Globalization

Sustainable agriculture or Shakespeare?

While protesters voice their resistance to globalization in the streets of Seattle, a reporter wonders if they really have the people's best interests at heart.

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The weekend before the World Trade Organization standoff, I sat in
Seattles fancy new symphony hall and listened to one leader of the protest
movement explain why she was against globalization. “In the South, this
globalization has taken the form of development,” Swedish activist Helena
Norberg-Hodge told a sold-out crowd of thousands at a teach-in sponsored by
the International Forum on Globalization, a think tank. And that, she
held, only played into an evil “consumer monoculture.” Her alternative: A
kind of “localization” that encourages people to grow their own food and
become “self-reliant.”

The crowd cheered loudly and clapped. But, with a painful feeling in my gut,
I sat on my hands. My mind wandered back to a couple of years I spent living
in southern Africa in the early ’90s. I thought about poor
people I had met who packed their unbelievably small huts and houses with
heavy Western furniture and any other sign of modernity they could get their
hands on. I thought about parents in newly independent countries who
protested when schools tried to replace academic curricula with the
agricultural, bewildering those who believed that their kids had a right to
read Shakespeare and learn skills that would give them the comfortable
lifestyle of their colonizers. Who was I to tell them, as Norberg-Hodge
implied, that subsistence farming was a superior existence?

Much as I abhor wasteful consumerism and corporate greed, I want to see the
Third World get the chance to develop. My confusion, which has caused me
intense agony in a week of physical and ideological clashes, lies in whether
the WTO and globalization will help or hinder that process. Judging by the
reaction to this weeks events in the developing world, the protestors are a
bit confused about that too.

As riot police took over city streets and WTO meetings got shakily off the
ground mid-week, one Indian participant stopped in a hotel corridor to argue
that protestors who believe they are fighting for the rights of exploited
workers in developing countries have inadvertently become “like Marie
Antoinette, saying let them have cake.”

What they dont understand, said the Indian whose job does not allow him to
comment on the record, is that the labor and environmental standards that
the U.S. government is pushing to appease protestors will hurt small-time
fishermen, carpet makers and others in India who cannot possibly keep up
with the standards of the West. “If you deprive people of their bread and
butter,” he warned, “well have millions of protestors instead of
thousands.”

Indeed, many Indians believe so strongly that the protests are against
their interests that there is a widespread belief among them that the whole
affair was, in the words of Times of India economics editor Priya Ranjan
Dash, “being stage-managed by the Clinton administration.”

So in the eyes of much of the developing world, the protests — or at least how
they are being used by the White House in an election year — have become a
symbol of the very kind of Western domination they are fighting against.

That is not to say that everyone in the developing world is thrilled with
the WTO and the free trade system it represents. Many developing countries
believe they got shafted in the last round of negotiations. Delegates from
developing countries came to Seattle prepared to fight for more open markets
in the kind of products they make, such as agricultural goods and textiles.
They also wanted longer transition periods for opening up their markets to
Western goods, a toughening up of measures that call upon Western powers to
share technology with developing countries in which they do business and
the reform of intellectual property rules that prevent them from making
cheap drugs to combat AIDS and other epidemics.

For that to happen, though, what was supposed to be the WTOs “development
round” had to come off. When it did, and labor and environmental issues took
center stage instead of their issues, delegates found themselves confronting what
they perceived as yet more barriers set by the West. Hence the stage was set
for the Seattle battle within the WTO.

Most people from developing countries that I have talked to, both inside and
outside the WTO, believe that a reformed WTO is necessary if they are to
have any hope of the kind of globalization that will allow them to capture
some of the developed worlds wealth. Even Martin Khor, president of the
Malaysian think tank Third World Network and one of the protest movements
most visible intellectual leaders, told me, “I am not opposed to a
multilateral trading system.”

At the same time, most also recognize that free trade is a risky proposition
for countries that have long relied on protectionism to nurture fragile
local businesses. Malawi education minister Ken Lipenga, intently following the WTO crisis from Malawi, explains how
free trade can enter such an economy like a wrecking ball. Malawi, a southern
African country so poor that even construction workers go barefoot, recently lowered tariffs
in order to comply with a regional agreement. The result: Several British
companies who had long maintained subsidiaries there, like soap
manufacturer Lever Brothers, closed up shop and started bringing products in
from its larger operation in nearby Zimbabwe.

