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	<title>Paul Legato &#187; Politics and International Relations</title>
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		<title>The Democratic Party and its Postmodernist Rot</title>
		<link>http://www.paullegato.com/blog/democratic-party-postmodernist-rot/</link>
		<comments>http://www.paullegato.com/blog/democratic-party-postmodernist-rot/#comments</comments>
		<pubDate>Tue, 06 Dec 2011 00:52:36 +0000</pubDate>
		<dc:creator>Paul Legato</dc:creator>
				<category><![CDATA[Economics]]></category>
		<category><![CDATA[Politics and International Relations]]></category>

		<guid isPermaLink="false">http://www.paullegato.com/?p=547</guid>
		<description><![CDATA[How creeping far-left postmodernist ideas are infecting the mainstream of thought in California, a symptom of the larger rot that is slowly destroying the Democratic Party nationally.]]></description>
			<content:encoded><![CDATA[<p>I give you another exhibit of <a target="_blank" href="http://www.sfgate.com/cgi-bin/article.cgi?f=%2Fc%2Fa%2F2011%2F12%2F03%2FMNPB1M7IB9.DTL" >how creeping far-left postmodernist ideas are infecting the mainstream of thought in California</a>, a symptom of the larger rot that is slowly destroying the Democratic Party nationally.<span id="more-547"></span></p>
<p>Paragraph after paragraph of heart-rending, maudlin emotional manipulation over the tragic fate of the cherubic little scholar whose only wish is to learn math, but whose test scores will inevitably fall below those of his classmates due to his Dickensian plight; hungry, cold, and homeless, yet cruelly expected to learn as well as his advantaged peers, though his frozen little fingers are too numb to grip a pencil and his stomach rumbles even after the meagre gruel the school provides him for breakfast&#8230;</p>
<p>Then, an entire section is devoted to exploring the city&#8217;s budget for accommodating homeless people at public expense, the message being that the government is failing in its responsibility to this kid by not providing free housing for him and his family.</p>
<p>Not a word is mentioned about any parental responsibility for getting their kid into this situation, nor for their responsibility to get the kid out of it. In fact, his parents are barely mentioned at all, other than to say that they sold all their possessions and moved to SF in September because his dad thought he had a job lined up which didn&#8217;t work out.</p>
<p>What compelled them to pack up and move without any savings? Was it bad luck, desperation, stupidity, some combination of the above? Are they looking for work? Do they have friends or relatives in other cities? Did their savings run out? Were there unexpected medical expenses or something like that? They&#8217;ve only been there for a few months, if the job didn&#8217;t work out, why don&#8217;t they move somewhere less expensive to live than the second-most-expensive city in the US, and to somewhere with better employment prospects for non-professionals? Why are they staying in San Francisco rather than moving somewhere cheaper? Who knows? The reporter didn&#8217;t even ask any of these questions.</p>
<p>To be absolutely clear, I am not against emergency public assistance to help those genuinely in need get back on their feet and begin to help themselves. Perhaps the family genuinely does need and deserve help. I don&#8217;t know; the reporter didn&#8217;t bother to tell us.</p>
<p>What I am against is the notion that the government (that is, the taxpayer) ought to function as a free-flowing money spigot without limits for anyone, forever. This is the mindset that informs both this article and the left wing of the Democratic Party generally. The only question asked is, &#8220;why is the government not doing more to help these people?&#8221; This could be a great question to ask in certain contexts. It should not stand alone as the <em>only</em> question to ask. The government should help, yes; but it should not be the primary responsible party. The key element of personal and parental responsibility is entirely absent from this discussion.</p>
<p>It didn&#8217;t even occur to the reporter to ask such very basic questions about their situation because these more extreme versions of the postmodernist-liberal worldview include a complete abdication of all personal responsibility for one&#8217;s situation in life. The individual is considered a mere kite in the social wind whose thin tether has broken loose, buffeted about by forces entirely beyond his control and with which only a massive and benevolent government bureaucracy can possibly contend. It&#8217;s all up to the government to save this family from the consequences of their bad luck and poor planning, to the extent that questions revolving around the details of the situation are not considered worth mentioning at all, in favor of a discussion of how woefully little money the government is spending on fixing the situation.</p>
