptions in local habitats.

And he adopted the rhetoric of critical environmentalists, saying, “Those who have a vested interest in the status quo will probably continue to stifle any meaningful change until enough citizens who are concerned about the ecological system are willing to speak out and urge their leaders to bring the earth back into balance.”5 At the macro level, then, a sense of global interconnectedness was developing over such issues as economic justice and development, environmental preservation, and, in a few instances, regulation. Though there were differences in perspective and semantics, the globalization of views on some issues was already emerging across ideological lines well before the fall of the Berlin Wall. Since then it has sped up, although there is now considerable anxiety expressed outside the United States about American domination of the ideas, cultural views, technologies, and economics of globalization of such areas as environmentalism, communication, and development. It wasn’t until the emergence of the human immunodeficiency virus, however, that the limits of, and imperatives for, globalization of health became obvious in a context larger than mass vaccination and diarrhea control programs.

A popular Soviet cartoon pictured an American scientist who was exchanging a test tube full of swastikas for a wad of cash, proffered by a general. At the characters’ feet lay dead bodies. In a blame-counterblame campaign, the U.S. State Department widely distributed a detailed denial in 1987, charging the KGB had concocted the entire campaign in order to discredit American government credibility in developing countries.207 Years later, following the fall of the Berlin Wall, the Soviet National Academy of Sciences would formally apologize for the accusation, acknowledging that it had been KGB-inspired. Another theory of deliberate recombination came from Los Angeles anti-vivisectionist Dr. Robert Strecker, who gained a large following in 1987 by again claiming, on the basis of a supposed BLV connection, that the CIA made the AIDS virus. “The AIDS virus was manufactured by crossing BLV and visna virus from animals into man to make the AIDS virus, and growing it in human tissue culture, and that’s AIDS.


Tyler Cowen - Stubborn Attachments A Vision for a Society of Free, Prosperous, and Responsible Individuals by Meg Patrick

"Robert Solow", agricultural Revolution, Berlin Wall, conceptual framework, Fall of the Berlin Wall, framing effect, hedonic treadmill, impulse control, Peter Singer: altruism, rent-seeking, The Wealth of Nations by Adam Smith, total factor productivity, trade route, transaction costs, trickle-down economics, Tyler Cowen: Great Stagnation, zero-sum game

Kolmar, Martin and Rommeswinkel, Hendrik, “On General Arguments about the Cluelessness Objection,” unpublished manuscript. University of St. Gallen, 2013. Koopmans, Tjalling. “Stationary Ordinal Utility and Impatience.” Econometrica, 1960, 28, 287309. Kydland, Finn E. and Prescott, Edward C., “Rules Rather Than Discretion: the Inconsistency of Optimal Plans”. Journal of Political Economy, June 1977, 85, 3, 473-492. Lakner, Christoph and Milanovic Branko. “Global income distribution: From the fall of the Berlin Wall to the Great Recession.” Vox CEPR’s Policy Portal, 27 May 2014. Lane, Robert E. 1998. “The Joyless Market Economy.” In Avner Ben-Ner and Louis Putterman (eds.), Economics, Values, and Organization, 461-490. New York: Cambridge University Press. 123 Lang, Gerald, “Consequentialism, Cluelessness, and Indifference,” The Journal of Value Inquiry, 2008, 42, 477-485. LeBlanc, Steven A. 2003.


City Parks by Catie Marron

Berlin Wall, crony capitalism, Fall of the Berlin Wall, Fellow of the Royal Society, Frank Gehry, Golden Gate Park, the High Line, urban sprawl

On one hand I was exhilarated by the bravura of its sweeping curve and cantilevered roof, which sails heroically above the aircraft. I have since described it as “the mother of all airports.” But entering, I recall a sinking feeling. Its echoing halls seemed saturated with historical associations, inevitably evoking its fascist roots. Years later, visiting the Reichstag for the first time conjured a similar range of emotions. The fall of the Berlin Wall in 1989, and German reunification, marked the final phase in the history of the Reichstag and the Tiergarten. An international competition was launched in April 1992 to transform the Reichstag building into a parliament for a unified Germany, moving the seat of government from Bonn to Berlin. Eight months later three practices were short-listed, one of which was Foster + Partners. I presented our revised proposals in June 1993 and shortly afterward we were announced the winner.


pages: 138 words: 43,748

Conscience of a Conservative: A Rejection of Destructive Politics and a Return to Principle by Jeff Flake

4chan, Affordable Care Act / Obamacare, battle of ideas, Berlin Wall, cognitive dissonance, crony capitalism, David Brooks, Donald Trump, Fall of the Berlin Wall, Francis Fukuyama: the end of history, global supply chain, immigration reform, impulse control, invisible hand, Mark Zuckerberg, obamacare, Potemkin village, race to the bottom, road to serfdom, Ronald Reagan, Silicon Valley, uranium enrichment, zero-sum game

Even as our own government was documenting a concerted attack against our democratic processes by an enemy foreign power, our own White House was rejecting the authority of its own intelligence agencies, disclaiming their findings as a Democratic ruse and a hoax. Conduct that would have had conservatives up in arms had it been exhibited by our political opponents now had us dumbstruck. It was then that I was compelled back to Senator Goldwater’s book, to a chapter entitled “The Soviet Menace.” Since the fall of the Berlin Wall, this part of Goldwater’s critique had seemed particularly anachronistic. The lesson here is that nothing is gone forever, especially when it comes to the devouring ambition of despotic men. As Goldwater wrote in that chapter: Our forebears knew that “keeping a Republic” meant, above all, keeping it safe from foreign transgressors; they knew that a people cannot live and work freely, and develop national institutions conducive to freedom, except in peace and with independence.


State-Building: Governance and World Order in the 21st Century by Francis Fukuyama

Asian financial crisis, Berlin Wall, Bretton Woods, centre right, corporate governance, demand response, Doha Development Round, European colonialism, failed state, Fall of the Berlin Wall, Francis Fukuyama: the end of history, George Akerlof, Hernando de Soto, information asymmetry, liberal world order, Live Aid, Nick Leeson, Pareto efficiency, Potemkin village, price stability, principal–agent problem, rent-seeking, road to serfdom, Ronald Coase, structural adjustment programs, technology bubble, The Market for Lemons, The Nature of the Firm, transaction costs, Washington Consensus, Westphalian system

Weak or failing states commit human rights abuses, provoke humanitarian disasters, drive 92 weak states and international legitimacy 93 massive waves of immigration, and attack their neighbors. Since September 11, it also has been clear that they shelter international terrorists who can do significant damage to the United States and other developed countries. During the period from the fall of the Berlin Wall in 1989 to September 11, 2001, the vast majority of international crises centered around weak or failing states. These included Somalia, Haiti, Cambodia, Bosnia, Kosovo, Rwanda, Liberia, Sierra Leone, Congo, and East Timor. The international community in various guises stepped into each of these conflicts—often too late and with too few resources—and in several cases ended up literally taking over the governance function from local actors.


pages: 460 words: 122,556

The End of Wall Street by Roger Lowenstein

Asian financial crisis, asset-backed security, bank run, banking crisis, Berlin Wall, Bernie Madoff, Black Swan, break the buck, Brownian motion, Carmen Reinhart, collateralized debt obligation, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, diversified portfolio, eurozone crisis, Fall of the Berlin Wall, fear of failure, financial deregulation, fixed income, high net worth, Hyman Minsky, interest rate derivative, invisible hand, Kenneth Rogoff, London Interbank Offered Rate, Long Term Capital Management, margin call, market bubble, Martin Wolf, money market fund, moral hazard, mortgage debt, negative equity, Northern Rock, Ponzi scheme, profit motive, race to the bottom, risk tolerance, Ronald Reagan, Rubik’s Cube, savings glut, short selling, sovereign wealth fund, statistical model, the payments system, too big to fail, tulip mania, Y2K

Home foreclosures broke every record; two of America’s three automobile manufacturers filed for bankruptcy, and banks themselves failed by the score. Confidence in America’s market system, thought to have attained the pinnacle of laissez-faire perfection, was shattered. The crisis prompted government interventions that only recently would have been considered unthinkable. Less than a generation after the fall of the Berlin Wall, when prevailing orthodoxy held that the free market could govern itself, and when financial regulation seemed destined for near irrelevancy, the United States was compelled to socialize lending and mortgage risk, and even the ownership of banks, on a scale that would have made Lenin smile. The massive fiscal remedies evidenced both the failure of an ideology and the eclipse of Wall Street’s golden age.

Chávez, a socialist hostile to free-market institutions, had been exploiting America’s crisis to score propaganda points on the spiritual poverty of Yanqui capitalism. Such critiques now touched a sensitive nerve. America’s market system had failed. Its banks had failed. Its investors had failed abysmally. Also, the model of international markets—the idea that investors would regulate world economies, appropriately apportioning capital and limiting risk—had failed. The United States had been lustily pushing this model on the world since the fall of the Berlin Wall. It had been deregulating at home since the 1980s. The disaster raised an unavoidable question: If America had taken a wrong turn, how far back should the clock be set? International opinion was already shifting, sharply, toward the view that free markets had been too free. Angela Merkel, the German chancellor, a onetime advocate of American-style capitalism, was espousing government protection of essential industry.


pages: 403 words: 125,659

It's Our Turn to Eat by Michela Wrong

Berlin Wall, Bob Geldof, Bretton Woods, British Empire, clean water, colonial rule, Doha Development Round, failed state, Fall of the Berlin Wall, financial independence, Kibera, Mahatma Gandhi, Mikhail Gorbachev, Nelson Mandela, oil shock, out of africa, profit motive, Ronald Reagan, structural adjustment programs, upwardly mobile, young professional, zero-sum game, éminence grise

It was Ali who gave John his first taste of journalism, commissioning him to write a book review. He was impressed by the young man's earnestness and idealism. ‘He used to tell me: “You should be more ambitious, you can change this world.” We used to joke that one day John Githongo would be president of Kenya.’ For Ali, John was remarkable for his attempt to get to grips intellectually with his stagnating country's predicament. The fall of the Berlin Wall in 1989 had ushered in a period of tumultuous change in Africa, in which a generation of post-independence autocrats faced increasingly strident calls for multi-party democracy. It was a drive Moi was doing his best to ignore, banning demonstrations and jailing opponents. ‘Here was someone thinking his way out of a society that was tyrannically stable, a police state. There'd been a long period where the Asians, the wazungu, everyone had struck this compact with the political classes, comfortable accommodations had been made, everyone had his place in the system.

Kenyatta had undoubtedly been both authoritarian and corrupt, but a healthier economy meant the looting drew less attention. Moi's far leaner economy struggled, in contrast, to sustain the impact of State House's system of authorised looting, which a minister later estimated to have cost the taxpayer a total of 635 billion Kenya shillings (roughly $US10 billion) in the space of twenty-four years.29 Identical practices were viewed in the West with freshly critical eyes. The fall of the Berlin Wall meant support for disreputable African regimes could no longer be justified on traditional ‘He may be a bastard, but he's our bastard’ lines. Many of those bastards were seen to produce failed states, judged – with the menace of the Soviet empire gone – to threaten Western interests. The new head of the World Bank, the Australian James Wolfensohn, gave voice to the new approach when he declared corruption an ‘intolerable cancer’.


Falling Behind: Explaining the Development Gap Between Latin America and the United States by Francis Fukuyama

Andrei Shleifer, Atahualpa, barriers to entry, Berlin Wall, British Empire, business climate, Cass Sunstein, central bank independence, collective bargaining, colonial rule, conceptual framework, creative destruction, crony capitalism, European colonialism, Fall of the Berlin Wall, first-past-the-post, Francis Fukuyama: the end of history, Francisco Pizarro, Hernando de Soto, income inequality, income per capita, land reform, land tenure, Monroe Doctrine, moral hazard, New Urbanism, oil shock, open economy, purchasing power parity, rent-seeking, Ronald Reagan, The Wealth of Nations by Adam Smith, total factor productivity, trade liberalization, transaction costs, upwardly mobile, Washington Consensus, zero-sum game

However, despite such judicious mediation, the United States maintained a distant relationship with Mexico, skillfully depicted in a book by journalist Alan Riding entitled, precisely, Distant Neighbors.15 Despite being united by geography, migratory flows, and significant trade, the two neighbors lived at a distance from one another, separated by an immense development gap and an even greater divide of a mutual lack of understanding. Although, in the 1980s, Mexico suddenly and timidly began to change its economic policies, reducing its tariffs and partially opening up to international trade, signs of real change did not arrive until the fall of the Berlin Wall. It was this historical opportunity that both countries were able to read: Mexico and the United States could, for mutual benefit, become closer trading partners. The Mexican administration of Carlos Salinas de Gortari (1988– 1994) demonstrated courage and audacity by proposing to Mexican society a pact with the United States. It is true that ill will toward the United States was always less evident in Mexico than in the Caribbean and the former “banana republics,” where the U.S. presence had been more permanent and its political and military dominion much more direct.

From 1936 to 2004, with few exceptions, defense and security and social welfare were the leading categories of spending. Of course, there were very high peaks in the period dominated by the military effort required by World War II (from 1941 to 1945, defense spending absorbed 76.2 percent of GDP), but as of the 1971–1975 period, still in the midst of the Cold War, social welfare spending clearly overtook defense spending. And that is not all: in the years subsequent to the fall of the Berlin Wall and up until 2004, in the United States more was spent on health care than on defense. One should highlight these aspects in a republic whose military expansion, with no rival in the world, is clear. Nonetheless, outlays on defense are not the largest category. Just as the Argentina of “social justice” was more inclined to set its pace in spending on the economy and defense, the militarist republic of the United States is more geared to social welfare and health.48 Furthermore, if we analyze the separation of fiscal powers according to how it ties into the supply of public goods, one must bear in mind that Why Institutions Matter 251 table 9.6 United States: Federal and Subnational Public Spending: Outlays by Purpose 1936– 1940 1941– 1945 1946– 1950 1951– 1955 1956– 1960 Consolidated Public Sector Federal government Subnational governments 100% 100% 0 100% 100% 0 100% 81.4% 18.6% 100% 72.9% 27.1% 100% 100% 69.0% 67.3% 31.0% 32.7% General Administration Federal government Subnational governments 8.2% 8.2% 0 4.8% 4.8% 0 14.4% 14.4% 0 5.9% 5.9% 0 6.5% 6.5% 0 Defense and Security Federal government Subnational governments 17.5% 17.5% 0 76.2% 76.2% 0 36.2% 36.2% 0 47.0% 47.0% 0 38.9% 31.9% 38.9% 31.9% 0 0 Health Federal government Subnational governments 0.6% 0.6% 0 0.2% 0.2% 0 0.4% 0.4% 0 0.4% 0.4% 0 0.5% 0.5% 0 0.9% 0.9% 0 Education and Culture Federal government Subnational governments 20.8% 20.8% 0 3.1% 3.1% 0 0.3% 0.3% 0 0.4% 0.4% 0 0.6% 0.6% 0 0.9% 0.9% 0 Economic Development Federal government Subnational governments 24.4% 24.4% 0 8.0% 8.0% 0 4.3% 4.3% 0 4.0% 4.0% 0 4.7% 4.7% 0 5.5% 5.5% 0 Social Welfare Federal government Subnational governments 22.3% 22.3% 0 6.3% 6.3% 0 20.0% 20.0% 0 13.3% 13.3% 0 16.7% 18.6% 16.7% 18.6% 0 0 Public Debt Federal government Subnational governments 9.5% 9.5% 0 3.5% 3.5% 0 9.1% 9.1% 0 5.5% 5.5% 0 4.8% 4.8% 0 4.6% 4.6% 0 -2.2% -3.4% -3.6% -3.6% -3.3% -2.2% 0 -3.4% 0 -3.6% 0 -3.6% 0 -3.3% 0 Undistributed Compensatory -3.3% Resources Federal government -3.3% Subnational governments 0 1961– 1965 8.3% 8.3% 0 Notes: Data are given in percentage of GDP in averages per five-year period. nd: no data.