Lipenga and others worry that a similar phenomenon will occur on a larger
scale with the WTO. Local businesses (even subsidiaries of Western
multinationals) will die as markets are flooded with cheap goods made by
companies that enjoy access to capital and economies of scale. Thus, in the
weeks leading up to WTO, a Ford subsidiary in India held a press conference
to warn against removing tariffs in the automobile industry.

Yet the protest movement, which gives the impression that Western companies
have no business in developing countries, focuses less on this basic dynamic
than on the specter of Third World “sweatshops” run by greedy,
environment-wrecking multinationals. And indeed, they exist. El Salvadorian
union leader Manuel Vasquez came to protest events in Seattle to speak about
Western-owned factories that pay workers less than $8 a day and that have
doled out beatings so severe that some pregnant workers have lost their
babies. The American oil industrys savaging of the Nigerian countryside is
well known.

But particularly on the question of working conditions, the picture is not
so simple. Probably far more typical than sweatshops are Western-owned
companies offering salaries that are high by local standards but abysmally
low by American ones. While this imbalance seems inherently offensive, especially when American companies lay off workers here to chase after
cheap labor, these companies provide decent jobs in countries where
unemployment rates run at 30, 40, even 50 percent, and where
unemployment sometimes means going back to subsistence farming. In the very
best of cases, it brings technology, energy and a new market that will
attract local entrepreneurs. A shining example is Indias billion-dollar
high-tech industry that emerged after Microsoft, IBM and other American
firms laid a foundation there. Thats why Lipenga and others say, “We want
foreign investment. We need it.”

To get it, developing countries recognize that what they offer is cheap
labor. “That is our only weapon and we have to use it,” says Senegalese
Minister of Planning Ibrahim Sall. “They [Western countries] have
high-technology, we have cheap labor.”

Developing countries fear that labor and environmental standards could raise
the bar to unrealistic Western expectations as a way to slow foreign
investment (and save jobs in the West), as well as blocking imports from
struggling Third World entrepreneurs (eliminating competition for Western
entrepreneurs in the same market). Hence Indias Commerce Minister Murasloi
Maran labels such standards a “Trojan horse for proctectionism.”

How is it that a protest movement preaching international solidarity has
brought about this conflict? It seems to have been blinded by sloganeering
over easy-to-hate sweatshops, as well as factions with agendas that dont
necessarily coincide with Third World development.

Most crucially, the unions that poured the vast majority of people onto the
streets last week have an obvious challenge in dealing with the issue of
cheap labor. Their cruel dilemma is that whats good for American workers is
not always good for the poorest workers overseas, a dilemma that organized
labor does not seem to have fully faced.

AFL-CIO international affairs director Barbara Shailor, who also spoke at
last weekends teach-in, used her platform to refute charges of
protectionism. The countrys biggest union, she says, merely wants to ensure
that workers overseas have the right to organize. As if to prove her point,
she shared the stage with union leaders from Africa and Brazil.

But after her speech, I asked her if that meant she would be okay with jobs
going overseas if they were going to union workers who would inevitably
still earn far less than their American counterparts. She answered vaguely
that she was not “technically equipped” to answer, but that she was sure
there was a way to create a “virtuous circle” with plenty of jobs to
go around for everyone.

And maybe there is. Maybe, as one Indian here suggests, workers all over the
world could somehow meet and discuss solutions to their different needs. But
I wonder, is such a dialogue more or less likely to happen after this
weeks events in Seattle?

Nina Shapiro is a staff writer for the Seattle Weekly.

What's really at stake in Seattle

Economists speak out on the issues behind the World Trade Organization summit and the street protests.

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Accounts of the weeklong World Trade Organization conference in Seattle have thus far been dominated by the raucous events on the streets of Seattle, where protesters determined to disrupt the summit have thwarted the scheduled talks about world trade by delegates from 135 nations.

The issues at stake in the conference are numerous and complex; they pit the interests of middle-class American steelworkers against the desperately poor in the Third World, the cost of food on shelves in the United States and Western Europe against the future of many endangered species. The lineup of complaints by the alliance of groups protesting the WTO is equally complex; indeed, they have created an interesting coalition of environmentalists, labor unions and a rainbow of public interest groups.

