‘Investigate or Legislate’: What Will the Democrats in Control of the House of Representatives Do?

With control of the House of Representatives, the Democrats have the opportunity to provide leadership for the United States. They will have to decide. Do they want to make their primary focus attacking President Donald Tramp, by continuing their impotent investigation of his alleged collusion with Russia in the 2016 election? Or will they actually provide a vision for the future of the USA, by enacting bold new legislation.  Any attempt to impeach President Trump would be a farce that would virtually ensure the Democrats would be defeated in the 2020 presidential election.

President Trump has demonstrated that he lacks a comprehensive understanding of the scientific principles that created the USA. He has also displayed an unAmerican phobia to non-white foreigners from a multitude of countries arriving in the USA.  However, President Trump has distinguished himself in forming a close relationship with the President of China, Xi Xinping. He has also attempted to establish a working relationship with the President of Russia, Vladimir Putin. To the detriment of the USA (and the world) many Democrats, along with some members of his own administration, have adamantly opposed these positive initiatives by President Trump. President Trump has many shortcomings, but to his credit, he is not an ideologue, and he is not a devout follower of the geo-political doctrine on foreign policy. If President Trump took the audacious step to partner with China’s Belt and Road Initiative, the world could be transformed.

Important polices must be implemented now to provide for the welfare of our citizens, which will require bipartisan action in the Congress. For example. Both the Republican and Democratic parties have made verbal commitments to support a Glass Steagall banking reorganization, yet no action has been taken by the Congress or this administration. Another opportunity for bipartisanship would be the passage of legislation for a transformative infrastructure plan to rebuild the USA.

Below is a useful article discussing how President Trump working with the Congress could fund large-scale infrastructure projects. 

A New Opportunity for a National Infrastructure Agenda?

Nov. 7, 2018—One thing is definitive about the results of the U.S. mid-term elections: Neither political party put a solution to the country’s economic and financial disaster on the national agenda.  That doesn’t mean that many of the new Democratic members of Congress don’t have a strong commitment to address the economic crisis, however. They can potentially galvanize the veteran Congressmen into action. The question is, will competent, workable proposals be put on the table in the 116th Congress?

Statements from President Trump and the putative incoming House Speaker Nancy Pelosi in the immediate aftermath of the election were notable for addressing the possibility of bipartisan progress on infrastructure. Both statements were quite vague, however—and, as some will recall, Trump has offered cooperation on infrastructure before. One need only look at his current blackballing of the New York City Gateway project to see how hollow that promise was.

Rep. DeFazio in his campaign photo.

More substantive have been remarks from the incoming chairmen of two House committees. Rep. Peter DeFazio (D-OR) is expected to take over the Transportation and Infrastructure Committee. According to a Nov. 7 Reutersarticle, DeFazio is prepared to put forward his previous proposal for a $500 billion plan, which would involve issuing 30-year bonds, using funds from  raising gas taxes. He believes Trump would accept an increase in the gas tax.

“There has to be real money, real investment,” DeFazio said today. “We’re not going to do pretend stuff like asset recycling. We’re not going to do massive privatization.”

Rep. John Yarmuth (D-KY), who is slated to take over the House Budget Committee, addressed the infrastructure question a few days before the election, according to an Oct. 30 Politico Pro article. He said he would be making a proposal which “involves some very long-term bonding authority that would help finance an infrastructure bank.”

The Issue of Funding

The inevitable sticking point in Congressional discussions of an adequate infrastructure bill—which should ultimately amount to spending trillions of dollars to meet the infrastructure deficit—will be funding. President Trump has already indicated his preference for off-loading the cost to local and state governments, and proposes to even cut the Federal contribution from today’s 80% to 20%. That’s a formula for non-action. The Democratic plans have not been specific.

The danger lies in a potential “compromise” that pushes Public Private Partnerships (PPPs) as the solution to the funding dilemma. PPPs are presented as a means of reducing, or eliminating, public costs, by contracting with private companies to either build, manage, or both the needed element of infrastructure. The claim is that the private company can do the job cheaper and more efficiently, and the public will benefit.

Moving ahead on Gateway would be a good place to start.

Not so fast. First, some of the cheapness comes at the cost of labor—by violation of Davis-Bacon standards–and quality. Secondly, private contractors only enter PPP agreements on the guarantee that they will receive a revenue stream to cover their costs, and provide a profit. This can amount to tolls on a road, water bills for a water company, and the like. And if the stream doesn’t provide what the company considers adequate profit, what will it do?  Cut maintenance? Cut off people’s water supply? Both results have occurred! And they are unacceptable.

So, forget PPPs. The solution lies in taking the lead from Franklin Roosevelt and Alexander Hamilton. The Federal government has a unique capability (and responsibility) to create credit to modernize and rebuild our infrastructure. That credit can in fact be issued by turning current (virtually non-performing) government debt into bonds supporting an infrastructure bank, against which it would then issue new loans to help finance the long overdue infrastructure projects.  These would not only be short-term, but also long-term projects, such as the Gateway Project, California High Speed Rail, and the desperately needed water projects in the nation’s interior, for starters.  If the right projects are selected, the infrastructure constructed will pay back more to the economy in increased productivity than is expended–as well as creating millions of new, high-paying jobs.

