This post continues a series begun in 2014 on implementing the Common Core State Standards (CCSS).  The first installment introduced an analytical scheme investigating CCSS implementation along four dimensions:  curriculum, instruction, assessment, and accountability.  Three posts focused on curriculum.  This post turns to instruction.  Although the impact of CCSS on how teachers teach is discussed, the post is also concerned with the inverse relationship, how decisions that teachers make about instruction shape the implementation of CCSS.

A couple of points before we get started.  The previous posts on curriculum led readers from the upper levels of the educational system—federal and state policies—down to curricular decisions made “in the trenches”—in districts, schools, and classrooms.  Standards emanate from the top of the system and are produced by politicians, policymakers, and experts.  Curricular decisions are shared across education’s systemic levels.  Instruction, on the other hand, is dominated by practitioners.  The daily decisions that teachers make about how to teach under CCSS—and not the idealizations of instruction embraced by upper-level authorities—will ultimately determine what “CCSS instruction” really means.

I ended the last post on CCSS by describing how curriculum and instruction can be so closely intertwined that the boundary between them is blurred.  Sometimes stating a precise curricular objective dictates, or at least constrains, the range of instructional strategies that teachers may consider.  That post focused on English-Language Arts.  The current post focuses on mathematics in the elementary grades and describes examples of how CCSS will shape math instruction.  As a former elementary school teacher, I offer my own personal opinion on these effects.

Certain aspects of the Common Core, when implemented, are likely to have a positive impact on the instruction of mathematics. For example, Common Core stresses that students recognize fractions as numbers on a number line.  The emphasis begins in third grade:

CCSS.MATH.CONTENT.3.NF.A.2
Understand a fraction as a number on the number line; represent fractions on a number line diagram.

CCSS.MATH.CONTENT.3.NF.A.2.A
Represent a fraction 1/b on a number line diagram by defining the interval from 0 to 1 as the whole and partitioning it into b equal parts. Recognize that each part has size 1/b and that the endpoint of the part based at 0 locates the number 1/b on the number line.

CCSS.MATH.CONTENT.3.NF.A.2.B
Represent a fraction a/b on a number line diagram by marking off a lengths 1/b from 0. Recognize that the resulting interval has size a/b and that its endpoint locates the number a/b on the number line.

When I first read this section of the Common Core standards, I stood up and cheered.  Berkeley mathematician Hung-Hsi Wu has been working with teachers for years to get them to understand the importance of using number lines in teaching fractions.^[1] American textbooks rely heavily on part-whole representations to introduce fractions.  Typically, students see pizzas and apples and other objects—typically other foods or money—that are divided up into equal parts.  Such models are limited.  They work okay with simple addition and subtraction.  Common denominators present a bit of a challenge, but ½ pizza can be shown to be also 2/4, a half dollar equal to two quarters, and so on. 

With multiplication and division, all the little tricks students learned with whole number arithmetic suddenly go haywire.  Students are accustomed to the fact that multiplying two whole numbers yields a product that is larger than either number being multiplied: 4 X 5 = 20 and 20 is larger than both 4 and 5.^[2]  How in the world can ¼ X 1/5 = 1/20, a number much smaller than either 1/4or 1/5?  The part-whole representation has convinced many students that fractions are not numbers.  Instead, they are seen as strange expressions comprising two numbers with a small horizontal bar separating them. 

I taught sixth grade but occasionally visited my colleagues’ classes in the lower grades.  I recall one exchange with second or third graders that went something like this:

“Give me a number between seven and nine.”  Giggles. 

“Eight!” they shouted. 

“Give me a number between two and three.”  Giggles.

“There isn’t one!” they shouted. 

“Really?” I’d ask and draw a number line.  After spending some time placing whole numbers on the number line, I’d observe,  “There’s a lot of space between two and three.  Is it just empty?” 

Silence.  Puzzled little faces.  Then a quiet voice.  “Two and a half?”

You have no idea how many children do not make the transition to understanding fractions as numbers and because of stumbling at this crucial stage, spend the rest of their careers as students of mathematics convinced that fractions are an impenetrable mystery.   And  that’s not true of just students.  California adopted a test for teachers in the 1980s, the California Basic Educational Skills Test (CBEST).  Beginning in 1982, even teachers already in the classroom had to pass it.   I made a nice after-school and summer income tutoring colleagues who didn’t know fractions from Fermat’s Last Theorem.  To be fair, primary teachers, teaching kindergarten or grades 1-2, would not teach fractions as part of their math curriculum and probably hadn’t worked with a fraction in decades.  So they are no different than non-literary types who think Hamlet is just a play about a young guy who can’t make up his mind, has a weird relationship with his mother, and winds up dying at the end.

Division is the most difficult operation to grasp for those arrested at the part-whole stage of understanding fractions.  A problem that Liping Ma posed to teachers is now legendary.^[3]

She asked small groups of American and Chinese elementary teachers to divide 1 ¾ by ½ and to create a word problem that illustrates the calculation.  All 72 Chinese teachers gave the correct answer and 65 developed an appropriate word problem.  Only nine of the 23 American teachers solved the problem correctly.  A single American teacher was able to devise an appropriate word problem.  Granted, the American sample was not selected to be representative of American teachers as a whole, but the stark findings of the exercise did not shock anyone who has worked closely with elementary teachers in the U.S.  They are often weak at math.  Many of the teachers in Ma’s study had vague ideas of an “invert and multiply” rule but lacked a conceptual understanding of why it worked.

A linguistic convention exacerbates the difficulty.  Students may cling to the mistaken notion that “dividing in half” means “dividing by one-half.”  It does not.  Dividing in half means dividing by two.  The number line can help clear up such confusion.  Consider a basic, whole-number division problem for which third graders will already know the answer:  8 divided by 2 equals 4.   It is evident that a segment 8 units in length (measured from 0 to 8) is divided by a segment 2 units in length (measured from 0 to 2) exactly 4 times.  Modeling 12 divided by 2 and other basic facts with 2 as a divisor will convince students that whole number division works quite well on a number line. 

Now consider the number ½ as a divisor.  It will become clear to students that 8 divided by ½ equals 16, and they can illustrate that fact on a number line by showing how a segment ½ units in length divides a segment 8 units in length exactly 16 times; it divides a segment 12 units in length 24 times; and so on.  Students will be relieved to discover that on a number line division with fractions works the same as division with whole numbers.

Now, let’s return to Liping Ma’s problem: 1 ¾ divided by ½.   This problem would not be presented in third grade, but it might be in fifth or sixth grades.  Students who have been working with fractions on a number line for two or three years will have little trouble solving it.  They will see that the problem simply asks them to divide a line segment of 1 3/4 units by a segment of ½ units.  The answer is 3 ½ .  Some students might estimate that the solution is between 3 and 4 because 1 ¾ lies between 1 ½ and 2, which on the number line are the points at which the ½ unit segment, laid end on end, falls exactly three and four times.  Other students will have learned about reciprocals and that multiplication and division are inverse operations.  They will immediately grasp that dividing by ½ is the same as multiplying by 2—and since 1 ¾ x 2 = 3 ½, that is the answer.  Creating a word problem involving string or rope or some other linearly measured object is also surely within their grasp.

I applaud the CCSS for introducing number lines and fractions in third grade.  I believe it will instill in children an important idea: fractions are numbers.  That foundational understanding will aid them as they work with more abstract representations of fractions in later grades.   Fractions are a monumental barrier for kids who struggle with math, so the significance of this contribution should not be underestimated.

I mentioned above that instruction and curriculum are often intertwined.  I began this series of posts by defining curriculum as the “stuff” of learning—the content of what is taught in school, especially as embodied in the materials used in instruction.  Instruction refers to the “how” of teaching—how teachers organize, present, and explain those materials.  It’s each teacher’s repertoire of instructional strategies and techniques that differentiates one teacher from another even as they teach the same content.  Choosing to use a number line to teach fractions is obviously an instructional decision, but it also involves curriculum.  The number line is mathematical content, not just a teaching tool.

Guiding third grade teachers towards using a number line does not guarantee effective instruction.  In fact, it is reasonable to expect variation in how teachers will implement the CCSS standards listed above.  A small body of research exists to guide practice. One of the best resources for teachers to consult is a practice guide published by the What Works Clearinghouse: Developing Effective Fractions Instruction for Kindergarten Through Eighth Grade (see full disclosure below).^[4]  The guide recommends the use of number lines as its second recommendation, but it also states that the evidence supporting the effectiveness of number lines in teaching fractions is inferred from studies involving whole numbers and decimals.  We need much more research on how and when number lines should be used in teaching fractions.

Professor Wu states the following, “The shift of emphasis from models of a fraction in the initial stage to an almost exclusive model of a fraction as a point on the number line can be done gradually and gracefully beginning somewhere in grade four. This shift is implicit in the Common Core Standards.”^[5]  I agree, but the shift is also subtle.  CCSS standards include the use of other representations—fraction strips, fraction bars, rectangles (which are excellent for showing multiplication of two fractions) and other graphical means of modeling fractions.  Some teachers will manage the shift to number lines adroitly—and others will not.  As a consequence, the quality of implementation will vary from classroom to classroom based on the instructional decisions that teachers make.  

The current post has focused on what I believe to be a positive aspect of CCSS based on the implementation of the standards through instruction.  Future posts in the series—covering the “bad” and the “ugly”—will describe aspects of instruction on which I am less optimistic.

The eurozone has three problems: national debt obligations that cannot be met, medium-term imbalances in trade competitiveness, and long-term structural flaws.

The short-run problem requires more of the monetary easing that Germany has, with appalling shortsightedness, been resisting, and less of the near-term fiscal restraint that Germany has, with equally appalling shortsightedness, been seeking. To insist that Greece meet all of its near-term current debt service obligations makes about as much sense as did French and British insistence that Germany honor its reparations obligations after World War I. The latter could not be and were not honored. The former cannot and will not be honored either.

