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8.The Republic of TervinoCapitalizt“Dio, Patria, Famiglia”
9.The Jollibee of Greater Adriatican StateCapitalist Paradise“Maka-Diyos, Maka-tao, Makakalikasan at Makabansa!”
10.The ROC of TaiiwanNew York Times Democracy“为人民服务!”
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Commonwealth of Liberty Regional Message Board

    OCTOBER 2002
    Education First

     1 0  D O W N I N G   S T R E E T  ą 

    The Prime Minister commands
    the political stage—
    Tony Blair, confident
    in his government,
    his authority firmly established.

    New Labour has delivered
    on its promise of change.
    Reform is underway,
    Britain is moving forward,
    and Blair looks to the future
    with confidence.

HRH TREASURY EXCHEQUER — MORNING
WHITEHALL, LONDON, Great Britain GB

The Labour Government is putting education front and center in its domestic agenda, with TONY BLAIR pledging significant new funding to revamp Britain’s secondary school system. Schools across England and Wales are set to receive an extra Ł50,000 each, and the education budget is expected to soar to around Ł12.5 billion over the next three years. This boost means that funding for schools and universities will rise by about 6% each year until 2006, giving these institutions a much-needed financial lift. For the average school, which usually gets about Ł100,000 in grants, this extra funding translates to roughly a 50% increase over the specified timeframe. The Government's goal is to raise educational standards while fundamentally reshaping how secondary education is organized and managed. ESTELLE MORRIS, the Education Secretary, plans to roll out initiatives to support struggling comprehensive schools, provide more help to those that are doing well, and introduce new strategies to enhance discipline and attendance. More classroom assistants will be brought on board to lighten the load for teachers, and select schools will be grouped into federations under the leadership of a single senior head. The most challenging of these roles could offer salaries nearing Ł100,000, highlighting the Government’s commitment to empowering experienced school leaders with greater responsibility and authority.

Education is becoming more and more recognized as a vital part of the Government's broader agenda, with enhancements in schools seen as key to the nation's long-term economic and social growth. ALAN MILBURN, the Health Secretary, has highlighted education as a top national priority, putting it on the same level as revitalizing public services. He believes that the quality of education will have far-reaching effects that go well beyond the classroom. The larger spending initiative will channel extra resources into international debt relief and programs aimed at alleviating poverty in developing nations, while the Government's overall spending is expected to rise significantly over the next three years. By the fiscal year 2005–06, public spending is projected to hit around Ł511 billion. Departments will work under formal Public Service Agreements that outline specific goals and performance indicators, with regular evaluations designed to ensure that the increased funding leads to real improvements. New oversight mechanisms will also be put in place to track how public funds are used and enhance control over departmental budgets. As a result, this program merges a significant boost in Government spending with a stronger focus on accountability, performance, and the efficient management of public services.

The program is really focused on childcare and supporting working families. It’s rolling out a new network of children’s centers designed to blend childcare with health advice and a variety of family support services. Many of these centers will team up with schools to offer before- and after-school care for kids whose parents work outside the usual school hours. This initiative is all about creating more job opportunities for women and cutting down on reliance on low-wage part-time jobs. In communities facing economic challenges, these centers will play a key role in helping single parents find jobs or pursue training, with access to childcare linked to their participation in job-related programs. The ongoing shortage of childcare slots is a major hurdle for working families, especially during school holidays when current services can’t handle the demand. By integrating education, childcare, employment support, and family services into a comprehensive public investment strategy, the Labour Government is aiming to build a stronger social support system while highlighting educational improvements as a vital part of its long-term domestic policy.

▬▬▬
ą A Series: 10 DOWNING STREET, concerning the government affairs of the PRIME MINISTER's office, workings with the House of Commons, and the whole of the Whitehall system — a road that is recognized as the centre of Her Majesty's Government in Britain; the road is lined with government buildings housing and its Whitehall mandarins.

    MARCH 1985
    The Rose Returns to Brasília

     T H E   S A R A H   Y E A R S  ą 

    The Rose of Minas Gerais
    blooms again—
    Sarah Kubitschek,
    making her way back to Brasília,
    bringing with her the dreams of a nation.

    From Minas she rises,
    a familiar voice renewed.
    The past meets the future,
    and Brazil looks ahead
    with hope in her hands.

PLANALTO PALACE — MORNING
BRASÍLIA, FEDERAL DISTRICT, Brazil Toucan

▌As SARAH KUBITSCHEK takes on the presidency, Brazil finds itself at a pivotal moment in its return to democracy. The new administration is tasked with reinstating civilian authority while ensuring the political stability needed for a smooth transition. President KUBITSCHEK has emphasized that democratization is closely linked to improving social conditions, focusing on areas like education, healthcare, housing, social assistance, and the protection of Indigenous communities. Additionally, her government is expected to bolster civilian oversight of the armed forces, reintegrate political exiles into public life, and work alongside Congress to establish a new constitutional order that guarantees political freedoms and individual rights.

The economic climate is presenting a serious challenge. With high inflation, rising public debt, dwindling purchasing power, and structural weaknesses carried over from previous times, there’s not much leeway for hasty solutions. President KUBITSCHEK seems set on avoiding a single emergency program or extended price controls. Instead, she’s looking to implement a gradual stabilization strategy that includes fiscal discipline, monetary restraint, controlled wage adjustments, tax reform, and restructuring public debt. At the same time, the government aims to protect vital social spending and foster investment in infrastructure, energy, telecommunications, and industrial modernization. The key challenge will be to restore confidence in the Brazilian economy without shifting the entire burden of adjustment onto workers and lower-income families. In terms of foreign policy, the new administration is poised to adopt a distinctly pro-Western orientation. This means Brazil will be working to enhance its relationships with the United States and Western Europe, while also reaffirming its commitment to collaborating with democratic nations in the Western world. The government plans to ramp up economic, technological, military, and diplomatic cooperation with its Western partners, while also encouraging increased foreign investment and better access to international markets. Brazil will strive to strengthen its ties with its Latin American neighbors and maintain diplomatic and commercial relationships with countries in Africa and Asia, all without compromising its close alignment with the Western alliance. The President appears to believe that Brazil's security, economic growth, and international influence are best served through closer ties with the United States, Western Europe, and other democratic partners.

The KUBITSCHEK government has a pressing responsibility: to show that democracy can ensure both political stability and effective governance, especially during these challenging economic times. As the President steps into her role, there’s a clear expectation that the restoration of democratic institutions will be matched by responsible economic management, rather than just policies aimed at winning immediate political favor. Her return to the presidency is also symbolically important, as it connects the nation’s earlier democratic experiences with the new political order that’s emerging. The success of this transition will depend on how well the President, Congress, political parties, the military, and civil society can work together within democratic frameworks to tackle the economic and social challenges left by the previous administration.

▬▬▬
ą A Series: The Sarah Years covers Sarah Kubitschek's Alternate History presidencies, political career, and associated supporters, opponents, and political movements in Brazil.