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Live and Let Spy: BRIXMIS - the Last Cold War Mission by Steve Gibson

Berlin Wall, British Empire, corporate social responsibility, cuban missile crisis, Fall of the Berlin Wall, John Nash: game theory, libertarian paternalism, long peace, means of production, Mikhail Gorbachev, moral panic, mutually assured destruction, RAND corporation, road to serfdom, Ronald Reagan, unbiased observer, WikiLeaks

This is the end of the Cold War and hopefully the beginning of a ‘long peace’ in Europe. Reflections I have said it before, and I say it again; it is the purest delusion to suppose that because an idea has been handed down from time immemorial to succeeding generations, it may not be entirely false. Pierre Bayle (1647–1706)1 This additional chapter was written in the summer of 2011, some twenty-two years after the iconic fall of the Berlin Wall in November 1989. More significantly, it is two decades since the demise of the Soviet Union and the death of Stalinism. This chapter is intended to be a more scholarly examination of life after Brixmis and the broader intelligence function after the Cold War. Equally, it is a reflection upon contemporary times, the intelligence function’s relationship with power, and what now passes for politics in Western societies.

The danger is that arcane belief systems – religious to environmentalist – together with an unrivalled media become persuasive ideology if there is nothing to challenge or temper them. When means are misinterpreted as ends, and institutions seem absent of purpose, one might interpret that as evidence of the emergence of an existential crisis of confidence. Indeed, it may very well be – similar to new risks – more in the perception than the reality. In the same way that the fall of the Berlin Wall in 1989 is often described as ‘world-changing’, so too is 9/11. Yet, 1989 and 9/11 were culminating events – dénouements – signposts of an already changed context influenced by the historical narrative that preceded them, rather than points of origin for new narratives. It is we that turn them into departure points for new stories rather than recognising them as ends of old ones. We further compound this misunderstanding of context by instantly converting these new stories into things we are against.


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The Marshall Plan: Dawn of the Cold War by Benn Steil

Albert Einstein, Alistair Cooke, anti-communist, Berlin Wall, Bretton Woods, British Empire, business cycle, Carmen Reinhart, centre right, currency manipulation / currency intervention, deindustrialization, disintermediation, Dissolution of the Soviet Union, Donald Trump, eurozone crisis, facts on the ground, Fall of the Berlin Wall, full employment, imperial preference, invisible hand, Kenneth Rogoff, kremlinology, land reform, Mikhail Gorbachev, Monroe Doctrine, new economy, open economy, Potemkin village, RAND corporation, Ronald Reagan, structural adjustment programs, the market place, trade liberalization, Transnistria, Winter of Discontent, Works Progress Administration, éminence grise

There is also the challenge that other nations will consider regional economic, political, or security integration initiated by a power like the United States threatening to their own interests. And when the other nation is as large and powerful as Russia, this likelihood raises the prospect of determined interference. Such interference would create dangerous turmoil as NATO and the EU began expanding eastward in the aftermath of the Cold War. Celebration at the fall of the Berlin Wall, November 9, 1989. * * * FOURTEEN * * * ECHOES ON THE NIGHT OF NOVEMBER 9, 1989, enormous crowds began surging toward official crossings on the eastern side of the Berlin Wall. Having received orders not to shoot, twenty-five-year veteran border guard Harald Jäger was running out of options. Bullhorns bellowed warnings that it was not, as a televised statement had said an hour earlier, “possible . . . to go through the border.”

“Well,” Albright clarified, “we have been celebrating the 50th anniversary of everything.”44 If historical anniversaries were important for NATO expansion, waiting two years for the eightieth anniversary of the Versailles Treaty would have been more apposite. The treaty heaped humiliations on Germany after World War I, with no clear end in sight, and created the economic and political conditions that led to World War II. Having improbably abandoned communism for democracy and capitalism in a near-bloodless revolution, Russians were, ten years after the fall of the Berlin Wall, feeling similarly humiliated and threatened by an unexpected Western military advance toward their borders.45 The European Union, in contrast to NATO, did have the capacity to provide a “Marshall Plan” for the East but was unwilling. The EU’s focus was on deepening economic and political integration within its existing boundaries. Membership for former Warsaw Pact nations would not come for another seven years.

BBC correspondent in the United States, 1945–1953. Milward, Alan (1935–2010). British historian. Author of The Reconstruction of Western Europe, 1945–51. Argued that Europe could have recovered at least as successfully without the Marshall Plan. Mitterrand, François (1916–1996). French statesman. First secretary of the Socialist Party, 1971–1981; president, 1981–1995. Pushed for greater European integration after the fall of the Berlin Wall. Modzelewski, Zygmunt (1900–1954). Polish Communist diplomat. Foreign minister, 1947–1951. Molotov, Vyacheslav Mikhailovich (1890–1986). Bolshevik revolutionary and Soviet Communist Party, political, and government leader. Chairman of the Council of People’s Commissars (head of government), 1930–1941; people’s commissar of foreign affairs/foreign minister, 1939–1949, 1953–1956. A doctrinaire Marxist, loyal to Stalin, he was renowned among contemporary statesmen for his stubborn but effective anti-Western diplomacy.


pages: 159 words: 45,073

GDP: A Brief but Affectionate History by Diane Coyle

"Robert Solow", Asian financial crisis, Berlin Wall, big-box store, Bretton Woods, BRICs, business cycle, clean water, computer age, conceptual framework, crowdsourcing, Diane Coyle, double entry bookkeeping, en.wikipedia.org, endogenous growth, Erik Brynjolfsson, Fall of the Berlin Wall, falling living standards, financial intermediation, global supply chain, happiness index / gross national happiness, hedonic treadmill, income inequality, income per capita, informal economy, Johannes Kepler, John von Neumann, Kevin Kelly, Long Term Capital Management, mutually assured destruction, Nathan Meyer Rothschild: antibiotics, new economy, Occupy movement, purchasing power parity, Robert Shiller, Robert Shiller, Ronald Reagan, shareholder value, Silicon Valley, Simon Kuznets, The Wealth of Nations by Adam Smith, Thorstein Veblen, University of East Anglia, working-age population

In 1975, U.S. GDP declined while inflation rose to more than 10 percent. Almost all the OECD’s member countries were facing stagflation, and for the first time in a generation economists were not confident they had the answers. COMMUNISM Every era is politically divided but it can be hard to recall the character of the division in an earlier time. From this side of November 1989, when the fall of the Berlin Wall symbolized the sudden, unexpected, and complete collapse of communism and its system of economic planning, it is easy to assume that those events were inevitable. That is not how it looked beforehand, not even when Margaret Thatcher and Ronald Reagan won their respective first election victories in 1979 and 1981, and certainly not in the 1970s. In 1970, Stalin’s crimes against his own people were known, but Mao’s did not emerge for another decade.


pages: 165 words: 45,397

Speculative Everything: Design, Fiction, and Social Dreaming by Anthony Dunne, Fiona Raby

3D printing, augmented reality, autonomous vehicles, Berlin Wall, Buckminster Fuller, Cass Sunstein, computer age, corporate governance, David Attenborough, en.wikipedia.org, Fall of the Berlin Wall, game design, global village, Google X / Alphabet X, haute couture, life extension, Mark Zuckerberg, mouse model, New Urbanism, Peter Eisenman, RAND corporation, Richard Thaler, Ronald Reagan, self-driving car, Silicon Valley, social software, technoutopianism, Wall-E

Design became fully integrated into the neoliberal model of capitalism that emerged during the 1980s, and all other possibilities for design were soon viewed as economically unviable and therefore irrelevant. Walter Pichler, TV Helmet (Portable Living Room), 1967. Photograph by Georg Mladek. Photograph courtesy of Galerie Elisabeth and Klaus Thoman/ Walter Pichler. Second, with the fall of the Berlin Wall in 1989 and the end of the Cold War the possibility of other ways of being and alternative models for society collapsed as well. Market-led capitalism had won and reality instantly shrank, becoming one dimensional. There were no longer other social or political possibilities beyond capitalism for design to align itself with. Anything that did not fit was dismissed as fantasy, as unreal.


pages: 934 words: 135,736

The Divided Nation: A History of Germany, 1918-1990 by Mary Fulbrook

Albert Einstein, banking crisis, Berlin Wall, centre right, coherent worldview, collective bargaining, deindustrialization, Fall of the Berlin Wall, feminist movement, first-past-the-post, fixed income, full employment, joint-stock company, land reform, means of production, Mikhail Gorbachev, open borders, Peace of Westphalia, Sinatra Doctrine, union organizing, unorthodox policies

Finally, I would like to thank my husband and three children for suffering and sustaining the research for and writing of this book. Without my husband's unfailing support, and more than equal partnership in parenting, the book could not have been written. Without my children, recounting the fates of those who were born into less fortunate historical circumstances might have been much less meaningful. Page 1 One The Course of German History In those extraordinary months after the fall of the Berlin Wall in November 1989, when discussion of the unification of the two Germanies was for the first time in forty years back on the serious political agenda, many voices were raised giving views on 'the German question'. From a variety of quarters, prejudices were aired which had lain dormant along with the memories, gas masks and other relics of the Second World War over the years when the Cold War and the balance of terror had seemed to ensure a fragile peace in a divided Europe.

While the official ceremonies took place in the centre of Berlin, at the Brandenburg Gate and Page 344 the Reichstag, demonstrations elsewhere were firmly dealt with by armed police. Less than a year after the fortieth anniversary celebrations of the GDR, the GDR was no more; but the formal unification of the two Germanies was effected in distinctly less euphoric mood than that accompanying the fall of the Berlin Wall only eleven months earlier. Distinctions between 'Wessis' (westerners) and 'Ossis' (from the former GDR) became more vitriolic, as the latter felt they had been downgraded to second-class citizens. Social tensions contributed to a rise in racial tensions. Many Germans felt distinctly uneasy about the new nationalism, the rise in xenophobia and anti-'foreigner' sentiments (thus designated, even when the victims of racial hostility were German citizens).


pages: 476 words: 144,288

1946: The Making of the Modern World by Victor Sebestyen

anti-communist, Ayatollah Khomeini, Berlin Wall, Bretton Woods, British Empire, centre right, clean water, colonial rule, Etonian, European colonialism, Fall of the Berlin Wall, full employment, illegal immigration, imperial preference, Kickstarter, land reform, long peace, Mahatma Gandhi, mass immigration, Mikhail Gorbachev, Monroe Doctrine, moral hazard, operation paperclip

The King David Hotel in Jerusalem after it was blown up by the Irgun (© The LIFE Picture Collection / Getty Images) 29. Some rare good news in gloom-laden Britain, mid-1946 (© The LIFE Picture Collection / Getty Images) 30. A postcard to mark the first anniversary of the liberation of Dachau concentration camp (© Interfoto / Friedrich / Mary Evans) Maps Introduction As a journalist, I have covered events ranging from the fall of the Berlin Wall and the collapse of the former Soviet Union to the cycle of violence and counter-violence in the Middle East over the existence of Israel and Palestine. Throughout, America has dominated as the world’s superpower. During many visits to India I have seen a desperately poor country, stuck in the past, transform itself into a vibrant society, looking to the future. China moved from permanent revolution to a form of rampant capitalism run by people calling themselves communists.

In the Soviet-controlled sector of Germany, hunger abounded, but there was almost no starvation – a point which Russian officials made sure to highlight to Germans living under American and British Occupation. But there was a heavy price to pay for this largesse. Nobody knows for certain how many German women were raped by Soviet troops in the immediate euphoria of victory. It was seldom mentioned in Germany until decades afterwards; certainly not in Eastern Germany, where the subject was completely taboo until the fall of the Berlin Wall in 1989. In the spring of 1946 between 150,000 and 200,000 ‘Russian babies’ were born in the Soviet zone, the vast majority of whom were brought up as orphans. Of all children born in Berlin between January and April, it is estimated that one in six were fathered by Russians. The number aborted was far higher – according to some medical opinion, between five and eight times higher. Besides the ordeal of rape itself, ‘venereal disease as a result of rape by a Russian was part of a woman’s lot in that period.


pages: 442 words: 135,006

ZeroZeroZero by Roberto Saviano

Berlin Wall, Bernie Madoff, call centre, credit crunch, double entry bookkeeping, Fall of the Berlin Wall, illegal immigration, Julian Assange, London Interbank Offered Rate, Mikhail Gorbachev, new economy, open borders, planetary scale, Ponzi scheme, Ronald Reagan, Skype, Steve Jobs, uranium enrichment, WikiLeaks

What we experience today, the economy that regulates our lives, is determined more by what Félix Gallardo, El Padrino, and Pablo Escobar, El Magico, decided and did in the eighties than by anything Ronald Reagan and Mikhail Gorbachev decided or did. Or at least that’s how I see it. Various testimonies relate that in 1989 El Padrino convened all the most powerful Mexican drug lords in a resort in Acapulco. While the world was preparing for the fall of the Berlin Wall, while the past of the cold war, iron curtains, and insuperable borders was being buried, the future of the planet was silently being planned in this city in southwestern Mexico. El Padrino decided to subdivide his activity and assign various segments to traffickers the DEA hadn’t fixed their eyes on yet. He divided his territory into zones, or plazas, each entrusted to men with exclusive rights to manage his assigned plaza.

From an FBI report it appears that one of his lieutenants, who is stationed in Los Angeles, met with two New York Russians linked to the Genovese crime family to develop a plan for shipping toxic American medical waste to Ukraine, to the area of Chernobyl, probably with kickbacks to local decontamination authorities. The Don’s imagination knows no limits. It’s 1997, and Mogilevic has several tons of enriched uranium on hand, apparently one of many gifts from the fall of the Berlin Wall. Warehouses are full of weapons; he just has to figure out how to be the first to claim them. The Brainy Don arranges a meeting at the Karlovy Vary spa; he loves that place. The buyers are seated across the table from him, distinguished Middle Eastern men. Everything seems to be going smoothly, but the Czech authorities blow the deal. In 1998 an FBI report identifies money laundering as Don Semën’s principal activity in the United States, and reveals both his and Solncevo’s interest in YBM Magnex International, a Pennsylvania-based company with branches in Hungary and Great Britain, which officially produces industrial magnets.


Making Globalization Work by Joseph E. Stiglitz

affirmative action, Andrei Shleifer, Asian financial crisis, banking crisis, barriers to entry, Berlin Wall, business process, capital controls, central bank independence, corporate governance, corporate social responsibility, currency manipulation / currency intervention, Doha Development Round, Exxon Valdez, Fall of the Berlin Wall, Firefox, full employment, Gini coefficient, global reserve currency, Gunnar Myrdal, happiness index / gross national happiness, illegal immigration, income inequality, income per capita, incomplete markets, Indoor air pollution, informal economy, information asymmetry, Intergovernmental Panel on Climate Change (IPCC), inventory management, invisible hand, John Markoff, Jones Act, Kenneth Arrow, Kenneth Rogoff, low skilled workers, manufacturing employment, market fundamentalism, Martin Wolf, microcredit, moral hazard, new economy, North Sea oil, offshore financial centre, oil rush, open borders, open economy, price stability, profit maximization, purchasing power parity, quantitative trading / quantitative finance, race to the bottom, reserve currency, rising living standards, risk tolerance, Silicon Valley, special drawing rights, statistical model, the market place, The Wealth of Nations by Adam Smith, Thomas L Friedman, trade liberalization, trickle-down economics, union organizing, Washington Consensus, zero-sum game

Even if its GDP increases, the growth may not be sustainable, or sustained. And even if growth is sustained, most of its people may find themselves worse off. The debate about economic globalization is mixed with debates about economic theory and values. A quarter century ago, three major schools of economic thought competed with each other—free market capitalism, communism, and the managed market economy. With the fall of the Berlin Wall in 1989, however, the three were reduced to two, and the argument today is largely between those who push free market ideology and those who see an important role for both government and the private sector. Of course, these positions overlap. Even free market advocates recognize that one of the problems in Africa is the lack of government. And even critics of unfettered capitalism respect the importance of the market.