The medium-term problem is that, given a single currency, labor costs are too high in Greece and too low in Germany and some other northern European countries. Because adjustments in currency values cannot correct these imbalances, differences in growth of wages must do the job—either wage deflation and continued depression in Greece and other peripheral countries, wage inflation in Germany, or both. The former is a recipe for intense and sustained misery. The latter, however politically improbable it may now seem, is the better alternative.

The long-term problem is that the eurozone lacks the fiscal transfer mechanisms necessary to soften the effects of competitiveness imbalances while other forms of adjustment take effect. This lack places extraordinary demands on the willingness of individual nations to undertake internal policies to reduce such imbalances. Until such fiscal transfer mechanisms are created, crises such as the current one are bound to recur.

Present circumstances call for a combination of short-term expansionary policies that have to be led or accepted by the surplus nations, notably Germany, who will also have to recognize and accept that not all Greek debts will be paid or that debt service payments will not be made on time and at originally negotiated interest rates. The price for those concessions will be a current and credible commitment eventually to restore and maintain fiscal balance by the peripheral countries, notably Greece.

The American people deserve to have a federal government that is both responsive and effective. That simply isn’t the case for more than 1 million people who are awaiting the adjudication of their applications for disability benefits from the Social Security Administration.

Washington can and must do better. This gridlock harms applicants either by depriving them of much-needed support or effectively barring them from work while their cases are resolved because having any significant earnings would immediately render them ineligible. This is unacceptable.

Within the next month, the Government Accountability Office, the nonpartisan congressional watchdog, will launch a study on the issue. More policymakers should follow GAO’s lead. A solution to this problem is long overdue. Here’s how the government can do it.

Congress does not need to look far for an example of how to reduce the SSA backlog. In 2013, the Veterans Administration cut its 600,000-case backlog by 84 percent and reduced waiting times by nearly two-thirds, all within two years. It’s an impressive result.

Why have federal officials dealt aggressively and effectively with that backlog, but not the one at SSA? One obvious answer is that the American people and their representatives recognize a debt to those who served in the armed forces. Allowing veterans to languish while a sluggish bureaucracy dithers is unconscionable. Public and congressional outrage helped light a fire under the bureaucracy. Administrators improved services the old-fashioned way — more staff time. VA employees had to work at least 20 hours overtime per month.

Things are a bit more complicated at SSA, unfortunately. Roughly three quarters of applicants for disability benefits have their cases decided within about nine months and, if denied, decide not to appeal. But those whose applications are denied are legally entitled to ask for a hearing before an administrative law judge — and that is where the real bottleneck begins.

There are too few ALJs to hear the cases. Even in the best of times, maintaining an adequate cadre of ALJs is difficult because normal attrition means that SSA has to hire at least 100 ALJs a year to stay even. When unemployment increases, however, so does the number of applications for disability benefits. After exhausting unemployment benefits, people who believe they are impaired often turn to the disability programs. So, when the Great Recession hit, SSA knew it had to hire many more ALJs. It tried to do so, but SSA cannot act without the help of the Office of Personnel Management, which must provide lists of qualified candidates before agencies can hire them. SSA employs 85 percent of all ALJs and for several years has paid OPM approximately $2 million annually to administer the requisite tests and interviews to establish a register of qualified candidates. Nonetheless, OPM has persistently refused to employ legally trained people to vet ALJ candidates or to update registers. And when SSA sought to ramp up ALJ hiring to cope with the recession challenge, OPM was slow to respond.

In 2009, for example, OPM promised to supply a new register containing names of ALJ candidates. Five years passed before it actually delivered the new list of names. For a time, the number of ALJs deciding cases actually fell. The situation got so bad that the president’s January 2015 budget created a work group headed by the Office of Management and Budget and the Administrative Conference of the United States to try to break the logjam. OPM promised a list for 2015, but insisted it could not change procedures. Not trusting OPM to mend its ways, Congress in October 2015 enacted legislation that explicitly required OPM to administer a new round of tests within the succeeding six months.

These stopgap measures are inadequate to the challenge. Both applicants and taxpayers deserve prompt adjudication of the merits of claims. The million-person backlog and the two-year average waits are bad enough. Many applicants wait far longer. Meanwhile, they are strongly discouraged from working, as anything more than minimal earnings will cause their applications automatically to be denied. Throughout this waiting period, applicants have no means of self-support. Any skills applicants retain atrophy.

The shortage of ALJs is not the only problem. The quality and consistency of adjudication by some ALJs has been called into question. For example, differences in approval rates are so large that differences among applicants cannot plausibly explain them. Some ALJs have processed so many cases that they could not possibly have applied proper standards. In recognition of both problems, SSA has increased oversight and beefed up training. The numbers have improved. But large and troubling variations in workloads and approval rates persist.

For now, political polarization blocks agreement on whether and how to modify eligibility rules and improve incentives to encourage work by those able to work. But there is bipartisan agreement that dragging out the application process benefits no one. While completely eliminating hearing delays is impossible, adequate administrative funding and more, better trained hearing officers would help reduce them. Even if OPM’s past record were better than it is, OPM is now a beleaguered agency, struggling to cope with the fallout from a security breach that jeopardizes the security of the nation and the privacy of millions of current and past federal employees and federal contractors. Mending this breach and establishing new procedures will — and should — be OPM’s top priority.

That’s why, for the sake of everyone concerned, responsibility for screening candidates for administrative law judge positions should be moved, at least temporarily, to another agency, such as the Administrative Conference of the United States. Shortening the period that applicants for disability benefits now spend waiting for a final answer is an achievable goal that can and should be addressed. Our nation’s disabled and its taxpayers deserve better.

Editor's note: This piece originally appeared in Politico.

Senior Fellows Ron Haskins and Isabel Sawhill are the first joint recipients of the Daniel Patrick Moynihan Prize from the American Academy of Political and Social Science (AAPSS). The prize is awarded each year to a leading policymaker, social scientist, or public intellectual whose career focuses on advancing the public good through social science. It was named after the late senator from New York and renowned sociologist Daniel Patrick Moynihan. The pair accepted the award May 12 at a ceremony in Washington, DC. 

In their joint lecture delivered at the ceremony, Haskins and Sawhill emphasized the importance of evidence-based public policy, highlighting Sawhill’s latest work in her book, Generation Unbound (Brookings, 2014). Watch their entire speech here:

“Marriage is disappearing and more and more babies are born outside marriage,” Sawhill said during the lecture. “Right now, the proportion born outside of marriage is about 40 percent. It’s higher than that among African Americans and lower than that among the well-educated. But it’s no longer an issue that just affects the poor or minority groups.”

Download Sawhill's slides » | Download Ron Haskins' slides »

The power of evidence-based policy is finally being recognized, Haskins added. “One of the prime motivating factors of the current evidence-based movement,” he said, “is the understanding, now widespread, that most social programs either have not been well evaluated or they don’t work.” Haskins continued:

Perhaps the most important social function of social science is to find and test programs that will reduce the nation’s social problems. The exploding movement of evidence-based policy and the many roots the movement is now planting, offer the best chance of fulfilling this vital mission of social science, of achieving, in other words, exactly the outcomes Moynihan had hoped for.

He pointed toward the executive branch, state governments, and non-profits implementing policies that could make substantial progress against the nation’s social problems.

Richard Reeves, a senior fellow at Brookings and co-director, with Haskins, of the Center on Children and Families (CCF), acknowledged Haskins and Sawhill’s “powerful and unique intellectual partnership” and their world-class work on families, poverty, opportunity, evidence, parenting, work, and education.

Haskins and Sawhill were the first to be awarded jointly by the AAPSS, which recognizes their 15-year collaboration at Brookings and the Center on Children and Families, which they established. In addition to their work at CCF, the two co-wrote Creating an Opportunity Society (Brookings 2009) and serve as co-editors of The Future of Children, a policy journal that tackles issues that have an impact on children and families.

Haskins and Sawhill join the ranks of both current and past Brookings scholars who have received the Moynihan Prize, including Alice Rivlin (recipient of the inaugural prize), Rebecca Blank, and William Julius Wilson along with other distinguished scholars and public servants.

Want to learn more about the award’s namesake? Read Governance Studies Senior Fellow and historian Steve Hess’s account of Daniel Patrick Moynihan’s time in the Nixon White House in his book The Professor and the President (Brookings, 2014).

The idea of a universal basic income (UBI) is certainly an intriguing one, and has been gaining traction. Swiss voters just turned it down. But it is still alive in Finland, in the Netherlands, in Alaska, in Oakland, CA, and in parts of Canada. 

Advocates of a UBI include Charles Murray on the right and Anthony Atkinson on the left. This surprising alliance alone makes it interesting, and it is a reasonable response to a growing pool of Americans made jobless by the march of technology and a safety net that is overly complex and bureaucratic. A comprehensive and excellent analysis in The Economist points out that while fears about technological unemployment have previously proved misleading, “the past is not always a good guide to the future.”

Robert Greenstein argues, however, that a UBI would actually hurt the poor by reallocating support up the income scale. His logic is inescapable: either we have to spend additional trillions providing income grants to all Americans or we have to limit assistance to those who need it most. 

One option is to provide unconditional payments along the lines of a UBI, but to phase it out as income rises. Libertarians like this approach since it gets rid of bureaucracies and leaves the poor free to spend the money on whatever they choose, rather than providing specific funds for particular needs. Liberals fear that such unconditional assistance would be unpopular and would be an easy target for elimination in the face of budget pressures. Right now most of our social programs are conditional. With the exception of the aged and the disabled, assistance is tied to work or to the consumption of necessities such as food, housing, or medical care, and our two largest means-tested programs are Food Stamps and the Earned Income Tax Credit.

Liberals have been less willing to openly acknowledge that a little paternalism in social policy may not be such a bad thing. In fact, progressives and libertarians alike are loath to admit that many of the poor and jobless are lacking more than just cash. They may be addicted to drugs or alcohol, suffer from mental health issues, have criminal records, or have difficulty functioning in a complex society. Money may be needed but money by itself does not cure such ills. 

A humane and wealthy society should provide the disadvantaged with adequate services and support. But there is nothing wrong with making assistance conditional on individuals fulfilling some obligation whether it is work, training, getting treatment, or living in a supportive but supervised environment.