    UNION OF SOVIET SOCIALIST REPUBLICS

    Союз Советских Социалистических Республик

The Bear Looks South: The Soviet Union and the Afghan Question

Медведь смотрит на юг: Советский Союз и афганский вопрос

____________________

    (MOSCOW, OCTOBER 2002) - The recent economic picture of the Soviet Union continues to inspire political confidence in the governing reformist wing of the Party. Preliminary estimates by Gosplan and the Council of Ministers estimate that real Soviet GDP growth for 2002 remain on-course at 5.4%, following growth of roughly 5% in 2001. Resource extraction has become one of the primary drivers of this growth, with oil and condensate production approaching 640 million tonnes annually, while natural gas output is expected to approach 860 billion cubic meters, supported primarily by investments into the consolidated production regions of Yamal, Urengoy, Yamburg, Timan-Pechora, and the Caspian. The strategic effort to open up the Arctic to exploitation (primarily via investments into modernizing the USSR’s northern ports) also began to produce tangible results, with geological exploration spending on the rise and the Ministry of Geology and Natural Resources spearheading new survey programs across the Soviet Arctic shelf.

    The mineral sector has also seen significant growth, with copper, nickel, palladium, gold, diamond, iron, coal, and rare earths all surging in foreign demand, particularly from industrial economies around the world. While Norilsk and Kola remain key export regions, the Kremlin’s coffers have opened up for new extraction corridors and processing facilities in the Far East, which was a specific policy decision made with the rising Asian economy in mind. Gosplan’s guidance has allowed the government to eliminate old Soviet policy of exporting raw materials while importing higher-value manufacturing work (like processing), with the Industries Ministry tying preferential tax treatment and government infrastructure access to domestic processing to encourage new mining companies and joint ventures to refine, smelt, and engineer within the Soviet Union.

    As a result, Soviet merchandise exports are expected to break USD 180 billion this year in a record-breaking export fiscal year for the government, though shifts are still expected due to commodity prices and the value of the partially convertible ruble. While (as aforementioned) the Soviet Union remains a “resource-centric” economy, more advanced products like chemicals, transport equipment, aerospace products, and nuclear technology are taking on a growing share of Soviet exports. This newfound wealth has flowed into white collar sectors, with employment in fields like IT, engineering, finance, telecom, scientific research, and professional services growing by an average of 33% from 1997-2002. Valentin Pavlov, one of the Soviet Union’s top economic thinkers, has argued that this abundance of resources allows the USSR to spur on its modernization efforts to the chagrin of his conservative counterparts, who have long expressed concerns (most of which have been dismissed) over the entry of foreign joint ventures and semi-private Organizations into the USSR’s so-called resource economy.

    The perennially weakened and de-sized conservative wing of the Party, still led by Yegor Ligachev, no longer challenges the enduring success and popularity of economic reforms, and any talk of restoring the rigid pre-Kosygin command economy has disappeared. Their argument has instead transformed into one that adopts the socialist market economy, foreign trade, and foreign investment, while arguing that the Soviet Union’s economic liberalization must be matched by strategic discipline and by consistent support for socialist values around the world through the armed forces and strategic partnerships.

    Afghanistan is a very specific case study of their ideology. The direct intervention by the United States and Iran in Afghanistan triggered deep suspicion and concern in Moscow, since the effort directly undermined the strategic assumptions that formed the foundation of Soviet policymaking in Central Asia. While Afghanistan sits outside Soviet sovereign territory, its political developments have often seen spillover effects within the Uzbek, Turkmen, and Tajik SSRs, though this has been greatly minimized since the early 90s thanks to concerted efforts to deploy the Red Army to shutter the porous border with Afghanistan to prevent the spread of radicalism. The main issue Party conservatives took with this policy of hands-off enforcement of Soviet security is that the strategy would only really work provided that other powers respected the same limits. This tenuous reality became a thing of the past when a large-scale foreign military operations unfolded in a state directly bordering the USSR.

    Gorbachev’s government certainly considered their response a success. Military infrastructure in southern Kazakhstan, Uzbekistan, and Turkmenistan were reinforced, and an additional 30,000 personnel in new or rotational assignments across the region were dispatched. The Soviet Union, they said, would not be dragged into an unnecessary Middle Eastern war that would likely burden the government and its ability to continue on its growth trajectory. Conservatives countered with their fears that the Soviet military’s excessive passiveness had created a geopolitical environment where the armed forces were viewed more as an observer rather than an active participant in the Union’s own security. Nonetheless the conservatives were cautious about their criticism and their own alternative proposals, with no talk of returning to the USSR’s past as an expeditionary warfare state or deploying hundreds of thousands of troops into Afghanistan. They instead argued that the intent of Kosyginite military reforms were intended specifically to create a military that was economically sustainable in such a way that it could be used when absolutely necessary. A statement repeated by Ligachev in private meetings and memorandums read, “A lean military that is never employed is strategically indistinguishable from a military that does not exist.”

    Minister of Defense Igor Sergeyev is a moderate supporter of this line of thinking. While not a conservative in the old ideological sense, his service at the head of the Strategic Rocket Forces throughout much of the military reorganization and redefinition process in the 1990s transformed him into an advocate for integrated command systems and a revamping of Soviet strategic doctrine, centering on clarity surrounding when and how the Soviet Union is prepared to project its force capabilities. Throughout this year, the General Staff formed an ad hoc committee to examine various “contingency scenarios” for the “Southern strategic direction,” including the deployment of brigade-level formations in Uzbekistan and forward positioning new air units in the region as part of a larger doctrine known as “limited strategic operations beyond the state frontier.” (“ограниченные стратегические операции за пределами государственной границы”)

    In the meantime, any political changes have been leapfrogged by a reassessment of the military’s approach to deployments in Central Asia. The General Staff has tentatively approved a new plan for the establishment of a Southern Strategic Readiness Group, which consolidates high-readiness formations in the region under a unified command structure and contingency plan. It comprises around 35,000 total personnel and will be backboned by the 108th Guards Motor Rifle Division, currently based in Termez, along with new Strategic Air Wings consisting of Il-76 and An-124 strategic transport aircraft. The tentative approval was made with the geographic sensitivity of the situation in mind. With foreign interventions still deeply unpopular within the Party’s leadership, there is no appetite to stage war against Iran, however heavily backed by Washington they may be. Instead, efforts are focused on a plan to improve the Soviet’s ability to act in the event of an emergency, not to act immediately in the first place.

    While not technically opposed to the reassessment, Foreign Minister Roza Otunbayeva (a prominent architect of Gorbachev’s foreign policy) has historically defended Moscow’s handling of Afghanistan as an example of “responsible restraint and commitment to Afghan interests.” She has long testified before Party officials that the Soviet Union cannot claim to have overcome the economic and strategic strains of the early Cold War only to recreate it at the start of the new century by bogging itself down in a military conflict. “The Soviet Union’s interests are adequately defended in a strategic context through our extensive, unrivaled military presence in Kurdistan, Syria, and East Eritrea, where the United States and other Western powers cannot dream of such levels of camaraderie and partnership,” Otunbayeva once told members of the Party Committee for Foreign Relations.

    It is against this political background that Party officials appeared stiffer than usual as they watched rows upon rows of tanks, missiles, and soldiers march through Red Square for the annual October Revolution celebrations. The military had come far, with the Orel-class of nuclear aircraft carriers now deployed around the world, and the modernization of the Strategic Rocket Forces have put the Soviet Union in a stronger position in terms of long-range arms deployments. But, with defense expenditure now sitting at around 4% of GDP, some are asking whether or not additional allocations are necessary to prevent the Soviet Union’s long-time reach in the Middle East from slipping away. While the Cold War may have ended, the great power rivalry continues in new theaters.

    NOVEMBER 2002
    The People’s President

     L U L A ą 

    Wear that star upon your chest.
    Don't be afraid or ashamed.
    Now I want you to stand with us,
    To stand for what is right,
    For the dignity that remains,
    For poor but proud working people.