(China, in spite of its progress toward a market economy, is still treated as a nonmarket economy.) 55 In the case of nonmarket economies, the costs used to calculate whether goods are being dumped are not the actual costs, but what the costs would be in some surrogate country. Those seeking to make a dumping charge stick look for a country where costs will be high, so that high dumping duties can be levied. In one classic case, in the days before the fall of the Berlin Wall, the United States levied dumping duties against Polish golf carts, using Canada as the surrogate country. Costs in Canada were so high that Canada did not produce golf carts, so dumping duties were levied on the basis of a calculation of what it would have cost Canada to produce golf carts, if Canada were to have produced them. In many places, including the EU, the surrogate country can even be the country bringing the charge—in which case, almost by definition, costs are greater, otherwise there would be no trouble competing.


pages: 515 words: 142,354

The Euro: How a Common Currency Threatens the Future of Europe by Joseph E. Stiglitz, Alex Hyde-White

bank run, banking crisis, barriers to entry, battle of ideas, Berlin Wall, Bretton Woods, business cycle, buy and hold, capital controls, Carmen Reinhart, cashless society, central bank independence, centre right, cognitive dissonance, collapse of Lehman Brothers, collective bargaining, corporate governance, correlation does not imply causation, credit crunch, Credit Default Swap, currency peg, dark matter, David Ricardo: comparative advantage, disintermediation, diversified portfolio, eurozone crisis, Fall of the Berlin Wall, fiat currency, financial innovation, full employment, George Akerlof, Gini coefficient, global supply chain, Growth in a Time of Debt, housing crisis, income inequality, incomplete markets, inflation targeting, information asymmetry, investor state dispute settlement, invisible hand, Kenneth Arrow, Kenneth Rogoff, knowledge economy, light touch regulation, manufacturing employment, market bubble, market friction, market fundamentalism, Martin Wolf, Mexican peso crisis / tequila crisis, money market fund, moral hazard, mortgage debt, neoliberal agenda, new economy, open economy, paradox of thrift, pension reform, pensions crisis, price stability, profit maximization, purchasing power parity, quantitative easing, race to the bottom, risk-adjusted returns, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, secular stagnation, Silicon Valley, sovereign wealth fund, the payments system, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, too big to fail, transaction costs, transfer pricing, trickle-down economics, Washington Consensus, working-age population

In 1957, this vision came closer to being a reality with the signing of the Rome Treaty, which established the European Economic Community (EEC), comprising Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany. In the following decades, dominated by the Cold War, various other Western European countries joined the EEC. Step by step, restrictions were eased on work, travel, and trade between the expanding list of EEC countries. But it was not until the end of the Cold War that European integration really gained steam. The fall of the Berlin Wall in 1989 showed that the time for much closer, stronger European bonds had grown near. The hopes for a peaceful and prosperous future were higher than ever, among both leaders and citizens. This led to the signing, in 1992, of the Maastricht Treaty, which formally established the European Union and created much of its economic structure and institutions—including setting in motion the process of adopting a common currency, which would come to be known as the euro.

Then, through heavy investments in education, it grew to the point that by 2007 its per capita income was $42,300, or 93 percent of that of the United States. But then a series of problems befell the country: in the fast-changing world of hi-tech, its leading company, Nokia, lost out to competitors. Finland had close ties with Estonia, which was badly hit by the 2008 crisis. And after the fall of the Berlin Wall, Finland had profited by strong trade with Russia. But sanctions with that country hurt Finland as well as Russia, which also suffered from the decline in oil and gas prices. Finland’s GDP shrank by 8.3 percent in 2009, and in 2015 it was still some 5.5 percent below its 2008 peak. In the absence of the euro, Finland’s exchange rate would have fallen, and the decrease in imports and increase in exports would have stimulated the economy.


pages: 489 words: 132,734

A History of Future Cities by Daniel Brook

Berlin Wall, British Empire, business process, business process outsourcing, call centre, carbon footprint, Celtic Tiger, collateralized debt obligation, collective bargaining, Credit Default Swap, credit default swaps / collateralized debt obligations, Deng Xiaoping, desegregation, Edward Glaeser, Fall of the Berlin Wall, financial innovation, glass ceiling, indoor plumbing, joint-stock company, land reform, Mikhail Gorbachev, New Urbanism, open economy, Parag Khanna, Pearl River Delta, Potemkin village, profit motive, rent control, sovereign wealth fund, special economic zone, starchitect, trade route, urban planning, urban renewal, working poor

But the fast-forward timescale of Pudong is the same one on which Chinese Communism has reinvented itself—a reinvention written into the cityscape itself. At one end of Century Avenue stands the last Soviet building: the Shanghai Oriental Pearl Radio and Broadcasting Tower, which is anchored by a plodding concrete tripod and punctuated by a series of bulbous pink spheres (the “pearls”). Conceived in 1988, a year before the Tiananmen Square protests and the fall of the Berlin Wall, the tower, which opened in 1995, was built to broadcast television and radio programs. Symbolizing the state’s power to control the masses through propaganda, such towers were staples of East Bloc cities, and they dominated Communist-era skylines everywhere from Leningrad to East Berlin. That it took China’s leading city until 1995 to erect its TV tower bears witness to how stunted China was, even by East Bloc standards.

As the information age dawned, India levied tariffs on imported computer software that topped 100 percent and employed an army of 250,000 bureaucrats to oversee its mere 2.5 million telephones. Even so, for decades the nation’s economic problems had been partially masked by a favorable barter trade with a friendly Soviet Union that sought to project its influence into South Asia. But with the erstwhile superpower teetering after the fall of the Berlin Wall, India was nearly broke and the bankers who had sustained the country on credit were growing nervous. The Washington-based International Monetary Fund, spawned in the wake of World War II to oversee the financial system of the non-Communist world, agreed to provide a bailout—but only in return for major structural changes to the Indian economy. Washington decreed that India would have to shift from a variant of the planning-based Soviet model to a variant of the market-driven American system.


pages: 495 words: 138,188

The Great Transformation: The Political and Economic Origins of Our Time by Karl Polanyi

agricultural Revolution, Berlin Wall, borderless world, business cycle, central bank independence, Corn Laws, currency manipulation / currency intervention, David Ricardo: comparative advantage, Fall of the Berlin Wall, full employment, inflation targeting, joint-stock company, Kula ring, land reform, land tenure, liberal capitalism, manufacturing employment, new economy, Panopticon Jeremy Bentham, price mechanism, profit motive, Republic of Letters, road to serfdom, Ronald Reagan, the market place, The Wealth of Nations by Adam Smith, trade liberalization, trade route, trickle-down economics, Washington Consensus, Wolfgang Streeck, working poor, Works Progress Administration

Let me conclude this foreword by returning to two of Polanyi’s central themes. The first concerns the complex intertwining of politics and economics. Fascism and communism were not only alternative economic systems; they represented important departures from liberal political traditions. But as Polanyi notes, “Fascism, like socialism, was rooted in a market society that refused to function.” The heyday of the neoliberal doctrines was probably 1990–97, after the fall of the Berlin Wall and before the global financial crisis. Some might argue that the end of communism marked the triumph of the market economy, and the belief in the self-regulated market. But that interpretation would, I believe, be wrong. After all, within the developed countries themselves, this period was marked almost everywhere by a rejection of these doctrines, the Reagan-Thatcher free market doctrines, in favor of “New Democrat” or “New Labor” policies.

After all, within the developed countries themselves, this period was marked almost everywhere by a rejection of these doctrines, the Reagan-Thatcher free market doctrines, in favor of “New Democrat” or “New Labor” policies. A more convincing interpretation is that during the Cold War, the advanced industrialized countries simply could not risk imposing these policies, which risked hurting the poor so much. These countries had a choice; they were being wooed by the West and the East, and demonstrated failures in the West’s prescription risked turning them to the other side. With the fall of the Berlin Wall, these countries had nowhere to go. Risky doctrines could be imposed on them with impunity. But this perspective is not only uncaring; it is also unenlightened: for there are myriad unsavory forms that the rejection of a market economy that does not work at least for the majority, or a large minority, can take. A so-called self-regulating market economy may evolve into Mafia capitalism—and a Mafia political system—a concern that has unfortunately become all too real in some parts of the world.


pages: 237 words: 50,758

Obliquity: Why Our Goals Are Best Achieved Indirectly by John Kay

Andrew Wiles, Asian financial crisis, Berlin Wall, bonus culture, British Empire, business process, Cass Sunstein, computer age, corporate raider, credit crunch, Daniel Kahneman / Amos Tversky, discounted cash flows, discovery of penicillin, diversification, Donald Trump, Fall of the Berlin Wall, financial innovation, Gordon Gekko, greed is good, invention of the telephone, invisible hand, Jane Jacobs, lateral thinking, Long Term Capital Management, Louis Pasteur, market fundamentalism, Myron Scholes, Nash equilibrium, pattern recognition, Paul Samuelson, purchasing power parity, RAND corporation, regulatory arbitrage, shareholder value, Simon Singh, Steve Jobs, Thales of Miletus, The Death and Life of Great American Cities, The Predators' Ball, The Wealth of Nations by Adam Smith, ultimatum game, urban planning, value at risk

Not long ago, even people who experienced it did not believe it. Like the bewildered Russians, they found it self-evident that things would work better if someone was in charge. In the 1960s, as the Whiz Kids rose to power in business and politics, there was genuine fear that Russian technological superiority would overtake the West.2 Only in the 1980s did it become evident how misplaced these fears had been, and only after the fall of the Berlin Wall was it clear just how dismal was the economic performance of the planned economies. Many people who seek to build ever more centralized business organizations, or to institute a global financial architecture, still do not really take the implications of this evidence on board. The economist Friedrich von Hayek gave a prescient explanation of planning’s failures. The evolved complexity that Darwin had observed in nature was also true of economic and social systems.


pages: 197 words: 49,296

The Future We Choose: Surviving the Climate Crisis by Christiana Figueres, Tom Rivett-Carnac

3D printing, Airbnb, autonomous vehicles, Berlin Wall, carbon footprint, clean water, David Attenborough, decarbonisation, dematerialisation, Donald Trump, en.wikipedia.org, F. W. de Klerk, Fall of the Berlin Wall, income inequality, Intergovernmental Panel on Climate Change (IPCC), Internet of things, Jeff Bezos, job automation, Lyft, Mahatma Gandhi, Martin Wolf, mass immigration, Nelson Mandela, new economy, ride hailing / ride sharing, self-driving car, smart grid, sovereign wealth fund, the scientific method, trade route, uber lyft, urban planning, urban sprawl, Yogi Berra

Many people are now experiencing this even within their own families. Facts aren’t enough to change the mind of a climate denier, so presenting statistics and sources won’t help. If you reach them, it will be because you sincerely listened to them and strove to understand their concerns. By giving care, love, and attention to every individual, we can counter the forces pulling us apart. * * * — For people who came of age between the fall of the Berlin Wall and the fall of the Twin Towers, today’s world can indeed appear strange. Those days were marked by a general consensus about how humanity should advance. Some may now wish for that simpler time, making us vulnerable to the promises of leaders who would take us back instead of focusing on what lies ahead. The future will be different, it will be complex, and the genie of social media can’t be put back in the bottle.


pages: 736 words: 233,366

Roller-Coaster: Europe, 1950-2017 by Ian Kershaw

airport security, anti-communist, Ayatollah Khomeini, banking crisis, Berlin Wall, Big bang: deregulation of the City of London, Boris Johnson, Bretton Woods, British Empire, business cycle, centre right, colonial rule, cuban missile crisis, deindustrialization, Deng Xiaoping, Donald Trump, European colonialism, eurozone crisis, Exxon Valdez, failed state, Fall of the Berlin Wall, falling living standards, feminist movement, first-past-the-post, fixed income, floating exchange rates, Francis Fukuyama: the end of history, full employment, illegal immigration, income inequality, Johann Wolfgang von Goethe, labour market flexibility, land reform, late capitalism, liberal capitalism, liberation theology, low skilled workers, mass immigration, means of production, Mikhail Gorbachev, mutually assured destruction, Nelson Mandela, North Sea oil, Northern Rock, oil shale / tar sands, oil shock, open borders, precariat, price stability, quantitative easing, race to the bottom, reserve currency, rising living standards, road to serfdom, Ronald Reagan, Ronald Reagan: Tear down this wall, Sinatra Doctrine, The Chicago School, trade liberalization, union organizing, upwardly mobile, washing machines reduced drudgery, Washington Consensus, Winter of Discontent, young professional

Between the mid-1990s and the abrupt end of growth in 2008 Europeans – both east and west – enjoyed the benefits of a booming economy. At least, most of them did. Globalization provided material advantages that earlier generations could scarcely have imagined. There was new economic dynamism. World trade flourished as goods flowed across borders as never before. By the end of the first decade of the twenty-first century trade was six times higher in volume than it had been at the time of the fall of the Berlin Wall. Europe’s proportion of the world economy had in fact been in long-term decline since the 1920s. That is, Europe’s economy had grown in size, but other parts of the world had grown faster. In 1980 Europe had still accounted for around a third of world trade, but three decades later it was only about 20 per cent. The creation of a major trading bloc in Europe was, however, of great importance.

Crimea was the sharpest point of the division that ran through Ukraine, between a western half that in earlier times had been culturally aligned with Poland, Lithuania and Austria, and now looked to Western Europe for its future, and an eastern half that had culturally always fallen within the Russian orbit. The fissure was not healed by the outcome of the Orange Revolution of 2004. It would continue to fester. * * * By 2008 the traumas produced by the wars in Afghanistan and Iraq, prompted by the devastating terrorist attack on New York seven years earlier, had receded in Europe. And over the almost two decades since the fall of the Berlin Wall had symbolized the end of the division of the continent, Europe, east and west, had come closer together. Globalization had brought new levels of convergence, economic and political. The huge economic problems of Central and Eastern European countries during the transition to capitalist economies had significantly diminished. That substantial difficulties remained, and that the standard of living lagged behind that of prosperous Western Europe, did not contradict the great improvements in living conditions that had been made since the end of communism.

The Soviet leader, Mikhail Gorbachev, in discussion with Margaret Thatcher, the British Prime Minister, during her visit to Moscow at the end of March 1987. Despite their ideological differences, they got on well and had enjoyed a good working relationship since their first meeting in London in 1984. 24. Hundreds of thousands demonstrate against the East German regime in the rain in Leipzig on 6 November 1989, three days before the fall of the Berlin Wall. The Monday Demonstrations in Leipzig had grown massively since they began in early September and exerted increasingly irresistible pressure for radical change on the regime. 25. A man holds a Romanian flag with the Communist symbol cut from its centre on a balcony in Palace Square, Bucharest, in December 1989. The tanks in the square are an indication that in Romania the revolution of 1989 was far from peaceful. 26.


pages: 225 words: 189

The Coming Anarchy: Shattering the Dreams of the Post Cold War by Robert D. Kaplan

Berlin Wall, clean water, Deng Xiaoping, edge city, European colonialism, Fall of the Berlin Wall, Francis Fukuyama: the end of history, global village, Honoré de Balzac, mass immigration, Peace of Westphalia, Ronald Reagan, Thomas Malthus, trade route, unemployed young men, Yom Kippur War

Random House website address: www.atrandom.com Printed in the United States of America on acid-free paper 24689753 First Edition Book design by Barbara M. Bachman To EDIT BORNSTEIN, AVNER RICHARD GOREN, LOBELL, R I C H A R D AND V A R D A N O W I T Z , AND H A R R Y W A L L B E F O R E T H E N A M E S OF J U S T A N D CAN HAVE PLACE, THERE MUST BE SOME COERCIVE —Thomas Hobbes, UNJUST POWER. LEVIATHAN PREFACE The years that follow an epochal military and political victory such as the fall of the Berlin Wall are lonely times for realists. The victors naturally assume that their struggle carries deep significance, of a kind that cannot fail to redeem the world. In­ deed, the harder and longer the struggle, the greater its mean­ ing in the mind of the winning side, and the greater the benefits it sees for humanity. Victory in World War I saw a burst of such idealism under the banner of "Wilsonianism," a notion that took little account of the real goals of America's European allies and even less account of the realities in the Balkans and the Near East, where democracy and freedom meant height­ ened ethnic awareness.


pages: 169 words: 52,744

Big Capital: Who Is London For? by Anna Minton

Airbnb, Berlin Wall, Big bang: deregulation of the City of London, Boris Johnson, Capital in the Twenty-First Century by Thomas Piketty, collateralized debt obligation, Credit Default Swap, credit default swaps / collateralized debt obligations, Donald Trump, eurozone crisis, Fall of the Berlin Wall, Frank Gehry, high net worth, housing crisis, illegal immigration, Kickstarter, land value tax, market design, new economy, New Urbanism, offshore financial centre, payday loans, quantitative easing, rent control, Right to Buy, sovereign wealth fund, the built environment, The Wealth of Nations by Adam Smith, urban renewal, working poor

Western governments wanted to prove to their populations that social democratic capitalist societies could also provide public goods such as hospitals and housing for all, which were available beyond the Iron Curtain alongside authoritarian government and censorship. In Britain and across the West these competing pressures kept capitalism in check. But over the last thirty years, since the fall of the Berlin Wall, unbridled capitalism in the form of a new neoliberal framework has brought the market into every aspect of public policy, in the NHS, in education and in housing, where privatization, deregulation and property speculation are now the dominant approaches. The result is a system in crisis, rife with the contradictions of two opposing ideologies – socialism and neoliberalism – combined with the unintended consequences of a market-led approach to public goods.


pages: 621 words: 157,263

How to Change the World: Reflections on Marx and Marxism by Eric Hobsbawm

anti-communist, banking crisis, battle of ideas, Berlin Wall, British Empire, continuation of politics by other means, creative destruction, currency manipulation / currency intervention, deindustrialization, discovery of the americas, experimental subject, Fall of the Berlin Wall, full employment, Gunnar Myrdal, labour market flexibility, liberal capitalism, market fundamentalism, mass immigration, means of production, new economy, Simon Kuznets, Thorstein Veblen, Upton Sinclair, upwardly mobile, Vilfredo Pareto, zero-sum game

At the same time there was, as we have seen, a steep decline in Marxism and the social-democratic left and a general depoliticisation both of workers and of students. The Russian Revolution had given reformism a second foundation: fear of communism and the USSR. The advance of both during and after the Second World War seemed, at least in Europe, to require from governments and employers alike a counter-policy of full employment and systematic social security. 412 Marx and Labour: the Long Century But the USSR no longer exists, and with the fall of the Berlin Wall capitalism could forget how to be frightened, and therefore lost interest in people unlikely to own shares. In any case, even the spells of mass unemployment in the 1980s and 1990s seemed to have lost the old power of radicalising their victims. However, it was not only politics but also the economy that proved to require reformism and especially full employment after 1945 – as both Keynes and the Swedish economists of Scandinavian social democracy had predicted.