Salon News spoke to four economic experts to clarify the issues at stake at the conference — both in the official proceedings and on the streets. On the one hand, there are the issues on the WTO’s table, and the conflicts the protests highlight: The future of global economy and its impact on national sovereignty, workers’ rights and the environment. On the other, there is the efficacy of the opposition’s tactics: Will the protest actually influence the WTO? And what about the violent tactics employed by the most radical of the groups in the streets of Seattle?

Peter Leyden is the co-author of “The Long Boom: A Vision for the Coming Age of Prosperity” and director of the Long Boom Project.

The way the economy is rapidly globalizing is very disruptive to a lot of people. But in the long run, the globalizing of the economy is very positive for a lot of the developing regions and a lot of the marginalized peoples that have not been partaking in the economic booms of the 20th century. This kind of growth is something to be enhanced rather than thwarted. Some people are looking at the developments in a very limited vision of where the actual trajectory of this development is going.

The feelings and the values of the groups that are protesting are totally legitimate. But I see those values being realized in a very different way than the way people think [they're] going to be realized.

The way to actually deal with the pervasive environmental problems on the planet is to accelerate the economic growth, to transition more quickly to new technologies which are much more clean and much more benign on the environment, rather than kind of choking up the process of globalization and keeping these regional or national economies.

For example, if you do limit the trade and interactions between nations, you would have countries like China and India, which have 70 percent of their energy needs rooted in coal, probably the dirtiest energy source on the planet. If you don’t accelerate the technology transfer so they can transition to the new generation of technologies that the developed nations like the U.S. already enjoy, you’re actually going to damage the environment more severely in the long run.

Rapid global integration of the economy and rapid technology transfer across the world is the solution to the environmental problems — it is not causing the problem. To stop that process in its tracks now is in fact the exact opposite [of the] thing you want to be doing.

If you take the labor concerns, you have got to understand this in the big picture perspective. For example, a steel manufacturer in the U.S. is all worked up because he thinks somebody producing steel across the world is going to take his job away. Well, frankly, that may be true. His kind of job could be done better and cheaper in another part of the world. And from that lone steelworker’s perspective, that could be terrifying.

But from the perspective of the American economy, we have the lowest unemployment rate in 30 years. We have sectors of the economy that are just screaming for labor and screaming for people to transition into those sectors. Of all the countries in the world right now, this country is the last one that needs to protect any sector of the economy. We could cede the entire global steel industry to developing Asian countries and it wouldn’t seriously affect the American economy.

I’m not going to completely defend the World Trade Organization as an organization, in terms of policy decisions or the bureaucrats who run it. There is a legitimate concern about having more people at the table, that should be a democratic process, an open process and a decentralized process.

That said, our technological infrastructure has already gone global. The entire economy is rapidly globalizing. Technology and the economy are now operating at this global scale. The thing that has to happen in the next 10 to 20 years is that we have to see forms of governance evolve to deal with the nature of that globalized technology and economy.

It’s in everybody’s interest to find a way that that works best, a form of global governance, or regulation, that can deal with the nature of this new, very potent, powerful global economy, one which doesn’t really fit, in this 20th century way that we regulate it, within national borders.

When people say, We don’t want a global organization that’s up to the task of working at that level, they’re totally shooting themselves in the foot. In fact, it’s impossible for national governments to deal with this creature, this global economy.

In other words, if you really were for the people’s perspective in this, if you wanted the average person to have some kind of leverage in what’s going to happening in the future here, you would be encouraging global organizations that are up to the task of wrestling with and structuring this global economy in ways that work for human beings and societies, rather than just for corporations.

To dismantle the WTO is just ludicrous — it’s about the only thing we have that’s even halfway up to the task. It’s a very recent organization, which is good. The IMF and the World Bank are trying to restructure or reformulate after they were created 50 years ago for an economy that was international, not global.

Although [the WTO] is far from perfect, in general it’s the right direction. We have to find ways to make it more democratic. We need to find other organizations to go beyond this that can help to craft this global society.

Gerald Meier is Konosuke Matsushita professor of international economics and policy analysis, emeritus, at Stanford University and author of “The International Environment of Business: Competition and Governance in the Global Economy.”