For a modern proposal for such an infrastructure bank, click here

 

Putin To Light Up Africa; African Leaders Gather at BRICS Summit

Russia will light up Africa – Putin

Russia will light up Africa - Putin
The African continent is in huge need of energy investments, and Russia could become one of its key partners, according to President Vladimir Putin speaking at BRICS summit in Johannesburg.

“I would especially like to note that Russia is planning to step up its assistance in development of national energy in African states,” said the Russian president during the BRICS-Africa Outreach panel on Friday.

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Commercial port of Novorossiysk, Russia © Vladimir Astapkovich

The leaders of governments of BRICS member states (Brazil, Russia, India, China, and South Africa) were holding a panel dedicated to economics cooperation between the bloc and African countries. The rationale behind the BRICS Plus concept is to create a platform for greater interaction and partnerships amongst countries to win more power for emerging economies globally.

According to Putin, Russia is in talks with Angola, Mozambique and Gabon on implementing promising oil and gas projects. “In the field of nuclear energy, where Russia is the technological leader, we offer African partners to build an industry from scratch,” the Russian president said. These projects are crucial for Africa since about 600 million people on the continent live without electricity.

Energy is not the only sphere where Russia and Africa could cooperate, according to Putin. “Russian business shows interest in working with African partners in a wide range of areas, including agriculture, healthcare, the development of mass communications, geology and subsoil use,” Putin said.

As examples, Putin mentioned Angola, where Russia’s Alrosa is interested in mining diamonds, a joint venture between Russia and Burundi on the production of lighting products for exports to East Africa, and agriculture projects in Senegal.

Modi Emphasizes India’s Commitment to Africa’s Development at the BRICS

July 27, 2018

Addressing a BRICS Outreach Dialogue Session today in presence of a large number African heads of state, Indian Premier Narendra Modi said: “The coming together of so many African leaders during this program is a wonderful thing. India’s ties with Africa are time-tested. The Government of India has deepened engagement with Africa. Economic and development cooperation between India and Africa have touched new heights,” India’s WION TV news reported from Johannesburg.

Among the African heads of state were: Paul Kagame (Rwanda), Yoweri Museveni (Uganda), Edgar Lungu (Zambia), Hage Geingob (Namibia), João Lourenço (Angola), Emmerson Mnangagwa (Zimbabwe), Ali Bongo Ondimba (Gabon), Mokgweetsi Masisi (Botswana) and Peter Mutharika (Malawi). The African leaders were invited by the host nation, South Africa, to discuss ways of pursuing inclusive growth on the continent with the BRICS heads of state, reported China CGTN television network.

South Africa’s BRICS website points out that since it last hosted the summit in 2013, all BRICS hosts have included an out reach format: “In 2013, South Africa took the initiative to activate the provision for a BRICS Dialogue with partners from the Global South, as per the Sanya Declaration that stated: ‘We are open to increasing engagement and cooperation with non-BRICS countries, in particular emerging and developing countries, and relevant international and regional organisations.'”

In his address, Modi, highlighting the ongoing cooperation between India and the African nations and welcoming the effort for regional economic integration by the African countries, he said “in the last four years, we have had more than 100 visits and meetings at the levels of heads of state and various government levels and these have taken our economic relations and development cooperation to a new high. India has offered 180 lines of credit worth $11 billion in more than 40 countries in Africa.”

In addition, he said that “every year 8,000 African students get scholarships to study in India” and pointed out that his country now has an e-network in 48 African countries for telemedicine.

 

 

Pres. Trump: Don’t Lose Sudan

Sahalian-Sahara Railroad From Port Sudan Will Transform Sudan & Africa

On October 12, 2017 the Trump administration announced the partial lifting of sanctions against the nation of Sudan to allow the government and people of Sudan to participate in the international banking system to promote trade and economic growth. Over the last twenty years since these financial, trade, and banking sanctions were imposed, Sudan has economically suffered. President’s Trump’s executive order easing restrictions on Sudan created a new mood of optimism, with the State Department indicating that this would be the beginning of new relations with Sudan. The State Department publicly mooted that this could be the first step to removing Sudan from the list of states sponsoring terrorism in the future. However, after almost four months, the U.S. government has not facilitated the transfer of money for Sudan, which is contributing to the nation’s economic strife today.