In the end, the biggest problem with a universal basic income may not be its costs or its distributive implications, but the flawed assumption that money cures all ills.  

Executive Summary

Two-thirds of Americans have broadband Internet access in their homes.[1] But because of poor infrastructure or high prices, the remaining third of Americans do not. In some areas, broadband Internet is plainly unavailable because of inadequate infrastructure: More than 14 million Americans – approximately 5 percent of the total population – live in areas where terrestrial (as opposed to mobile) fixed broadband connectivity is unavailable.[2] The effects of insufficient infrastructure development have contributed to racial and cultural disparities in broadband access; for example, terrestrial broadband is available to only 10 percent of residents on tribal lands.[3]

Even where terrestrial broadband connectivity is available, however, the high price of broadband service can be prohibitive, especially to lower income Americans. While 93 percent of adults earning more than $75,000 per year are wired for broadband at home, the terrestrial broadband adoption rate is only 40 percent among adults earning less than $20,000 annually.[4] These costs also contribute to racial disparities; almost 70 percent of whites have adopted terrestrial broadband at home,   but only 59 percent of blacks and 49 percent of Hispanics have done the same.[5]

America's wireless infrastructure is better developed, but many Americans still lack wireless broadband coverage. According to a recent study, 3G wireless networks cover a good portion of the country, including 98 percent of the United States population,[6] but certain states have dramatically lower coverage rates than others. For example, only 71 percent of West Virginia's population is covered by a 3G network.[7] Wireless providers will likely use existing 3G infrastructure to enable the impending transition to 4G networks.[8] Unless wireless infrastructure expands quickly, those Americans that remain unconnected may be left behind.

Though America is responsible for the invention and development of Internet technology, the United States has fallen behind competing nations on a variety of important indicators, including broadband adoption rate and price. According to the Organization for Economic Cooperation and Development's survey of 31 developed nations, the United States is ranked fourteenth in broadband penetration rate (i.e. the number of subscribers per 100 inhabitants); only 27.1 percent of Americans have adopted wired broadband subscriptions, compared to 37.8 percent of residents of the Netherlands.[9]

America also trails in ensuring the affordability of broadband service. The average price for a medium-speed (2.5Mbps-10Mbps) Internet plan in America is the seventeenth lowest among its competitor nations. For a medium-speed plan, the average American must pay $38 per month, while an average subscriber in Japan (ranked first) pays only $22 for a connection of the same quality.[10]

The National Broadband Plan (NBP), drafted by the Federal Communication Commission and released in 2010, seeks to provide all Americans with affordable broadband Internet access.[11] Doing so will not be cheap; analysts project that developing the infrastructure necessary for full broadband penetration will require $24 billion in subsidies and spending.[12] President Obama’s stimulus package has already set aside $4.9 billion to develop broadband infrastructure,[13] and some small ongoing federal programs receive an annual appropriation to promote broadband penetration.[14] However, these funding streams will only account for one-third of the $24 billion necessary to achieve the FCC's goal of full broadband penetration.[15] Moreover, developing infrastructure alone is not enough; many low-income Americans are unable to afford Internet access, even if it is offered in their locality.

To close this funding gap and to make broadband more accessible, the National Broadband Plan proposes to transform the Universal Service Fund – a subsidy program that spends $8.7 billion every year to develop infrastructure and improve affordability for telephone service – into a program that would do the same for broadband Internet.

Downloads

• Download the Full Paper

Last week’s Seventh Summit of the Americas in Panama will be remembered for the historic handshakes and broad smiles shared by Presidents Barack Obama and Raúl Castro—the first sit-down meeting of leaders from the two nations since Fidel Castro marched triumphantly into Havana in early 1959. But this memorable encounter was merely the most visible piece of a much broader Cuban strategy at the Panama Summit.

The large Cuban delegation took full advantage of the several forums that comprise the complex Summit process. These periodic inter-American conclaves feature meetings among heads of state and foreign ministers, a CEO Summit for corporate executives, and a Civil Society Forum for representatives of nongovernmental organizations (NGOs). The Cubans seized all three opportunities and fielded strong teams to advance their interests: to engage with the multi-level inter-American system, and to send clear signals back home of where government policy is headed.

Face-to-face diplomacy

In addition to the Obama-Castro encounter, foreign ministers John Kerry and Bruno Rodriguez held a lengthy bilateral. Since Obama and Castro publicly announced their intention to renew relations on December 17 of last year, negotiations have dragged on. Cuba is reluctant to grant American diplomats unrestricted travel throughout the island to engage with Cuban citizens, including political dissidents. This is the norm in international diplomacy, the United States argues, whereas the Cubans remain fearful that U.S. diplomats will provide encouragement and assistance to activists advocating for political pluralism. The Cubans want to be removed from the U.S. list of state sponsors of terrorism, a designation which automatically invokes economic sanctions. The White House is withholding that relief as a bargaining chip in the negotiations.

In his opening plenary remarks, President Castro spoke passionately and at length, impressing the audience with his heartfelt remarks even as he came across as an elder statesman indulging in the memories and glories of his youth. Yet, Castro was also sending signals to the stalwarts in the Communist Party back home that he had not forgotten their sacrifices and was not abandoning their values. His engagement with the United States would not be allowed to endanger their tight control of Cuban society. Still, most significantly, Castro kept the door open to engagement with the United States by dramatically addressing President Obama, tossing him compliments: “President Obama is an honest man…I have read his two memoirs and I believe he is a man who has remained faithful to his humble origins.”

By lauding Obama, holding a private bilateral, and appearing with a broad smile at a press opportunity, Castro reaffirmed his commitment to improving relations with the United States. He also may have been nudging his negotiators to wrap up the talks to allow the mutual re-opening of embassies. The Cubans are aware that not all of Washington favors improved relations, and that they must consolidate the process of diplomatic normalization while Obama commands the White House.

The CEO and Civil Society Forums

Presumably, the main Cuban motivation for engaging the United States is economic: to attract more tourists, financial remittances, and eventually productive investments from the United States and the rest of the world, and to extract a relaxation of sanctions, particularly those impeding international financial transactions. Cuban Minister of Trade and Investment Rodrigo Malmierca led a commercial delegation that included top executives from state-owned enterprises, as well as leadership from the new Mariel Development Zone. At the CEO Summit, Malmierca was granted one of the few time slots for a keynote address. But rather than take advantage of this unique opportunity, the Cuban minister rushed through an uninspired text, offering nothing that could not be found in previous government press releases and official documents. More than two years after the passage of a much-heralded foreign investment law and over a year after the official opening of the Mariel Development Zone, very few new investments have earned official authorization.  

While potentially interested in Cuban markets, executives I spoke with remain cautious, skeptical that the government has yet created a sufficiently business-friendly environment to warrant the risk. They speculate as to why so few new foreign ventures are underway: is it opposition from well-placed hard-liners, bureaucratic inertia, or lack of financing or other necessary business inputs? In private conversations, Malmierca hinted at a political obstacle: many Cubans identify the revolution with nationalizations of private property, so it will be difficult to explain to them why foreign investment is now so welcome.

The Cubans also fielded a significant presence at the Civil Society Forum. The dominant group represented government-affiliated “non-governmental” organizations (GONGOS) such as the official trade union or Confederation of Cuban Women, while opposition NGOs marshalled about a dozen persons. At a pre-Summit speech in Caracas, Castro had ominously labelled these opposition NGOs “mercenaries” in the pay of foreign intelligence services. Following that lead, the government-affiliated group staged aggressive, noisy demonstrations denouncing the opposition representatives and accusing them of harboring infamous terrorists. The GONGOS threatened to boycott the Forum (although some did eventually participate), and disrupted the Forum’s working group on democratic governance. Here again, the message being telegraphed back home was clear: the Cuban government does not consider these opposition voices to be legitimate actors and loyal Cuban citizens should not associate with them.

Discernable signals

Altogether, at the three forums the Cubans demonstrated their strong interest in participating actively in hemispheric affairs and institutions. The Cubans are capable of fielding smart, disciplined delegations with well-scripted strategies and messages. Once again, the high-quality Cuban diplomacy demonstrated that it has few peers in Latin America and the Caribbean.

The messages transmitted at the Panama Summit were subtle but decodable. In the diplomatic sphere, Castro wants to move forward, to take advantage of Obama’s tenure to relax U.S.-Cuban tensions and gain some economic advantages. In the business sphere, Malmierca reaffirmed Castro’s oft-repeated admonitions that economic change on the island will be very gradual and socialist planning will not be discarded under his watch. In the political sphere, the Cuban Communist Party intends to maintain its absolute hegemony—political pluralism outside the Party is definitely not yet on the policy agenda.

Read more about the Summit with Richard Feinberg's post on how the United States came out of the Panama Summit of the Americas.

Event Information

Para Español, hacer clic aquí

On December 17, 2014, President Barack Obama and President Raúl Castro announced that the United States and Cuba would seek to reestablish diplomatic relations. Since then, the two countries have engaged in bilateral negotiations in Havana and Washington, the United States has made several unilateral policy changes to facilitate greater trade and travel between the two countries, and bipartisan legislation has been introduced in the U.S. Congress to lift the travel ban. Meanwhile, conversations are ongoing about ending the 50-plus-year embargo and Cuba has continued the process of updating its economic system, including establishing new rules for foreign investment and the emerging private sector.

In light of the significant shifts underway in the U.S.-Cuba relationship, new questions arise about Cuba’s development model, and its economic relations with the region and the world. On Tuesday, June 2, the Latin America Initiative at Brookings hosted a series of panel discussions with various experts including economists, lawyers, academics, and practitioners to examine opportunities and challenges facing Cuba in this new context. Panels examined macroeconomic changes underway in Cuba, how to finance Cuba’s growth, the emerging private sector, and themes related to much-needed foreign investment.