    Have faith and say Lula,
    Have faith and say Lula:
    I want Lula!

TRANSITION HEADQUARTERS — AFTERNOON
BRASÍLIA, FEDERAL DISTRICT, Brazil Toucan

▌The shift to the new administration is in full swing, with the Workers' Party (PT) bringing on three more members to the team tasked with overseeing the transition from President FERNANDO HENRIQUE CARDOSO's government. The newcomers include HUMBERTO COSTA, who ran for governor of Pernambuco but didn't win; SÉRGIO ROSA, an executive at Previ, the pension fund for Banco do Brasil employees; and physicist Ildeu de CASTRO MOREIRA from the Federal University of Rio de Janeiro (UFRJ). With these additions, the transition team is getting closer to its goal of having 51 representatives. José Dirceu, the national president of the PT, is taking on the political responsibility for this process, while ANTÔNIO PALOCCI FILHO has stepped away from his role as mayor of Ribeirăo Preto to serve as the general coordinator. He’s being supported by former congressman LUIZ GUSHIKEN, Unicamp professor JOSÉ GRAZIANO, and DILMA ROUSSEFF, who was then the Secretary for Energy, Mines, and Communications in Rio Grande do Sul.

The three appointments showcased a variety of expertise within the PT. COSTA, 45, was one of the party's founders in Pernambuco and was part of Unidade na Luta, a faction linked to its more moderate side. His selection came as a surprise, with no prior discussions involving either LULA or DIRCEU, but he stepped up to the challenge, expressing his readiness to take on any tasks that came his way. ROSA, 43, had a background in journalism from the University of Săo Paulo and had emerged as a key player in the pension-fund arena for the PT. With his role at Previ, he was expected to help shape plans that would utilize investment resources from state-owned companies' pension funds to foster economic growth. Although he hadn't received official confirmation of his appointment yet, he had already been contacted that afternoon. MOREIRA, a physicist and professor at UFRJ's Institute of Physics, had been involved in crafting the PT's proposals related to science and technology. He didn't delve into the responsibilities he might take on and also hadn't received formal confirmation of his role. In a clear statement, president-elect LUIZ INÁCIO LULA DA SILVA emphasized that members of the PSDB wouldn’t be included in his initial government. Instead, his first administration would mainly feature individuals linked to the PT and its political allies. However, LULA still kept personal ties with several members of the opposition party.

      LULA DA SILVA, President-Elect

      “The chances of a PSDB member joining the government right off the bat are pretty slim.”

LULA also laid out what he envisioned for the PSDB's role after the power handover. He indicated that the party would have the freedom to challenge the government in both the Chamber of Deputies and the Senate, but he emphasized that this opposition should stem from genuine political disagreements rather than just for the sake of being oppositional. This stance echoed FERNANDO HENRIQUE CARDOSO's view that the PSDB should steer clear of the PT's approach to opposition and avoid engaging in politics that could be detrimental to the nation. LULA dismissed the idea that the PT had acted irresponsibly during CARDOSO's time in office, arguing instead that the party had shown maturity while still standing firmly against the government's political agenda.

      LULA DA SILVA, President-Elect

      “There are reasonable people in the PSDB who will understand that simply opposing for the sake of it isn’t sufficient.”

LULA also touched on the weight of the responsibilities that come with the presidency, firmly rejecting the notion that his election made him some sort of miracle worker who could fix the country’s issues with extraordinary measures. He acknowledged that the people would expect results from his administration, but he framed his role in more straightforward terms: he would work with even more determination than before and treat everyday Brazilians with the same care and respect he always showed his mother. Tackling hunger was highlighted as one of the top priorities for his upcoming administration. JACQUES DIOUF, the Director-General of the United Nations Food and Agriculture Organization, reached out to LULA, offering to send a team to Brazil to review the PT's hunger-fighting program. DIOUF was also ready to visit Brazil in January to help shape the initiative. LULA emphasized that his administration's social goals wouldn't interfere with its financial responsibilities. He believed that the commitments made to financial markets could coexist with initiatives aimed at combating hunger and poverty, and he noted that this perspective had been well-received internationally. He also brushed off the notion of hiring a personal trainer to help him lose weight, insisting that all he really needed to do was eat less. When it comes to his title, LULA preferred to be called “President Lula” instead of his full name, explaining that “Lula” has long been a key part of his political identity. The makeup of the transition team and the stances taken by LULA have really shaped the key features of the new government. The PT is set to stay at the heart of the administration, while opposition parties will still have their roles in Congress. There’s room for cooperation with political rivals, but their involvement in the government will be somewhat restricted at first. Meanwhile, the new administration is keen on prioritizing the battle against hunger and poverty, all while honoring the financial and economic commitments passed down from the previous government.

▬▬▬
ą A Series: LULA, President of Brazil for two terms and co-founder and member of the Workers’ Party.

      • R O M Â N I A •

      "The 2000 General Elections - The elections that shocked Romania"

      Noiembrie 2000, Palatul Victoria, București, România

      November 2000, Victoria Palace, Bucharest, Romania

| Romania entered the new millennium facing yet another major political crisis after the general and presidential elections of November 2000 produced an extraordinary result. The elections, widely described as the most unpredictable since the fall of the Rotaru dictatorship, have seen the collapse of the once-powerful Romanian Democratic Convention (C.D.R.), the return of the former communist political networks, and the unexpected victory of Corneliu Vadim Tudor, the former leader of the 1999 coup.

| The parliamentary elections have recorded a turnout of approximately 82.4%, reflecting unusually high public anxiety over the country's political direction. After a decade of revolution, economic collapse, constitutional reform, civil conflict, and repeated changes of government, voters have turned overwhelmingly toward parties descended from the old communist political establishment.
The C.D.R. has effectively collapsed before the election after years of internal disputes between the PNȚCD, PNL, UDMR and smaller allied groups. Personal rivalries, disagreements over economic reform, and disputes over Romania's relationship with the West have weakened the alliance severely. President Emil Constantinescu, whose victory in 1996 had been celebrated as the consolidation of Romanian democracy, has announced that he will not seek another term, citing the political exhaustion of the country and his disappointment with the results of the democratic transition.
With the C.D.R. no longer capable of presenting a unified national alternative, the field has fragmented. Candidates have emerged from the PNȚCD, PNL, PD-FSN and UDMR, while the strongest national campaigns have been conducted by the PDSR, PRM and PSM.

| The parliamentary vote has produced a result with deeply troubling implications for Romania's democratic consolidation. The PDSR, led by former President Ion Iliescu, has emerged as the largest party with 34.8% of the vote. The nationalist PRM, led by Corneliu Vadim Tudor, has unexpectedly taken second place with 26.1%, while the hardline national-communist PSM, led by Traian Dudaș, has secured 22.7%. The remaining vote has been divided among the fractured democratic opposition and minority parties.