<p>Indeed, the notion that government spending programs are the sole answer to this situation is taken entirely for granted in that article and not even an issue; the only point of contention is exactly how much more than present levels the government ought to be spending to fix things. Even then, &#8220;the government finding the parents jobs&#8221; is not floated as a solution; the government ought to just give them a free apartment for as long as they like, apparently.</p>
<p>Anyone who dares suggest that parents have any sort of primary responsibility to provide for their kid rather than the city government and the taxpayer is dismissed out of hand by the far-left as a cruel and unfeeling monster, etc.</p>
<p>Well, awareness of the deeper dynamics is the first step towards halting this trend. There you go.</p>
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		<title>Why is NATO in Libya? Data-based analysis of whether it&#8217;s just an oil grab.</title>
		<link>http://www.paullegato.com/blog/libya-nato-intervention-analysis/</link>
		<comments>http://www.paullegato.com/blog/libya-nato-intervention-analysis/#comments</comments>
		<pubDate>Thu, 28 Jul 2011 00:24:41 +0000</pubDate>
		<dc:creator>Paul Legato</dc:creator>
				<category><![CDATA[Politics and International Relations]]></category>
		<category><![CDATA[libya]]></category>
		<category><![CDATA[nato]]></category>
		<category><![CDATA[oil]]></category>
		<category><![CDATA[politics]]></category>

		<guid isPermaLink="false">http://www.paullegato.com/?p=534</guid>
		<description><![CDATA[Why is the US involved in Libya today? Why is NATO there? Why aren't they doing more or less (depending on your politics) than they are? Is the whole thing yet another evil imperialist plot to make the white man rich by seizing the Other's oil? Let's look at some hard data and see what we can figure out.]]></description>
			<content:encoded><![CDATA[<p>Why is the US involved in Libya today? Why is NATO there? Why aren&#8217;t they doing more or less (depending on your politics) than they are? Is the whole thing yet another evil colonial imperialist plot to make the white man rich by seizing the Other&#8217;s oil? Let&#8217;s look at some hard data and see what we can figure out.<span id="more-534"></span></p>
<h1>Libyan Oil Production</h1>
<ul>
<li><a href="http://www.eia.gov/countries/cab.cfm?fips=LY"  target="_blank">Prewar Libyan oil production capacity ≈ 1.8 million bbl/day in 2010.</a></li>
<li>Prewar Libyan oil actual production in 2010 ≈ 1.65 million bbl/day. (ibid.)</li>
<li>Libyan Proven reserves ≈ 46.4 billion barrels. (ibid.)</li>
<li>Libyan reserves tend to be high quality light (high API gravity), sweet (low-sulfur) oil. (ibid.)</li>
<li>&#8220;the vast majority&#8221; of Libyan oil is exported to Europe (85%); 5% is exported to the US. (ibid.)</li>
<li><a href="http://www.eia.gov/dnav/pet/pet_pri_wco_k_w.htm"  target="_blank">Libyan oil sells for an average price of $117.13 per bbl</a>, as opposed to the world average of $113.87. For reference, Saudi light (high-quality) goes for $114.87; Saudi heavy (low-quality) oil goes for $110.43/bbl; and Mexican Maya heavy goes for $103.29 / bbl.</li>
<li>For comparison:</li>
<ul>
<li><a href="http://www.eia.gov/dnav/pet/pet_crd_pres_dcu_NUS_a.htm"  target="_blank">US domestic proven reserves ≈ 20 billion barrels.</a></li>
<li><a href="http://www.eia.gov/totalenergy/data/monthly/pdf/sec3_3.pdf"  target="_blank">US domestic daily production ≈ 7.48 million bbl /day.</a></li>
<li><a href="http://www.eia.gov/countries/country-data.cfm?fips=SA"  target="_blank">Saudi production ≈ 9.78 million bbl/day.</a></li>
<li>Saudi proven reserves ≈ 266.7 billion bbl. (ibid.)</li>
<li><a href="http://www.eia.gov/cfapps/ipdbproject/IEDIndex3.cfm?tid=5&amp;pid=53&amp;aid=1"  target="_blank">World oil production ≈ 86.8 million bbl/day.</a></li>
<li><a href="http://www.eia.gov/cfapps/ipdbproject/IEDIndex3.cfm?tid=5&amp;pid=57&amp;aid=6"  target="_blank">World proven reserves (2009) ≈ 1,341 billion bbl.</a></li>
</ul>
