Bloomberg Businessweek (North America)

The Hard Truth About Malaysia 370 A War Crime Against Culture

Anxiety over the flight’s mysterious fate must not lead to potentiall­y risky new safety rules The destructio­n of Timbuktu’s heritage is being reviewed for possible trial in The Hague

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Modern aviation has become perhaps the safest complex system ever devised. Each day, 100,000 flights take off and land with prosaic regularity. Accidents are so rare that, almost by definition, they mean something unpreceden­ted has happened.

The unexplaine­d disappeara­nce of Malaysia Airlines Flight 370 two years ago—with all 239 people aboard presumed dead—is by any definition unpreceden­ted. As such, it makes a poor basis for dramatic changes in public policy. Modern planes are so safe that adding yet more rules in response to a yet-unexplaine­d tragedy could make things worse.

Consider proposals to mandate tamper-proof transponde­rs. That sounds prudent: Someone aboard Flight 370 evidently switched off the plane’s communicat­ions systems, taking it off the grid. But pilots may have perfectly valid reasons for turning a transponde­r off, such as recovering from a malfunctio­n or preventing overheatin­g. The risks of tamper-proofing cockpit equipment outweigh the benefits.

Likewise, the United Nations wants to track aircraft more frequently and in greater detail. Again, this sounds like a no-brainer. Yet planes are already thoroughly tracked. And a group studying the idea for the UN found that the additional requiremen­ts could in some cases create new risks and impose an “unrealisti­c operationa­l burden.” Not to mention the expense.

In the age of the drone, some suggest, why not eliminate human pilots altogether? Even overlookin­g the cost and complexity of that, the alarming rate at which military drones— to say nothing of civilian counterpar­ts— crash in much less demanding environmen­ts should give pause. Pilots have solved many more problems in-flight than they’ve caused.

Some new technology may in fact be helpful in preventing disasters. Aerospace companies are working on gear that could wrest control from a pilot in times of distress. The U.S. military is working on robot co-pilots. These are promising endeavors, worthy of more study and investment. Yet they, too, risk The destructio­n of a mausoleum cannot compare to the rape and murder of innocents. But it’s a war crime nonetheles­s— and the importance of prosecutin­g it shouldn’t be underestim­ated, for the present day or for posterity.

When the terrorist group Ansar Dine invaded Timbuktu, Mali, in 2012, it not only attacked the population, but also destroyed an historic mosque and several graves. Now its leader, Ahmad al-faqi al-mahdi, is before the Internatio­nal Criminal Court (ICC) in The Hague, charged with the destructio­n of Unesco World Heritage sites. It will decide whether he will stand trial.

The idea that the intentiona­l destructio­n of culturally valued property is a war crime isn’t new. This case would mark the first time such an act is the main charge in a war crimes tribunal. The seriousnes­s of the crime is beyond doubt. The purpose of destroying cultural heritage is to eliminate all the attachment­s of a people under attack—to obliterate not only one’s enemies but also any trace of their existence. As the court’s prosecutor made clear in her opening statement, at stake is more than simply “walls and stones.” The accused was attempting to “destroy the roots of an entire people.”

This case won’t serve as a deterrent to militants such as those in Syria and Iraq, who consider the destructio­n of cultural heritage to be part of their war against infidels. But the pursuit of justice is valuable for its own sake, and a trial will help create a record of the devastatio­n Ansar Dine wrought. In prosecutin­g the erasure of Timbuktu’s cultural heritage and identity, the ICC would be going some way toward restoring the dignity of those whose sacred places were destroyed.

The court has been accused, not without reason, of irrelevanc­e, incompeten­ce, and unfairness. It’s possible that this case will show it’s not too late for it to serve the vital purpose for which it was establishe­d almost 14 years ago. <BW>

Then the magazine Istoe reported that the government’s former leader in the senate, Delcídio do Amaral, had alleged that Rousseff had pushed judges to release political allies imprisoned on charges of graft. The magazine said the senator, who faces charges of witness tampering, made the allegation­s as part of a possible plea bargain. Amaral declined to confirm any plea agreement or the details reported in the story.

On March 4, Federal Judge Sergio Moro had former President Luiz Inácio Lula da Silva detained for questionin­g about favors he and his family allegedly received. On March 9, a state prosecutor in São Paulo charged Lula with money laundering and hiding assets. He allegedly concealed ownership of an apartment renovated by a builder

involved in the Petrobras scandal. Lula’s Instituto Lula says the former president denies owning the apartment and has done nothing illegal.

Rousseff, Petrobras’s former chairman, isn’t being investigat­ed. She has denied any wrongdoing. Rousseff says her rivals want to seize power before the 2018 election. “There are certain political fights that create systemic problems not only for politics but for the economy,” she said on March 7 while inaugurati­ng a housing project.

The latest events have revived efforts to remove Rousseff by impeachmen­t or by the annulment of her 2014 reelection. The Democratic Movement Party, or PMDB, Rousseff’s largest ally in the ruling coalition, will discuss severing ties in a national convention on March 12. Opposition lawmakers plan to add details of Senator Amaral’s allegation­s to an impeachmen­t request filed on Dec. 2 in the lower house of congress. “Amaral’s plea deal is fatal,” says Congressma­n Pauderney Avelino, leader of the opposition Democrats.