PDSR - 22.7%
PNȚCD - 5.8%
PNL - 4.6%
PD-FSN - 3.4%
UDMR - 2.9%
PUNR - 1.1%
Other parties - 1.8%

| The result has immediately attracted international attention because the three largest parliamentary parties are all direct political descendants, ideological successors, or organizational offshoots of the former Romanian Communist Party.
The PDSR has inherited much of the political machinery and personnel of the post-1992 FSN and represents Iliescu's reformist, state-socialist tradition. The PSM continues the harder national-communist tradition associated with Ilie Verdeț and Constantin Rotaru. The PRM, meanwhile, has moved increasingly toward an authoritarian nationalist ideology under Vadim Tudor and has gained extraordinary support despite its role in the 1999 coup attempt.
The collapse of the democratic parties has therefore generated a wave of concern across Romania. Newspapers have described the result as a “return of the old political class”, while analysts have questioned whether the democratic transition has actually removed the structures created under Rotaru or merely fragmented them into competing political parties.

| The presidential election has produced an even more dramatic result.
Corneliu Vadim Tudor, campaigning on a platform of nationalism, anti-corruption rhetoric, economic protectionism, and hostility toward the established political order, has unexpectedly finished first with 38.7% of the vote. Ion Iliescu has taken 35.9%, while the remaining votes have been divided among candidates from the PNL, PNȚCD, PD-FSN, UDMR and other parties.
Because neither candidate has secured an outright majority, a second round between Vadim Tudor and Iliescu has been required. In the runoff, Vadim has defeated Iliescu by a narrow but decisive margin, securing approximately 51.4% against 48.6% for the PDSR leader.
His candidacy has been particularly controversial because he was one of the principal political figures behind the 1999 coup attempt and the Provisional Democratic People's Government, during which Romania experienced two months of armed conflict, mass casualties, and the occupation of Bucharest. He is under investigation for crimes against humanity as well as others.

| The result has therefore immediately become the subject of constitutional controversy. Opposition parties, legal organizations, and civil society groups have petitioned the Constitutional Court, arguing that a figure associated with the 1999 armed uprising should not be permitted to assume the presidency without a comprehensive examination of his constitutional eligibility.
Vadim has rejected the challenge and has declared the election legitimate, accusing his opponents of attempting to overturn the popular vote.
At the same time, his supporters have taken to the streets in Bucharest and several provincial cities, holding enormous gatherings and nationalist rallies. Opponents have responded with demonstrations of their own, particularly in University Square, where thousands have demanded that the election be annulled or repeated.
The political atmosphere has become increasingly confrontational. Protesters opposing Vadim have carried Romanian flags and signs warning against “the return of dictatorship,” while his supporters have accused the opposition of refusing to accept the will of the people.

        DER DEUTSCHERBUND
        
        GERMAN BUREAUCRACY 
        
        DAS BUNDESKANZLERAMT

      ______

      FOREIGN AFFAIRS MINISTRY: CHANCELLOR KOHL TRAVELS TO NEW DELHI, INDIA
      🇩🇪 FEDERAL GERMAN CONFEDERATION | NEW DEHLI, OCTOBER 2002

    | EINIGKEIT UND RECHT UND FREIHEIT, THE FEDERAL CHANCELLERY PRESS RELEASE - | The German government aircraft, an Airbus A310 named “Konrad Adenauer” descended through the pale winter haze over New Delhi shortly after nine in the morning. At the bottom of the aircraft stairs stood Prime Minister Atal Bihari Vajpayee, accompanied by senior members of his government and diplomatic corps. Across the tarmac, the German delegation emerged. At its head was Federal Chancellor Helmut Kohl. The visit had been carefully prepared for months. Germany wanted deeper commercial ties with India, but Kohl's advisers had repeatedly emphasized one constraint: Germany could not negotiate a separate German free-trade agreement with India that contradicted European Community trade policy. Kohl understood that perfectly. His objective was therefore more ambitious. Rather than asking India to negotiate solely with Germany, he wanted Germany to become one of the principal European advocates for a comprehensive India–EU trade agreement. |

    | The formal talks began at Hyderabad House after the ceremonial welcome. Prime Minister Vajpayee opened the meeting. |

      | PRIME MINISTER VAJPAYEE | "Chancellor Kohl, India welcomes you to New Delhi. Germany has played an important role in Europe's development, and we see Germany as a natural partner in India's economic transformation."

    | Kohl smiled. |

      | CHANCELLOR KOHL | "Prime Minister, Germany has much to learn from India's transformation as well. Your country possesses an extraordinary combination of industrial capability, scientific knowledge and entrepreneurial energy."

    | The Chancellor paused. |

      | CHANCELLOR KOHL | "But I have come here with a European question as well as a German one."

    | Prime Minister Vajpayee leaned forward. |

      | PRIME MINISTER VAJPAYEE | "Europe?"

      | CHANCELLOR KOHL | "Yes. Germany's economic relationship with India cannot be considered separately from the European Union. If we want a genuinely transformative relationship, we should work toward something larger."

    | Kohl's foreign minister placed a folder on the table. On its cover were the words: INDIA–EUROPEAN UNION TRADE AND INVESTMENT INITIATIVE. Germany's proposal as Kohl explained states that Germany wants three parallel tracks regarding investment.|

      German companies would be encouraged to expand investment in:

    • automobiles

    • machine tools

    • electrical engineering

    • chemicals

    • pharmaceuticals

    • telecommunications

    • information technology

    • transportation

    • energy

    • environmental technology

    • infrastructure

    • consumer and industrial hardware

    • steel and non ferrous metals

    | Germany's Mittelstand would receive particular attention.|

      | CHANCELLOR KOHL | "India should not see Germany merely as a source of finished products. German companies can manufacture here, train Indian workers here, establish research facilities here and export from India."

    | Prime Minister Vajpayee nodded.|

      | PRIME MINISTER VAJPAYEE | "That corresponds closely with India's objectives. We want investment that creates productive capacity, technology and employment."

    | Prime Minister Vajpayee then turned the argument around. India was increasingly interested in European markets and technology. Vajpayee's foreign minister placed a file on the table. |

      Indian companies could invest in:

    • pharmaceuticals

    • software services

    • information technology

    • automotive components

    • engineering

    • chemicals

    • telecommunications

    • research and development

    • consumer and industrial hardware

    • steel and non ferrous metals

      | PRIME MINISTER VAJPAYEE | "We do not wish the relationship to become one-sided. Indian companies must also have a place in Germany."

      | CHANCELLOR KOHL | "That is essential. A successful economic relationship must work in both directions."

    | The most sensitive part of the conversation came next which involved the potential European Union roadblock. Chancellor Kohl's economic adviser explained that Germany could not simply offer India unilateral tariff concessions in areas governed by the European Community's common commercial policy. Kohl knew this well enough. |

      | CHANCELLOR KOHL | "Prime Minister, I want to be absolutely clear. Germany cannot promise India a German free-trade agreement independent of European policy."

    | Prime Minister Vajpayee nodded.|

      | PRIME MINISTER VAJPAYEE | "India understands this."

      | CHANCELLOR KOHL | "But Germany can work within Europe to build the political case for an agreement between India and the European Union."

    | The Prime Minister smiled and nodded in agreement. This changed the atmosphere in the room as the proposal was no longer simply Germany + India. It was India + Germany → India + European Union. |

      | PRIME MINISTER VAJPAYEE | "Do you believe the European Union is prepared to discuss a free-trade agreement with India?"

    | Kohl considered the question carefully. |

      | CHANCELLOR KOHL | "I believe the potential exists. But it will not be easy."

    | Kohl's advisers began outlining the likely areas of negotiation. |

      India wanted:

    • greater access for Indian textiles

    • fewer barriers for agricultural products

    • improved access for Indian engineering goods

    • greater movement of services

    • improved access for Indian software companies

    • easier movement of skilled professionals

    • greater investment opportunities

    • greater access to German steel and non ferrous metals

    • recognition of Indian standards where possible

      European companies wanted:

    • lower Indian tariffs on manufactured goods

    • improved protection for intellectual property

    • greater access to India's services markets

    • greater access to infrastructure projects

    • more predictable investment rules

    • reductions in technical barriers to trade

    • greater transparency in Indian regulations

    | The two governments began discussing what such an agreement might eventually contain. Kohl proposed that Germany encourage the European Commission to develop a structured negotiating mandate covering trade in goods. Tariff reductions would occur progressively rather than overnight. Additionally trade in services. Particular attention would be paid to information technology, telecommunications, finance and professional services. Regarding investments, the two sides would work toward greater predictability for European investment in India and Indian investment in Europe. India and the EU would establish mechanisms for addressing standards and certification problems. Faster customs procedures would reduce costs for companies on both sides. The agreement would incorporate international obligations while attempting to accommodate India's development concerns. The two sides would examine whether portions of public procurement could eventually be opened to greater international competition. |

      The German Investment Package:

    | The German delegation then presented a hypothetical India-Germany Investment Partnership. Rather than being a treaty that bypassed EU authority, it would consist of cooperation compatible with existing European rules. The proposed areas included German industrial investment. German companies would be encouraged to establish Indian manufacturing facilities and joint ventures. It also included technology partnerships. German engineering firms would cooperate with Indian universities and companies. Additionally vocational education would be covered. Germany's dual vocational-training model would be adapted for Indian circumstances. Keeping small and medium-sized enterprises in mind; a special program would connect German Mittelstand companies with Indian firms. |

      German companies would explore:

    • railways

    • urban transportation

    • power generation

    • water treatment

    • environmental technology

    • telecommunications

      The Delhi Declaration:

    | After several hours of negotiations, the two leaders emerged for a press conference. The room was packed. Vajpayee approached the microphones first. |

      | PRIME MINISTER VAJPAYEE | "India and Germany have agreed that the economic relationship between our two countries should be expanded substantially, with particular emphasis on investment, technology, industrial cooperation and trade."

    | He looked toward Kohl. |

      | PRIME MINISTER VAJPAYEE | "We have also discussed the broader relationship between India and the European Union."

    | Kohl then spoke. |

      | CHANCELLOR KOHL | "Germany believes India should be one of Europe's major economic partners in the twenty-first century."

    | Reporters immediately began asking about a free-trade agreement. Kohl responded carefully. |

      | CHANCELLOR KOHL | "Germany cannot negotiate European trade policy independently of the European Union. But Germany can advocate within Europe for a deeper economic relationship with India."

    | Vajpayee interjected. |

      | PRIME MINISTER VAJPAYEE | "India welcomes this approach and we look forward to working more closely with our European allies."

    | Vajpayee and Kohl then exited from the room. |

      🇩🇪 JOINT ECONOMIC STATEMENT 🇮🇳 — New Delhi, October 2002:

    | The Government of the Republic of India and the Government of the Federal Republic of Germany reaffirmed their determination to strengthen bilateral economic relations and to encourage a substantial expansion of trade and investment between the two countries. The two Governments agreed to promote cooperation in industry, infrastructure, information technology, telecommunications, energy, environmental technology, transportation, pharmaceuticals, scientific research and vocational education. Germany welcomed increased Indian investment and commercial activity in the German market, while India welcomed greater German investment and industrial participation in India's rapidly developing economy. The two sides recognized that Germany's commercial policy is conducted within the framework of the European Union's common commercial policy. Accordingly, the German Government affirmed that its efforts to deepen economic relations with India would be pursued consistently with Germany's European obligations. The two Governments expressed their support for intensified discussions between India and the European Union concerning the expansion of trade and investment. They agreed that a future comprehensive India–EU trade agreement could provide an important framework for progressively reducing barriers to trade and investment, while taking account of the differing economic circumstances of the parties and the need for appropriate transitional arrangements. |

      The two Governments agreed to encourage consultations concerning:

    • progressive reduction of tariffs on industrial and other goods;

    • improved market access for services;

    • increased investment flows;

    • cooperation in information technology and telecommunications;

    • reduction of unnecessary technical barriers to trade;

    • customs cooperation;

    • protection and enforcement of intellectual property rights consistent with international obligations;

    • scientific and technological cooperation;

    • vocational training and development of skilled human resources; and

    • cooperation between small and medium-sized enterprises.

    | India and Germany agreed that these efforts should contribute to the broader objective of developing a strong, balanced and mutually beneficial India–European Union economic partnership. The two Governments further agreed to maintain close consultations as discussions within the European Union progressed. |

      ______

        GOTT MIT UNS!
        
        EINIGKEIT UND RECHT UND FREIHEIT!
         
        UNITY AND JUSTICE AND FREEDOM!

    NOVEMBER 2002
    Reforming Britain’s NHS

     1 0  D O W N I N G   S T R E E T ą 

    The Prime Minister commands
    the political stage—
    Tony Blair, confident
    in his government,
    his authority firmly established.

    New Labour has delivered
    on its promise of change.
    Reform is underway,
    Britain is moving forward,
    and Blair looks to the future
    with confidence.

HOME OFFICE — MORNING
LONDON, ENGLAND, Great Britain GB

▌Labour's plan to reshape public services is quite ambitious, covering everything from the NHS to the courts, local councils, and regions across England. A key aspect of this initiative is shifting responsibilities away from Whitehall and placing them in the hands of local institutions and communities that are closer to the people they serve. The foundation hospital system aims to grant individual NHS hospitals a much greater level of independence. Instead of being run solely through central authorities, these hospitals will have their own governing bodies, control over their assets, and more freedom when it comes to financial decisions.

ALAN MILBURN is spearheading the creation of this new hospital framework, which emphasizes local involvement. Most positions on each hospital's governing board will be filled by representatives elected by local residents and recent patients, while staff members will also have a seat at the table. Anyone living in the hospital's vicinity, along with patients who have utilized its services, can become a member of the institution. These members will have voting rights and will play a role in selecting representatives for the governing board. The elected representatives will then choose a chairman from among themselves and will also need to approve the appointment of the hospital's chief executive, ensuring that the elected members have a say in the top management of the institution. The new trusts will own their assets and will have the ability to raise funds through borrowing. However, despite this newfound independence, their buildings, land, and other properties will still belong to the public sector, with safeguards in place to keep them from being sold off. This marks a major shift from how the NHS trusts are currently set up. Right now, trust members are chosen through a government-run process, but with foundation hospitals, local residents and patients get to have a say in picking the people who manage their care.

      ALAN MILBURN, Health Secretary

      “Our goal is to make Labour's principle of common ownership a vibrant part of public services, steering clear of the Conservative trend towards privatisation. The NHS needs to forge a stronger bond with the communities it serves, and these reforms are designed to foster that connection. Foundation hospitals represent a fresh take on public ownership, rooted in the cooperative spirit of Labour while also evolving to meet the needs of today.”

The first hospitals to gain foundation status will be those NHS institutions that have already set high standards. The plan is to gradually roll this out across the health service, moving away from the highly centralised system that has defined the NHS since the postwar era. The PRIME MINISTER is also urging people to engage more actively with the public institutions that serve their communities, especially hospitals and schools.

      TONY BLAIR, The Prime Minister

      “Our goal is to make Labour's principle of common ownership a vibrant part of public services, steering clear of the Conservative trend towards privatisation. The NHS needs to forge a stronger bond with the communities it serves, and these reforms are designed to foster that connection. Foundation hospitals represent a fresh take on public ownership, rooted in the cooperative spirit of Labour while also evolving to meet the needs of today.”