<li>The US government estimates that <a href="http://www.eia.gov/security/esar/latwom.html"  target="_blank">OPEC immediately available surplus production capacity is 1.5 to 2 million bbl/day</a>, excluding Iraq and Venezuela; over half of this capacity is in Saudi Arabia.</li>
<li><a href="http://articles.cnn.com/2011-02-23/world/libya.saudi.arabia.oil_1_swing-producer-surplus-oil-peter-beutel"  target="_blank">The Saudis claim to have surplus capacity of 4 million bbl/day.</a></li>
<li><a href="http://www.eia.gov/countries/cab.cfm?fips=LY"  target="_blank"><strong>Western oil companies are well represented in Libya</strong></a> (&#8220;Eni, Total, Repsol YPF, StatoilHydro, Occidental, OMV, ConocoPhillips, Hess, Marathon, Shell, BP, ExxonMobil and others.&#8221;)</li>
</ul>
<h1>Cost of NATO intervention in Libya</h1>
<ul>
<li><a href="http://af.reuters.com/article/libyaNews/idAFL6E7HN29420110623"  target="_blank">£260 million to the end of June to Britain</a></li>
<li><a href="http://blogs.abcnews.com/politicalpunch/2011/06/obama-administration-libya-operation-has-cost-more-than-716-million-does-not-require-congressional-a.html"  target="_blank">$716 million through June 3rd to the US alone.</a></li>
<li><a href="http://af.reuters.com/article/topNews/idAFJOE76902T20110710"  target="_blank">€160 million to France through July 10th.</a></li>
<li><a href="http://www.un.org/News/Press/docs/2011/sc10200.doc.htm"  target="_blank">Operations began March 17th.</a>)</li>
</ul>
<div>
<h2>Oil trade generalities</h2>
<div>
<ul>
<li><strong><a href="http://hsgac.senate.gov/public/_files/SenatePrint10965MarketSpecReportFINAL.pdf"  target="_blank">At least 30% of the market price of oil is predicated on speculative activity by non-hedgers</strong></a> (i.e. those who do not actually produce or consume oil, such as hedge funds and investment banks), rather than actual supply and demand for the underlying commodity. See especially p. 12 and 19.</li>
<li>Most world oil trade is conducted in US dollars.</li>
<li>This amounts to a large interest-free loan to the US, since other countries must provide goods to the US in exchange for dollars to use buying oil.</li>
<li><a href="http://www.time.com/time/magazine/article/0,9171,998512,00.html"  target="_blank">Saddam Hussein was converting to all-Euro oil trade when the US invaded</a></li>
<li><a href="http://www.guardian.co.uk/business/2009/oct/06/oil-us-dollar-threat-to-america"  target="_blank">China, Russia, Japan, and Gulf states are now supposedly planning to abandon the USD for oil trade.</a></li>
</ul>
</div>
</div>
<h1>Libyan oil production analysis</h1>
<div>
<ul>
<li>Libyan daily production (pre-war) was ≈ 2.07% of the world supply by volume (1.8/86.8).</li>
<li>Libyan proven reserves are about 3.46% of known world reserves</li>
<li>While unquestionably large, <strong>Libyan oil production capacity and proven reserves are both a tiny fraction of extant world supply.</strong></li>
<li>The spread between high and low quality oil is significant, but small. High quality Libyan oil goes for only 13% more than the price of low quality Mayan Heavy, and only 2% more than the average world oil price.</li>
<li>Thus, as a gross first-approximation estimate, <strong>Libya&#8217;s 2% of world production may be said to contribute about (0.0207&#8230; * 1.02) = 2.12% of world price&#8217;s supply component </strong>(2% of world production, and only 2% more expensive than average oil).</li>
<li>The contribution of the supply component to the final market price of oil is unknown. As a crude first approximation, if we assume 30% of the price derives from financial speculators, that leaves 70% for supply and demand. If these are approximately balanced in the long term, as OPEC actively seeks to do via production controls and leaving some capacity idle, then around 35% of the price is supply and around 35% of the price is demand. This means that, <strong>very roughly estimating, Libyan production contributes about 0.7% of the final price of crude oil</strong> (0.35 * 0.0212). This component is in any case most certainly<strong> orders of magnitude less than the ordinary market volatility</strong> induced by speculative capital flows on a daily basis.</li>
<li><strong>Available OPEC excess production capacity is more than capable of making up for lost Libyan production.</strong></li>
<li>OPEC governments have a strong interest in containing the unrest in Libya.</li>
<li>They don&#8217;t really care who wins, so long as it&#8217;s stable.</li>
<li><strong>OPEC would like NATO / US to arrange for stability in Libya</strong>, as part of the oil-for-security compact negotiated with the US during the late stages of the Cold War.</li>
