It has been days since Australia voted in its federal election, but still no winner has been declared. The frustration is real, so the country is doing what it does. Namely, making funny jokes on social media.

Antony Green, ABC's election analyst, is Australia's version of Paul the psychic octopus. He has a pretty good record of picking winners, and helpfully, he has a website that asks one simple question: "Has Antony Green called the election" 

The answer for days now has been an emphatic, "No."

INTRODUCTION

Elections that follow dramatic downfalls of authoritarian regimes present policymakers with difficult choices. They are an opportunity to establish a sound basis for democratization, putting in place institutions and strengthening actors that help guarantee free and fair elections. Yet such elections are part of a high-stakes conflict over the future that takes place in a context of enormous uncertainty, as new actors emerge, old elites remake themselves, and the public engages in politics in new and unpredictable ways.

Assisting elections in the Arab world today is made more challenging by two factors that have thus far distinguished the region from others. First, transitions are made more difficult by extraordinarily strong demands to uproot the old regime. Fears that former regime elements will undermine ongoing revolutions along with demands for justice after decades of wrongdoing invariably create pressures to exclude former elites. In other regions, reformers within autocratic regimes, like Boris Yeltsin and South Africa’s F.W. DeKlerk, split from hardliners to spearhead reforms, muting demands for excluding old regime allies writ large. In the Middle East, however, old regime elites have been unable to credibly commit to reforms, partly given decades-long histories of empty promises and oppositions that remain largely determined to accept nothing less than Ben Ali-like departures. Room for compromise is difficult to find.

Second, for an international community hoping to support Arab transitions, widespread distrust of outside forces compounds these problems. Such distrust is inevitable in all post-colonial states; however, skepticism is particularly high in the Arab world, especially toward the United States. Cynicism about American intentions has been fed by U.S. support for Israel, its continued backing of Arab autocrats for nearly two decades after the Cold War, and, more recently, its unwillingness to take stronger stands against Mubarak, Asad, and others early on in the uprisings. Even if transitioning elites believe international expertise can help smooth the election process and enhance faith in the outcomes, they find it difficult to embrace in the context of heightened nationalism and a strong desire to assert sovereignty.

In light of these challenges, this paper explores how the international community can best engage in “founding” elections in the Arab world. Examining Egypt and Tunisia, the first two Arab states to hold elections, it focuses on challenges in leveling the playing field, managing electoral processes, and creating just and sustainable outcomes. These cases are undoubtedly unique in many ways and – as in any transition – remain in flux. Nevertheless, examining their early experience yields insights into how international actors can best approach those cases that may follow (e.g., Libya, Syria, and Yemen).

Most notably, these cases suggest that the democracy promotion community should approach first elections differently than it does subsequent ones. It should prioritize different goals and activities, in some cases even leaving off the agenda well-intentioned and generally constructive programs in order to focus on more urgent activities critical to strengthening electoral processes. Recognizing the enormous fear and uncertainty with which democrats approach first elections, international actors should resist the understandable urge to seek immediate, permanent democratic arrangements and “favorable” electoral outcomes. They should also encourage revolutionary forces to resist understandable, but counterproductive, urges to exclude allies of the former regime from new democratic processes. Rather, democracy promoters should suggest interim measures, encourage tolerance toward “unfavorable” results, and, in so doing, support democrats as they make their way through a long, imperfect process.

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“Although we are seeing a strengthening recovery in the United States, the overall performance of the global economy continues to fall short of aspirations,” said Treasury Undersecretary for International Affairs Nathan Sheets to a Brookings audience yesterday. In the event, hosted by the Global Economy and Development program and the Economic Studies program at Brookings, Undersecretary Sheets described six “pillars” that form his offices “core policy agenda for the years ahead” to support “a growing and vibrant U.S. economy.”

1. Strengthening and rebalancing global growth. Undersecretary Sheets noted the “persistent and deeper asymmetry in the international economic landscape,” and called for policymakers to “work together toward mutually beneficial growth strategies” such as boosting demand.
2. Deepening engagement with emerging-market giants, such as China, India, Mexico, and Brazil. On India, for example, the undersecretary noted that “faster growth, deeper financial markets, and greater openness to trade and foreign investment promise to raise incomes, reduce poverty, and bring many more Indians into the global middle class.”
3. Framing a resilient global financial system. “To be sustained,” he said, “growth must be built on a resilient financial foundation.” (See also Federal Reserve Governor Lael Brainard’s remarks yesterday on the Fed’s role in financial stability.)
4. Enhancing access to capital in developing countries. “Expanding access to financial services for the over 2 billion unbanked people in the world promises to open new possibilities as the financial wherewithal in these populations grows,” he said.
5. Promoting open trade and investment. Undersecretary Sheets explained that “Increased U.S. access to foreign markets, and the consequent rise in exports of our goods and services, is an important source of job creation in the United States.” He described current trade priorities, including the Trans-Pacific Partnership (TPP), the Transatlantic Trade and Investment Partnership (TTIP), the Information Technology Agreement (ITA) concerning China, and the Trade Facilitation Agreement (TFA) concerning India.
6. Enhancing U.S. leadership in the IMF. Undersecretary Sheets said that Treasury and the Obama administration “are firmly committed to securing approval for the 2010 IMF quota and governance reforms.” Citing the widespread support already in place for these policies, Sheets argued that “without these reforms, emerging economies may well look outside the IMF and the international economic system we helped design, potentially undermining the Fund’s ability to serve as a first responder for financial crises around the world, and also our national security and economic well-being.” He also called on the Senate to confirm six administration nominees as executive directors or alternate executive directors at the IMF and multilateral development banks.

Watch the video here:

Get a transcript of Undersecretary Sheets’ prepared remarks here.

Brookings expert Donald Kohn, the Robert S. Kerr Senior Fellow, moderated the discussion. The speaker was introduced by Senior Fellow Amar Bhattacharya.

The headlines seem pretty good. Unemployment fell a tick to 7.3 percent. And jobs growth continued, with payrolls expanding by 169,000 in August, which is just shy of the 175,000 new jobs that analysts were expecting.

But beneath the headline: blech!

The most important news was the revisions to what we had previously thought was a healthy and perhaps self-sustaining recovery. Instead, jobs growth in July was revised from 162,000, to a weak 104,000, and June was also revised downward. Taken together, this month's revisions means we've created 74,000 fewer jobs than previously believed. And the previous jobs report subtracted another 26,000 jobs through revisions. Moreover, for reasons that remain a mystery, revisions have tended to be pro-cyclical, meaning that the healthy recovery we thought we were having might have been expected to yield further upward revisions. All this means that analysts are hastily revising their views.

The other bad news comes from the household survey, where employment fell 115,000, leading the employment-to-population ratio to decline by 0.1 percentage points. So the decline in the unemployment rate isn't due to folks getting jobs; instead, it's due to people dropping out of the labor force.

I have two simple metrics I use to measure the "underlying" pace of jobs growth. The first puts 80% weight on the (more accurate) payrolls survey, and 20% weight on the noisier household survey. That measure suggests employment grew by only 112,000 in August. The alternative is to focus on the 3-month average of payrolls growth, which suggests we're creating slightly around 148,000 jobs per month.

Bottom line: This report says that we're barely creating enough jobs to keep the unemployment rate falling from its current high levels. Policymakers have been looking for a signal that the recovery has become self-sustaining. This report doesn't provide it. And until we're confident that the recovery will keep rolling on, we should delay either any monetary tightening, further fiscal cuts, and definitely postpone the legislative shenanigans that Congress is threatening.