This is a hiccup. It’s a dramatic three-day thing. There’s solid concern and support for liberalizing trade and having some kind of governance over international trade, and some of these other issues do not belong with the WTO. Debt forgiveness has nothing to do with trade — it’s something for the advanced nations and the IMF. But I think the WTO will try to do something about that and make some statement. The latent general concern is about globalization and the global economy and increasing inequality and some getting so rich and the Internet, which is global, and suffering. Inequality and globalization are coming in here, along with concerns about global fairness, global justice.

The WTO is just not strong enough to take care of all that. All these other concerns are being put on the WTO and should be put elsewhere. The protestors have been physically effective in disrupting the meetings, but of course some of their demands would be considered without their protests — working parties were scheduled for labor and the environment. The protests are also counterproductive because they’ve been anticipated and the Clinton administration has been advocating some of [the issues].

Thomas Friedman had a good article [Wednesday] in the Times, [in which he wrote] that some of them are looking for a ’60s fix. Some of the arguments are nonsensical. Some of the protestors are inconsistent. Some groups would just as soon have the smoke stacks be in Bangladesh. Other groups worry about the rain forests in the developing countries — and don’t want exports from them. Others don’t want Weyerhauser to export lumber from Seattle to Indonesia because then they’re cutting down forests here. It gets all mixed up — whose environment and where? [In some cases, the protests are] disguised protectionism — [labor unions bring up] child labor, a humanitarian motive, but their real motive is to protect textiles and steel in the advanced countries.

You’re not going to get world government [with the WTO], but it is a step toward governance. It’s brought some rule of law and order to trade relations, and it has liberalized trade. Trade has increased more rapidly than world output. The increase in manufacturing goods from developing countries has been outstanding. That gives them a much higher rate of development. This meeting from the beginning was not going to be as constructive as you might think: It’s only the drafting of the agenda for the next round of trade negotiations, which take three to five years. But there is an interesting feature here: There is more concern about the role of developing countries in the global economy now.

The WTO emerged historically from the abortive International Trade Organization [ITO], based on the Havana charter, which was vetoed by Congress because it had provisions on international investment and restrictive business practices and international commodity agreements. The General Agreement on Trade and Tariffs was just the general agreement for the trade part of the ITO. The WTO was strengthened with its dispute resolution. It also moved in with concern to investment-related trade issues. Now those old issues that were rejected with ITO keep reemerging.

Dean Baker is co-director of the Center for Economic & Policy Research in Washington.

I think that the protests have been tremendously effective. But I am concerned about the framing of the issues. I think that the proponents of the WTO are painting this as pro- or con-globalization. And that’s really not at all what the protests are about. It’s not that the protestors are against globalization and the people inside are about eliminating barriers. It’s simply deciding which barriers are going to remain. The real question is: What does globalization look like?

All the laws about copyright, those are protectionist. In a fully free market, if I want to go out into the marketplace and sell Microsoft Word to somebody, I can do it. But I can’t because Bill Gates will have me arrested. It’s not a bad thing, but that is a protection. The WTO [says it] wants to talk about the inexorable march towards eliminating barriers, but that’s not quite true. A lot of people who will point to [violence in the demonstrations] were not sympathetic to the protesters anyhow. I think that the people who look at it seriously will realize that [the rioters] were a tiny minority of the protestors. When you have 50,000 people, there will be a small number of them there to break some windows. The public will understand that this is a minority that has to be stopped, like the Seattle mayor Paul Schell did.

People are there for very different reasons and they’d like to see it go in different ways. But I suspect that probably the largest group of [protesters] are there over environmental concerns. Certainly the overturning of several U.S. laws that were ruled in violation of the WTO did upset many environmentalists. The WTO cannot actually overturn laws, but the prospect that any environmental law in the U.S. could be challenged — ruled a WTO violation — certainly is a great concern to the environmentalists who work to get laws changed. It all seems very futile.

There’s not much that can come out of this [meeting] that will be very good news for workers. Just about every economist agrees that there’s been a negative impact on the wages of less-skilled workers as a result of the direction that international trade has taken. The item that the AFL leadership has pushed forward — setting up a working group on labor standards in the WTO — is going to mean almost nothing any time in the foreseeable future, given the timeline: If they get a working group out of the Seattle session, that working group will report back. And if they report that labor standards are an appropriate item, then in the next session, seven years out, then it might be an item to negotiate; that round will run another seven years. Maybe in 2014 or 2015, they’ll talk about beginning some sort of labor standards. That doesn’t promise very much to the people who are out there.