<li>Thus, motivated to make up for the lost production in exchange for NATO doing that.</li>
<li><strong>NATO is at the advantage</strong> in bargaining in the short and medium term:</li>
<ul>
<li>worst case scenario for NATO is long-term higher energy costs.</li>
<li>worst case scenario for OPEC governments is the protests spreading and leading to dissolution of their regimes and wealth.</li>
<li><strong>major inconvenience for NATO vs. an existential threat for OPEC.</strong></li>
</ul>
</ul>
<h1>Costs of the Libyan war to NATO</h1>
</div>
<div>
<ul>
<li>Cost to Britain is appx. $640,000 per day (1.6 * £400,000 per day (£260 million / (3.5 months * 30 days in a month)))</li>
<li>Cost to the US is appx. $9.5 million / day ($716 million / (2.5 months * 30 days))</li>
<li>Cost to France is appx. $1.86 million / day (1.43 * €1.3 million per day (€160 million / (4 months * 30 days))</li>
<li>Costs to other NATO countries are non-negligible but overlooked here for simplicity</li>
<li>Total cost for 3 main players on the NATO side is ≈ $12 million per day</li>
<li>Costs will continue to grow as the war drags on</li>
<li>Not to mention dead people and political costs</li>
</ul>
<h1>Conclusions</h1>
<ul>
<li><strong>Since Libyan oil was already heavily under the sway of western oil companies, and since they were already exporting almost all of their oil to Europe and the US at market prices, in USD, there was no motive to attack them for access to their their oil per se (as in Iraq).</strong></li>
<li>The contribution to the price of oil made by financial speculators (approximately 30%) is far, far higher than the contribution to the price of oil made by Libyan supply (appx. 2.12% of only the supply component of the price).</li>
<ul>
<li>Regulating hedge funds more strictly would be a far less costly and far less controversial way to bring down crude prices, if that were the goal.</li>
</ul>
<li>One might try to make the case that the intervention is designed to protect the capital investments of western companies in Libya from destruction in a civil war, though this would be hard to establish since <strong>Western oil companies&#8217; capital infrastructure (wells, pipelines, etc) would likely be destroyed anyway even with a full-scale NATO intervention.</strong></li>
<li>Even if all Libyan oil were 100% owned by western companies (very unlikely in any scenario), it would still not contribute a significant amount to world oil supply or prices, nor much addition to oil companies&#8217; profit margins compared with what they were making there before the war.</li>
<ul>
<li>They were already making obscene amounts of money in Libya anyway before the war</li>
<li>The war will shut down production entirely for months, perhaps years</li>
<li>The war will destroy much/most of their very expensive physical capital investment in Libya in infrastructure (wells, pipelines, etc.)</li>
<li>thus, <strong>Western oil companies would have been far better off financially if the war had not happened.</strong></li>
</ul>
<li>Therefore, <strong>it&#8217;s most likely that the war is actually an internal Libyan factional dispute, not engineered by evil western imperialist capitalists for their own benefit.</strong></li>
<li>This is far from a full-scale intervention. <strong>$12 million per day is a drop in the bucket compared to what NATO could be spending on this intervention if they so chose.</strong></li>
<li>Thus, <strong>NATO is not very interested in ending the war in Libya</strong>. It&#8217;d be nice, but they aren&#8217;t going to go out of their way, or to any considerable expense, to do so.</li>
<li><strong>More likely, the intervention is a token effort to placate other OPEC governments&#8217; calls for the US/NATO to do something to stabilize the region while not committing to yet another long and politically unpopular foreign war.</strong></li>
<ul>
<li>Also, a message to the Libyans and to Arabs generally that NATO is paying attention, if not intervening at full capacity, to discourage the unrest from spreading beyond Libya</li>
</ul>
<li>The small scale of the intervention vs. capacity to intervene could also be a bargaining tool to attempt to induce OPEC to increase its daily production more or make other similar concessions.</li>
</ul>
</div>
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		<title>Goldman&#8217;s Blankfein before Congress</title>
		<link>http://www.paullegato.com/blog/goldman-blankfein-congress/</link>
		<comments>http://www.paullegato.com/blog/goldman-blankfein-congress/#comments</comments>