The state and other public authorities remain the only institutions capable of distributing the social product among its people, in human terms, and to meet human needs that cannot be satisfied by the market. Politics therefore has remained and remains a necessary dimension of the struggle for social improvement. Indeed, the great economic crisis that began in 2008 as a sort of right-wing equivalent to the fall of the Berlin Wall brought an immediate realisation that the state was essential to an economy in trouble, as it had been essential to the triumph of neo-liberalism when governments had laid its foundations by systematic privatisation and deregulation. However, the effect of the period 1973–2008 on social democracy was that it abandoned Bernstein. In Britain its leaders felt 414 Marx and Labour: the Long Century they had no option but to rely on such benefits as the economic growth of the global free market generated automatically, plus a social safety net provided from above.


pages: 524 words: 143,993

The Shifts and the Shocks: What We've Learned--And Have Still to Learn--From the Financial Crisis by Martin Wolf

air freight, anti-communist, Asian financial crisis, asset allocation, asset-backed security, balance sheet recession, bank run, banking crisis, banks create money, Basel III, Ben Bernanke: helicopter money, Berlin Wall, Black Swan, bonus culture, break the buck, Bretton Woods, business cycle, call centre, capital asset pricing model, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, central bank independence, collateralized debt obligation, corporate governance, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency manipulation / currency intervention, currency peg, debt deflation, deglobalization, Deng Xiaoping, diversification, double entry bookkeeping, en.wikipedia.org, Erik Brynjolfsson, Eugene Fama: efficient market hypothesis, eurozone crisis, Fall of the Berlin Wall, fiat currency, financial deregulation, financial innovation, financial repression, floating exchange rates, forward guidance, Fractional reserve banking, full employment, global rebalancing, global reserve currency, Growth in a Time of Debt, Hyman Minsky, income inequality, inflation targeting, information asymmetry, invisible hand, Joseph Schumpeter, Kenneth Rogoff, labour market flexibility, labour mobility, light touch regulation, liquidationism / Banker’s doctrine / the Treasury view, liquidity trap, Long Term Capital Management, mandatory minimum, margin call, market bubble, market clearing, market fragmentation, Martin Wolf, Mexican peso crisis / tequila crisis, money market fund, moral hazard, mortgage debt, negative equity, new economy, North Sea oil, Northern Rock, open economy, paradox of thrift, Paul Samuelson, price stability, private sector deleveraging, purchasing power parity, pushing on a string, quantitative easing, Real Time Gross Settlement, regulatory arbitrage, reserve currency, Richard Feynman, risk-adjusted returns, risk/return, road to serfdom, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, Second Machine Age, secular stagnation, shareholder value, short selling, sovereign wealth fund, special drawing rights, The Chicago School, The Great Moderation, The Market for Lemons, the market place, The Myth of the Rational Market, the payments system, The Wealth of Nations by Adam Smith, too big to fail, Tyler Cowen: Great Stagnation, very high income, winner-take-all economy, zero-sum game

On the forces driving inequality and their consequences, see Organisation for Economic Co-operation and Development, Divided We Stand: Why Inequality Keeps Rising (Paris: OECD, 2011), Joseph Stiglitz, The Price of Inequality: How Today’s Divided Society Endangers our Future (New York and London: Norton, 2012), and Thomas Piketty, Capital in the Twenty-First Century (Cambridge, MA, and London, England, 2014). 59. See, in particular, a remarkable paper by Christoph Lakner and Branco Milanovic of the World Bank, ‘Global Income Distribution: From the Fall of the Berlin Wall to the Great Recession’, World Bank Research Working Paper 6719, December 2013, http://www-wds.worldbank.org/external/default/WDSContentServer/IW3P/IB/2013/12/11/000158349_20131211100152/Rendered/PDF/WPS6719.pdf. 60. See Organisation for Economic Co-operation and Development, Divided We Stand. 61. Stiglitz, The Price of Inequality, especially ch. 2. 62. Rajan, Fault Lines, ch. 1. Part III.

‘The Stimulus Tragedy’, The New York Times, 20 February 2014. http://www.nytimes.com/2014/02/21/opinion/krugman-the-stimulus-tragedy.html?ref=paulkrugman. Kuttner, Robert. Debtors’ Prison: The Politics of Austerity Versus Possibility (New York: Alfred A. Knopf, 2013). Laeven, Luc and Fabian Valencia. ‘Systemic Banking Crises: A New Database’, International Monetary Fund WP/08/224, 2008. www.imf.org. Lakner, Christoph and Branco Milanovic. ‘Global Income Distribution: From the Fall of the Berlin Wall to the Great Recession’, World Bank Research Working Paper No. 6719, December 2013. http://www-wds.worldbank.org/external/default/WDSContentServer/IW3P/IB/2013/12/11/000158349_20131211100152/Rendered/PDF/WPS6719.pdf. Lanman, Scott and Steve Matthews. ‘Greenspan Concedes to “Flaw” in his Market Ideology’, 23 October 2008. http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ah5qh9Up4rIg.


pages: 570 words: 158,139

Overbooked: The Exploding Business of Travel and Tourism by Elizabeth Becker

airport security, Asian financial crisis, barriers to entry, Berlin Wall, BRICs, car-free, carbon footprint, clean water, collective bargaining, colonial rule, computer age, corporate governance, Costa Concordia, Deng Xiaoping, European colonialism, Exxon Valdez, Fall of the Berlin Wall, Frank Gehry, global village, happiness index / gross national happiness, haute cuisine, indoor plumbing, Kickstarter, Masdar, Murano, Venice glass, open borders, out of africa, race to the bottom, Ralph Nader, Scramble for Africa, Silicon Valley, statistical model, sustainable-tourism, the market place, union organizing, urban renewal, wage slave, young professional, éminence grise

What Frommer had discovered was that tourism was becoming an industry and needed to be reduced to its parts for consumers—book a plane, find a hotel, eat some meals, go on a sightseeing tour—and he was more than happy to act as that go-between with his guidebooks, making a small fortune in the process. The question for the U.N. World Tourism Organization was how to bottle that elixir, measure it and claim it officially as an industry. The answer came in two parts—first from geopolitics, then from the industry itself. It took nothing less than the fall of the Berlin Wall and the end of the Soviet Empire to open up minds and horizons. The Berlin Wall was the most famous of the barbed-wire barriers erected by eastern and central European puppet governments to cut off their people from their continental neighbors during the Cold War that had pitted the Communist countries against those in the democratic market system of capitalism. Since the end of World War II, the two sides had fought hot wars through proxies in Asia and South America and aimed nuclear weapons at each other in the ultimate standoff for supremacy.

That could have put a severe dent in Dubai’s plans for tourism, so the sheikh made the wildly risky decision to create an airline just for Dubai that he named Emirates. With $10 million and the help of two British expatriate airline experts, he put his son Sheikh Mohammed, the current ruler, in charge of starting up Emirates and turning it into the region’s star carrier. That was 1986—an auspicious moment in tourism and all the stars aligned in Dubai’s favor. Just as Emirates was getting off the ground, the world opened up after the fall of the Berlin Wall. By the 1990s previously closed economies were jumping into the world markets, especially in Asia: China, India, and Southeast Asia. Emirates saw an opening and got landing rights to fly into these newly developing countries, especially the second- and third-tier cities that had only known puddle-jumper airlines, what the industry called “under-served areas,” which became lucrative markets when the middle classes started flying, on Emirates Airlines.


Globalists: The End of Empire and the Birth of Neoliberalism by Quinn Slobodian

Asian financial crisis, Berlin Wall, bilateral investment treaty, borderless world, Bretton Woods, British Empire, business cycle, capital controls, central bank independence, collective bargaining, David Ricardo: comparative advantage, Deng Xiaoping, desegregation, Dissolution of the Soviet Union, Doha Development Round, eurozone crisis, Fall of the Berlin Wall, floating exchange rates, full employment, Gunnar Myrdal, Hernando de Soto, invisible hand, liberal capitalism, liberal world order, market fundamentalism, Martin Wolf, Mercator projection, Mont Pelerin Society, Norbert Wiener, offshore financial centre, oil shock, open economy, pattern recognition, Paul Samuelson, Pearl River Delta, Philip Mirowski, price mechanism, quantitative easing, random walk, rent control, rent-seeking, road to serfdom, Ronald Reagan, special economic zone, statistical model, The Chicago School, the market place, The Wealth of Nations by Adam Smith, theory of mind, Thomas L Friedman, trade liberalization, urban renewal, Washington Consensus, Wolfgang Streeck, zero-sum game

Fine-­tuning of the trade rules of the multilevel system was necessary to allow the signals to move smoothly, thus creating the conditions for the supple and eternal contortion of individual economic actors to the messages of the market. Conclusion A World of P­ eople without a ­People If we ask what men most owe to the moral practices of ­t hose who are called cap­i­tal­ists the answer is: their very lives. —­f riedrich a. hayek, 1989 T wo years a­ fter the fall of the Berlin Wall and one month short of the official dissolution of the Soviet Union, George H. W. Bush granted a Presidential Medal of Freedom to Wilhelm Röpke’s correspondent and the defender of racial segregation in the U.S. South, William F. Buckley. Buckley had “raised the level of po­liti­cal debate in this country,” Bush claimed. Without irony, he followed by granting a medal to a civil rights leader.

It was a world without empires but with rules set by supranational bodies operating beyond the reach of any electorate. It was a world where the global economy was safely protected from the demands of redistributive equality and social justice. My narrative has traced a line that leads from the end of the Habsburg Empire to the foundation of the World Trade Organ­ization. In the leading neoliberal journal Ordo, on the eve of the fall of the Berlin Wall, Röpke’s nephew Hans Willgerodt offered C o n cl u sio n 265 a fine summation of the c­ entury of ordoglobalism. ­After citing Hayek and Robbins’s writings from the 1930s, he wrote that “as witnesses of the international declaration of bankruptcy by communism,” it was time that nation-­states realized they had “made too much use of their sovereignty.”5 He wrote that the nineteenth ­century had achieved “world economic integration” through a “fundamental depoliticization of the economic domain.” 6 Quoting Röpke from 1952, he echoed Röpke’s sentiment that if “the developing countries are granted by the UN a right to expropriate foreign property, this means, when they make use of such a ‘right,’ they not only detach themselves from the world-­economic market . . . ​but [take themselves] out of the international ­legal community of the civilized nations.”7 For the road to world economic integration, Willgerodt looked both ahead and back: “The path to the liberation of the world market from national regulation and trade barriers can be facilitated by institutions like GATT [General Agreement on Tariffs and Trade].”8 But he also invoked the old template of Hayek and Mises: Central Eu­ro­pean empire: “The international rule of law with curbed application of sovereignty is doubtless a difficult and unfamiliar idea for the proponents of centralist national states.


pages: 665 words: 146,542

Money: 5,000 Years of Debt and Power by Michel Aglietta

bank run, banking crisis, Basel III, Berlin Wall, bitcoin, blockchain, Bretton Woods, British Empire, business cycle, capital asset pricing model, capital controls, cashless society, central bank independence, collapse of Lehman Brothers, collective bargaining, corporate governance, David Graeber, debt deflation, dematerialisation, Deng Xiaoping, double entry bookkeeping, energy transition, eurozone crisis, Fall of the Berlin Wall, falling living standards, financial deregulation, financial innovation, Financial Instability Hypothesis, financial intermediation, floating exchange rates, forward guidance, Francis Fukuyama: the end of history, full employment, German hyperinflation, income inequality, inflation targeting, information asymmetry, Intergovernmental Panel on Climate Change (IPCC), invention of writing, invisible hand, joint-stock company, Kenneth Arrow, Kickstarter, liquidity trap, margin call, means of production, money market fund, moral hazard, Nash equilibrium, Network effects, Northern Rock, oil shock, planetary scale, plutocrats, Plutocrats, price stability, purchasing power parity, quantitative easing, race to the bottom, reserve currency, secular stagnation, seigniorage, shareholder value, special drawing rights, special economic zone, stochastic process, the payments system, the scientific method, too big to fail, trade route, transaction costs, transcontinental railway, Washington Consensus

The international gold standard defined an unwritten monetary constitution, founded on the ethical legitimacy of a capitalism that became global in the last third of the nineteenth century. The underestimation, or even outright ignorance, of the oppositions between Anglo-Saxon liberalism, the French nation-state, and the German and Russian empires ought to have sounded the alarm for the latent conflicts in the international sphere. But the Anglo-Saxon philosophers of the Belle Époque, just like Francis Fukuyama after the fall of the Berlin Wall, were quick to extol the end of history. They believed themselves to be carrying forth universal values, and that it was their mission to introduce them around the world. And what better vehicle for, indeed, this than finance? The pound sterling’s longstanding gold convertibility sanctioned its preponderance as a key currency. Nonetheless, the gold standard was not a monetary union of the type of the Delian League or the eurozone, where there are compulsory limits on monetary sovereignty.

What the eurozone is most lacking is not a radical political leap, but the will or capacity to cooperate. All those who have reached this point of the argument come up against the same conclusion: Germany and France do not trust each other! But perhaps there are structural reasons why this is the case, which we must understand if we are to know if and how it is possible to surpass this obstacle. The euro was not born under favourable auspices. The upheavals prompted by the fall of the Berlin Wall forced a hurried compromise. Chancellor Kohl wanted to get the international community to endorse a rapid unification of Germany. President Mitterrand was frightened by the prospect of future German power, and wanted to use currency as a means of binding Germany to Europe. The compromise reached was that Germany would be given free rein for reunification, but would also have to abandon the Deutsche Mark and accept monetary union.