This movement towards decentralization is being bolstered by new laws aimed at enhancing public order and community standards. The proposed measures will widen the options for issuing fixed penalties and tackle issues like graffiti, littering, airgun use, and disruptive noise. Moreover, there will be stricter rules on the sale of spray paint, all in an effort to keep public spaces clean and manage access to materials often used for property marking. The forthcoming legislation on offenses will lay down additional rules and provide more protections for those affected, while also clarifying what’s expected of those under the law. Changes to licensing laws will allow pubs to operate for longer hours than they currently do, potentially even around the clock. Reforms in the criminal justice system will also tweak several established procedures. DAVID BLUNKETT is advocating for changes to the existing restrictions on second trials in certain cases and for juries to be informed about prior convictions when considering a defendant's background.

      DAVID BLUNKETT, Home Secretary

      “It's crucial for the justice system to take into account the viewpoints of everyone involved while also guaranteeing a fair process for defendants. When there are compelling reasons to revisit a case, the law should provide the opportunity for that, rather than shutting down further proceedings in every instance.”

OLIVER LETWIN and SIMON HUGHES are set to oppose any changes they feel could undermine the established protections within the justice system. Their parties plan to leverage their positions in the House of Lords to push back against measures that could impact these fundamental principles. IAIN DUNCAN SMITH will take aim at the government's broader agenda, arguing that Labour's ongoing promises for significant reform have not been matched by real results.

      IAIN DUNCAN SMITH, Tory M.P.

      “The government keeps rolling out ambitious initiatives and touting them as major changes, but too often, the results fall short of expectations. What truly matters is not just another announcement of reform, but actually making the promised changes a reality.”

The proposed mental health legislation is on hold for now, giving the government a chance to reflect on the concerns that have been raised about its various provisions. There’s a particular emphasis on the situations where individuals could be hospitalized without their consent, even in cases where no offense has occurred. Meanwhile, JONH PRESCOTT is busy crafting plans for elected regional government in England. His initiative aims to establish regional administrations, empower successful local authorities, and reassess the country’s planning systems. This legislation will also create a legal framework for holding referendums in some of England's eight regions, giving local voters the chance to decide if they want an elected administration that can take on devolved responsibilities.

The north-east is set to kick off the process. PRESCOTT and NICK RAYNSFORD will be reaching out to councillors, business representatives, and advocates for regional government, with Tyneside being part of the early talks about the possibility of a referendum. The government aims to get the legislation approved by the next Easter, allowing the Electoral Commission enough time to review the current local government setup in the north-east before gearing up for the first referendum, which is anticipated to happen around two years later. The PRIME MINISTER has made it clear that the establishment of regional government hinges on changes to how English local administration is structured. The plan includes creating single-tier unitary authorities to go hand in hand with the transfer of powers to the regions. Additionally, PRESCOTT's department is working on separate legislation to enhance the powers available to councils. Local authorities will gain more freedom to engage in commercial activities and borrow money without needing prior approval from the central government. A new system for assessing local government performance will also be rolled out as part of this initiative. About 150 key county and local authorities will be evaluated, establishing a standard framework for measuring their performance. Councils that receive the best assessments will enjoy greater autonomy in managing their responsibilities. The overarching goal of this program is to lessen dependence on central government, bolster local administration, and empower communities to have a bigger say in the public services that operate in their areas.

▬▬▬
ą 10 DOWNING STREET, concerning the government affairs of the PRIME MINISTER's office, workings with the House of Commons, and the whole of the Whitehall system — a road that is recognized as the centre of Her Majesty's Government in Britain; the road is lined with government buildings housing and its Whitehall mandarins.

    NOVEMBER 2002
    Eight Years of Reform

     F H C   G O V E R N A M E N T  ą 

    Năo é a moeda forte
    que faz o país.
    O país é que faz
    a moeda forte.

    It is not the strong currency
    that makes the nation.
    The nation makes
    the currency strong.

INT. ALVORADA PALACE — DAY
BRASÍLIA, FEDERAL DISTRICT, Brazil Toucan

The administration of FERNANDO HENRIQUE CARDOSO brought about some major changes in Brazil throughout the 1990s and early 2000s. It achieved notable successes in areas like monetary stability, social policy, and modernizing government institutions, but it also grappled with ongoing economic challenges. After years of severe instability, inflation was finally brought under control, which helped provide greater economic security, especially for lower-income families. During this time, Brazil saw a decline in the illiteracy rate, an expansion of land distribution programs, and a reorganization of various public administration sectors. Government statistics and budgeting processes became more organized, and some traditional forms of regional political patronage started to lose their grip. These advancements coincided with a broader transformation of the Brazilian economy. The administration pushed for privatization, scaled back the state's direct involvement in several sectors, and worked to deepen Brazil's ties with international markets. This strategy aimed to attract foreign investment, boost efficiency, and lay the groundwork for long-term economic growth. However, despite these efforts, economic growth was often limited, unemployment rose, real wages faced pressure, and public debt increased significantly. Brazil also found itself highly vulnerable to shifts in international financial conditions, especially during times of instability in emerging markets.

The exchange-rate policy turned into one of the administration's biggest economic hurdles. In the early years of the Real Plan, the real held its value pretty well, but external financial crises started to put a strain on Brazil's reserves and currency. Eventually, the government made a significant shift in the exchange-rate regime, all while keeping interest rates sky-high in an effort to control inflation and stabilize the financial landscape. While these actions helped maintain monetary stability, they also created some limitations on economic growth and public finances. Brazil's economic strategy often drew comparisons to other approaches taken around the world. For instance, Chile opted for stricter controls on certain types of short-term capital movement, whereas China managed to blend significant foreign investment with tight state control over capital flows, all while enjoying rapid economic growth. These different experiences showed that developing economies could attract international investment through various mixes of market openness, government regulation, and capital controls. Brazil's method was just one way to integrate into the global economy, not the only route for emerging markets. Additionally, the administration shifted Brazil's ties with the international financial system. With a growing reliance on foreign capital, domestic economic conditions became more susceptible to decisions made in global markets and by institutions like the International Monetary Fund. Relations with the United States also became a key part of Brazil's foreign policy, with economic strategies closely tied to international financial discussions. Thus, the government found itself in a time when domestic reforms, global markets, and foreign policy were all increasingly intertwined. By the end of the administration, Brazil had undergone substantial institutional and economic changes. The period left behind both measurable improvements and serious unresolved problems. Monetary stability, administrative modernization, and advances in several social indicators represented important developments, while slow growth, unemployment, inequality, debt, and vulnerability to international financial shocks remained major challenges. The overall period can therefore be understood as one of profound economic restructuring rather than as a simple record of either success or failure.

While FHC was in the U.S., the presidential delegation managed to spend around US$70,040 (R$266,000). This figure is nearly double the original estimate of US$35,140. The higher costs were mainly due to the large size of the delegation. FHC was accompanied by key figures such as Foreign Minister CELSO LAFER, Education Minister PAULO RENATO, Health Minister BARJAS NEGRI, and actress REGINA DUARTE, with their expenses covered by the federal government. Also traveling with them were BEATRIZ, LUCIANA, and PAULO HENRIQUE, along with three of FHC’s grandchildren, although the government didn’t pay for their meals and lodging. During the trip, FHC received the Mahbub ul Haq Award from the United Nations Development Programme, recognizing Brazil’s strides in its Human Development Index. It’s important to mention that the reported US$70,040 wasn’t the final figure, as some additional costs, like phone charges, were not included in the initial report.