Join the conversation on Twitter using #CubaGrowth

Video

• Panel 1: Trends in the Cuban economy in light of the new U.S.-Cuba context
• Panel 2: Financing Cuba’s growth, development, and trade
• Panel 3: Next steps for Cuba’s emerging private Sector–Cuentapropistas and cooperatives
• Panel 4: A New stage in foreign direct investment

Audio

• Rethinking Cuba: New opportunities for development - Part 1 (English)
• Rethinking Cuba: New opportunities for development - Part 2 (English)
• Rethinking Cuba: New opportunities for development - Part 1 (español)
• Rethinking Cuba: New opportunities for development - Part 2 (español)

Transcript

• Uncorrected Transcript (.pdf)

Event Materials

• 20150602_rethinking_cuba_transcript

Today’s announcement of the restoration of diplomatic relations between Washington and Havana replaces over five decades of mutual hostility and aggressive name-calling with a new atmosphere of diplomatic civility. The re-opening of embassies in both capitals establishes platforms upon which to build more normal working relations. Now, the hard work begins, as the two nations gradually dismantle the comprehensive wall of restrictions separating them for two generations.

Expectations are running high, especially in Cuba, that diplomatic engagement will catalyze economic betterment on the island. To stimulate more travel and trade, the U.S. government needs to clarify rules for engaging with the emerging Cuban private sector, and make it clear to U.S. banks that they are permitted to support the use of credit cards by U.S. visitors in Cuba. The administration should also begin to consider another round of liberalizing initiatives, some under consideration in the U.S. Congress, to further relax travel restrictions, and to enable more U.S. firms—beyond agriculture and medicines—to assist the Cuban people.

For its part, the Cuban government should open efficient channels to facilitate the commercial exchanges now authorized by the Obama administration. Cuban entrepreneurs should be permitted ready access to U.S. firms wishing to sell building equipment for construction cooperatives, restaurant supplies for private-owned restaurants, and automotive spare parts for private taxis. Micro-enterprise lending should be authorized to support these emerging non-state enterprises.

If both nations build upon today’s welcome announcement by further opening these channels to travel and commerce, Presidents Barack Obama and Raúl Castro can help to safeguard their joint legacy. By fortifying and expanding constituencies on both sides of the Florida Straits, immersed in daily exchanges to mutual benefit, the two governments can render their diplomatic accomplishment politically irreversible in both capitals.

As the United States and Cuba rebuild formal relations, certain challenging topics remain to be addressed. Among these are outstanding U.S. property claims in Cuba. In this report, Richard E. Feinberg argues that it is in both countries’ interests to tackle this thorny issue expeditiously, and that the trauma of property seizures in the twentieth century could be transformed into an economic opportunity now.

The report looks closely at the nearly 6,000 certified U.S. claims, disaggregating them by corporate and individual, large and small. To settle the U.S. claims, Feinberg suggests a hybrid formula, whereby smaller claimants receive financial compensation while larger corporate claimants can select an “opt-out” option whereby they pursue their claims directly with Cuban authorities, perhaps facilitated by an umbrella bilateral claims resolution committee. In this scenario, the larger corporate claimants (which account for nearly $1.7 billion of the $1.9 billion in total U.S. claims, excluding interest) could select from a menu of business development rights, including vouchers applicable to tax liabilities or equity investments, and preferred acquisition rights. Participating U.S. firms could also agree to inject additional capital and modern technology, to ensure benefits to the Cuban economy.

Though it is often argued that Cuba is too poor to pay some $2 billion of claims, the paper finds that Cuba can in fact manage payments if they are stretched out over a reasonable period of time and exclude interest. The paper also suggests a number of mechanisms whereby the Cuban government could secure funds to pay compensation, including revenues on normalization-related activities.

The Cuban government does not dispute the principle of compensation for properties nationalized in the public interest; the two governments agree on this. Cuba also asserts a set of counter-claim that allege damages from the embargo and other punitive actions against it. But a grand bargain with claims settlement as the centerpiece would require important changes in U.S. sanctions laws and regulations that restrict U.S. investments in Cuba. The United States could also offer to work with Cuba and other creditors to renegotiate Cuba’s outstanding official and commercial debts, taking into account Cuba’s capacity to pay, and allow Cuba to enter the international financial institutions.

Feinberg ultimately argues that both nations should make claims resolution the centerpiece of a grand bargain that would advance the resolution of a number of other remaining points of tension between the two nations. This paves the way for Cuba to embrace an ambitious-forward-looking development strategy and for real, notable progress in normalizing relations with the United States.

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Change is a complicated thing in Cuba. On the one hand, many Cubans remain frustrated with limits on economic and political opportunity, and millennials are emigrating in ever rising numbers. On the other, there is more space for entrepreneurship, and Havana is full of energy and promise today.

The island’s emerging private sector is growing—and along with it, start-up investment costs. Three years ago, Yamina Vicente opened her events planning firm, Decorazón, with a mere $500 in cash. Today she estimates she would need $5,000 to compete. New upscale restaurants are opening: Mery Cabrera returned from Ecuador to invest her savings in Café Presidente, a sleek bistro located on the busy Avenue of the Presidents. And lively bars at establishments like 304 O’Reilly feature bright mixologists doing brisk business.

Photo credit: Richard Feinberg.

Havana’s hotels are fully booked through the current high season. The overflow of tourists is welcome news for the thousands of bed-and-breakfasts flowering throughout the city (many of which are now networked through AirBnB). While most bed-and-breakfasts used to be one or two rooms rented out of people’s homes, Cubans today are renovating entire buildings to rent out. These are the green shoots of what will become boutique hotels, and Cubans are quitting their low-paying jobs in the public sector to become managers of their family’s rental offerings.

Another new sign: real estate agencies! Most Cubans own their own homes—really own them, mortgage-free. But only recently did President Raúl Castro authorize the sales of homes, suddenly giving Cubans a valuable financial asset. Many sell them to get cash to open a new business. Others, to immigrate to Miami.

WiFi hot spots are also growing in number. Rejecting an offer from Google to provide Internet access to the entire island, the Cuban government instead set up some 700 public access locations. This includes 65 WiFi hot spots in parks, hotels, or major thoroughfares, where mostly young Cubans gather to message friends or chat with relatives overseas.

Economic swings

2015 was a good year for the Cuban economy, relatively speaking. Growth rose from the disappointing 2 percent in recent years to (by official measures) 4 percent. The Brazilian joint venture cigarette company, Brascuba, reported a 17 percent jump in sales, and announced a new $120 million investment in the Mariel Economic Development Zone. Shoppers crowded state-run malls over the holiday season, too. 

Photo credit: Richard Feinberg.

Consumers still report chronic shortages in many commodities, ranging from beer to soap, and complain of inflation in food prices. Alarmed by the chronic crisis of low productivity in agriculture, the government announced tax breaks for farmers in 2016. The government is already forecasting a slower growth rate for 2016, attributed to lower commodity prices and a faltering Venezuelan economy. It’s likely to fall back to the average 2 percent rate that has characterized the past decade.

Pick up the pace

Cuban officials are looking forward to the 7th Conference of the Cuban Communist Party (CCP) in mid-April. There is little public discussion of the agenda, however. Potential initiatives include a new electoral law permitting direct election of members of the national assembly (who are currently chosen indirectly by regional assemblies or by CCP-related mass organizations); a timetable for unification of the currency (Cubans today must deal with two forms of money); some measures to empower provincial governments; and the development of a more coherent, forward-looking economic development strategy.

[T]here are now two brain drains: an internal brain drain, as government officials abandon the public sector for higher incomes in the growing private sector; and emigration overseas.

But for many younger Cubans, the pace of change is way too slow. The talk of the town remains the exit option. Converse with any well-educated millennial and they’ll tell you that half or more of their classmates are now living abroad. Indeed, there are now two brain drains: an internal brain drain, as government officials abandon the public sector for higher incomes in the growing private sector; and emigration overseas to the United States, but also to Spain, Canada, Mexico.

The challenge for the governing CCP is to give young people hope in the future. The White House has signaled that President Obama may visit Cuba this year. Such a visit by Obama—who is immensely popular on the island—could help. But the main task is essentially a Cuban one.

Richard Feinberg’s forthcoming book, “Open for Business: Building the New Cuban Economy,” will be published by Brookings Press later this year.

The global consumer products company Unilever Plc announced on Monday a $35 million investment in Cuba’s Special Development Zone at Mariel. Late last year, Brascuba, a joint venture with a Brazilian firm, Souza Cruz, owned by the mega-conglomerate British American Tobacco (BAT), confirmed it would built a $120 million facility in the same location.

So far, these are the two biggest investments in the much-trumpeted Cuban effort to attract foreign investment, outside of traditional tourism. Yet, neither investment is really new. Unilever had been operating in Cuba since the mid-1990s, only to exit a few years ago in a contract dispute with the Cuban authorities. Brascuba will be moving its operations from an existing factory to the ZED Mariel site.

What is new is the willingness of Cuban authorities to accede to the corporate requirements of foreign investors. Finally, the Cubans appear to grasp that Cuba is a price-taker, and that it must fit into the global strategies of their international business partners. Certainly, Cuban negotiators can strike smart deals, but they cannot dictate the over-arching rules of the game.

Cuba still has a long way to go before it reaches the officially proclaimed goal of $2.5 billion in foreign investment inflows per year. Total approvals last year for ZED Mariel reached only some $200 million, and this year are officially projected to reach about $400 million. For many potential investors, the business climate remains too uncertain, and the project approval process too opaque and cumbersome. But the Brascuba and Unilever projects are definitely movements in the right direction.

But Unilever feared that granting its Cuban partner 51% would yield too much management control and could jeopardize brand quality. Unilever also balked at exporting products made in Cuba, where product costs were as much as one-third higher than in bigger Unilever plants in other Latin American countries.

The 2012 collapse of the Unilever contract renewal negotiations adversely affected investor perceptions of the business climate. If the Cuban government could not sustain a good working relationship with Unilever—a highly regarded, marquée multinational corporation with a global footprint—what international investor (at least one operating in the domestic consumer goods markets) could be confident of its ability to sustain a profitable long-term operation in Cuba?