The End of the Cold War: 1985-1991 by Robert Service

active measures, Ayatollah Khomeini, Berlin Wall, cuban missile crisis, Deng Xiaoping, Fall of the Berlin Wall, Kickstarter, Mikhail Gorbachev, mutually assured destruction, Neil Kinnock, Norman Mailer, nuclear winter, RAND corporation, Ronald Reagan, Ronald Reagan: Tear down this wall, Silicon Valley, The Chicago School, Vladimir Vetrov: Farewell Dossier

He reminded everyone at the plenum that Latvia took ninety-six per cent of its fuel from other parts of the USSR. It produced only a half of its electricity and a fifth of its chemical materials. The Baltic region was unexceptional in its reliance on the other Soviet republics. At the same time he praised Lithuania for its computers, TVs and sound-recording equipment.30 On 9 November 1989, hours before the fall of the Berlin Wall, he reported to the Politburo on his recent meetings with Estonian and Latvian representatives. There had been no meeting of minds. They only wanted to talk about the mechanism for leaving the Soviet Union.31 The Politburo was perplexed about how to handle the situation. Vorotnikov discouraged those who were in favour of an economic blockade. Any such action, he reasoned, would stir up hostility to the whole federal order.32 But what was the Soviet leadership going to do?

Knopf, 1998) L. Cannon, President Reagan: The Role of a Lifetime (New York: PublicAffairs, 2000) A. Casaroli, Il martirio della pazienza. La Santa Sede e i paesi comunisti (1963–1989) (Turin: Einaudi, 2000) G. Cervetti, Zoloto Moskvy: svidetel’stvo uchastnika finansovykh operatsii KPSS (Moscow: Mezhdunarodnye otnosheniya, 1995) Chen Jian, ‘China’s Path Toward 1989’, in J. A. Engel (ed.), The Fall of the Berlin Wall: The Revolutionary Legacy of 1989 (Oxford: Oxford University Press, 2009) Chen Jian, Mao’s China and the Cold War (Chapel Hill, NC: University of North Carolina Press, 2001) A. S. Chernyaev, Beskonechnost’ zhenshchiny (Moscow: GOETAR Meditsiny, 2000) A. S. Chernyaev, Moya zhizn’ i moë vremya (Moscow: Mezhdunarodnye otnosheniya, 1995) A. S. Chernyaev, Shest’ let s Gorbachëvym (Moscow: Progress, 1993) A.

Stone, The Atlantic and Its Enemies: A Personal History of the Cold War (London: Allen Lane, 2010) P. Stroilov, Behind the Desert Storm (Chicago: Price World Publishing, 2011) Tajne dokumenty Biura Politicznego i Sekretariatu KS: Ostatni rok wi_ładzy 1988–1989, ed. S. Perzkowski (Warsaw: Aneks, 1994) W. Taubman and S. Savranskaya, ‘If a Wall Fell in Berlin and Moscow Hardly Noticed, Would It Still Make a Noise?’, in J. A. Engel (ed.), The Fall of the Berlin Wall: The Revolutionary Legacy of 1989 (New York: Oxford University Press, 2009) E. Teller, Memoirs: A Twentieth-Century Journey in Science and Politics (Cambridge, MA: Perseus Press, 2001) H. Teltschik, 329 Tagen: Innenansichten der Einigung (Berlin: Goldmann, 1993) M. Thatcher, The Downing Street Years (London: HarperCollins, 1993) D. C. Thomas, The Helsinki Effect: International Norms, Human Rights, and the Demise of Communism (Princeton, NJ: Princeton University Press, 2001) K.


pages: 330 words: 59,335

The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success by William Thorndike

Albert Einstein, Atul Gawande, Berlin Wall, Checklist Manifesto, choice architecture, Claude Shannon: information theory, collapse of Lehman Brothers, compound rate of return, corporate governance, discounted cash flows, diversified portfolio, Donald Trump, Fall of the Berlin Wall, Gordon Gekko, intangible asset, Isaac Newton, Louis Pasteur, Mark Zuckerberg, NetJets, Norman Mailer, oil shock, pattern recognition, Ralph Waldo Emerson, Richard Feynman, shared worldview, shareholder value, six sigma, Steve Jobs, Thomas Kuhn: the structure of scientific revolutions

Fundamentally, Stonecipher, Tillerson, and their fellow outsider CEOs achieved extraordinary relative results by consistently zigging while their peers zagged; and as table 9-1 shows, in their zigging, they followed a virtually identical blueprint: they disdained dividends, made disciplined (occasionally large) acquisitions, used leverage selectively, bought back a lot of stock, minimized taxes, ran decentralized organizations, and focused on cash flow over reported net income. Again, what matters is how you play the hand you’re dealt, and these executives were dealt very different hands. Their circumstances varied widely—those facing Bill Anders after the fall of the Berlin Wall could not have been more different from those facing John Malone when he took over TCI during the cable television boom of the early 1970s. The key is optimizing within given circumstances. An analogy can be made to a high school football coach who every year has to adapt his strategy to the changing mix of players on his team (i.e., with a weak quarterback, he must run the ball), or to the head of a repertory theater company who must choose plays that fit her actors’ unique mix of talents.


pages: 173 words: 14,313

Peers, Pirates, and Persuasion: Rhetoric in the Peer-To-Peer Debates by John Logie

1960s counterculture, Berlin Wall, book scanning, cuban missile crisis, Fall of the Berlin Wall, Hacker Ethic, Isaac Newton, Marshall McLuhan, moral panic, mutually assured destruction, peer-to-peer, plutocrats, Plutocrats, pre–internet, publication bias, Richard Stallman, Search for Extraterrestrial Intelligence, search inside the book, SETI@home, Silicon Valley, slashdot, Steve Jobs, Steven Levy, Stewart Brand, Whole Earth Catalog

Historians typically date the Cold War as stretching from roughly 1947 to 1989. Most accounts point to the Cold War commencing during a brutal winter in Europe, which ratcheted up a contest between the U.S. and the Soviet Union over which country could provide more aid to the affected nations (most of which were already reeling from the after-effects of World War II). There is near-universal agreement that the Cold War ended with the fall of the Berlin Wall on November 9, 1989. While various labels are applied to the intervening periods, there is general agreement that the U.S. and the Soviet Union engaged in a pitched conflict with the very real possibility of nuclear confrontation after reaching a point of schism in the late 1940s. This nuclear threat persisted until the inauguration of a mutually acknowledged period of détente in 1968. For years, no one was certain how close the two superpowers had come to what was then referred to as a “tactical nuclear exchange.”


pages: 580 words: 168,476

The Price of Inequality: How Today's Divided Society Endangers Our Future by Joseph E. Stiglitz

"Robert Solow", affirmative action, Affordable Care Act / Obamacare, airline deregulation, Andrei Shleifer, banking crisis, barriers to entry, Basel III, battle of ideas, Berlin Wall, business cycle, capital controls, Carmen Reinhart, Cass Sunstein, central bank independence, collapse of Lehman Brothers, collective bargaining, colonial rule, corporate governance, Credit Default Swap, Daniel Kahneman / Amos Tversky, Dava Sobel, declining real wages, deskilling, Exxon Valdez, Fall of the Berlin Wall, financial deregulation, financial innovation, Flash crash, framing effect, full employment, George Akerlof, Gini coefficient, income inequality, income per capita, indoor plumbing, inflation targeting, information asymmetry, invisible hand, jobless men, John Harrison: Longitude, John Markoff, John Maynard Keynes: Economic Possibilities for our Grandchildren, Kenneth Arrow, Kenneth Rogoff, London Interbank Offered Rate, lone genius, low skilled workers, Marc Andreessen, Mark Zuckerberg, market bubble, market fundamentalism, mass incarceration, medical bankruptcy, microcredit, moral hazard, mortgage tax deduction, negative equity, obamacare, offshore financial centre, paper trading, Pareto efficiency, patent troll, Paul Samuelson, payday loans, price stability, profit maximization, profit motive, purchasing power parity, race to the bottom, rent-seeking, reserve currency, Richard Thaler, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, shareholder value, short selling, Silicon Valley, Simon Kuznets, spectrum auction, Steve Jobs, technology bubble, The Chicago School, The Fortune at the Bottom of the Pyramid, The Myth of the Rational Market, The Spirit Level, The Wealth of Nations by Adam Smith, too big to fail, trade liberalization, transaction costs, trickle-down economics, ultimatum game, uranium enrichment, very high income, We are the 99%, wealth creators, women in the workforce, zero-sum game

Now our creditability is gone: we are seen to have a political system in which one party tries to disenfranchise the poor, in which money buys politicians and policies that reinforce the inequalities. We should be concerned about the risk of this diminished influence. Even if things had been going better in the United States, the growth of the emerging markets would necessitate a new global order. There was just a short period, between the fall of the Berlin Wall and the collapse of Lehman Brothers, when the United States dominated in virtually every realm. Now the emerging markets are demanding a larger voice in international forums. We moved from the G-8, where the richest industrial countries tried to determine global economic policy, to the G-20, because we had to: the global recession provided the impetus, but one could not deal with global issues, like global warming or global trade, without bringing others in.

However ideas get disseminated, much of the battle is, as I have suggested, over framing; and in that battle, words are pivotal. The words we use can convey notions of fairness, legitimacy, positive feelings; or they can convey notions of divisiveness and selfishness and illegitimacy. Words also frame issues in other ways. In American parlance, “socialism” is akin to communism, and communism is the ideology we battled for sixty years, triumphing only in 1989 with the fall of the Berlin Wall. Hence, labeling anything as “socialism” is the kiss of death. America’s health care system for the aged, Medicare, is a single-payer system—the government pays the bill, but the individual gets to choose the provider. Most of the elderly love Medicare. But many are also so convinced that government can’t provide services efficiently that they believe that Medicare must be private. In the tumultuous discussion of health care reform during President Obama’s first year in office, one man was heard to say, “Keep your government hands off my Medicare.”34 The Right attacks extending the Medicare program to the rest of the population as “socialism.”


pages: 638 words: 156,653

Berlin by Andrea Schulte-Peevers

Albert Einstein, Berlin Wall, call centre, car-free, carbon footprint, centre right, Fall of the Berlin Wall, Frank Gehry, glass ceiling, Google Earth, indoor plumbing, Johann Wolfgang von Goethe, Kickstarter, low cost airline, low cost carrier, Ronald Reagan, Ronald Reagan: Tear down this wall, Skype, starchitect, trade route, upwardly mobile, urban planning, urban renewal

STORY OF BERLIN Map 8872 0100; www.story-of-berlin.de; Kurfürstendamm 207-208; adult/concession/family €9.80/8/21; 10am-8pm; Uhlandstrasse This multimedia museum breaks down 800 years of Berlin history into bite-sized chunks that are easy to swallow but substantial enough to be satisfying. In other words, it’s the kind of history museum that’ll even entertain kids and teens. Each of the 23 exhibit rooms encapsulates a different epoch in the city’s fascinating history, from its founding in 1237 to its days as the Prussian capital, the Golden Twenties, the dark days of the Third Reich and the fall of the Berlin Wall. Budget at least two hours, not including a tour of a still fully functional atomic bunker beneath the building, which brings the Cold War era creepily to life. The museum entrance is inside the Ku’damm Karree mall. The last admission and bunker tour is at 6pm. GREAT WHEEL BERLIN Map www.greatwheel.com/berlin, in German; Zoologischer Garten Build it and they will come. At least that’s what investors in the Great Wheel Berlin, the world’s largest Ferris wheel, are hoping.

Another building presents the confrontations of the Cold War years in all their drama. A highlight here is the partial reconstruction of the Spy Tunnel, built in 1953–54 by US and British intelligence services to tap into the central Soviet telephone system. The original recorded half a million calls until a double agent blabbed to the Soviets. Finally there’s a survey of events leading to the collapse of communism and the fall of the Berlin Wall. The most memorable objects are in the yard: the original 1960s guard cabin from Checkpoint Charlie, a Hastings plane used during the Berlin Airlift, the restaurant car of a French military train, a small section of the Wall and a GDR guard tower. All explanatory panelling is in German, English and French. To get here take the U-Bahn to Oskar-Helene-Heim, then catch any bus or walk 10 minutes north on Clayallee.


pages: 497 words: 161,742

The Enemy Within by Seumas Milne

active measures, anti-communist, Berlin Wall, Boris Johnson, collective bargaining, corporate governance, Edward Snowden, Etonian, Fall of the Berlin Wall, invisible hand, Kickstarter, market fundamentalism, Mikhail Gorbachev, Naomi Klein, Neil Kinnock, Nelson Mandela, New Journalism, Ronald Reagan, strikebreaker, union organizing, Washington Consensus, Winter of Discontent, éminence grise

Diverting even a tiny part of the vast reserves of hard currency spent on Warsaw Pact weapons programmes to underwrite industrial struggles, he argued, would be highly effective in terms of its political impact. Using the IMO’s Dublin solidarity trust as a prototype, the British miners’ leader lobbied for the creation of a £30 million fund to help support international trade-union action. Some thought he had lost touch with reality. Others were highly receptive. A year before the fall of the Berlin Wall, Scargill discussed the scheme with Erich Honecker, the East German Communist leader, and Harry Tisch, head of the country’s trade unions, who, he claims, agreed in principle to commit £2 million to a wider solidarity fund. He also had talks in Moscow in January 1990 with Gennadi Yanayev – the Soviet vice-president who would later achieve notoriety as the front man in the bizarre ‘coup’ of August 1991 – about the scheme.

The CIA’s man, George – now ‘Yuri’ – Miller moved to Russia in 1992 after the final collapse of the Soviet Union and became an economic adviser to the Yeltsin government. Both Sergei Massalovitch, who complained to the British Fraud Squad about Scargill’s ‘diversion’ of Soviet aid, and Yuri Butchenko, who followed in his footsteps under Miller’s tutelage, were later expelled from the Vorkuta strike committee for misappropriating the organization’s equipment. Butchenko subsequently set up his own ‘information agency’.60 Meanwhile, long after the fall of the Berlin Wall, the international trade-union movement carried on fighting the Cold War. Trade unions remained locked into structures which held back the kind of cross-border action that could match the globalization of capital. As the centrist British union leader John Edmonds predicted, the implosion of the WFTU in the wake of the collapse of the East did not reunite the international trade-union movement, but left it more fragmented than ever.


pages: 446 words: 578

The end of history and the last man by Francis Fukuyama

affirmative action, anti-communist, Ayatollah Khomeini, Berlin Wall, Bonfire of the Vanities, business cycle, centre right, cuban missile crisis, deindustrialization, Deng Xiaoping, Donald Trump, European colonialism, Exxon Valdez, F. W. de Klerk, Fall of the Berlin Wall, Francis Fukuyama: the end of history, full employment, Gini coefficient, Gunnar Myrdal, Hernando de Soto, income inequality, Isaac Newton, Joan Didion, joint-stock company, Joseph Schumpeter, kremlinology, land reform, liberal world order, liberation theology, life extension, linear programming, long peace, means of production, Mikhail Gorbachev, Nelson Mandela, New Journalism, nuclear winter, old-boy network, open economy, post-industrial society, RAND corporation, Ronald Reagan, Socratic dialogue, strikebreaker, the scientific method, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, zero-sum game

The original article excited an extraordinary amount of commentary and controversy, first in the United States, and then in a series of countries as different as England, France, Italy, the Soviet Union, Brazil, South Africa, Japan, and South Korea. Criticism took every conceivable form, some of it based on simple misunderstanding of my original intent, and others penetrating more perceptively to the core of my argument.2 Many people were confused in the first instance by my use of the word “history.” Understanding history in a conventional sense as the occurrence of events, people pointed to the fall of the Berlin Wall, the Chinese communist crackdown in Tiananmen Square, and the Iraqi invasion of Kuwait as evidence that “history was continuing,” and that I was ipso facto proven wrong. And yet what I suggested had come to an end was not the occurrence of events, even large and grave events, but History: that is, history understood as a single, coherent, evolutionary process, when taking into account the experience of all peoples in all times.