In terms of the protesters’ agenda, the best thing that can happen is a stalemate — that you don’t see any movement forward on the ground at the WTO, you don’t see anything move forward on free trade. I think that’s the best they can hope for. As for what effect it will have on the [presidential] candidates, they might not be terribly anxious to come out and say, “Yes, let’s move forward on the agenda of the WTO.” What I get a kick out of is that people from the [Clinton] administration like [U.S. Trade Representative] Charlene Barshefsky say that these issues — labor standards and the environment — should get top priority. Two weeks ago, she’s in China, up until all hours of the night sitting down with the Chinese, working on this trade deal. Is there anyone who thinks that what she was talking about was labor standards or environmental standards? That’s laughable. She was talking about opening up China to our insurance companies and our banks. Those are [the administration's] agenda items.

When they want something, these people are smart, they’re energetic, they’re tough, they’re shrewd, they’re aggressive. When they want to open up China for the banks they get it; when they want to open up China to the insurance industry they get it. When they tell China that they have to enforce copyright laws, they get it. But with labor standards and the environment, they say, “Oh, yeah. We’re working on it.”

Dan Griswold is the associate director of the Center for Trade Policy Studies at the Cato Institute in Washington.

I think that the protesters definitely got the attention of the news media and policy makers. Probably, their ability to disrupt the events there exceeded their expectations. I don’t think that anybody thought that Charlene Barshefsky would be trapped in her hotel room.

But on the other hand, I think it could backfire. It may just increase the determination of the negotiators to not be intimidated, and to make some success of it. I think from a public relations point of view, street protests and demonstrations have an honorable tradition in America and in a free society. But when you start getting acts of vandalism, when it just paralyzes the functioning of a city and an organization, I think Americans start asking some legitimate questions about whose interests are being served and whether the process can work.

In a way, the WTO has become a handy symbol for any group that has some grievance against the global trends.

These groups have been coming together ever since the NAFTA fight, which brought some of these groups out into the public arena in the trade issue. Every one of these groups in their own way are critics of the free market and of capitalism. And I think that they rightly perceive that the underlying trend is going against them as more nations turn to more open markets for goods and services and the U.S. economy continues to open up and become more integrated with the global economy.

I think one of the reasons these groups took to the streets is that they have not had the kind of influence that they would have liked to have on a national level.

Americans are uncomfortable with some of the results of globalization — some people losing their jobs, some industries contracting — but they also strongly reject the alternative. Anybody peddling old-fashioned protectionism just doesn’t get anywhere. Pat Buchanan basically got no traction with his protectionist message. So, on a presidential level, Americans continue to accept an open economy as in the national interest. I think these groups are finding that they don’t seem to be getting anywhere through the traditional channels of trying to elect a president, so in effect they’re attempting to do and end-run around the process.

It’s hard to find any evidence that expanding trade and expanding openness in the United States economy has in any way compromised environmental and health standards. We have the highest, most restrictive environmental laws of any country in the world. We also probably have the cleanest environment of any advanced country at a time when America has never traded more with the people of the rest of the world. So there’s no evidence on the ground that our environmental quality is deteriorating because of free trade. Quite the contrary.

Look at all the indicators. Concentrations of sulfur dioxide or carbon dioxide in the air, they’ve all improved. Water quality has improved. Life expectancy, all these measures of public health have improved in the last 10 or 20 years at a time when we’ve become increasingly open and integrated into the global economy.

Each country makes its own choices as to the trade-off of environmental regulations and the composition of its economy. And Americans are choosing to encourage less pollution-intensive industries through environmental regulation. Less-developed countries make different choices. They may choose to have less environmental regulation because they can’t afford American-style regulation. They just don’t have the economic resources to enact our Western standards. Secondly, when you are at a much lower level of development, those sort of things are less important relative to other considerations. When you’ve got a large part of your population on a subsistence level, they would prefer to have jobs and food and not immediately have Western living standards.

Generally, as countries grow economically and raise their living standards, they have the resources and increasingly the political will to raise their environmental standards, and that’s what’s happened. So in a way, to impose trade sanctions on developing countries because they don’t meet Western labor and environmental standards is to deny them the means of raising those standards.