In the design of the new joint venture, Cuba has allowed Unilever a majority 60% stake. Furthermore, in the old joint venture, Unilever executives complained that low salaries, as set by the government, contributed to low labor productivity. In ZED Mariel, worker salaries will be significantly higher: firms like Unilever will continue to pay the same wages to the government employment entity, but the entity’s tax will be significantly smaller, leaving a higher take-home pay for the workers. Hiring and firing will remain the domain of the official entity, however, not the joint venture.

Unilever is also looking forward to currency unification, widely anticipated for 2016. Previously, Unilever had enjoyed comfortable market shares in the hard-currency Cuban convertible currency (CUC) market, but had been largely excluded from the national currency markets, which state-owned firms had reserved for themselves. With currency unification, Unilever will be able to compete head-to-head with state-owned enterprises in a single national market.

Similarly, Brascuba will benefit from the new wage regime at Mariel and, as a consumer products firm, from currency unification. At its old location, Brascuba considered motivating and retaining talent to be among the firm’s key challenges; the higher wages in ZED Mariel will help to attract and retain high-quality labor.

Brascuba believes this is a good time for expansion. Better-paid workers at Mariel will be well motivated, and the expansion of the private sector is putting more money into consumer pockets. The joint venture will close its old facility in downtown Havana, in favor of the new facility at Mariel, sharply expanding production for both the domestic and international markets (primarily, Brazil).

A further incentive for investment today is the prospect of the lifting of U.S. economic sanctions, even if the precise timing is impossible to predict. Brascuba estimated that U.S. economic sanctions have raised its costs of doing business by some 20%. Inputs such as cigarette filters, manufacturing equipment and spare parts, and infrastructure such as information technology, must be sourced from more distant and often less cost-efficient sources.

Another sign of enhanced Cuban flexibility: neither investment is in a high technology sector, the loudly touted goal of ZED Mariel. A manufacturer of personal hygiene and home care product lines, Unilever will churn out toothpaste and soap, among other items. Brascuba will produce cigarettes. Cuban authorities now seem to accept that basic consumer products remain the bread-and-butter of any modern economy. An added benefit: international visitors will find a more ready supply of shampoo!

The Unilever and Brascuba renewals suggest a new realism in the Cuban camp. At ZED Mariel, Cuba is allowing their foreign partners to exert management control, to hire a higher-paid, better motivated workforce, and it is anticipated, to compete in a single currency market. And thanks to the forward-looking diplomacy of Raúl Castro and Barack Obama, international investors are also looking forward to the eventual lifting of U.S. economic sanctions.

This piece was originally published in Cuba Standard.

In advance of President Obama’s historic trip to Cuba and Argentina, three Brookings scholars participated in a media roundtable to offer context and outline their expectations for the outcomes of the trip. Richard Feinberg and Ted Piccone discussed Cuba–including developments in the U.S.-Cuba relationship, the Cuban economy, and human rights on the island–and Harold Trinkunas offered insight on Argentina, inter-American relations, and the timing of the visit.

Read the transcript (PDF) »

Richard Feinberg:

The idea is to promote a gradual incremental transition to a more open, pluralistic and prosperous Cuba integrated into global markets of goods, capital, and ideas. It is a long-term strategy. It cannot be measured by quarterly reports.

Ted Piccone:

...the key [is] to unlock a whole set of future changes that I think will be net positive for the United States, but it is going to take time, and it is not going to happen overnight.

Harold Trinkunas:

Cuba is really about moving, among other things, a stumbling block to better relations with Latin America, and Argentina is about restoring a positive relationship with a key swing state in the region that was once one of our most important allies in the region.

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Editors’ Note: The odds of wringing short-term concessions from Cuba's proud and nationalist leaders are stacked against Obama, Richard Feinberg and Ted Piccone believe. They argue the trip should be judged by its ability to expand constituencies in both countries who want a more open and prosperous Cuba. This post originally appeared on Huffington Post.

President Obama's decision to make a historic visit to Cuba later this month is about more than U.S. politics or business opportunities on the island. It's a bold bet that

presidential diplomacy can secure a new normal in U.S.-Cuba relations after over five decades of hostilities, embargoes and gridlock.

Based on our years of analysis and policymaking in and out of government, we believe the odds of wringing short-term concessions from Cuba's proud and nationalist leaders are stacked against Obama. We also believe, however, that that is the wrong metric. Rather, this trip should be judged by its ability to expand constituencies in both countries who want a more open and prosperous Cuba.

To that end, Obama should draw on his extraordinary rhetorical skills to paint a vision for both Cubans and Americans of a future attractive enough to persuade the island's citizens, especially its ambitious and talented millennials to remain on the island and for the resourceful Cuban American diaspora to invest in that vision. This promise of a Cuban renaissance should include one where citizens freely exercise their chosen professions, engage directly with a transparent and accountable government, have access to the global internet, and travel abroad routinely for family and business purposes.

To help shape such a future, the U.S. delegation should engage not only with Cuba's historic revolutionaries but also with its next generations of public and private leaders from across Cuban society. The White House can also use the visit to leverage Obama's immense popularity on the island to speak directly to the Cuban people about their aspirations for a brighter future.

Given the longstanding feuds between our two countries, however, it will take longer than a year or two to unwind the accumulated distrust and build support for this new normalcy. On the U.S. side, major sectors have swung clearly in favor of normalization - business and agricultural interests, human rights and religious groups, and the broad swath of U.S. citizens keen to know Cuba after decades of isolation. Even majorities of Cuban-Americans and Hispanic voters favor engagement over the embargo.

These constituencies, however, are not yet strong enough to persuade Congress to lift the embargo. And Havana has done little so far to address the major sticking points in Washington's list of legitimate grievances, particularly in the key areas of human rights and economic reforms.

On the Cuban side, Raúl Castro recognizes that Cuba's ability to protect the social gains of the revolution depends on normalizing its participation in the global economy. Its economy badly needs the injection of U.S. commerce, professional exchanges and tourism that would flow readily once the embargo is lifted. Family-run businesses, farmers, young people and professionals in sectors like software and biotechnology also stand to gain from these changes.

Notably, many of those fighting for a more pluralistic Cuba applaud Obama's decision to declaw the embargo as a political shield for government hard-liners; it helps their cause for a more honest debate at home about how to reform Cuba's outdated model of state-centric development and to make government more accountable to its citizens.

The visit offers both presidents a rare opportunity to demonstrate to these various stakeholders that change is not one-sided but a mutual accommodation. There is nothing like a presidential visit to move bureaucracies and catalyze action.

For example, the visit could accelerate progress toward easing the embargo. Already, new rules encourage trade with the emerging private sector and with some state-owned enterprises. Cuba should now take steps to facilitate such commerce and stop insisting that all sanctions be lifted first.

As important, the two sides should expedite resolution of outstanding U.S. property claims dating back to the early 1960s, a key congressional condition for lifting sanctions. Prompt resolution of these cases would automatically create powerful constituencies in the United States for repealing the embargo and signal to foreign investors that Cuba is prepared to respect property rights and the rule of law. They could also demonstrate a willingness to resolve longstanding claims for compensation for citizens killed in hostilities during the Cold War.

In anticipation of next month's Cuban Communist Party Congress, President Castro can detail his plans to decentralize power, empower the legislature and reform the electoral system.

The precise timing of Obama's visit - just one month before the Party Congress - may signal that Raúl Castro and his pragmatic followers welcome a friendly nudge to recharge the reform process they launched in 2008. It also underscores how little time remains before Americans elect a new president who could reverse steps taken so far with the stroke of a pen. That is the kind of marriage of short and long-term interests that allow wise presidents to make history, and the ultimate test for assessing whether the Obamas' trip is serious business, or just family fun.

Editors' Note: Brookings Nonresident Senior Fellow Richard Feinberg reports from Havana on President Obama's historic visit to the island.

Walking the streets of Havana during Obama’s two full-day visit here, the face of every Cuban I spoke with lit up brightly upon the mere mention of Obama’s name. “Brilliant,” “well-spoken,” “well-prepared,” “humanitarian,” “a true friend of Cuba,” were common refrains.

These Cubans did not need to add that their own aging, distant leaders compare unfavorably to the elegant, accessible Obama. And the U.S. president’s mixed ethnicity is a powerful visual that does not need to be verbally underscored to a multi-racial Cuban population. But this skeptical question remained: “Would the visit make a lasting difference?” Would the government of Cuba permit some of the changes that Obama was so forcefully advocating?

In his joint press conference with President Raúl Castro, and in his speech in a concert hall that was televised live to an intensely interested Cuban public, Obama spoke with remarkable directness about human rights and democratic freedoms, sparking more than one overhead conversation among Cubans about their own lack thereof.

With eloquent dexterity, Obama delivered his subversive message carefully wrapped in assurances about his respect for Cuba’s national sovereignty. “Cubans will make their own destiny,” he reassured a proudly nationalist audience.

“The President of the world”—as average Cubans are wont to refer to the U.S. president—emphasized that just as the United States no longer perceives Cuba as a threat, neither should Cuba fear the United States. Offering an outstretched hand, Obama sought to deprive the Cuban authorities of the external threat that they have used so effectively to justify their authoritarian rule and to excuse their poor economic performance.

On Cuban state television, commentators were clearly thrown on the defensive, seeking to return the conversation to the remaining economic sanctions—“the blockade”—to the U.S. occupation of the Guantanamo Naval Base and to past U.S. aggressions. Their national security paradigm requires such an external imminent danger.

Obama sought to strengthen the favorable trends on the island, by meeting with independent civil society leaders and young private entrepreneurs. One owner of an event planning business confided to me, “I cried during our meeting with Obama—and I rarely cry—because here was the leader of the most powerful nation on earth meeting with us, and listening to us with sophisticated understanding, when our own leaders never ever do.”

Obama assured the Cubans he would continue to ask Congress to lift the remaining economic sanctions—but he added that the Cuban government could help. It could allow U.S. firms to trade with the Cuban private sector and cooperatives, and now with some state-owned enterprises “if such exchanges would benefit the Cuban people.” So far, the government has permitted very few such transactions—ironically, an auto-embargo. And the Cuban government could engage the United States in an effective human rights dialogue and prioritize settlement of outstanding claims.