		<pubDate>Tue, 27 Apr 2010 23:40:57 +0000</pubDate>
		<dc:creator>Paul Legato</dc:creator>
				<category><![CDATA[Economics]]></category>
		<category><![CDATA[Politics and International Relations]]></category>
		<category><![CDATA[goldman sachs]]></category>
		<category><![CDATA[politics]]></category>

		<guid isPermaLink="false">http://www.paullegato.com/?p=246</guid>
		<description><![CDATA[And it came to pass, that Goldman&#8217;s then-chief overlord was order&#8217;d to parade full 7 days and 7 nights through the streets of lower Manhattan, clad in naught save his drawers, bearing tether&#8217;d to heavy chains every SEC filing that Goldman hath wrought for 10 years previous; while the peasants of the borough were to [...]]]></description>
			<content:encoded><![CDATA[<div class="alignright"><img style="padding: 0 0.38em 0 0.62em;" class="size-large wp-image-247   " title="Blankfein before Congress" src="http://www.paullegato.com/wp-content/uploads/2010/04/Blankfein-Congress.jpg" alt="Goldman CEO Lloyd Blankfein testifying before Congress" width="511" height="250" />
</div>
<p><span style="font-variant: small-caps;">And  it came to pass</span>, that Goldman&#8217;s then-chief overlord was order&#8217;d to parade full 7 days and 7 nights through the streets of lower Manhattan, clad in naught save his drawers, bearing tether&#8217;d to heavy chains every SEC filing that Goldman hath wrought for 10 years previous; while the peasants of the borough were to gather round to hurl rotting vegetables thence, and cry, &#8220;Lo! How the mighty have fallen!&#8221;</p>
<p>And only then, once the indignity were suffer&#8217;d in full, might he retreat to his penthouse to recover, or to his yacht, or to the coffers of his chalet in southern France, or to his Bahamas estate countinghouse, or to any other sequester&#8217;d location whatsoever.</p>
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		<title>Constructivist Errors in Taiwan-China Analysis: a Case Study</title>
		<link>http://www.paullegato.com/blog/constructivist-errors-taiwan-china/</link>
		<comments>http://www.paullegato.com/blog/constructivist-errors-taiwan-china/#comments</comments>
		<pubDate>Wed, 10 Feb 2010 06:33:17 +0000</pubDate>
		<dc:creator>Paul Legato</dc:creator>
				<category><![CDATA[Politics and International Relations]]></category>
		<category><![CDATA[china]]></category>
		<category><![CDATA[constructivism]]></category>
		<category><![CDATA[phenomenology]]></category>
		<category><![CDATA[postmodernism]]></category>
		<category><![CDATA[taiwan]]></category>

		<guid isPermaLink="false">http://www.paullegato.com/?p=33</guid>
		<description><![CDATA[I just read &#8220;A Constructivist Take on the Strait&#8221; by Max Tsung-Chi Yu. The information on Taiwanese internal politics with regard to China and of the various nations&#8217; stances towards growing Chinese power was interesting and informative. What I disliked was the explicitly intersubjective analysis of the &#8220;One China, different interpretations&#8221; declaration. Intersubjectivity and notions [...]]]></description>
			<content:encoded><![CDATA[<p>I just read &#8220;<a target="_blank" href="http://www.acus.org/new_atlanticist/constructivist-take-strait" >A Constructivist Take on the Strait</a>&#8221; by Max Tsung-Chi Yu. The information on Taiwanese internal politics with regard to China and of the various nations&#8217; stances towards growing Chinese power was interesting and informative. What I disliked was the explicitly intersubjective analysis of the &#8220;One China, different interpretations&#8221; declaration. Intersubjectivity and notions of mutually constructed non-objective reality are intrinsically phenomenological nonsense, thus irretrivably corrupting any theory thence derived. (And despite the superficially warm and fuzzy happy hippie overtones in which phenomenology and its offspring postmodernism and constructivism usually present today, let&#8217;s not forget <a href="http://www.paullegato.com/?attachment_id=36" >where it came from and what it was invented to support</a>, and what it could easily be turned to again in the future, with very little if any theoretical modification from its present form.)<span id="more-33"></span></p>
<p>What, exactly, does he say? Let&#8217;s look at his own words:</p>
<blockquote><p>
But how we can better explain and formulate a security policy toward China using a constructivist approach?<br/><br/></p>