If the early twentieth century’s major political innovation was the invention of the strong states of totalitarian Germany or Russia, then the past few decades have revealed a tremendous weakness at their core. And this weakness, so massive and unexpected, suggests that the pessimistic lessons about history that our century supposedly taught us need to be rethought from the beginning. 2 The Weakness of Strong States I The current crisis of authoritarianism did not begin with Gorbachev’s perestroika or the fall of the Berlin Wall. It started over one and a half decades earlier, with the fall of a series of rightwing authoritarian governments in Southern Europe. In 1974 the Caetano regime in Portugal was ousted in an army coup. After a period of instability verging on civil war, the socialist Mario Soares was elected prime minister in April 1976, and the country has seen peaceful democratic rule ever since. The colonels who had been ruling Greece since 1967 were ousted also in 1974, giving way to the popularly elected Karamanlis regime.


pages: 208 words: 67,582

What About Me?: The Struggle for Identity in a Market-Based Society by Paul Verhaeghe

Berlin Wall, call centre, cognitive dissonance, deskilling, epigenetics, Fall of the Berlin Wall, Francis Fukuyama: the end of history, income inequality, invisible hand, jimmy wales, job satisfaction, knowledge economy, knowledge worker, Louis Pasteur, market fundamentalism, Milgram experiment, new economy, Panopticon Jeremy Bentham, post-industrial society, Richard Feynman, Silicon Valley, Stanford prison experiment, stem cell, The Spirit Level, ultimatum game, working poor

No convincing answer was advanced, and the few instances in which a supposedly scientific ideology was able to achieve its ideal society ended in complete disaster. By the latter half of the 20th century, the debacle of Nazism and communism had caused a serious loss of faith in ideals. Some even saw the fascist concentration camps and the communist gulags as a legacy of the Enlightenment, arguing that it was time to put on the brakes. The fall of the Berlin Wall put the final nail in the coffin of ideology, and so the idea of an engineered society was shelved. Change and perfectibility remained keywords, but the focus now shifted to the individual. The end of the previous century marked the beginning of a radical new take on identity. People became responsible for perfecting themselves, for engineering their own success. The perfectible individual Where previously the focus had been on social progress, in the last quarter of the 20th century it shifted to the perfectibility of the individual.


pages: 251 words: 69,245

The Haves and the Have-Nots: A Brief and Idiosyncratic History of Global Inequality by Branko Milanovic

Berlin Wall, Branko Milanovic, colonial rule, crony capitalism, David Ricardo: comparative advantage, deglobalization, Deng Xiaoping, endogenous growth, Fall of the Berlin Wall, financial deregulation, full employment, Gini coefficient, high net worth, illegal immigration, income inequality, income per capita, Joseph Schumpeter, means of production, open borders, Pareto efficiency, plutocrats, Plutocrats, purchasing power parity, Simon Kuznets, very high income, Vilfredo Pareto, Washington Consensus, zero-sum game

It could be that our interpretation is too harsh, or that Rawls, faced with the facts of global inequality that were not widely known or appreciated when he wrote The Law of Peoples, might have reconsidered his position. But his writings do not allow us to make this conclusion. Vignette 3.9 Geopolitics in Light of (or Enlightened by) Economics Between the end of the Second World War and the fall of the Berlin Wall, a rather comfortable intellectual division of the world held sway. There were, as we all knew, three worlds on this planet. There was the first world of rich capitalist economies. Not all of them were at the time democracies, but gradually became so (e.g., with political liberalizations in Greece, Spain, Portugal); not all of them were Western: Japan seemed a permanent big exception. There was a second world, although, strangely enough, the term was not frequently used.


pages: 276 words: 64,903

Built for Growth: How Builder Personality Shapes Your Business, Your Team, and Your Ability to Win by Chris Kuenne, John Danner

Airbnb, Amazon Web Services, Berlin Wall, Bob Noyce, business climate, call centre, cloud computing, disruptive innovation, don't be evil, Fall of the Berlin Wall, Gordon Gekko, Jeff Bezos, Kickstarter, Lean Startup, Mark Zuckerberg, pattern recognition, risk tolerance, Sand Hill Road, self-driving car, Silicon Valley, Steve Jobs, Steve Wozniak, supply-chain management, zero-sum game

Here is a quick profile of your gifts and gaps: A keen commercial sense: We saw how Ben Weiss capitalized on the intersection of “good for you” and “great tasting” to create the new beverage juggernaut called Bai Brands. It was that same sense that still leads Howard Lerman to leap back into his “pirate ship” to shape the next big idea at Yext. Laurie Spengler was driven by the same force, following the fall of the Berlin Wall, as she saw the opportunity to help emerging entrepreneurs fuel their dreams by showing them how to raise investment capital. A creative impulse that enables you to convert customer need to a product or service that fits: Mi Jong Lee, the fashion designer, applies this impulse to serve professional women ages forty to fifty-five. Adam Jackson figured how to bring a doctor directly to the patient with an acute condition like the flu through video chat enabled by the expansion of mobile bandwidth and the broad adoption of smartphones.


pages: 202 words: 8,448

Blueprint for Revolution: How to Use Rice Pudding, Lego Men, and Other Nonviolent Techniques to Galvanize Communities, Overthrow Dictators, or Simply Change the World by Srdja Popovic, Matthew Miller

Albert Einstein, Berlin Wall, British Empire, corporate governance, desegregation, Fall of the Berlin Wall, Jane Jacobs, Kibera, Kickstarter, Mahatma Gandhi, McMansion, Mikhail Gorbachev, Mohammed Bouazizi, Nelson Mandela, Occupy movement, Rosa Parks, urban planning, urban sprawl

If you’ve gotten to this point in the book, I’m going to assume that you care about more than just my world-famous Serbian humor and that you’re genuinely interested in the circumstances by which ordinary people can do extraordinary things and change their community, their country, and the world. The next chapters, then, will be less about the what of nonviolent action and more about the how, the principles without which no movement can survive. To begin this section of the book, let’s go to Belarus. There are few better places I can think of to start in. This lovely country, right next to Russia, somehow missed the fall of the Berlin Wall and is today still living the Soviet dream. Now, let’s go back in time and pretend it’s 2010, on the eve of Belarus’s presidential elections. Since 1994 the country has been under the thumb of a ruthless and corrupt despot named Alexander Lukashenko, who lords over the last dictatorship in Europe. A man of many talents, the tall and mustachioed Lukashenko is a big fan of hockey, cross-country skiing, and torture.


Rethinking Camelot by Noam Chomsky

anti-communist, Berlin Wall, cuban missile crisis, Fall of the Berlin Wall, fear of failure, Howard Zinn, land reform, Monroe Doctrine, Norman Mailer, Paul Samuelson, Ronald Reagan

As described by Charles Maechling, who led counterinsurgency and internal defense planning from 1961 to 1966, that historic decision led to a change from toleration “of the rapacity and cruelty of the Latin American military” to “direct complicity” in “the methods of Heinrich Himmler’s extermination squads.” That hideous chapter in the history of Latin American travail for five hundred years—now mercifully coming to an end, in significant measure—was brought to a peak of fury by Reagan’s terrorist wars in Central America. These ended immediately after the fall of the Berlin Wall with the assassination of six leading Latin American intellectuals, Jesuit priests, by an elite unit of the US-trained and -armed Salvadoran army, fresh from renewed training at the John F. Kennedy school of counterinsurgency, under the direct orders of the Salvadoran High Command. The twenty-fifth anniversary passed in the usual silence accorded to our own crimes. But the facts are not obscure.


pages: 236 words: 67,953

Brave New World of Work by Ulrich Beck

affirmative action, anti-globalists, Asian financial crisis, basic income, Berlin Wall, collective bargaining, conceptual framework, Fall of the Berlin Wall, feminist movement, full employment, future of work, Gunnar Myrdal, hiring and firing, illegal immigration, income inequality, informal economy, job automation, knowledge worker, labour market flexibility, labour mobility, low skilled workers, McJob, means of production, mini-job, post-work, postnationalism / post nation state, profit maximization, purchasing power parity, rising living standards, Silicon Valley, working poor, working-age population, zero-sum game

., p. 164. 91 Gray, p. 129. 92 Fresh confirmation of this has been provided by the Red-Green victory in the German elections of autumn 1998. 8 Vision of the Future I The Europe of Civil Labour The great opportunity that arose with the collapse of the bipolar world order in 1989 lies in the fact that no one can lock themselves away any more from other cultures, religions and ideas; that all now share a space in which the old territorial identities and cultures, as well as the old frontiers and identities controlled by national states, suddenly encounter one another without protection. This helps us understand the globalization shock that has continued to affect the countries of Central Europe, and especially Germany since the fall of the Berlin Wall. The other side of our living in a more open world is the fact that there is no longer a single model of capitalism or a single model of modernity. There are many capitalisms, many modernities, which do, however, need to be brought into relationship with one another. Multiple modernities and the mirror of one's own future The self-transformation of the Western model, and of its claim to a monopoly on modernity, has made people in the West more open to the history and present situation of divergent modernities in all regions of the world.


pages: 235 words: 62,862

Utopia for Realists: The Case for a Universal Basic Income, Open Borders, and a 15-Hour Workweek by Rutger Bregman

autonomous vehicles, banking crisis, Bartolomé de las Casas, basic income, Berlin Wall, Bertrand Russell: In Praise of Idleness, Branko Milanovic, cognitive dissonance, computer age, conceptual framework, credit crunch, David Graeber, Diane Coyle, Erik Brynjolfsson, everywhere but in the productivity statistics, Fall of the Berlin Wall, Francis Fukuyama: the end of history, Frank Levy and Richard Murnane: The New Division of Labor, full employment, George Gilder, George Santayana, happiness index / gross national happiness, Henry Ford's grandson gave labor union leader Walter Reuther a tour of the company’s new, automated factory…, income inequality, invention of gunpowder, James Watt: steam engine, John Markoff, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, Kevin Kelly, Kickstarter, knowledge economy, knowledge worker, Kodak vs Instagram, low skilled workers, means of production, megacity, meta analysis, meta-analysis, microcredit, minimum wage unemployment, Mont Pelerin Society, Nathan Meyer Rothschild: antibiotics, Occupy movement, offshore financial centre, Paul Samuelson, Peter Thiel, post-industrial society, precariat, RAND corporation, randomized controlled trial, Ray Kurzweil, Ronald Reagan, Second Machine Age, Silicon Valley, Simon Kuznets, Skype, stem cell, Steven Pinker, telemarketer, The Future of Employment, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, Tyler Cowen: Great Stagnation, universal basic income, wage slave, War on Poverty, We wanted flying cars, instead we got 140 characters, wikimedia commons, women in the workforce, working poor, World Values Survey

Saudi Arabia is fencing off the entire country. And even as the European Union continues to open borders between its member states, it is allocating millions to head off flimsy boats on the Mediterranean Sea. This policy hasn’t made a dent in the flood of would-be immigrants but is helping human traffickers do a brisk business and is claiming the lives of thousands in the process. Here we are, 25 years after the fall of the Berlin Wall, and from Uzbekistan to Thailand, from Israel to Botswana, the world has more barriers than ever.46 Humans didn’t evolve by staying in one place. Wanderlust is in our blood. Go back a few generations and almost everybody has an immigrant in the family tree. And look at modern China, where 20 years ago the biggest migration in world history led to the influx of hundreds of millions of Chinese from the countryside into its cities.


pages: 272 words: 71,487

Getting Better: Why Global Development Is Succeeding--And How We Can Improve the World Even More by Charles Kenny

"Robert Solow", agricultural Revolution, Berlin Wall, British Empire, Charles Lindbergh, clean water, demographic transition, double entry bookkeeping, experimental subject, Fall of the Berlin Wall, germ theory of disease, Gunnar Myrdal, income inequality, income per capita, Indoor air pollution, inventory management, Kickstarter, Milgram experiment, off grid, open borders, purchasing power parity, randomized controlled trial, structural adjustment programs, The Wealth of Nations by Adam Smith, total factor productivity, Toyota Production System, trade liberalization, transaction costs, very high income, Washington Consensus, X Prize

And Bill Easterly’s study of seventy different measures of quality of life covering health, education, rights, the environment, and access to infrastructure found that a global pattern was a driving explanatory factor for progress in nearly all of them over the past thirty years.7 Of course, there are exceptions—AIDS and civil war can stall and even temporarily reverse progress on health, and have done so. The fall of the Berlin Wall considerably accelerated progress toward greater respect for civil and political rights. Nonetheless, the transition to a higher quality of life overall follows a similar pattern across measures and countries alike. The apparent importance of processes that are broadly common across countries—whatever their economic performance, policy behavior, or institutional development—suggests conclusions about the role of governments or country circumstances in speeding or retarding progress on quality of life.


ECOVILLAGE: 1001 ways to heal the planet by Ecovillage 1001 Ways to Heal the Planet-Triarchy Press Ltd (2015)

Berlin Wall, carbon footprint, Community Supported Agriculture, Fall of the Berlin Wall, Food sovereignty, land tenure, Nelson Mandela, new economy, New Urbanism, Occupy movement, off grid, Ronald Reagan, young professional

It took 7 years, from 1990 to 1997 to actually establish the ecovillage. During this time, there were three points of support. First, the already existing network of community projects in the German speaking arena, and the experience they brought. Secondly, the UN Conference in 1992 in Rio that set goals for social and ecological sustainability. Lastly, the social climate in former East Germany: after the fall of the Berlin Wall in 1989, socialism broke down, but not the longing for community. In 1990, we organised a community festival with 1,000 people. Some people from the East who felt a longing for real community met with existing communities from the West. Our ecovillage initiative had its first public appearance. The original dream was for a 100% self-sufficient ecovillage of 300 inhabitants. Over time, we softened our goals to include: self-sufficiency within the region, not the community; global networking; and human inner work and spirituality.


pages: 267 words: 70,250

Defending the Free Market: The Moral Case for a Free Economy by Robert A. Sirico

Affordable Care Act / Obamacare, barriers to entry, Berlin Wall, corporate governance, creative destruction, delayed gratification, Fall of the Berlin Wall, George Gilder, Gordon Gekko, greed is good, happiness index / gross national happiness, Hernando de Soto, informal economy, Internet Archive, liberation theology, means of production, moral hazard, obamacare, On the Revolutions of the Heavenly Spheres, profit motive, road to serfdom, zero-sum game

Lenin, Stalin, Khrushchev, and Brezhnev did all of this even while the text of the nation’s constitution proclaimed a paradise of liberty. In the minds of those men, freedom wasn’t about the God-given rights of individuals that must be respected by governments. It was about free scope for the will of the proletariat—for whom they were the only legitimate representatives, of course. This kind of confusion about freedom didn’t end with the fall of the Berlin Wall in 1989. Visit almost any major university in America and you’ll find individuals praising freedom while admiring ruthless totalitarians, usually without the least sense of irony or awareness of the contradiction. And often the totalitarians being praised are the ones who, while busily stamping out freedom, are reassuring everyone that they’re stamping in order to free the people, stamping in pursuit of “national liberty and equality,” stamping for “the pacific co-existence and fraternal collaboration of peoples.”1 Why does all of this matter?


pages: 229 words: 67,752

The Quantum Curators and the Fabergé Egg: A Fast Paced Portal Adventure by Eva St. John

3D printing, Berlin Wall, clean water, double helix, Fall of the Berlin Wall, off grid, performance metric

I remember playing with the crocs as a child, but when we did it Ramin and I both switched off our exo-suits. Where was the fun if there was no risk? Shortly after that we'd been reassigned schools to a place more suitable to our skills and attitudes. The Library of Alexandria. ‘So, an egg!’ Paul looked as excited as I felt. The last egg hunt had involved an exploding tanker, and the one before that had taken part during the fall of the Berlin Wall. Fun times. ‘Which teams do you reckon they'll pick?’ We were both in with a chance. No one could step within seven days of their last step; it was a simple safety protocol. For the next week none of us could be considered, but on day eight we'd be eligible. So long as we weren't then assigned to another retrieval. We discussed it for a while, all agreeing that we hoped the Fabergé Event spun out slowly.


pages: 564 words: 182,946

The Berlin Wall: A World Divided, 1961-1989 by Frederick Taylor

anti-communist, Berlin Wall, cuban missile crisis, facts on the ground, Fall of the Berlin Wall, German hyperinflation, Kickstarter, land reform, mass immigration, mutually assured destruction, oil shock, open borders, plutocrats, Plutocrats, RAND corporation, Ronald Reagan, Ronald Reagan: Tear down this wall, Sinatra Doctrine, the market place, young professional, éminence grise

One of the swiftest and least bloody in history. A revolution that has, whatever Gil ScottHeron may have predicted to the contrary fifteen years before, most certainly been televised. It will be followed by the biggest, wildest street party the world has ever seen. And, perhaps inevitably, by one of the biggest hangovers, too. But that is another story. AFTERWORD THE THEFT OF HOPE THE FALL OF THE Berlin Wall, like its construction, took place in a single night. Just as on 13 August 1961, a city and a people awoke to find themselves divided, so on the morning of 10 November 1989 that division was no more. Although how many people actually woke up to this revelation is debatable, since during that night in Berlin many had not slept a wink. Joachim Trenkner, for instance. By then head of Current Affairs for the Berlin branch of the state-supported ARD television network Sender Freies Berlin (the Free Berlin Station), Trenker was in Warsaw, covering the West German Chancellor’s historic visit, when he heard the news from the Wall.