Certainly, the administration needs Cuba’s help in broadening constituencies in the United States for its policy of positive engagement with Cuba. Some U.S. firms—Verizon; AT&T; AirBnB; now Starwood Hotels and Resorts; shortly, various U.S. commercial airlines and ferry services—are signing deals. And the surge of U.S. travelers visiting the island typically return home as advocates for deepening normalization. Obama’s entourage included nearly 40 members of the Congress, the largest of his presidency, he said.

But Obama still does not have the votes to lift the embargo. He told the Cubans he has “aggressively” used executive authority to carve out exceptions to the embargo, such that the list of things he can do administratively is growing shorter. In effect, he tossed the ball into the Cuban government’s court. Only if Cuba opens to U.S. commerce, only if it shows a disposition to improve its human rights practices, might the U.S. Congress be moved to fully normalize economic relations.

If Cubans were so impressed by Obama, why do I only reward him a triple? Fundamentally, because his White House staff failed to secure a schedule that would have exposed him more directly to the welcoming Cuban people. There were rumors he was to throw out the first pitch at an exhibition game between the Tampa Bay Rays and the Cuban national team (won 4-1 by the U.S. squad), but that opportunity was denied. Nor was he permitted to make his main speech before an outdoor Cuban public. As he walked around Havana’s colonial center, the authorities allowed only small crowds. Michelle and accompanying daughters, Malia and Sasha—potentially powerful symbols in a family-oriented country—kept subdued schedules. Overall, the Cubans managed to hem Obama in, and to hand-select most of the audiences from among their loyal followers, audiences that were predictably polite but restrained. Fortunately, the meeting with opposition activists went forward as planned.

Further, while Obama’s remarks were well received, his texts were not as well woven together by coherent narratives as they might have been. And many Cubans would have liked to hear more about specific measures to build a more prosperous economy.

When asked whether Castro and Obama had “chemistry” by a reporter, a senior Cuban diplomat preferred to refer to “mutual respect.” But the two leaders did seem to develop a real rapport. During the baseball game, they spent a full hour sitting next to each other, seemingly in relaxed conversation. And during a brief question-and-answer period at the end of their joint press conference, when a U.S. reporter peppered Castro with hostile questions, Obama jumped in to fill time while Castro—not at all accustomed to press conferences—struggled to compose his response.

Cubans will long remember this visit by the sort of charismatic leader that they once had, in a youthful Fidel Castro, and that they would long to find once again. In the meantime, the Obama administration will do what it can to reintroduce Cuba to U.S. goods and services, U.S. citizen-diplomats, musical concerts, sports stars—Shaquille O’Neal, among others—and other cultural, educational, and scientific exchanges. And it will also spread ideas, about how to improve the sluggish Cuban economy and gradually integrate it into global commerce, and in the longer run, to help give average Cubans a greater voice in determining their own national destiny.

Richard Feinberg, a nonresident senior fellow in the Latin America Initiative and author of the forthcoming book, “Open for Business: Building a New Cuban Economy” (Brookings, 2016), discusses current U.S. and Cuba relations after President Obama's visit and looks ahead to Cuba's increasing engagement with the global economy.

“The younger generation does have a respect for Fidel Castro and what the older generation accomplished,” Feinberg says. “They want to see a fresh generation of leadership, they want to see a more relaxed political atmosphere, they want more opportunities economically to exercise their own profession and exercise their own talents. They want and fully expect normal relations between Cuba and the United States.”  In this podcast, Feinberg explains how Cuba can reintegrate itself into global economy while encouraging a gradual opening of economic relations with the U.S.

Also in this podcast, meet new scholar Susan Hennessey, fellow in National Security in Governance Studies; and stay tuned for our presidential election update with John Hudak.

Show Notes

Open for Business: Building the New Cuban Economy

Obama scores a triple in Havana

In Cuba, Obama looks to the post-Castro era

Subscribe to the Brookings Cafeteria on iTunes, listen in all the usual places, and send feedback email to BCP@Brookings.edu.

Also, check our our new podcast, Intersections, where two experts discuss angles on policy issues, hosted by Adrianna Pita.

Thanks to audio engineer and producer Zack Kulzer, with editing help from Mark Hoelscher, plus thanks to Carissa Nietsche, Bill Finan, Jessica Pavone, Eric Abalahin, Rebecca Viser, and our intern Sarah AbdelRahim.

Event Information

For Cubans, “D17”—December 17, 2014—changed everything. On that day, the United States and Cuba announced that the two countries would renew diplomatic relations nearly 60 years after Fidel Castro came to power. For both countries, a new transformation has begun—but this time, it is the promise of Cuba’s insertion in the globalized economy and the crumbling U.S. embargo that is catalyzing change on the island.

On May 31, the Brookings Book Club hosted Nonresident Senior Fellow Richard E. Feinberg and NPR Correspondent Tom Gjelten for a discussion of Feinberg’s new book, “Open for Business: Building the New Cuban Economy” (Brookings Institution Press, 2016). The discussion focused on the factors that guided this monumental decision: international diplomacy; changes already underway in Cuba; successful Cuban entrepreneurs and foreign investments; and scenarios for Cuba’s future development path.

Three young Cuban leaders, including two whose vignettes appear in the book, “Open for Business,” joined the discussion and shared their personal experiences with the economic realities in Cuba today, as well as the opportunities created by the shift in Cuban-American relations.

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It appears that Omar al-Bashir’s regime in Khartoum may be counting down to its demise as internal and external pressures seem poised to boil over and finally wrest the country out of his control. While the international community has imposed painful trade sanctions and the International Criminal Court has sought to bring al-Bashir to justice for his role in the Darfur conflict, Sudan’s own citizens have been increasingly demonstrative of their dissatisfaction and desire for change. During the last few years, al-Bashir has faced growing opposition from restless urban youth who are no longer willing to live with the status quo. There have also been fears within the old guard—the military and hardcore Islamists—that Sudan could fall victim to uprisings like those in Egypt and Tunisia.

In addition to the significant dislocations to the Sudanese economy caused by trade sanctions by Western countries, Khartoum has also lost significant revenues from the sale of oil produced in South Sudan’s oil fields due to ongoing disputes. To deal with these large shortfalls, al-Bashir’s government has imposed severe austerity measures on the economy, including major reductions in government subsidies, most notably on food and fuel. In response, a broad cross-section of the population took to the streets in protest. In September of this year, like their counterparts in Egypt and Tunisia before them, large numbers of unemployed and restless Sudanese youth took to the streets to demand the ouster of al-Bashir and his government. Government security forces responded with a vengeance, arresting large numbers of protesters and either killing or causing the deaths of many of them.

Within the military, which, together with Islamists, has been the base of al-Bashir’s support since the 1989 coup, there is significant discontent. In addition, there is evidence that some members of al-Bashir’s party—the National Congress Party—are not happy with the president for his failure to deal effectively with the country’s multifarious problems. Today, Sudan’s economy is falling apart—there is galloping inflation, high unemployment, especially among urban youth, and many Sudanese live below the poverty level. In addition, Khartoum is still unable to deal properly with the demands of various ethnic minorities, which are waging violent protests to force the government to allow them to rule themselves. Many groups want genuine institutional reforms and a governing process that is truly democratic and characterized by the rule of law.

Added to the litany of problems Sudan faces is the fact that it remains embroiled in conflict with South Sudan over the future of the Abyei region and its rich oil reserves. The scheduled 2011 vote for Abyei citizens to decide between South Sudan and Sudan did not occur and just recently opposing stakeholders in the region have argued over when and how to hold the referendum with one group boycotting the other’s efforts. Thus, the region remains in limbo.

Hardcore Islamists, long in the president’s corner, are now warning al-Bashir that he is not likely to successfully solve Sudan’s complex problems by simply cracking down on protesters. The question now is: Will al-Bashir give in to the demands of his protesting fellow citizens and initiate the necessary democratic reforms, or will he continue to resist and eventually suffer a fate similar to the one that befell his counterparts in Egypt and Tunisia?

On January 30, 2011, al-Bashir’s vulnerability to a similar uprising was first made apparent when protesters took to the streets of Khartoum and Al-Ubayyid after using online social networking sites to coordinate demonstrations. The government response was swift and extremely brutal—several students were arrested and one was killed. Sporadic and uncoordinated protests, particularly among university students, were also witnessed in the coming months. Then, on September 23, 2013, riots broke out in response to the removal of state subsidies on fuel and cooking gas in Khartoum. The violence spread first across Khartoum and Omdurman in the heart of the regime’s power base, and then to other cities in the days that followed. Protesters, calling for the removal of al-Bashir, blocked roads and set government buildings on fire. As usual, the regime responded brutally, killing more than 50 protesters according to some witnesses and arresting thousands of Sudanese citizens.

Although the Sudanese situation in 2013 is similar to the 2011 situations of its North African neighbors in terms of social frustration over incumbent regimes, Sudan differs from them in three main ways.

First, the majority of Sudanese do not use social media; hence, it is much more difficult to coordinate protests using tools like Facebook and Twitter.

Second, the government has cracked down on the press and blocked the free flow of information, further disconnecting citizens from potentially valuable information.

Third, Bashir’s regime is much less tolerant of protests and demonstrations and has demonstrated a proclivity for using as much force as quickly as possible to snuff out public uprisings. Such efforts are likely to buy only temporary reprieve for the dying regime as it clutches to power, and such responses cannot force the people to give up their demands for improvements in their standard of living, as well as for respect of their fundamental rights.

Without a credible opposition party to coordinate and peacefully channel the frustrations of restless youth into a peaceful revolution, current events in Sudan are likely to force the country into another bloody civil war. There is, of course, a possibility that, given the fact that Sudan does not have the type of institutional arrangements (free and independent press; independent judiciary; regular, free, credible and fair elections) that can provide citizens with the tools to either change their government or petition the latter for relief from tyranny, Sudan could soon become another failed state, such as Somalia. It would then become, like Somalia, a magnet for terrorists and extremist groups seeking to destabilize the region. In addition, another civil war in Sudan would flood the region with refugees and exacerbate the problems now facing many countries in East Africa. Of course, unrest in Sudan could easily spill over into neighboring countries such as Eritrea, Ethiopia, South Sudan and Uganda and create a serious humanitarian crisis in the Horn of Africa.