One thing that people have to realize is that the large majority of WTO members are representing governments of one stripe or another. And those representatives out there either were elected or are representing elected governments. The question is, Who elected these 50,000 people out there, some of whom are committing direct violence, others of whom are just preventing people from getting where they need to go?

Dan Esty is a professor of environmental law at Yale University.

This will be a watershed for the WTO, an organization that has, until now, flown under the radar. The trade community hasn’t understood that, in a globalized world, what they’re doing is important and high-profile. At least one of the agendas of the protesters is to open up the WTO, make it more transparent.

There’s a second question about whether the environmental goals are going to be addressed. Attention has been drawn to the question of a linkage between trade policy and environmental policy, and I think that over time those values will be taken on board. But I don’t think you’re going to see — coming out of Seattle — a dramatic transformation of trade rules. But this issue may now get taken more seriously in the negotiations that follow.

This coalition [of labor and environmentalist protestors] is doing a terrible disservice to the environmental goals, because the real obstacle to getting environmental sensitivity built in to the world trading system is the developing countries, who fear that the environmental agenda is a hidden way of advancing protectionism and obstructing them from getting into the European and the U.S. markets. And that fear is being corroborated by this coalition.

The developing countries have a real interest in economic growth, spurred by opportunities for expanded trade. Some of those protesting are insisting that we not allow goods from developing countries into the U.S. market, and would set up barriers to those goods entering the U.S. markets, which legitimizes the developing nations’ concerns. Does that mean that we shouldn’t have a clearer set of environmental sensitivities built into the trading system? No. But it has allowed the developing countries, folks who are fearful of this protectionist-environmentalist alliance, to take some comfort that they were correct.

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Alicia Montgomery is an associate editor in Salon's Washington bureau.

Daryl Lindsey is associate editor of Salon News and an Arthur Burns fellow. He currently lives in Berlin and writes for Salon and Die Welt.

Fiona Morgan is an associate editor for Salon News.

Germany’s mambo king

Stuck between a rock and a hard place, flailing Chancellor Gerhard Schroeder takes lessons in political survival from President Clinton.

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Germany's mambo king

Times are so tough lately for German Chancellor Gerhard Schroeder, dragged down by discord in his own Social Democratic party, regular drubbings in regional elections and a still-sluggish German economy, it’s tempting to predict his government will fall sometime soon. But that won’t happen.

In his one year in office, Schroeder has learned valuable lessons in political survival from that ultimate survivor, Bill Clinton, and even last weekend’s most recent regional setback could in fact be seen as good news. The rival Christian Democrats won 41.6 percent of the vote in Baden-Wuerttemberg, a gain of 10 percentage points over 1994. But the SPD dropped less than two percentage points, less than expected, as in recent elections in Berlin, giving Schroeder a break in the expectations game, which is of course the game that matters most.

Schroeder must have moments where he wishes he was his old, inevitable predecessor, Helmut Kohl, accepted by the German people as a fact of life, if never a universally admired one. Recent polls show 40 percent of Germans would like to have Kohl as chancellor right now, compared to 38 percent for Schroeder. But while he may harbor private fantasies of breaking Kohl’s record of 16 years in Germany’s highest office, he would never envy Kohl’s public persona. For one thing, Schroeder could never endure being as fat as Kohl. Schroeder hankers after looking good almost as much as he craves power. This isn’t just vanity. It’s also proof of how much he has been shaped as a leader by studying Clinton’s style.

For years, Schroeder has gone to sleep at night comparing himself to Clinton, and in more ways than the obvious: Schroeder and the third of his four wives were known as the Clintons of Lower Saxony, and by most accounts, loved the comparison. Schroeder’s third wife was “Hillu,” and the similarity to “Hillary” was often noted with a kind of desperate pride. That marriage didn’t work out because Schroeder believed he could never be chancellor with Hillu as his wife, given her knack for public gaffes — one obvious contrast with Clinton. Another comes in the area of consequences. If Schroeder were an American politician dipping in the polls the way he has of late, some sort of scandal related to the sack would long since have presented itself and driven him from office. But this is not America, and Schroeder will have to do much more than astonish visiting U.S. journalists with his ham-handed flirting with their news assistants if he is ever to pay any political price for his reputation as a sort of schlumpy Lothario, an image that opens him up to all sorts of ridicule in the press.