<p>The answer lies in the social interactions and cultural norms that shape common identities, while the interests of the state can facilitate intersubjective (or shared) understandings conducive to the improving of cross-strait relations.<br/><br/></p>
<p>For instance, Beijing and Taipei are now on a conciliatory path because of shared understandings — such as the “one China, different interpretations” policy, the premise that cross-strait peace requires China to desist with its military threats and Taiwan not pushing toward independence.<br/><br/>
</p></blockquote>
<h2>Constructivist Errors</h2>
<p>In short, he says that China-Taiwan relations have improved because, in a show of empowerment, people in both countries are constructing a new reality and a new concept of China through their social interactions, as embodied in the &#8220;One China, different interpretations&#8221; policy.</p>
<p>This requires thinking that reality is something socially constructed, first of all, which I obviously don&#8217;t. And it requires believing that these social contacts are the driving force behind policy set by the elites, rather than policy being the driving force behind the social contacts.</p>
<h3>Despite cromulent wishing, ordinary people are not quite yet embiggened</h3>
<p>The emphasis on &#8220;social interactions that shape common identities&#8221; as the putative basis for the present improved Chinese-Taiwanese relations is derived from an ongoing and well-meaning but misguided effort to de-institutionalize the concept of power, which crops up across the postmodernist spectrum. Present postmodernists are engaged in a self-delusional attempt to democratize the conception of &#8220;power&#8221; into something &#8220;done&#8221; by ordinary people (those who are &#8220;empowered,&#8221; anyway, a killer pomo buzzword), rather than as the acts of distant institutions of the elite which are beyond the individual&#8217;s purview. (This is, incidentally, an idea that postmodernist thought appropriates from liberalism, as part of its general klepto-philosophic program.) They cannot stomach the idea that our fate, both as individuals and as a society, is largely determined by forces beyond our control, so they imagine (or construct, if you prefer) a reality in which that is not the case. Granted, it&#8217;s not exactly a happy thought, that some faraway leader who I&#8217;ve never even met could push me into a war tomorrow, but because it is unpleasant does not make it untrue.</p>
<p>The most cursory reading of history shows this to be the case. If not, are we to believe instead that the ordinary people of, say, Germany in 1938 just really, really hated Poles, on a personal level? that ordinary Japanese of 1941 really despised the United States? and a hundred thousand other similar examples? Of course not. Ordinary people don&#8217;t care for war until they are whipped into a fervor by a very small group of leaders, who can, in many cases, guide them to whatever path they choose. Unpleasant? Sure, but we must confront that, rather than bury our heads in the sands of Pollyanna optimism and pretend as though we as individuals have some kind of power that we only wish for.</p>
<h3>&#8230; and the real power-brokers just don&#8217;t care much about &#8220;cultural identity&#8221;</h3>
<p>The idea that mainland Chinese and Taiwanese relations are built, somehow, upon the mutual construction of an intersubjective identity is absurd, not to mention incredibly naive. (It is &#8220;absurd&#8221; philosophically, derived from the inherent nonsense of phenomenology, for reasons that must wait until another day to be elaborated. The short version, omitting many details, is that an objective reality exists apart from our perceptions of it, at least until a repeatable experiment demonstrates otherwise, and failure to notice that is a serious illness called &#8220;schizophrenia.&#8221; cf. Karl Popper.)</p>
<p>Sure, Taiwan and China share an ethnic heritage and a language and a culture, but these are relatively minor factors. International relations are generally determined mainly by power and money, at times by pragmatic cooperation for mutual benefit, and yes, even by altruism occasionally. Identity is not nearly as important a factor as the constructivists would have it. When PRC and ROC diplomats meet, are they talking about trade and guns and money, or are they exchanging sweet and sour chicken recipes and reciting Tao Qian?</p>