Sudan Opens a Second Front

The failure by the U.S. to implement fully the easing sanction is the result of a conflict between President Trump’s agenda and dissident factions in the State Department, supported by many in the Congress, who are incapable of relinquishing their fanatical desire to have Sudanese President Omar al-Bashir removed from office.  These contradictions became obvious when Deputy Secretary of State John Sullivan visited Khartoum on November 16, 2017, and conspicuously avoided meeting with President Bashir, using the excuse that the president of Sudan has been indicted by the International Criminal Court (ICC). Even though the U.S. is not a member of the ICC, it is well known that previous administrations supported efforts to have President Bashir removed from office. The zealots of this international alliance for regime change, who have been behind this nefarious campaign for decades, reject even tentative overtures by President Trump to chart a new course for U.S.-Sudan relations. There are unconfirmed reports that the U.S. State Department, not the executive branch, is demanding the removal of President Bashir as a precondition for further progress in U.S.-Sudan relations including removing Sudan from the list of states sponsoring terrorism.

One week following the diplomatic snub by Sullivan, the most senior State Department official to visit Khartoum, President Bashir shocked everyone in Washington, and many in Khartoum, when he visited Russian President Vladimir Putin in Moscow on November 23.  This surprise move was not expected by Washington. Reflecting the sentiments of most Sudanese, especially in the ruling National Congress Party, that the U.S. once again was not acting in good faith, President Bashir made his very first visit to Russia. Fearing that the goalposts have been moved again, as they have been repeatedly, and that the regime-change faction is still desirous of his removal, President Bashir asked Russia for protection from aggressive acts by the U.S. Sudan’s Rapprochement With Russia

The two presidents discussed increased economic and military cooperation, including the possibility of Russia securing a military base on the Red Sea that forms the eastern border of Sudan. According to knowledgeable sources, President Bashir will continue to look forward to improved cooperation with the U.S. and the West, but simultaneously pursue a closer alliance with Russia.  President Bashir believes Russia’s veto on the United Nations Security Council, along with its military capability as demonstrated in Syria, will provide a bulwark against any future reckless policy against Sudan by the West.

U.S. Needs Sudan

For Sudan, there is no turning back from their “dual-front” policy with the world’s two superpowers, but it didn’t have to come to this. The failure to fully implement the easing of trade/financial sanctions after years of refusal by the U.S. to talk face-to-face with President Bashir, accompanied by the severe economic hardships suffered by the Sudanese people from U.S.-led sanctions, contributed to President Bashir’s first overture to Russia.

Sudan is strategically situated in East Africa in the Nile River system that connects sub-Saharan Africa to North Arica. Moreover, Sudan has for years been a valuable ally in the war against ISIS, providing useful intelligence to U.S. security forces. Also, it must be unequivocally stated, that there will be no solution to the crisis in South Sudan that the U.S. and Britain have contributed to, without the direct participation of the President of Sudan. Susan Rice, in charge of African policy in the second term of Bill Clinton’s Presidency is personally culpable for the horrific conditions in South Sudan today.  She and other so-called liberals hated Sudan’s leadership, and were fierce advocates for the creation of South Sudan. Their intention was to use South Sudan as part of their arsenal for regime change, without the slightest concern for the welfare of the people of South Sudan.

Sudan is a nation rich in mineral resources, and has large tracts of arable land, not yet under cultivation.  It has been known for decades, long before the creation of South Sudan in 2011, that Sudan had the potential to feed a billion people, about the size of sub-Saharan Africa’s population today. It should be recognized (if not admitted) that successive U.S. administrations have strategically failed in their policy towards Sudan, lacking a vision of how to participate with African nations to develop their huge wealth in land and in its people.

Africa needs huge investments in infrastructure to realize its potential in agriculture, industry, and manufacturing. Instead of the West fixating on extractive industries, i.e., gas, oil, and minerals, which have a minimal role in job creation, their focus should have been on railroads and energy. When the South-North and East-West railroads are finally built, their nexus will be in central Sudan. Trains carrying freight and people will be able to travel from Port Sudan on the Red Sea into West and Southern Africa, thus ensuring that Sudan will become a mega manufacturing-agricultural-transportation hub for the continent.

The Way Forward

There is a relatively easy path for President Trump to follow, to engage Sudan fruitfully. Port Sudan is already included on China’s Maritime Silk Road. China’s involvement in building infrastructure throughout the African continent is unparalleled. Were President Trump to join with China’s New Silk Road for Africa in vital infrastructure to Sudan, the U.S. would form new partnerships with Sudan and other African nations.

President Bashir demonstrated his ability to negotiate and compromise when he signed the Comprehensive Peace Agreement in 2005 with President George W. Bush to allow an independence referendum in South Sudan. This resulted in the peaceful separation of Sudan seven years ago, with Khartoum voluntarily giving up 75% of its oil production.  With this historical perspective in mind, President Trump can put U.S.-Sudan relations on a positive course by arranging for direct, if informal, talks with President Bashir, and carrying through on the easing of sanctions pertaining to trade, finance, and banking.  These actions will be well received in Khartoum and reciprocated.

Lawrence Freeman has been visiting and writing about Sudan for over 20 years, discussing economic development and US-Sudan relations with members of parliament, the NCP, and leaders of opposition parties.