“Kohl was a very good chancellor, especially for satirists and humorists, because he was very charming, very powerful and also very fat,” said Oliver Maria Schmitt, editor-in-chief of Germany’s popular satiric magazine Titanic. “But we had no problem when Schroeder came to power. We showed him as a more sexually successful man than Kohl. He’s now married his fourth time, and Helmut Kohl is still married to his old housewife. We see Schroeder as a representative of this new, eager type of politician … [with] absolutely no moral aims or values. They just like power. I think this is a reason why Schroeder is a very good friend with (Tony) Blair and adores Mr. Clinton, not only because of being in power but also because of his legendary cigar tricks.”

Schroeder became ludicrous before he could become despised. His Brioni suits and enthusiasm for women have defined his time in office so far almost as much as his political wishy-washiness and the bitter pill of economic self-control he seems serious about selling to the German people. His knack for self-caricature was as important a reason for his troubled early months in office as his ideas or his support of the war in Kosovo. But it’s unlikely any of this will matter much. Unless Schroeder panics (as he has admittedly shown signs of doing in recent weeks), he will get enough time in office to see if the German economy can rebound, and his public support along with it.

That’s in part because of what experts on Germany see as a cautious national mindset. “Germans don’t change horses in midstream,” said Jackson Janes, executive director of the Washington-based American Institute for Contemporary German Studies. “They threw out the government last year, and that was a first. That would lead me to think Schroeder has until about a year from now where he can say that the reforms took, maybe a dip in unemployment or some movement in the economy.”

Post-Kohl Germany needed a transitional figure to move it beyond the old chancellor’s country-doctor prescription of two aspirin and a big plate of wurst to anyone feeling the ache of Germany’s economic reunification. Schroeder is more like a Fuller Brush salesman, hopping on some new scheme and talking it up like he expects you to buy his rap just because he’s putting a lot into it. The problem is, this sort of approach works better in America, where voters’ memories are short. Germans are used to putting things in a larger context, and they know just what Schroeder is doing when he leans left — like he recently did by speaking in favor of a law establishing an early retirement age of 60 and a new tax on the wealthy — and then leaning right, as he reiterated his determination to freeze pension benefits next year as part of a plan to trim more than $16 billion in federal spending on social programs.

Even though Schroeder comes from an authentic working-class background, his efforts to campaign on behalf of SPD candidates in the recent regional elections did not go over well. He’s seen as a yuppie now, and union members and others in the SPD’s classic left constituency view his belt-tightening measures as a form of betrayal. When Schroeder first took office, he made a lot of noise about being a traditional Social Democrat. He insisted he could solve Germany’s economic problems without having to mess with the old equation of heavy social spending to pay for such services as national health care, taken for granted here. But when prominent party member Oskar LaFontaine bolted the government, Schroeder set about redefining himself as a Tony Blair-style liberal by making economic viability a top priority.

Most political analysts here see this middle course as Schroeder’s only hope to make something of his chancellorship, given the difficulty of actually making the sort of compromises required to govern while keeping a left-wing constituency happy. But by holding firm, Schroeder risks alienating his own party.

Schroeder may be a bit of a bumbler, and he may have lost focus about who he wants to be as a German leader, but the key question remains where the country winds up a year or two down the road, which will determine whether he has a shot a winning a second term. In fact, some politically savvy Berliners even wonder if Schroeder overdid the fashion-victim persona just so he would find it easier later to show how many hard lessons he has learned in office. If he and Blair take many of their political moves from the U.S., why not learn the ultimate lesson and craft yourself as a political survivor, able to pull through the lowest lows and keep smiling? There’s an art to making enough of an impression to be ridiculed, and not just for banging your knees on car doors like Gerald Ford. Schroeder seems to excel in this regard.

Schroeder just has to avoid looking so Clintonesque when it comes to his approach to policy. Words like “wobbly” and “zig-zag” too often crop up. “The motto of the mambo chancellor is two steps forward, one step back — or vice-versa,” cracked the rightist Die Welt this month.