▬▬▬
ą A Series: FHC Government, events covering the FHC Government; the administration dedicated itself to achieving economic stability, implementing social reforms, promoting privatization, and fostering closer ties with the global economy. This era came to an end in 2002 after eight years of leadership.

        DER DEUTSCHERBUND
        
        GERMAN BUREAUCRACY 
        
        DAS BUNDESKANZLERAMT

      ______

      FOREIGN AFFAIRS MINISTRY: THE KOHL-WÓJCIK SUMMIT, WARSAW
      🇩🇪 FEDERAL GERMAN CONFEDERATION | WARSAW, NOVEMBER 2002

    | EINIGKEIT UND RECHT UND FREIHEIT, THE FEDERAL CHANCELLERY PRESS RELEASE - | By 2001, Poland had found itself at a crossroads. President Mateusz Wójcik, elected on a platform of transforming Poland into a modern European industrial power, has encountered increasingly severe opposition in the Sejm and Senate. Much of the opposition is being dominated by former communist-era political networks and politicians who oppose Wójcik’s economic reforms. The parliamentary opposition repeatedly blocks or delays these measures. After months of political paralysis, Wójcik takes an extraordinary step. In October 2001, he ordered the dissolution of both chambers of Parliament, supported by elements of the Polish Armed Forces and presidential security apparatus. The government argues that the legislature has become incapable of functioning and that extraordinary measures are necessary to prevent the country’s democratic transition from being captured by remnants of the communist political establishment. The move produces an immediate constitutional crisis. Western European governments are deeply concerned. |

      The Arrival of Helmut Kohl — November 2002:

    | On a cold November morning, a Luftwaffe Airbus A310 carrying Chancellor Kohl lands at Warsaw-Okęcie Airport. Kohl, now Chancellor of Germany for just over 20 years is greeted by President Wójcik and senior members of the Polish government. German and Polish flags line the airport ceremonial route. The symbolism is unmistakable. For Kohl, Poland represents one of the central questions of post-Cold War Europe: Can Central Europe become fully integrated into the political, economic and security structures of the West? Kohl’s government sees a prosperous, democratic and Western-oriented Poland as strategically important to Germany and the rest of Europe. |

    | The principal meeting takes place at the Presidential Palace on Krakowskie Przedmieście. Kohl and Wójcik meet privately for nearly two hours before their delegations join them. The atmosphere is cordial but serious. Wójcik explains the parliamentary crisis. He argues that his government has repeatedly attempted to pass economic reforms but that politicians associated with the former communist establishment have systematically blocked them. Kohl listens carefully. He understands the frustration. But he does not give Wójcik an unconditional endorsement. Kohl tells Wójcik that Germany understands the enormous difficulty of transforming a former communist economy. However, he emphasizes that Germany’s support for Poland depends upon the country remaining firmly committed to constitutional government. His message is essentially: “The destruction of the old political system cannot become an excuse for destroying democratic institutions themselves.” Kohl privately acknowledges that Wójcik’s frustration with the parliament is understandable. But he warns that military involvement in the dissolution of an elected legislature could seriously damage Poland’s credibility in Western Europe. This becomes the central tension of the summit. During a joint press conference, Kohl carefully avoids condemning Wójcik personally. Instead, he emphasizes principles. |

    | Kohl makes clear that Germany wants to see a functioning parliament. He also emphasizes that Germany is willing to help Poland economically and militarily, but that long-term European integration requires democratic institutions capable of surviving political disagreements. This becomes one of the most quoted statements of the summit. Kohl then makes an ambitious proposal. He tells Wójcik that Germany wants Poland to become part of the European Union as rapidly as possible. |

      The German Proposal

      Berlin offers to establish a German–Polish European Integration Partnership with German experts assisting Poland in:

    • harmonizing Polish commercial law with EU requirements;

    • modernizing customs administration;

    • strengthening judicial institutions;

    • reforming competition law;

    • modernizing infrastructure;

    • restructuring state-owned enterprises;

    • preparing Polish industry for the European single market.

    | Kohl also offers to personally advocate for Poland in European capitals. But Wójcik refuses to give Kohl a formal commitment. He tells the Chancellor that Poland must first resolve its internal constitutional crisis. Kohl makes a similar argument regarding NATO. He tells Wójcik: “A secure Poland is not merely a Polish interest. It is a European interest.” Germany offers to help Poland establish a comprehensive NATO interoperability program. |

      This includes:

    • German military advisers;

    • officer exchanges;

    • NATO-standard communications;

    • joint exercises;

    • air-defense modernization;

    • logistics reform;

    • professionalization of the Polish armed forces;

    • restructuring of Poland’s defense procurement system.

    | Kohl makes clear, however, that membership cannot simply be purchased with German weapons. Poland must satisfy the political requirements of the Alliance. That is particularly relevant because NATO’s enlargement process explicitly connected membership aspirations with democratic and political obligations. |

      🇵🇱 The Warsaw Defense Package 🇩🇪

    | The most dramatic announcement comes from the defense ministries. Germany proposes an enormous modernization package for the Polish Armed Forces. This includes Leopard 2 main battle tank production which is the centerpiece of the proposal. Germany offers Poland a long-term industrial partnership allowing Polish defense companies to participate in licensed production and assembly. The proposed arrangement includes a Polish variant Leopard 2A5PL incorporating some modifications for the Polish Armed Forces. |

      Leopard 2A5PL Modifications:

    • improved armour

    • upgraded communications

    • Polish battlefield-management equipment

    • improved thermal sights

    • German-designed fire-control technology

    • strengthened logistical support

    | Polish factories would eventually manufacture significant portions of the tank domestically. The strategic objective is not simply to sell Poland tanks. It is to create a Polish armored-vehicle industry integrated with German industry. Berlin also offers Poland the opportunity to purchase the Eurofighter Typhoon. The proposal envisions a phased purchase beginning with a relatively small initial order followed by larger batches. The aircraft would gradually replace Poland’s aging Soviet-designed fighter fleet. This would represent an enormous leap for the Polish Air Force. Germany additionally proposes transferring and selling upgraded Panavia Tornado IDS/Interdictor aircraft to Poland. Germany would provide pilot training and maintenance infrastructure. These would provide Poland with a long-range strike capability while the Eurofighter fleet was being established. |

      🇵🇱 The €20 Billion Polish–German Investment Initiative 🇩🇪

    | Perhaps even more consequential than the weapons package is Kohl’s economic proposal. Germany announces a €20 billion multi-year investment framework for Poland. It isn’t simply a €20 billion government cheque. Instead, it consists of German government guarantees, development financing, private-sector investment, infrastructure financing and industrial partnerships. German companies are encouraged to establish major Polish production centers. This includes German automotive manufacturers which are encouraged to invest and establish major production facilities around Poznań, Wrocław, Katowice, and Warsaw. Poland is designated to become increasingly integrated into the German automotive supply chain. German engineering companies also establish joint ventures with Polish industrial firms. Large-scale modernization occurs in Poland’s chemical sector. Germany helps finance the modernization of Poland’s electrical grid and construction of modern power-generation facilities. German and Polish firms cooperate on modern locomotives, signaling and railway modernization. The long-term goal is to transform Poland into a major Central European manufacturing and logistics hub. |

    | Despite all this, Wójcik refuses to make the commitment Kohl wants. At the final press conference, a German journalist breaks the silence. |

      | DIE WELT JOURNALIST | “Mr. President, will Poland commit today to joining NATO and the European Union?”

    | Wójcik pauses before answering. |

      | PRESIDENT WÓJCIK | “Poland will determine its future as a sovereign European nation. Today I have made no such commitment.”