Der Spiegel, Hamburg. New York Times. Die Welt, Berlin. Online sources cited Bundeszentrale für Politische Bildung/Deurschland Radio/Zentrum für Zeithistorische Forschung Potsdam, Chronik der Mauer at http://www.chronik-der-mauer.de/ Burkhart Veigel, web-published account of student escape activities at http://www.fluchthilfe.de/ Other books and publications consulted Buckley Jr., William. The Fall of the Berlin Wall. Hoboken, 2004. Childs, David. The Fall of the GDR. Harlow, 2001. Dokumentationszentrum Berliner Mauer, Die Berliner Mauer Ausstellungskatalog. Dresden, 2002. Funder, Anna. Stasiland. London, 2003. Gaddis, John Lewis. We Now Know: Rethinking Cold War History. Oxford, 1997. Garthoff, Raymond L. A Journey through the Cold War: A Memoir of Containment and Coexistence. Washington, 2001. Glees, Anthony.


pages: 602 words: 177,874

Thank You for Being Late: An Optimist's Guide to Thriving in the Age of Accelerations by Thomas L. Friedman

3D printing, additive manufacturing, affirmative action, Airbnb, AltaVista, Amazon Web Services, autonomous vehicles, Ayatollah Khomeini, barriers to entry, Berlin Wall, Bernie Sanders, bitcoin, blockchain, Bob Noyce, business cycle, business process, call centre, centre right, Chris Wanstrath, Clayton Christensen, clean water, cloud computing, corporate social responsibility, creative destruction, crowdsourcing, David Brooks, demand response, demographic dividend, demographic transition, Deng Xiaoping, Donald Trump, Erik Brynjolfsson, failed state, Fall of the Berlin Wall, Ferguson, Missouri, first square of the chessboard / second half of the chessboard, Flash crash, game design, gig economy, global pandemic, global supply chain, illegal immigration, immigration reform, income inequality, indoor plumbing, intangible asset, Intergovernmental Panel on Climate Change (IPCC), Internet of things, invention of the steam engine, inventory management, Irwin Jacobs: Qualcomm, Jeff Bezos, job automation, John Markoff, John von Neumann, Khan Academy, Kickstarter, knowledge economy, knowledge worker, land tenure, linear programming, Live Aid, low skilled workers, Lyft, Marc Andreessen, Mark Zuckerberg, mass immigration, Maui Hawaii, Menlo Park, Mikhail Gorbachev, mutually assured destruction, Nelson Mandela, pattern recognition, planetary scale, pull request, Ralph Waldo Emerson, ransomware, Ray Kurzweil, Richard Florida, ride hailing / ride sharing, Robert Gordon, Ronald Reagan, Second Machine Age, self-driving car, shareholder value, sharing economy, Silicon Valley, Skype, smart cities, South China Sea, Steve Jobs, supercomputer in your pocket, TaskRabbit, The Rise and Fall of American Growth, Thomas L Friedman, transaction costs, Transnistria, uber lyft, undersea cable, urban decay, urban planning, Watson beat the top human players on Jeopardy!, WikiLeaks, women in the workforce, Y2K, Yogi Berra, zero-sum game

At first I worked on TeleRam there, too, and eventually, in my last year or so, we got the first IBM desktops, with big floppy disks. The pace of change was starting to quicken a bit. My technology platforms were improving faster. After my tour in Jerusalem, I moved to the Washington bureau, where I served as the New York Times diplomatic correspondent, starting in 1989. I had a front-row seat traveling with Secretary of State James A. Baker III for the fall of the Berlin Wall and the end of the Cold War. On those trips we used Tandy laptops to write and file over long-distance phone lines. We reporters became experts at taking apart telephones in hotel rooms around the world to directly fix the wires to our Tandys. You always had to travel with a small screwdriver, along with your reporter’s notepad. When I shifted to covering the White House under a new president, Bill Clinton, in 1992, no one I knew had e-mail.

“For more than three decades after World War II, all four went up steadily and in almost perfect lockstep,” Brynjolfsson noted in a June 2015 interview with the Harvard Business Review. “Job growth and wage growth, in other words, kept pace with gains in output and productivity. American workers not only created more wealth but also captured a proportional share of the gains.” In hindsight, the period from World War II up to the fall of the Berlin Wall was “an incredible period of economic moderation,” argued James Manyika, one of the directors of the McKinsey Global Institute. And economic moderation drove political moderation and stability. It made inclusion and immigration easier to tolerate. Most countries were also still benefiting from improved health care and decreased child mortality, producing a demographic dividend of bulging youth populations and relatively few older people to take care of.


pages: 615 words: 187,426

Chinese Spies: From Chairman Mao to Xi Jinping by Roger Faligot

active measures, Albert Einstein, anti-communist, autonomous vehicles, Ayatollah Khomeini, Berlin Wall, British Empire, business intelligence, Deng Xiaoping, Donald Trump, Edward Snowden, Fall of the Berlin Wall, housing crisis, illegal immigration, index card, megacity, Mikhail Gorbachev, new economy, offshore financial centre, Pearl River Delta, Port of Oakland, RAND corporation, Ronald Reagan, Silicon Valley, South China Sea, special economic zone, stem cell, union organizing, young professional, éminence grise

On 7 November 1989, Berliners marched through the streets of the divided capital with cries of “Die Mauer muß weg! The wall must go!” On 11 November, Defence Minister Heinz Kessler summoned his generals to prepare an offensive: “We must use the Chinese method!” In the shadow of the East Berlin reformers, the politician Hans Modrow and Markus Wolf, head of the secret services, who had plotted Honecker’s fall with the Soviets, realized that they had lost control of the situation. With the fall of the Berlin Wall, the East German services were paralysed. As Mielke had feared, the demonstrators stormed Stasi headquarters and began seizing archives. The head of the Stasi in Beijing, a military attaché, defected. He refused to offer his services to the Guoanbu. He was expelled, and later returned as a businessmen working for a company headquartered in reunified Germany. The Chinese still keep him under surveillance, suspecting him of being an “honourable correspondent” for the BND, the German intelligence service.

Furthermore, it was clear that he was joking when, during his visit to Bucharest that August, accompanied by Qiao Shi, he had offered the Romanians the latest system for developing photos—conceived by Kodak and copied by Chinese intelligence—in order to save the Romanians from having to buy the licence.38 In November 1989, after a gruelling year, Qiao Shi met up with his Romanian friends again. The trip went well, with Ceaus sescu calling on the Chinese leadership to promote a new summit of communist countries. The events in Tiananmen and the fall of the Berlin Wall had shaken the Romanian dictator. Chinese analysts continued to believe that the situation in Romania was stable—but hardly had Qiao Shi arrived back in Beijing before the situation began to deteriorate, to such an extent that a Romanian Securitate unit came to Beijing to beg Qiao to help save the Romanian regime and draw up an escape plan for Ceaus sescu and his wife. It was too late: in December the revolution broke out, and Nicolae and Helena Ceaus sescu were executed after a show trial.


pages: 1,309 words: 300,991

Vanished Kingdoms: The Rise and Fall of States and Nations by Norman Davies

anti-communist, Berlin Wall, British Empire, Celtic Tiger, Corn Laws, en.wikipedia.org, energy security, failed state, Fall of the Berlin Wall, Francis Fukuyama: the end of history, labour mobility, land tenure, mass immigration, Mikhail Gorbachev, oil rush, oil shale / tar sands, Red Clydeside, Ronald Reagan, Skype, special economic zone, trade route, urban renewal, WikiLeaks

In June the world outcry against the Tiananmen Square massacre in China lessened the chances of Soviet hardliners regaining control, and the triumph of the Solidarity movement in the partial elections in Poland showed that the monolith was cracking. On 23 August 1989, 2 million people linked hands in the ‘Baltic Chain’, which stretched all the way across the Baltic States from Tallinn to Vilnius in Lithuania. It showed that Estonians were not isolated.77 The fall of the Berlin Wall in November, regarded in the West as a world-historical event, did not make the same impact on Soviet citizens, who had still to break the bars of their cage. In 1990 and 1991 the Estonian national movement adopted the strategy of pursuing its own programme while ignoring whatever Moscow did. In February 1990 elections to a Congress of Estonia turned into a de facto referendum on national statehood.

Y. 478 Ahern, Bertie 673, 676 Aidan, St 60 Ailamae 718 Aix-en-Provence 118, 217 Aix-les-Bains 415, 417 Alaborg 243 Åland Isles 617 Alans 17, 18, 31 Alaric I 16–17, 31 Alaric II 18, 24–5, 26, 30, 31 Alaric, Montagne d’ 27 Alauna 46, 47 Alba 66, 70–71, 72, 74, 75–6 Alban, St 46 Albania 197, 587, 597, 601, 617 Albert I of Belgium 600 Albert II of Monaco 637 Albert, prince 543–9, 551–9, 573, 637 timetable he prepared for himself, aged fourteen 547, 548 Albert the Bear 344 Albigensian Crusade 125, 179 Albon, counts of 118, 127 Albrecht Friedrich von Hohenzollern 355 Albrecht von Habsburg 478 Albrecht von Hohenzollern 341, 351, 352, 353–4 Alcañiz, fortress 184 Alcluith 39, 64 Alclut 69 Aleksandar, crown prince of Serbia 593, 601, 606, 612 Aleksandar I Obrenović 589–90 Alemanni 24 Alessandria 414 Alexander I, tsar 293, 334, 699 Alexander II, ‘Tsar Liberator’ 294, 297 Alexander VI, Roderic Llançol de Borja 215, 218 Alexander of Teck, 1st earl of Athlone 566, 569 Alexandria, Egypt 401, 435 museum 481 Alexandria, Vale of Leven 37 Alfons de Borja, Pope Callistus III 215 Alfonso I El Batallado 169, 170 Alfonso II of Aragon and I of Barcelona 171 Alfonso II of Naples 214 Alfonso V the Magnanimous, of Aragon 210, 211–12, 213–14 Alfonso VII of Castile 175 Alfonso of Aragon, Infante Alfonso 201–2 Alfonso of Aragon, son of Fernando I 209 Alfred, duke of Edinburgh and of Saxe-Coburg and Gotha 562, 563 Alfred, hereditary prince of Saxe-Coburg and Gotha 562 Alfred of Wessex, king 68 Alfred the Great 89 Alghero 202 Algierdas 252, 254 Alicante 189 Alice, countess of Athlone 566, 569 Aljaferia Castle 169, 184 Allenstein 342 Allobroges 414 Alt Clud, Kingdom of the Rock 42–83 5th century 49–52 6th century 52–57 7th century 57–62 8th to 9th centuries 62–72 10th century 72–5 11th century 75–7 12th century 77–80 Amadeo, ‘duke of Aosta’ 432–3 Amadeus VI, the Green Count 404 Amadeus VII, the Red Count 404 Amadeus VIII (Felix V) 406 Amalfings 18 Amalric 26 Amanieu de Sescars, il dieu d’amor 172 Ambaciensis (Amboise) 24 Amber Room (Bernsteinzimmer) 383, 386n Amfilohije, Archbishop 614 Amiens, Treaty of 507, 517 Anatolia 196, 319 Ancient Order of Hibernians 644 Ancillon, Charles 365 Andemantunnum (Langres) 95 Andorra 159–60 Andreas von Saxe-Coburg-Gotha 571 Andrew, St 66 Angevins, relations with Aragon 174, 192–3, 195, 197, 211 Angles 53, 56, 57–60, 62, 64 Anglo-Irish Bank 677 Anglo-Irish Treaty 655–7, 661–2, 737 Anglo-Saxon Chronicle 66, 73–4 Anglo-Saxons 42, 44, 738 see also Angles Anna of Prussia 355 Annales Cambriae 52 Annecy 118, 407–8, 436 Anselm von Meisser 342–3 Ansip, Andrus 692 Ansky, Semyon 464–5 Antoinette-Marie of Württemberg 547 Antonine Wall 46, 48, 64 Aquitania/Aquitaine 17, 18–20, 24, 27, 30 Arago, François 154 Aragon, empire 161–227, 166, 178, 192, 735 and the Angevins 174, 192–3, 195, 197, 211 Aragonese language 171 and the Balearic Islands 185, 187–9, 197–200, 202–3, 226 and Castile 163, 165, 166, 169, 170–71, 175, 189, 204–5, 207–10, 211, 215–17, 217, 218–19, 220, 223 and the Catalans 166, 171, 174–5, 177, 189, 196, 199, 200, 202, 206–7, 210, 217–18, 222–7, 736 and the Church 169, 181–3, 184 coronation ceremonies 182–3 and Corsica 197, 201, 210 Crown of Aragon 176, 177, 180, 183–4, 190, 195, 206–7, 209–10, 217–18, 221–7, 736 General Privilege 191 and Gozo 196 and Greece 191, 196, 199 House of Ramiro 164–5, 165 and Jaime I 185–6, 187–9, 197 and the Jews 183–4 and Mallorca 187–8, 197–200, 202–3, 226 and Malta 191, 195–6 and Menorca 188–9, 199 and Montpellier 179–81, 184, 202–3 and Naples 184, 193, 197, 210–14, 211–13, 216–18 navy 205 origins of the kingdom 161–4, 165, 166 and Pedro IV 174, 202–7 Privilege of Union 203 and the Pyrenees 156–60 and the Reconquista 164, 166–9, 173, 181, 183, 184 and Rosselló 177–9, 200, 222 and Sardinia 197, 201–2, 206, 220 and Sicily 191–5, 197, 206, 212, 220 and Teruel 190–91 House of Trastámara 207, 208, 210, 216 Union of Liberties 191, 203 union with Barcelona 170–71, 174–6; see also Barcelona and Valencia 176, 189–90 Aragon, river 161 Aranjuez, Treaty of 509 Arborea 201, 206 Arcola, Battle of 501 Arelate (Arles) 20, 109 Argyll 37n, 53, 65, 66 Arianism 16, 20, 30, 93, 98–9 Ariège 157 Aristotle 729 Aristra, Inigo 155 Arius of Alexandria 16n Arles 104, 116, 119, 122 Arelate 20, 109 Kingdom of (Kingdom of the Two Burgundies) 115–19, 116 Armagnacs 131 Armenia 722 Armenian Church 463 Arnau de Grub, St 182 Arnaut Catalan 172 Arpitan 120 Arpitania 121 Art, son of Conn 47 Arthgal, king 69–70 Arthur, duke of Connaught 562 Arthur, king 54 Arthur, prince, of Connaught and Strathearn 562, 563 Arthurian legend 54–55, 56 Arvernis (Clermont) 20 Asad, Muhammad (Leopold Weiss) 478 Ascania, House of 344 Ascendancy, Protestant 650, 660, 667, 679 Asimov, Isaac 632–3 Aster, Operation 714 Asti 407 Asymmetric Threats Contingency Alliance (ATCA) 697 Ataulf, the ‘Noble Wolf’ 17–18 ATCA (Asymmetric Threats Contingency Alliance) 697 Athanasius of Brest, St 277 Athelstan 72, 73, 74 Athens 196 Atholl 65 Atlakvida 94 Attila (Atli) 94, 103 Auberge d’Aragon 220 Auerstadt 521 Augsberger, Franz 713 August II the Strong 283, 364 August III 283, 284 August Wilhelm of Prussia 568 Augustine of Hippo, St 730 Augustodunum (Autun) 95 Augustus Caesar 314 Aukštota 248 Aurausion (Orange) 125 Auschwitz 478, 479 Austerlitz 521 Austria/Austrians and France 451–2, 500–501, 505, 508–9, 516 and Galicia 289, 292, 295, 449–50, 451–3, 455–6, 470, 473–5, 474; see also Galicia Habsburgs see Habsburgs and Italy 425, 500–501 and Montenegro 597–9 and Napoleon I 500–501 and Poland 286 and Serbia 597–9 Vienna see Vienna/Viennese Austria-Hungary 470, 472 Carpatho-Ukraine see Carpatho-Ukraine collapse of Empire 599, 600, 733–4; Treaty of St Germain 625 Austrian Netherlands 141 Avenio (Avignon) 95 Avignon 104, 125, 128, 153, 205 Aouenion 95 Avitus, Eparchius 22 Avitus of Vienne 99 Azerbaijan 233, 722, 731 Azkenazy, Szymon 465 Babylon, Fall of 730 Bacciochi Levoy, Elisa Napoleone 534 Bacciochi Levoy, Maria-Anna (‘Elisa’) Bonaparte 500, 520–21, 523, 524, 527, 529 Bacciochi Levoy, Pasquale/Félix 520–21 Bağiş 313 Bagration, Operation 302 Bakiyev, Kurmanbek Saliyevich 235 Bakunin, Mikhail 730 Bałaban, Meir 465–6 Balearic islands 185, 187–9, 197–200, 202–3, 226 Balkans 214, 314, 383 Balkan Wars 594–5 Montenegro see Montenegro/Tsernagora Balmoral 83 Baltic Appeal (1979) 720 Baltic/Balts 240–42, 244, 245, 618, 702 ‘Baltic Chain’ 723 and the birth of the Grand Duchy of Litva 248–9 deportations under Soviet Great Terror 715 Estonia see Estonia inter-war Baltic States 707 Latvia see Latvia/Latvians Lithuania see Litva/Lithuania and the Mongol Horde 248, 251, 252, 260, 338 Prussia see Prussia/Borussia and the Prussians Soviet 1940 takeover of the Baltic States 301–2, 618, 710–12, 737 and the Teutonic Knights 248, 252, 253, 259 World War II 710 Baltic Tobacco Factory (BTF) 330 Baltiysk 334, 335 Bamburgh Castle 53, 56 Banach, Stefan 477–8 Bandera, Stepan 478 Baou, lords of (Les Baux) 119, 125 Bar, Montenegro 580 Barbarossa, Operation 301–2, 382, 479, 710 Barbarus, Johannes Vares 714, 717 Barbastro 166–7 Barcelona 160, 162, 170, 171, 173, 175, 183, 185–6, 200, 203, 222, 223, 224 Church Council of 181 Disputation of 184 House of 163n union with Aragon 170–71, 174–6 university 184 Usatges de Barcelona 174 Barretinas, Revolt of the 222 Bartians 338 Basle, Council of 215 Batory, Stefan 278–9 Batowski, Henryk 7 The Battle of Brunanburh 73 Battle of the Nations, Leipzig 529 Baussenque Wars 119 Baux, counts/lords of 119, 125 Bavarian Geographer (Geographus Bavarius) 337 Beatrice, princess 558 Beatrice I, countess of Burgundy 122 Béatrice de Provence 174 Beauharnais, Eugéne de 413, 521, 523, 535 Beauharnais, Joséphine de 501 Beaune 137 Beckwith, John 416 Bede 39, 42, 52, 53, 60, 64 Behan, Dominic 666 Beinnie Britt 47 Belarus/Byelorussia 231–9, 232, 249, 291, 301, 302, 303, 703; see also White Ruthenia Byelorussian National Republic (BNR) 233, 301, 738 Lukashenkism 233–5 and the Wikileaks scandal 235 Belfast 653–4 Belfast Agreement 673–5 Belgium 600, 710 Belgrade 590, 600, 602, 604, 605–6 Beli (Bili I) 61 Bellver Castle 199 Benaki Museum, Athens 320 Benedict XIII 209 Benso, Camillo, Count Cavour 417, 420–21, 423, 428, 429 Benveniste de Porta 183 Benvenuti, Pietro 527 Bera, count 171 Berber states 199 Berehaven 663 Berenguela of Barcelona 170–71, 175 Berenguer de Anglesola 182 Berenguer Ramón I El Corbat 163 Berenguer, House of 171, 175 Berlin 367, 370, 375, 379, 382 1918 revolution 599 Congress of 587–8 fall of the Berlin Wall 721, 723 Museum Island 390 Potsdam Conference 387–8 Prussian memory site 389–93 Berlusconi, Silvio 399, 437 Bernard, St 107–8 Bernard de Got 126 Berne 122 Bernhardi, Friedrich von 376–7 Bernicia (Berneich/Bryneich) 49, 53, 56, 60 Bernsteinzimmer (Amber Room) 383, 386n Berthold V, count 121–2 Bertrand, Henri Gatien 531, 533 Besalú 174, 175 Besanz/Besançon 141 Diet of Besanz 123 Vesontio 95, 118 Bevar Bornholmsk 87–8 Bianchi, M. 427 Bismarck, Otto Edward von 369, 376, 377 Black Death 128, 202, 204–5 Black, George Fraser 80 Blair, Tony 673, 680 Bloody Sunday 668 Saville Inquiry 677 Blücher, Gebhard Leberecht von 533 Blue Water, Battle of 252 Blumenthal, J.