Dictators and autocrats can be undone by their inability or unwillingness to learn from history, even if that history is not theirs. Given the fact that Sudan’s neighbors have been embroiled in revolutions initiated and carried out by young people frustrated by their countries’ failure to provide them with jobs and protect their fundamental rights, one wonders why al-Bashir thinks the same fate would not befall him and his regime. It has become apparent that al-Bashir is unwilling or unable to recognize the fact that the world is no longer willing to tolerate his regime’s disregard for basic human rights and that Sudan, if it hopes to regain its standing as an accepted member of the international community, cannot afford to serve as a hiding place for dictators.

At the moment, al-Bashir faces a lot of problems emanating from inside and outside the country. It would be wise for al-Bashir and his government to start constructive dialogue with the people of Sudan in an effort to develop the modalities to peacefully transition to democracy. A credible first step would be for al-Bashir to form a transitional government that includes opposition parties. One of the most important functions of such a government should be to engage all relevant stakeholder groups in democratic constitution making to develop and adopt institutional arrangements that guarantee the rule of law and, hence, provide citizens with a governing process that protects their fundamental rights and provides them with the tools for self-actualization. Of course, while institutional reforms are a long-term project, in the short term, the transitional government must put into place mechanisms to protect the fundamental rights of citizens, as well as improve relations with South Sudan in order to secure the peaceful coexistence that is critical for investment and economic growth.

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The Nile River is one of the most important resources in Africa and supports the livelihoods of millions of people. Recently, though, efficient and equitable utilization of the waters of the Nile River has become an increasingly contentious issue, with many of the riparian countries demanding a revision of what they believe is an inappropriate legal regime. Currently, allocation and utilization of the waters of the Nile River is governed by the colonial-era Nile Waters Agreements, which were negotiated and entered into with the help of Great Britain, but without the participation of most of the river’s riparian states. These agreements allocated most of the waters of the Nile River to the downstream riparians—Egypt and Sudan—largely ignoring the development needs of the upstream riparians, like Ethiopia, whose highlands provide most of the water that flows into the Nile River. The upstream riparians contend that they were not party to the Nile Waters Agreements and thus should not be bound by them. As such, they want these agreements set aside and a new, more equitable legal regime. Egypt, however, considers the existing legal regime binding on all the Nile River riparian states and, thus, is opposed to any changes that might interfere with or reduce its “historically acquired rights.” Already the decision by Addis Ababa to proceed with the construction of the Grand Ethiopian Renaissance Dam on the Blue Nile has caused significant deterioration in relations between Cairo and Addis Ababa.

With significant increases in population and pressure to deliver development, especially in the upstream riparian states, the demand for water has become a very important policy imperative in the region. In fact, earlier this year Egypt claimed that, in order to meet its growing water needs by 2050, it will need to add 21 billion cubic meters of water per year to its current water allocation of 55 billion cubic meters. Thus, there is a fear that if this issue is not fully resolved soon, it could morph into a military crisis.

In our new book, Governing the Nile River Basin: The Search for a New Legal Regime, we argue that the current legal regime governing the allocation and utilization of the waters of the Nile River is not tenable, and there is an urgent need for all the Nile River riparian states to enter into a mutually agreed upon legal regime. Issues pertaining to transboundary water resource management, the evolution of current agreements and the role and interests of colonial powers, theories of treaty succession, and the recent attempts by the riparian states to formulate a new legal agreement, are thoroughly examined. We conclude that the most effective way to deal with conflict arising from the allocation and utilization of the Nile River’s waters is for all the downstream and upstream riparians to engage in fresh negotiations to design and adopt a new legal regime. Through a fully consultative process, these countries can provide the Nile River Basin with a legal regime that enhances equitable allocation and utilization. 

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Crisis seems to be the byword for Brazil today: political crisis, economic crisis, corruption crisis. Even the 2016 Rio Olympics seem to teeter on the edge of failure, according to the governor of the state of Rio de Janeiro. Yet despite the steady drum beat of grim news, Brazil is more than likely to resume its upward trajectory within a few years. Its present economic and political troubles mask a number of positives: the strength of its democracy and a new found willingness to fight corruption at all costs. With the correct policies in place, its economy will recover in due course. The impeachment process against Dilma Rousseff will soon be over, one way or the other. The present troubles are merely a temporary detour on Brazil’s long quest to achieve major power status and a consequential role in the international system. In a world in turmoil, where geopolitical tensions are on the rise and the fabric of international politics is stressed by events such as Brexit, we should not lose sight of Brazil’s history of and potential for contributing to sustaining the liberal international order.

Brazil’s aspirations for greatness

Brazil has long aspired to grandeza (greatness) both at home and abroad. As its first ambassador to Washington, Joaquim Nabuco (1905-1910) once said, “Brazil has always been conscious of its size, and it has been governed by a prophetic sense with regard to its future.” As we document in our new book, Brazil has reached for major power status at least four times in the past 100 years: participating as a co-belligerent with the Allies in World War One and seeking a permanent seat on the Council of the League of Nations thereafter; joining the Allies in World War II and aspiring to a permanent seat on the United Nations Security Council (UNSC) in 1945; mastering nuclear technology beginning in the 1970s, including launching a covert military program (now terminated) to build a nuclear explosive device; and most recently, beginning with the presidency of Luiz Inácio Lula da Silva (2003-2011), seeking to become a leader in multilateral institutions, including actively campaigning for a permanent seat on the UNSC.

A decade ago, many Brazilians believed that this time their country was poised to secure its position as a major power. As the seventh largest economy in the world with the 10th largest defense budget and significant soft power, Brazilian leaders such as Lula saw their country as being “in the mix” of major powers who, while not able to make the international order alone, could very well shape its evolution through uncertain times together with other major powers. Certainly, they no longer saw Brazil as one of the middle or small powers, the “order takers” in the international system.

Brazil saw a new opportunity to emerge as a major power in the advent of a relatively stable and peaceful post-Cold War geopolitical order, the decade-long commodity boom that supercharged its economy after 2002, and the rise of the BRICS (Brazil, Russia, India, China, and South Africa). Between 2002 and 2013, Brazil’s virtuous trifecta—democratic consolidation, rapid economic growth, and reduced inequality—was a boon to its soft power. This combination was highly attractive to many in the developing world, contributing to Brazil’s claim to leadership on the international stage as a bridge between the global South and the great powers. International peace and stability particularly favored Brazil’s predilection for deploying soft power rather than hard power. And in the BRICS, Brazil saw an opportunity to work together with other emerging powers critical of the present international order to advance its agenda for reformed global institutions.

Rethinking Brazil’s approach to global influence

Brazil’s bridge-building strategy was effective in advancing its national interests in multilateral forums, most recently on global internet governance and global climate change. But the BRICS dimension of Brazil’s strategy detracted from its ability to influence the world’s great democracies. The BRICS identity associated Brazil with authoritarian powers—China and Russia—that were viewed by the United States and its allies, at best, as unhelpful critics and, at worst, as deliberate saboteurs of the present order. This undermined Brazil’s credibility with Washington and other leading democracies, and hindered its ability to advance its preferred policies on everything from nonproliferation to the reform of global economic institutions to the debate on humanitarian intervention. In retrospect, working more closely with other emerging democracies that seek reform of the international order, such as through the India-Brazil-South Africa association known as IBSA, would have more clearly signaled Brazil’s constructive intentions while still preserving its critical posture.

Today, the opportunities that powered Brazil’s most recent rise—post-Cold War geopolitical stability and a massive commodity boom—are receding, replaced by a more fractious and dangerous international system. Despite troubles at home, it is not too early for Brazil’s leaders to think anew about how to strengthen national capabilities and deploy them strategically to address this new environment. This includes fortifying domestic institutions, both to address the present crisis but also to restore the luster of Brazil’s soft power. It means bolstering Brazil’s hard power capabilities once the economy improves and deploying them in ways that contribute to its soft power, for example by taking on additional responsibility for leading critical international peacekeeping operations as it has in Haiti. It means thinking carefully about how to signal to the democratic great powers Brazil’s commitment to a strengthened liberal international order, even as it holds onto its own principles and works towards reform of multilateral institutions. And eventually, as Brazil completes its recovery, it means contributing more substantially to the costs of maintaining its preferred global order. A Brazil that achieves all this will be well positioned to have a positive global impact, continuing to be a strong (if sometimes critical) partner for the United States in shaping the international order.

Israel apologized to Turkey today for the May 2010 incident on board the Mavi Marmara naval vessel, part of a flotilla to Gaza, in which nine Turks were killed from Israel Defense Forces fire. The apology came during a 30-minute telephone conversation between Israeli Prime Minister Benjamin Netanyahu and Turkish Prime Minister Recep Tayyip Erdogan, orchestrated by President Barack Obama, who was ending his 3 day visit to Israel and the Palestinian Authority. Erdogan accepted the Israeli apology, and the leaders agreed to begin a normalization process between Israel and Turkey, following the past three years, when relations were practically at a standstill. (Last December, I wrote about the beginnings of a Turkey-Israeli rapprochement, and discussed more of the policy implications here.)

This development allows the two countries to begin a new phase in their relationship, which has known crisis and tension, but also cooperation and a strong strategic partnership.

The U.S. administration played a key role behind the scenes in creating the conditions that paved the way for an Israeli apology and Turkish acceptance. Undoubtedly, a close relationship between Turkey and Israel-- two of America’s greatest allies in the region-- serves United States’ strategic interests globally and regionally. At a time when the Middle East political landscape is changing rapidly, it was imperative to end the long impasse between Ankara and Jerusalem.