<p><i>All else the same,</i> two groups from the same cultural background will prefer one another, but all else is certainly not the same in the case of China and Taiwan. Just look at US-UK economic relations over the entire postwar period: despite close security ties which are undoubtedly culturally rooted (i.e. the US and UK may not like each other all that much, but they like each other much better than either likes anyone else), economic cooperation has been far less apparent &mdash; the UK needed a humiliating IMF bailout in 1976. where was the USA? &mdash; and the  &#8220;Special Relationship&#8221; has looked rather frayed on more than one occasion, not the least of which is the currently waning public support in Britain for the Afghanistan and Iraq wars.</p>
<h2>English School Explanation</h2>
<p>So, we&#8217;ve deconstructed the deconstruction. Now we are left with the more positive task of providing an alternate, and better, explanation for the present state of Taiwanese-Chinese relations.</p>
<p>As a point of fact, both the PRC and ROC governments have endorsed the &#8220;One China, different interpretations&#8221; policy. As another point of fact, there has been a notable détente in cross-strait relations, with increased trade and tourism and decreased (though remaining) military provocation. </p>
<h3>Realists and liberals</h3>
<p>Realists would argue that the PRC, being fully aware of the United States&#8217; vast investment in and concominant commitment to the defense of Taiwan, agreed to this policy as a face-saving way to avoid a costly and possibly unwinnable war with the United States&#8230; at least for now. In the meantime, the PRC is happy to trade with Taiwan and make some cash with which to patiently build up its military might. Taiwan, for its part, is obviously aware that it would be largely destroyed in any US-China conflict, so it has agreed to &#8220;One China&#8221; as a general self-preservation measure. Unsure of the United States&#8217; long-term commitment to it, it trades to accumulate its own power, so as to hopefully become enough of a potential military problem that China will judge itself better off trading than fighting at some point in the future.</p>
<p>Liberals characterize the situation more simply, as one of mutual benefit; they have both realized that they are better off trading than fighting. Nonetheless, they must save face. The &#8220;One China&#8221; charade is simply a face-saving measure to preserve a semblance of national pride. (Marxists might add, &#8220;&#8230; while the elites of both countries rake in profits behind the scenes.&#8221;)</p>
<h3>Liberal Realism, or, the English School</h3>
<p>I think they&#8217;re both right. The best explanation is a fusion of the liberal and realist positions. The realists go too far in assuming that international relations is a zero-sum game, while the liberals fail to appreciate the anarchic and power-hungry aspect of things. Liberals are too optimistic and realists are too pessimistic.</p>
<p>China, or at least a large faction of its leadership, definitely still wants Taiwan. They would probably take it today if they thought they could get away with it, but they know they can&#8217;t. So they will settle for making lots of money from Taiwanese trade in the meantime, while they figure out what to do (or, who will be in charge.) In time, this conciliatory but transient harmony <em>could</em> congeal into a more permanent arrangement, maybe, as more and more of the power elites in both countries realize that the benefits of cooperation outweigh fighting (but, though likely, it will not necessarily do so.)</p>
<p>Note that the ordinary people are largely irrelevant in this analysis, not because I am just a very mean person and don&#8217;t like democracy, but as a de facto statement of reality rather than choosing candy-coated empowering wishful thinking. The ordinary people can usually be brought around to whatever the elites decide.</p>
<p>This is, in my opinion, a far more compelling and realistic analysis than positing the metaphysical mutual co-construction of some entirely new aspect of Chinese reality through social interaction and discourse.  Mainland Chinese like making money. Taiwanese like making money. The mainland would love to take over Taiwan and use their resources to make even more money, but they are externally constrained (by the US) from doing so for the forseeable future, so they aren&#8217;t. Being self-interested as well as not intrinsically warlike, and indeed sharing a common cultural bond (though it not be the major factor), they gradually soften their position, bit by bit, and engage in trade as part of a general normalization of relations. No magical thinking required.</p>
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