Which Record is Worse Market Failure or State Failure?

By Con George-Kotzabasis

Those who so lackadaisically, ignorantly, and one-sidedly, like the liberal ‘questions’, dismiss the efficiency and effectiveness of the “free market” that since its origins and rise has increased by leaps and bounds the standard of living of the masses, according to the Indian economist Amartya Sen, should consider the following: if someone objectively and impartially contrasted historically “market failure” with “state failure” the latter would outweigh the former by tons. A recent egregious example of state failure is President Obama’s spending of a trillion dollars to create jobs. Not to mention the historical example of the failure of the Soviet Union, with its inherently command dirigiste policies, which economists of the stature of Ludwig von Mises had predicted all along.

Egypt: Which Side Will the Dominoes Fall?

In view of the triumph of the Muslim Brotherhood in Egypt, I'm republishing the following essay that was written in February 2011, that foreshadowed and tried to prevent by a proposal of mine the fall of the country to radical Islam, for the readers of this blog.

By Con George-Kotzabasis February 08, 2011

Swallowing victory in one gulp may choke one.

Egypt, not unexpectedly for those who have read history and can to a certain extent adumbrate its future course, as one of the offsprings (Tunisia was the first one) of the rudimentary Democratic paradigm that was established in Iraq by the U.S. ‘invasion’, has a great potential of strengthening this paradigm and spreading it to the whole Arab region. The dominoes that started falling in Iraq under a democratic banner backed by the military power of the Coalition forces are now falling all over the Arab territories dominated by authoritarian and autocratic governments. The arc that expands from Tunisia to Iran and contains all other Arab countries has the prospect and promise of becoming the arc of Democracy. But Heisenberg’s principle of uncertainty in physics also and equally applies to politics. For one cannot predict, especially in a revolutionary situation, and more so, when it is combined with fledgling and immature political parties that is the present political configuration in Egypt as well as of the rest of the Arab world due to the suppression of political parties by their authoritarian regimes, whether the dominoes will fall on the side of Democracy or on the side of Sharia radical Islam. This is why the outcome of the current turmoil in Egypt is of so paramount geopolitical importance. And that is why the absolute necessity of having a strong arm at the helm that will navigate the presently battered State of Egypt toward the safe port of Democracy is of the utmost importance. Contrariwise, to leave the course of these momentous events in the hands of the spontaneous and totally inexperienced leaders of the uprising against Mubarak is a recipe of irretrievable disaster. For that can bring the great possibility, if not ensure, that the dominoes in the whole Arab region will be loaded to fall on the side of the extremists of Islam. And this is why in turn for the U.S. and its allies in the war against global terror, it is of the uttermost strategic importance to use all their influence and prowess to veer Egypt toward a Democratic outcome.

One is constrained to build with the materials at hand. If the only available materials one has to build a structure in an emergency situation are bricks and mortar he will not seek and search for materials of a stronger fibre, such as steel, by which he could build a more solid structure. Presently in Egypt, the army is the material substance of ‘bricks and mortar’ by which one could build a future Democratic state. It would be extremely foolish therefore to search for a stronger substance that might just be found in civil society or among the protesters of Tahrir Square. That would be politically a wild goose chase at a time when the tectonic plates of the country are moving rapidly toward a structural change in the body politic. The army therefore is the only qualified, disciplined organization that can bring an orderly transitional change on the political landscape of the country. Moreover, the fact that it has the respect of the majority of the Egyptian people and that it has been bred and nourished on secular and nationalist principles, ensures by its politically ‘synthetic nature’ that it will not go against the wishes of the people for freedom and democracy, that it will be a bulwark against the extremists of the Muslim Brotherhood, and that it will be prepared to back the change from autocracy to democracy, if need be, with military force and thus steer the country away from entering the waters of anarchy and ‘permanent’ political instability that could push Egypt to fall into the lap of the supporters of Allahu Akbar.

The task of the army or rather its political representatives will be to find the right people endowed with political adeptness, experience, imagination, and foresight from a wide pool of political representation that would also include members of the old regime who will serve not only for their knowledge in the affairs of state but also as the strong link to the chain of the anchor that will prevent any possibility that the new political navigation of the country will go adrift. The former head of Egyptian Intelligence Omar Suleiman will play a pivotal role in this assembly of political representation which will not exclude members of the Muslim Brotherhood. What is of vital importance however is that this new political process will not be violently discontinued from the old regime. While room will be made to ensconce the new representatives of the people to government positions, this will not happen at the expense of crowding out old government hands. The only person that will definitely be left out will be Hosni Mubarak and some of his conspicuous cronies. And Mubarak himself has already announced that neither he nor his son will be candidates in the presidential elections in September. The call of the Tahrir Square protesters to resign now has by now become an oxymoron by Mubarak’s announcement not to stand as president in the next election. Further it is fraught with danger as according to the Constitution if he resigns now elections for the presidency must be held after sixty days. That means a pot- pourri of candidates for president will come forward without the people having enough time either to evaluate their competence nor their political bona fide and might elect precipitatingly without critical experience and guidance a ‘dunce’ for president, an Alexander Kerensky in the form of Mohamed Al Baradei, that will open the passage to the Islamic Bolsheviks. To avoid this likely danger I’m proposing the following solution that in my opinion would be acceptable to all parties in this political melee.

The Vice President Omar Suleiman as representative of the armed forces, to immediately set up a committee under his chairmanship that will comprise members of the variable new and old political organizations of the country, whose task will be to appoint the members of a ‘shadow government’ whose function in turn will be to put an end to the protests that could instigate a military coup d’état , to make the relevant amendments to the constitution that will guide the country toward democracy, and to prepare it for the presidential elections in September. The members of this shadow government will be a medley of current holders of government that would include the most competent of all, Ahmed Nazif, the former prime minister, who was sacked by Mubarak as a scapegoat, and of the old and new political parties that emerged since the bouleversement against Mubarak. The executive officer of this 'government in the wings' will be Vice President Suleiman, who, with the delegated powers given to him by the present no more functional president Mubarak will be the real president during this interim period. Finally, the members of this shadow government will have a tacit agreement that their political parties will support candidates for president in the September elections who were selected by consensus among its members.

The ‘establishment’ of such a shadow government might be the political Archimedean point that would move Egypt out of the crisis and push it toward democracy.

Hic Rhodus hic salta