.: The Waste Land 308 Elizabeth II 570, 665–6, 674, 678 Ełk 343 Emanuele-Filiberto, duke of Savoy 407 Embrun (Eburodunum) 95 Emeland see Varmia/Varmians Eneci see Annecy Engels, Friedrich 731 Enghien, Louis Antoine de Bourbon, duc d’ 517–18 England/the English 6, 42 Hundred Years War 128 occupation of Paris 131 and Sabaudia 406 English Defence League 683 Enrique of Castile, El Impotente 216 Eochaid map Rhun 71 Eogan II (Owain the Blind) 76 Epaon, Council of 99 Epila, Battle of 203 Erasmus of Rotterdam 135 Erbin 52 Erdoğan, Recep Tayyip 313 Ernst II, duke of Saxe-Coburg and Gotha 545, 546, 547, 555, 557, 560–61 Ernst III, duke of Saxe-Coburg-Saalfeld, later Duke Ernst I 543, 545, 547, 555, 557 Erwig (Euric/Evaric) 18, 23 Espérey, Franchet d’ 600 Estonia 689–728, 690, 709 1917 declaration of independence 704–5 1988 declaration of sovereignty 723 1991 UN recognition 723 arts 719 Committee of National Salvation 704–5 ‘cyber war’ 697–8 and democracy 707, 708–9 Estonian Soviet Socialist Republic 711–12, 714–23 exiled government in Stockholm 714, 715 expulsion of German Estonians 711 German occupation 712–14 inter-war period 707–9 Jewish extermination 713 language 689–90, 719, 720 Moscow’s 1924 attempted coup 708 national identity 699 national movement 723 and the Nazis 695, 710, 712–14 Nystadt Treaty 699 Tallinn see Tallinn Tartu Treaty 705–6 VAPSI movement 709 War of Independence 705 ‘War of Symbols’ 695–7 World War II 695, 710–15 Estonian Communist Party 714, 717 Estonian Guard Company, 4221st 715 Estonian Heritage Society 722 Estonian Lutheran Church 719 Estonian Peasant Party 709 Estrada Doctrine 617 Etruria, Kingdom of 509–38, 513 creation of 509–10 dissolution of 523–4 Florence see Florence/Florentines and France 509–10, 515, 516, 524–7, 529–33 local politics 515–16 regiments 518 see also Tuscany EU see European Union Eucharistic Congress (1932) 660 Eugène de Beauharnais 413, 521, 523, 535 Eugene of Savoy 409 Eugénie, Empress 428 Euler, Leonhard 332 Euric (Evaric/Erwig) 18, 23 European Economic Union (EEC) 666 European Union (EU) 234–5, 681, 697, 727 Commission 677 and Estonia 689, 695, 697, 725 and Montenegro 581, 582 Everest, mount 1 Evissa (Ibiza) 189 Experius, St, bishop of Toloso 20 External Relations Act (Ireland, 1936) 662, 664 Eyck, Jan van 135 Eymerich, Nicolau 205 Eynard, Jean-Gabriel 518, 535 Farouk, king 401 Fascism 430 Fauchet, Jean-Antoine, baron 524 Faucigny 402, 425, 435 Federal Republic of Yugoslavia 577, 614, 615 Fehrbellin 363 Feldman, Wilhelm 467 Felipe II (Philip II, the Prudent) 220, 221 Felipe III (Philip III, the Pious) 220 Felipe IV (Philip IV, the Great) 220 Felipe V (Philippe de Bourbon) 223 Felix V (Amadeus VIII) 406 Fenians (IRB) 644, 646, 647, 650, 651, 654 Ferdinand I, Holy Roman Emperor 219 Ferdinand I of Austria 450 Ferdinand I, of Leon and Castile, the Great 163–4 Ferdinand II, king of Aragon 210, 215, 216, 218, 219 Ferdinand II of the Two Sicilies, King ‘Bomba’ 425 Ferdinand IV, king of Naples 506, 508 Ferdinand VII of Spain 522–3 Ferdinando III of Tuscany 503, 504, 507, 508, 516, 534 Ferguson, Samuel 642 Fernando d’Antequera, Fernando I of Aragon 207–9 Fernando I of Naples, Don Ferrante 214, 218 Fernando II of Naples 214 Fernando El Católico 214, 216, 218 Fiachna of Ulster, king 56 Fianna Fáil 639, 660, 661, 677, 678 Field, Michael (Bradley and Cooper, ‘the Mikes’) 499 Filips de Goede (Philippe le Bon) 132 Filips de Stoute see Philip the Bold Fine Gael 639, 678 Finland 693, 702, 704, 710, 712 Finlay, George 317 Finnic tribes 242, 244 fitzAlan-Stewart family 79, 80 Flaochad 103 Flemish School of painting 135 Florence/Florentines 429, 493–9, 494, 512, 513–14, 521, 523, 527, 529 29e Légion de Gendarmerie de Florence 527 British colony of 499 Cosimo I de’ Medici collection 481 Franco-Neapolitan Treaty of 509 and Napoleon Bonaparte 500–510, 519–20 periods 497–8, 499 Pitti Palace 503, 504, 512, 516, 524, 525, 527, 534, 537 ‘Vélites de Florence’ 525 Florschütz, Christopher 546 Fontainebleau decree 523 Forez 118 Forgaill, Dallan 645 Formentera 189 Fortriu 61, 63, 66 Fossombroni, Vittorio, count 518, 535 Foster, Norman 389 Foster, Roy 646, 657 Fourcalquier 119 France 1797 campaigns and new republics 505 and Albania 601 and Austria 451–2, 500–501, 505, 508–9, 516 and Britain 505, 507, 516, 522 Burgundian–Armagnac civil war 131 and Catalonia 179, 199, 222 and Etruria 509–10, 515, 516, 524–7, 529–33 Franco-imperial Habsburg wars 407 Franco-Sardinian Treaty 423–5, 436 French Revolution 288, 412, 423, 642 Hundred Years War 128, 131 and Italy 508, 521; Italian campaign of 1796 500–501 Kingdom of 104, 128, 139, 141, 404–6 modern 141–2 and Napoleon I 500–510; ‘Second Polish War’ 293–4 Nice see Nice and Poland 521 and Sabaudia 404–6, 407, 412, 414, 417, 435, 436; annexation 412, 425–7, 435, 436, 501; Napoleon III 419–22, 423, 425; Nice 409, 410, 412, 421, 423–5, 426; plebiscite 423–8, 435; Treaty of Turin 423–5, 436 and Spain 506–7, 522–3; Franco-Spanish War 222–3; Treaty of Aranjuez 509 and Switzerland 517 Third Republic 435 and Tuscany 509, 525 War of the Sicilian Vespers 193 war with Aragon 210 West Francia’s rebranding as 115 World War I 379 Franche-Comté 128, 141, 142, 147 County-Palatine of Burgundy 124–5, 127–8, 130, 131, 138–41 Francis de Sales, St 407–8 Francis I, duke of Lorraine 504 Francis II, Holy Roman Emperor 450, 503 Franciszka Wiśniowiecka 264 François VI de Beauharnais 520 Fränkel, Moses 479–80 Frankish language 100 Franko, Ivan 467 Franks 24–6, 30, 97, 99, 104 Catalans see Catalonia/Catalans Franko-Burgundian society of Regnum Burgundiae 100–104 Franko-Burgundian wars 99 Franz-Ferdinand of Austria 597 Franz-Joseph I of Austria 450, 468–9, 475, 481, 559 Frauenburg (Frombork) 343 Fredegar/Fredegarius/Pseudo-Fredegarius 102–3 Frederick I, Barbarossa 120, 122, 124 Frederick I of Prussia (Frederick III Elector of Brandenburg) 364–7 Frederick II of Hohenstaufen 123, 126, 192, 339 Frederick II The Great, king of Prussia 286, 350, 369, 370 Frederick III Elector of Brandenburg (Frederick I of Prussia) 364–7 Frederico II of Sicily 195 Frederico IV of Naples 214 Fredro, Alexander 463, 466 Free Trade Zone, French–Swiss border 425, 428, 436 Freemasons 515 Fribourg 121 Friedland 521 Friedrich Josias, prince of Saxe-Coburg and Gotha 571 Friedrich von Sachsen 351 Friedrich Wilhelm, The Great Elector 358–9, 361, 362, 363, 364 Fuero d’Aragon, ‘Codex of Huesca’ 174 Gaelic language 41, 43–4, 76–7, 78, 80, 637, 638, 660 Gaelic Revival 642–3 Gaels 37n, 42, 43, 46, 53, 62, 71, 81–3 of Argyll 53–54 Picto-Gaelic fusion 37n, 63, 65–6 see also Scots Gaeltacht 38, 75, 82 Galbraith Clan 77 Galicia 289, 292, 295, 734 and the Bolsheviks 475–7 east Galicia/West Ukraine 441–9, 442, 450–51, 477, 478, 480, 481–2; Distrikt Galizien 479 Galician Diet 470–71 Jews 450, 454, 459, 461, 463, 464, 465, 467–8, 470, 472, 473, 477 Kingdom of Galicia and Lodomeria 449–81; c. 1900 454; c. 1914 in Austria-Hungary 474; afterlife (after 1918) 476–80; creation of 449; economy 457–8; education 465; end of 476; folk culture 464–5; government 469–71; humour 468–9; literature 466–8; and museums 481–9; national anthems 462; population 450, 458; religious culture 462–4; serfdom 455, 456–7, 469–70; society 455–7; suffrage 471; World War I 473–6 landscape 454–5 languages 460–61, 470 migration 458 New Galicia 452 ‘Peasant Rising’/‘Galician Slaughter’ 456 railway from Vienna to Lemberg and beyond 453, 454 and Vienna 452–3, 455–6, 734 west Galicia 450, 474, 476, 477, 480 Gallia Aquitania 17, 18–20, 24 Gallinians 338 Galloway (Galwyddel) 49, 62 Gallura 201 Galwyddel (Galloway) 49, 62 Gandolfo, Ange 524 Garci Ximenez 185 Garibaldi, Giuseppe 420, 425, 428, 429 Gastaustas (Gasztold) 262 Gasztołd, Stanisław 269 Gaul and the Burgundians see Burgundia/Burgundians and the Kingdom of Tolosa 18–31 Roman 17 Gdańsk see Danzig/Gdańsk Gebirtig, Mordechai 467–8 Gediminas 251–2, 253 Gellner, Ernest 632 Geneva (Genava) 95, 97, 104, 408, 505 Conference 604 Génévois 402, 407 Genghis Khan 248 Genoa/Genoese 199, 202, 205, 206, 210, 212, 420, 505, 518, 521 Conference 612–13 Geoffrey of Monmouth 54 Georg Wilhelm, Elector of Brandenburg 355–6, 358 George, St 169, 221 George IV 82 George V 562, 566–7, 568, 643, 654, 656, 659, 661, 662 GeorgeVI 659, 662–3 George Ballantine & Son Ltd 40 Georgia/Georgians 719, 731, 738 Gereint 52 German Historical Museum (DHM) 390 German Social Democratic Party (SPD) 561 Germany Brandenburg see Brandenburg/Brandenburgers and Britain: Anglo-German Friendship Society 568; ‘Dreadnought race’ 566; royal families 572–3; see also Sa