    | Kohl then takes the microphone. His response is diplomatic. |

      | CHANCELLOR KOHL | “Germany respects Poland’s sovereignty. But we hope that Poland will ultimately find its future within the European institutions that have brought peace and prosperity to our continent.”

    | Neither leader declares victory. |

      🇵🇱 The Warsaw Declaration — Pałac Prezydencki, 2002 🇩🇪

    | Instead, the two governments sign the Warsaw Declaration on German–Polish Partnership. It contains five principal commitments with the first being economic partnership. Germany commits to facilitating the €20 billion investment framework. The second principle is the modernization of Poland's military. Germany begins negotiations on Leopard 2 production, Eurofighter acquisition and Tornado transfers with a final deal being reached to sell both aircraft. The third principle of the declaration was European integration. Germany pledged technical and political assistance to Poland’s eventual EU accession. Atlantic security is the fourth principle with Germany offering assistance preparing Poland for NATO interoperability and eventual membership. The fifth and final piece of the declaration is democratic institutions. Both governments reaffirm the importance of constitutional government, civilian control of the military and free elections. That final provision is deliberately included at Kohl’s insistence. |

    | The overall result the summit produces is an unusual outcome. Kohl leaves Warsaw without obtaining the political commitment he wanted. But he has succeeded in establishing an enormous German economic and military relationship with Poland. President Wójcik, meanwhile, gains access to German capital, technology and military equipment while remaining firm in his government’s freedom of action. The biggest unresolved question is Poland’s constitutional crisis. Germany makes clear that it will not treat the dissolution of the Sejm and Senate as a permanent replacement for parliamentary democracy. Kohl therefore leaves Warsaw with a message that becomes the unofficial motto of German policy toward Wójcik’s Poland: “Germany will help Poland become stronger. Poland must decide for itself how it will remain free and democratic.” |

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        GOTT MIT UNS!
        
        EINIGKEIT UND RECHT UND FREIHEIT!
         
        UNITY AND JUSTICE AND FREEDOM!

    AUGUST 2002
    
    HONG KONG SPECIAL ADMINISTRATIVE REGION | 香港特別行政區

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SOUTH CHINA MORNING POST | Martin Lee receives mandate to continue campaign of stability and prosperity
李馬丁獲得任務,繼續進行穩定同繁榮嘅競選

    (HONG KONG) - In a sweeping victory for the governing Democratic Party, Chief Executive Martin Lee Chu-ming has been re-elected to a second five-year term, receiving 53.8% of the popular vote, while Regina Ip Lau Suk-yee, the standard-bearer of the newly-established New People’s Party, received 42.1%. The Democratic Party also retained its outright majority in the Legislative Council, though its margins were reduced significantly thanks to a parallel overperformance by the NPP and the Liberal Party, who assumed new leadership with the ascension of Selina Chow Liang Shuk-yee.

    Lee had spent the entire campaign with considerable structural advantages. His first term, despite being dominated by the difficult task of establishing the new SAR system post-handover, saw numerous major policy victories, including judicial independence, democratic freedoms, expanded social and labor protections, and a major programme of economic and educational investments. The scenarios of catastrophe that enveloped the city ahead of the 1997 handover had failed to materialize: Hong Kong remained a capitalist economy, common law courts continued operating, capital remained freely convertible, and international companies continued to use Hong Kong as a hub for regional operations.

    The Lee campaign centered heavily around the principles of its new slogan, “Stability, Prosperity, Building Hong Kong Again” (穩定,繁榮,再建香港), which deliberately avoided the confrontational democratic language associated with Lee and the United Democrats in the 1990s. The slogan was also significantly softened from its original form at the start of the campaign, which read, "Stability and Prosperity: Hong Kong's Future in Hong Kong's Hands." As a result, the campaign focused on advocating for expanding the technology and innovation sector, investing into public education and public transportation, building stronger economic ties with the Guangdong province in the mainland, and developing new affordable housing.

    Veteran civil servant Regina Ip meanwhile centered her campaign around national security, administrative discipline and closer cooperation with Beijing. She repeatedly rallied around action to preserve national security and develop “harmony with the National People’s Congress and the Central Government.” She also touted plans to streamline the Hong Kong government, vowing to refrain from the “excesses of programme-making, agency-building, and subsidy-dispersing” employed by the Lee administration, which she and her conservative NPP considered a “symptom of government failure to develop a prosperous society.” Her New People’s Party had emerged largely thanks to her insurgent campaign for Chief Executive, appealing to pro-business and moderate pro-Beijing voters in the New Territories and Kowloon East who had grown increasingly dissatisfied with Jasper Tsang and the DAB, who had worked extensively to ratify programs pushed by the Lee government.

    This political upheaval on the pro-Beijing establishment’s part extended deep into the Liberal Party. James Tien had resigned during the summer, citing old age, leaving his position open for grabs. Selina Chow, Hong Kong’s first weather girl turned vice chairwoman of one of its largest establishment parties, assumed the leadership position, backed by the powerful Wholesale and Retail functional constituency lobby. Chow’s first major decision was to refrain from fielding a candidate for Chief Executive, instead choosing to endorse Ip’s campaign in a rare moment of establishment wing political unity. In its LegCo campaign, however, Chow and the Liberals campaigned heavily on taxation, deregulation, and business competitiveness, with an express vow to protect Hong Kong’s prosperity, which had for decades been driven in large part by the influx of foreign capital and foreign businesses.

    Martin Lee Chu-ming (李柱銘)

    Democratic Party (民主黨)

    1,451,831 votes (53.8%)

    Regina Ip Lau Suk-yee (雷吉娜葉劉淑儀)

    New People’s Party (新人民黨)

    1,136,098 votes (42.1%)

    As a result, Lee’s vote share only increased modestly from his 52.4% victory in 1997. Democrats cheered the results as a reaffirmation of their mandate among voters, and indeed, its performance was strong: voters in the most populated regions of the city, including Central, Mid-Levels, Wan Chai, and Southern District heavily favored the Democratic Party, along with the university towns (Pok Fu Lam, Sha Tin) and areas with large professional employment. Ip performed strongly in Kowloon East, Kowloon City, and the New Territories, which has historically leaned closer to conservative values and pro-Beijing sentiments than any other parts of Hong Kong. She also overperformed expectations in the peripheries of Sha Tin, in Yuen Long, in North District, and in parts of Tuen Mun, where cross-border policies and housing pressures are of particular importance to voters.

    The Legislative Council saw similar swings. Operating on the original 60-seat framework clarified and institutionalized through Chris Patten’s pre-handover electoral reforms, the Council was divided between 20 geographical constituency seats, 30 functional constituency seats, and 10 Electoral Constituency seats. In the final results, the Democratic Party retained its legislative majority, but lost ground to conservative parties. They walked away with 34 seats, while the new NPP went from none to 8 seats, tying up with the Liberals at 8 seats and the DAB at 5 seats. The ADPL won 3 seats and other independents secured the 2 remaining seats.

    Analysts note that Lee’s victory came in spite of, not because of, the prevailing economic sentiments. While Hong Kong grew 2.3% in real terms throughout the year thus far after a very weak 2001 fiscal year, and service exports grew by 12.1%, real GDP still remained 0.5% below the corresponding quarter last year in the earlier part of 2002, leaving Hong Kong’s sectors facing economic pressures. Unemployment also remained prevalent, with the adjusted rate hovering around 7.8% from May to July of this year.

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