Over the past year, Turkey and Israel have also come to realize that repairing their relationship and re-establishing a dialogue is at their best interest, as they face great challenges in their immediate vicinity (first and foremost, the Syrian civil war).

United States officials emphasized that this is the first step in a long process. Nevertheless, the parties will have to make a great effort to overcome years of distrust and suspicion if they want the relationship to work. No one is under the allusion that relations will go back to what they were in the “honeymoon” period of the 1990s but modest improvement can be made. It will not be an easy task, and for that to happen it is essential that the parties not only talk to each other, but also listen to one another and begin to respect each other’s sensitivities. In order for this rapprochement to be successful, United States will have to continue to oversee discussions between Turkey and Israel, and remain heavily engaged in this process.

Recent developments in Turkey and Israel—on energy security and domestic politics, in particular—may help pave the way for a long-awaited rapprochement between the two countries.

It’s been five and a half years since the May 2010 Israel raid on the Mavi Marmara (part of the Gaza flotilla), which soured relations between Ankara and Jerusalem. At present, they’re characterized by distrust and suspicion at the top level, personal animosity between the leaders, a limited dialogue between the two governments, and ambassadors yet to be appointed. However, trade is booming and Israeli tourists are flocking back to Turkish vacation destinations.

Wanted: Energy supply and cooperation on Syria

Turkey’s downing of a Russian SU-24 fighter jet along the Syrian border on November 24 has provoked crisis in its relationship with Russia, with Russian President Vladimir Putin characterizing Turkey’s action as “a stab in the back.” Extending beyond bilateral relations, that crisis affects Turkey’s foreign policy more broadly. For Turkey, the most critical element in this feud is its energy security. 

Turkey imports most of its natural gas from Russia, and the two sides have long been engaged in talks to expand this relationship through the proposed Turkish Stream natural gas pipeline, which would channel gas to Turkey and Europe underneath the Black Sea (circumventing Ukraine). But on November 26, Russian Minister of Development Alexi Ulyukayev announced the cancellation of the project, sending shock waves throughout Turkey. The move has prompted concerns among the Turkish leadership about the reliability of Russian gas and a corresponding search for alternative supplies in the region. In addition to discussions with Qatar and Azerbaijan, there have been more statements in recent weeks from Turkish politicians, energy companies, and others calling for talks with Israel about future natural gas imports.

The Syrian crisis is another issue on which Turkey may seek quiet Israeli support—particularly the support of Israeli intelligence, which may prove crucial to Turkish war efforts.

Politically, the timing could be convenient: the Justice and Development Party (AKP)-led government could approach Israel and begin talks where they left off nearly two years ago. The dust has settled over the November 2015 elections and the AKP is not facing any serious domestic political challenges in the near future. The ball is now in President Recep Tayyip Erdoğan’s court. He commented to reporters in Paris on November 30 that he believes he’s “able to fix ties” with Israel, hinting at his willingness to move forward. He then stated on December 13 that the “region definitely needs” Turkish-Israeli normalization, citing previous Turkish demands for compensation to the families of the victims of the Mavi Marmara incident as well as the lifting of the Gaza blockade as his conditions for normalization.

Wanted: Energy demand and cooperation on Syria

From Jerusalem’s perspective, Israeli energy security may provide a “fig leaf” for Prime Minister Benjamin Netanyahu’s government to reach out to Turkey. Netanyahu and his cabinet have been stuck for nearly a year in attempts to approve and launch a compromise between the government and the gas companies (Delek and Noble) to begin the crucial phase of development of Israel’s largest Eastern Mediterranean gas field, Leviathan. About to clear the last hurdle before launching the deal, Netanyahu is under pressure to demonstrate the national security benefits of developing the gas. In this context, he and the Minister of Energy Yuval Steinitz have said that Turkey is being seriously considered as a future export destination. In a Knesset hearing, Netanyahu went even further by revealing that Israel has recently been engaged in discussions with Turkey to further explore the export option. 

The Syrian crisis provides Israel another reason to engage with Turkey. Israel is quite weary of the situation in Syria and may benefit from Turkish analysis and intelligence on this issue. 

Politically, Netanyahu will not face problems within his narrow coalition if he decides to warm up relations with Turkey. Former Foreign Minister Avigdor Lieberman, a staunch critic of Turkey and its leadership, is no longer in office. The recently appointed Chief of Mossad (currently National Security Advisor) Yossi Cohen, in contrast, is known to be a proponent of closer ties between Israel and Turkey. 

Re-friending?

Official visits between the two sides have been increasing: in June, Israeli Ministry of Foreign Affairs’ Director General Dore Gold and his Turkish counterpart Feridun Sinirlioğlu met in Rome; in September, Professor Guven Sak (the head of the government-supported research institute of the Turkish industrialists and businessmen, TEPAV) led the first official visit to Israel by a Turkish political delegation; on December 3, Israeli news outlet NRG reported on a visit by Israeli Ministry of Foreign Affairs’ Deputy Director General for Europe, Aviv Shiron's visit to Ankara and Istanbul in an attempt to warm relations between the two countries. 

There is no love lost between Israel and Turkey, and many issues still need to be resolved. Erdoğan has stated his conditions for normalization, and Netanyahu is reportedly insisting that Turkey expel Hamas operative Saleh al-Arouri (who has been directing Hamas terrorist activities in the West Bank) from its territory, as a condition. However, the current convergence of interests may pave the way to a resolution of the crisis between these two former strategic allies. In March 2013, President Obama helped orchestrate a formal Israeli apology to Turkey over the Mavi Marmara incident. Moving forward, more American senior-level diplomacy is needed. The United States—which has been active behind the scenes—will likely need to further push the two sides toward one another.

The narratives on U.S. development aid to Pakistan—as well as Pakistan’s own development policy discussion—frequently invoke the conventional wisdom that more education and better economic opportunities result in lower extremism. In the debate surrounding the Kerry-Lugar-Berman bill in 2009, for instance, the late Ambassador Richard Holbrooke urged Congress to “target the economic and social roots of extremism in western Pakistan with more economic aid.”

But evidence across various contexts, including in Pakistan, has not supported this notion (see Alan Kreuger’s What Makes a Terrorist for a good overview of this evidence). We know that many terrorists are educated. And lack of education and economic opportunities do not appear to drive support for terrorism and terrorist groups. I have argued that we need to focus on the quality and content of the educational curricula—in Pakistan’s case, they are rife with biases and intolerance, and designed to foster an exclusionary identity—to understand the relationship between education and attitudes toward extremism.

My latest analysis with data from the March 2013 Pew Global Attitudes poll conducted in Pakistan sheds new light on the relationship between years of education and Pakistanis’ views of the Taliban, and lends supports to the conventional wisdom. The survey sampled 1,201 respondents throughout Pakistan, except the most insecure areas of Khyber Pakhtunkhwa and Baluchistan. This was a time of mounting terror attacks by the Pakistani Taliban (a few months after their attack on Malala), and came at the tail end of the Pakistan People's Party’s term in power, before the May 2013 general elections.

On attitudes toward the Pakistani Taliban, or Tehrik-e-Taliban Pakistan (TTP), 3 percent of respondents to the Pew poll said they had a very favorable view, 13 percent reported somewhat favorable views, while nearly 17 percent and 39 percent answered that they had somewhat unfavorable and very unfavorable views, respectively. A large percentage of respondents (28 percent) chose not to answer the question or said they did not know their views. This is typical with a sensitive survey question such as this one, in a context as insecure as Pakistan.

So overall levels of support for the TTP are low, and the majority of respondents report having unfavorable views. The non-responses could reflect those who have unfavorable views but choose not to respond because of fear, or those who may simply not have an opinion on the Pakistani Taliban.

The first part of my analysis cross-tabulates attitudes toward the TTP with education and income respectively. I look at the distribution of attitudes for each education and income category (with very and somewhat favorable views lumped together as favorable; similarly for unfavorable attitudes).

Figure 1. Pakistani views on the Pakistani Taliban, by education level, 2013

Figure 1 shows that an increasing percentage of respondents report unfavorable views of the Taliban as education levels rise; and there is a decreasing percentage of non-responses at higher education levels (suggesting that more educated people have more confidence in their views, stronger views, or less fear). However, the percentage of respondents with favorable views of the Taliban, hovering between 10-20 percent, is not that different across education levels, and does not vary monotonically with education. 

Figure 2. Pakistani views on the Pakistani Taliban, by income level, 2013

Figure 2 shows views on the Pakistani Taliban by income level. While the percentage of non-responses is highest for the lowest income category, the percentages responding favorably and unfavorably do not change monotonically with income. We see broadly similar distributions of attitudes across the four income levels.

But these cross-tabulations do not account for other factors that may affect attitudes: age, gender, and geographical location. Regressions (not shown here) accounting for these factors in addition to income and education show interesting results: relative to no education, higher education levels are associated with less favorable opinions of the Pakistani Taliban; these results are strongest for those with some university education, which is heartening. This confirms findings from focus groups I conducted with university students in Pakistan in May 2015. Students at public universities engaged in wide ranging political and social debates with each other on Pakistan and its identity, quoted Rousseau and Chomsky, and had more nuanced views on terrorism and the rest of the world relative to high school students I interviewed. This must at least partly be a result of the superior curriculum and variety of materials to which they are exposed at the college level.

My regressions also show that older people have more unfavorable opinions toward the Taliban, relative to younger people; this is concerning and is consistent with the trend toward rising extremist views in Pakistan’s younger population. The problems in Pakistan’s curriculum that began in the 1980s are likely to be at least partly responsible for this trend. Urban respondents seem to have more favorable opinions toward the Taliban than rural respondents; respondents from Punjab and Baluchistan have more favorable opinions toward the Taliban relative to those from Khyber Pakhtunkhwa, which as a province has had a closer and more direct experience with terror. The regression shows no relationship of income with attitudes, as was suggested by Figure 2.

Overall, the Pew 2013 data show evidence of a positive relationship between more education and lack of support for the Taliban, suggesting that the persisting but increasingly discredited conventional wisdom on these issues may hold some truth after all. These results should be complemented with additional years of data. That is what I will work on next.