That sort of lacerating, on-target criticism has taken a toll on Schroeder, who will need time to grow into the role of chancellor. He has clearly been shaken by a series of stinging rebukes to the SPD and its coalition partner, the Greens, and stronger-than-expected showings for Kohl’s party, the Christian Democrats. Even normally fringe right-wing parties leaning hard on xenophobic slogans like “German Jobs for Germans” and “Get Out Foreigners” have made electoral gains, as did the former communists, whose somewhat bizarre electoral strategy featured campaign ads in cinemas (before the trailers) showing a variety of naked people happily swimming under water. Germans have a reputation for making even the uncomplicated complicated, and their political hurly-burly shows its a much deserved reputation.

Splits in the German left are fascinating, all the more so because of the German impulse toward analysis and theorizing. Schroeder has been reeling ever since LaFontaine left the government in disgust, and this autumn LaFontaine has become the talk of Berlin with his book blasting Schroeder for turning his back on the bedrock principles of the party and jumping on the globalization bandwagon. “The German left still has an unsolved conflict between two groups,” explained Jochen Buchsteiner, a political writer for the high-profile intellectual weekly Die Zeit. “The one group is the traditional left group which is oriented toward LaFontaine, saying that globalization is something you have to fight against and you have to preserve the German model; and on the other hand you have the so-called modernizers, Schroeder and other people on the left, saying, ‘No, we have to adopt our system to globalization.’”

Schroeder took a step toward asserting his leadership qualities last week by stepping on the toes of his popular foreign minister, Joschka Fischer, the most prominent member of the Green Party. The Greens joined the SPD a year ago to form the current government in a “red-green” coalition that no one saw coming. Fischer opposed delivering a tank to Turkey as part of a possible arms deal, because of the Turkish record on human rights. The German yellow press reported that Fischer complained of “harassment,” but a spokesman described the meeting they held lat last week to clear the air as “an open and good talk,” which is apparently the local version of what in Washington they call a “frank and cordial exchange of views.”

The Greens are in even worse shape than the Social Democrats, sending signals that political extinction is not altogether out of the question. The Greens were created as an opposition party, grew toward prominence as an opposition party, and seem incapable of shedding this legacy; one telltale sign of their institutional weakness comes in the rules, hotly contested by Fischer, prohibiting anyone holding high office from being a party leader.

The Christian Democrats are licking their chops, even though their 16 years in power make it a little hard for them to play the opposition game too vigorously. Even the CDU acknowledges that it’s unlikely the current coalition government will fall in the next couple of years. They can afford to be patient, since Schroeder’s mixed signals make the CDU look good by comparison.

“Schroeder cannot take this big step from the left to the middle, or to the right of the middle,” said Norbert Barthle, one of a new wave of younger CDU representatives trying to plan the party’s future. “That’s good for us, because we are the party situated in the middle. Schroeder has no choice. He must go to the left, otherwise his own party will not support him.”

But Barthle and others may be forgetting the lessons Schroeder has gained from Bill Clinton’s political act. As much as apparent rudderlessness drives political professionals and media types crazy, it can also translate into a bizarre staying power. People might in the end rather like politicians who can reinvent themselves constantly, a fact attested to by Clinton’s current 56 percent approval rating (according to Gallup). There is something modern and television-age about ignoring even the recent past, and that’s just what Schroeder does.

“At the beginning, before he was voted chancellor, I think he was very good on TV,” said German television actress Iris Boehm. “But at the moment it’s different. He’s not sure about his image any more. He seems to have lost his sense of humor. He feels attacked now very quickly if people are asking questions he doesn’t want.” In the process of changing his public image from lighthearted to serious, she predicts he might loose some of his media-genic appeal. “I think Clinton does have charisma, and I think most German women think the same about Schroeder, but somewhere along the line he has lost some of this charisma, around the time LaFontaine left. He doesn’t know any more who he wants to be.”

It’s an axiom in those two great American spectacles, politics and sports, that you make your own luck. Clinton may have been very lucky to scrape through his various harrowing episodes and still have relatively high poll numbers. Or he may have learned some lessons from Ronald Reagan about the importance in a television age of playing a part. Politicians like Blair and Schroeder who take that lesson and run with it may be the ones laughing last

Short-term trouble can add up to long-term disaster, but smart politicians ignore the carping of their critics and concentrate on doing what they have to do. As publicly as he wrestles with himself, Schroeder has learned from a good enough teacher to remember that in the end.

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