Monthly Archives: September 2013

Government, Middle East, Politics, Russia, Syria, United Nations, United States

The agreement between the United States and Russia on Syria’s chemical weapons…

SYRIA: US/RUSSIAN AGREEMENT

The agreement between the United States and Russia on chemical weapons in Syria is an important piece of political diplomacy. The idea that Bashar al-Assad could avoid military action by giving up his chemical stockpiles was much more than an ‘off-the cuff’ remark by John Kerry, US Secretary of State, who expressed that view in London last Monday.

The notion that has been circulating that Vladimir Putin has outsmarted the United States, his country’s historical adversary, by somehow exploiting Mr Kerry’s blunder must surely be a mistake. The U.S. has wanted this deal, proved by its tireless efforts to get it, and the world should welcome it too.

The agreement is a step in the right direction. The deal provides for the destruction of Assad’s chemical arsenal under United Nations supervision by the middle of next year. The prospects of the deal being met must be weighed against the risk of Syria’s chemical weapons being seized upon by Iran, or even Russia itself, as potential complicity creeps in.

While Mr Kerry has talked up the prospect of the UN authorising military action if Assad failed to comply, those words are not in the text of the agreement, and Russia would have to agree that the terms of the deal had been breached.

The mere fact that an agreement has been reached, however, has two consequences. First, it does make it less probable that Assad or his commanders will use chemical weapons again, because to do so would politically embarrass Mr Putin. This has pertinence because the need to deter the Assad regime from using gas again was the strongest argument in favour of the limited punitive action proposed by President Obama. Second, it means that Russia is now engaged in a process that could lead to an eventual end to the bloodshed.

The parochial argument that the delay in air strikes sought by British MPs in the House of Commons by providing the time for a deal to be made does have substance. Globally, the return of Russia to the international stage is one of the more important changes in geopolitics in recent years. That may be a response to the winding down of American interventions in Iraq and Afghanistan, though Russia stepping forward was far from inevitable. Yet, again, if the U.S. had not taken the initiative in the region, no one else would have done so, particularly with Britain baulking at the prospect of becoming embroiled in another war. That Russia is now engaged in the search for an end to the brutality and carnage in Syria is a hopeful change.

For there to be a settlement in Syria, Iran will also need to be consulted as it too is also a patron of the Assad regime. We should not naively assume that the recent election of the ‘reform-minded’ Hassan Rouhani as Iranian president – with recent expressions of goodwill to Israel – mean that Iran is now a force for peace in the region.

But the agreement could bring the Iranian leadership to accept that its interests are best served by following the Russian lead and sharing some of the responsibility for ending a conflict in Syria that has claimed the lives of more than 100,000 people.

The deal between the United States and Russia deserves a cautious approval, even though the prospects for a settlement in Syria still remain particularly distant.

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Health, Medical, Research, Science

Scientists say that taking garlic ‘pills’ can help reduce blood pressure…

ALLEVIATING HYPERTENSION

Scientists have claimed that taking garlic could help to cut blood pressure by 10 per cent – but only if it is taken in the form of tablets.

Twelve weeks of treatment with garlic tablets led to a ‘significant’ cut in blood pressure, slashing the risk of a heart attack or stroke, according to a review of evidence.

Researchers claim those with hypertension or high blood pressure could control their condition better by adding garlic to conventional medicine.

The review of 21 studies on humans found supplements of dried garlic containing a guaranteed dose of the active ingredient allicin consistently led to cuts in blood pressure.

But eating the real thing would not have the same effect, the review concludes.

Although allicin is produced when raw garlic is crushed, much of it is destroyed during cooking. The study, written by nutritionist Dr Pamela Mason, was first published in the journal Complete Nutrition.

Other nutritional experts have said that there was some evidence garlic may use the same mechanism as drugs called ACE inhibitors to lower blood pressure.

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Britain, Business, Government, History, Politics, Society

A Royal Mail sell off makes business sense but there are risks…

ROYAL MAIL PRIVATISATION

In a world that is fundamentally different to that of the 1980s, the announcement by the Government this week that it will proceed with a £3 billion sale of Royal Mail, is the right way forward for the business if it is to survive. Margaret Thatcher baulked at the prospect and was, famously, a privatisation too far. Mrs Thatcher remarked in the Eighties that she was ‘not prepared to have the Queen’s head privatised’. Later, Michael Heseltine, and more recently, Peter Mandelson, had their privatisation plans for Royal Mail scuppered by dissenting MPs in the House of Commons.

Vince Cable, the Business Secretary, however, notified the Stock Exchange this week of the Government’s intention to float the company, which will probably take place in November. The announcement represents a further expression of economic confidence as the economy slowly recovers from a deep and difficult 5-year recession. The privatisations of British Gas and British Airways, some three decades ago, coincided with a rising tide of opportunism. The parallels are noticeable as that is beginning to be felt once more.

The sale of Royal Mail affords something similar, too, to those earlier flotations: the spread of share ownership. More than 15,000 employees are to receive 10 per cent of the shares, with the rest being offered to institutional investors and ordinary members of the public.

While not without risks, the Government’s plan does have much to recommend it. Royal Mail has suffered from both chronic under-investment and deep-rooted inflexibility as the world around it has radically changed. Royal Mail is heavily unionised and has lumbered on, but the effect has been missed opportunities on a vast scale as rivals have been able to compete on the more lucrative parcel-delivery markets, even as the digital revolution and e-mail decimated traditional letter deliveries.

Moya Green, who took over in 2010, has brought Royal Mail back into the black, which was largely helped by the Government’s takeover of its £5 billion pension deficit. Following the flotation and barring unforeseen disasters, the first dividends, totalling £133 million, will be paid in July.

Despite the Government’s plan and opportunity, the Communication Workers Union has responded in time-honoured fashion by threatening to strike. How it envisages industrial action will help its members or Royal Mail is not wholly clear. The CWU will be holding a strike ballot early next month to protest against potential changes in pay and conditions.

Some of the union’s wider concerns will be shared by many, such as the protection of minimal universal services, guaranteeing a six days-a-week service at a uniform and affordable tariff. This has after all been the hallmark of Royal Mail since its inception and is much prized. But the legislation underpinning the privatisation, which passed through Parliament two years ago, protects the universal service and will remain enshrined in law. That guarantee has been reaffirmed by the Government following its announcement to privatise.

The digital and communication revolution has hit Royal Mail hard, with a fall of 10 million in the volume of letters sent daily. That decline has been arrested to some extent because of the huge increase in goods that are ordered online and need to be delivered.

The benefits of privatisation should not be underplayed. A fleeter-footed business, no longer restricted by government investment rules and with access to private capital, will be better placed to undertake the sweeping modernisation and rationalisation the organisation still needs to go through if it is to compete and vie for business successfully. Upon being privatised, Royal Mail would then not have to compete for scarce government funding which it currently does against other government departments and budgets, such as schools, hospitals, and the police.

But there are risks. The most immediate is that the shares are sold too cheaply, repeating the mistakes of previous flotations and leaving taxpayers cheated and resentful. Over the longer term, the challenge will be a regulatory one. Though it is almost certain that the Royal Mail will continue to be bound by the universal service obligation mandating a six-day nationwide postal delivery – bar senior management tinkering with a system that could loosen some of those ties – what is unclear is how such a costly service will be funded in the future. There may be hope that booming business elsewhere, such as through online shopping, will enable cross-subsidy funding. Critics have warned of unaffordable hikes in stamp prices or even state bailouts.

Mrs Thatcher’s unwillingness to sell off Royal Mail was not only a sentimental attachment to tradition, but sprang from a hard-headed assessment of the political pitfalls of tampering with a venerable national institution. While such hazards remain, a flotation of the Royal Mail is the right decision for the Treasury, and arguably the right decision for the organisation.

In predictable style, Labour has denounced the sale – yet, it was the last government that ended the Royal Mail monopoly and opened up the postal market to competition, thereby making the eventual privatisation inevitable.

Royal Mail can be categorised as one of the foundation stones of the modern British state, one that can trace its origins to 1516, when Henry VIII established the office of Master of the Posts. For it to remain an important part of the national story, it now needs to be a commercially viable venture that is ready and willing to compete in a market with far different demands and pressures.

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