Brazil’s currency surged 6.3 percent in the first week of March in the hope that Rousseff would be impeached, easing the political gridlock so that reforms to fix the world’s seventhlar­gest economy could go through. Eurasia Group, a political consulting firm, estimates the odds of Rousseff finishing her term at less than 50 percent.

Lula’s brief detention brought about fistfights between supporters and opponents of the government in front of his home outside São Paulo. Rousseff’s opponents are organizing nationwide protests for March 13 to call for her ouster. Hundreds of thousands have signed up on Facebook event pages promoting the demonstrat­ions. Rousseff’s Workers’ Party will stage two rallies later in March to support the government and party hero Lula.

Public protests could further undermine Rousseff’s support. “There is no impeachmen­t without people on the streets,” opposition Congressma­n Mendonça Filho told reporters on March 7. In 1992 mass demonstrat­ions pressed congress to open impeachmen­t proceeding­s against thenPresid­ent Fernando Collor de Mello. Demonstrat­ing students painted their faces and wore black as a sign of grief over corruption. Collor resigned before his impeachmen­t began.

For two years prosecutor­s and federal police working under Judge Moro have conducted Operation Carwash— named for gas stations allegedly used to launder money—from rented offices in Curitiba, 250 miles south of São Paulo. They’re looking into the possibilit­y that massive bribes from a cartel of Brazil’s biggest builders were paid to politician­s and executives in exchange for at least $50 billion in Petrobras contracts. Much of the illicit cash bankrolled three parties, including the Workers’ Party, Moro alleges. The judge has had 482 executives, politician­s, bankers, and businessme­n arrested.

Last month’s arrest of João Santana, the mastermind of Rousseff’s 2010 and 2014 campaigns, has taken Moro’s team one step closer to Planalto, the presidenti­al palace in Brasília. Prosecutor­s said in a statement that they suspected people charged in the Petrobras case made multiple payments to Santana and his wife and business partner, Monica Moura, intended for the Workers’ Party. Investigat­ors are trying to determine whether anyone in Rousseff’s campaign arranged the payments of the illicit funds. “We need to discover who gave the order to pay,” says Carlos Lima, a lead prosecutor in the case. “The money came from bribes, and the payment was for some service Santana provided.” Santana and Moura haven’t been charged, and they said in a court filing that the money was for work on campaigns outside Brazil.

The country’s top electoral court also is probing whether Petrobras money made its way into Rousseff’s campaign. If it finds that it did, the court could annul her mandate and call new elections.

Under Lula, 36 million Brazilians escaped extreme poverty. Today the country has double-digit inflation and unemployme­nt, and millions are falling out of the middle class. Opponents of Lula and Rousseff have flooded social media with expression­s of rage. “Enough impunity,” says one post on a Facebook page named Vem Pra Rua Brasil, or Come to the Streets of Brazil. “This is not a country of thieves.” �Michael Smith and Sabrina Valle, with Anna Edgerton, Raymond Colitt, and Arnaldo Galvao

The bottom line The odds are increasing that President Rousseff will not finish her term as the investigat­ion called Operation Carwash grinds on.

1Q ’08

and the government are appealing the ruling. Desseilles’s plight was recently the subject of a story on national TV. “It’s baroque—we may lose everything for a rule that protects unions who protect no one but themselves,” Berrier says. “At the end of the day, we spend more time struggling with French labor laws than focusing on our business.” Chinese investors expressed interest in the company.

Unions were part of Socialist President François Hollande’s political power base, but now they’ve become opponents. After his latest attempt at labor reform in Parliament prompted a union threat to demonstrat­e, Hollande has put that effort on hold. The postponed bill would have voided a law that limits the workweek to 35 hours. It would have allowed businesses to increase working hours with minimal extra compensati­on and without union support. The bill also would have made it easier for companies to cut jobs while limiting severance. The Confédérat­ion Francaise du Travail (CFDT), the umbrella union group, called the delay a victory. “We’ve obtained the postponeme­nt of the labor law, now we’ll fight to obtain a rebalancin­g of the text,” CFDT Secretary General Laurent Berger says.

French unions started to weaken in the 1970s, when manufactur­ing declined in the West, globalizat­ion moved production offshore, and managers circumvent­ed organized labor with temporary contract workers who didn’t have the same privileges or job protection­s. The unions want to refill their ranks, but recruitmen­t is hard when more French

people identify organized labor as just another special interest group. Radu Vranceanu, an economics professor at ESSEC Business School in Paris, says of the unions: “They know the power they have left is to be disruptive.”

Tiny Desseilles’s troubles are magnified in Galeries Lafayette and Printemps, department stores that draw millions of shoppers from around the world. Unions are refusing to obey a law pushed through by Hollande that allows stores to remain open 12 Sundays per year. The unions want extra compensati­on for employees—even though Galeries Lafayette is offering doublepay for Sunday hours and Printemps said employees are “ready to work on a Sunday.” Galeries Lafayette said in September that it was in talks with unions to open three Paris stores on Sunday, a move expected to add 1,000 jobs at its flagship, boosting sales as much as 7 percent.

The unions’ moves have had little positive effect on France’s unemployme­nt rate, which, at above 10 percent, is twice that of the U.K. and Germany. Hollande’s reforms—which include cutting the labor tax for companies that are hiring, and deregulati­ng businesses that once held monopolies granted by the state—would have lowered the cost of hiring and made businesses more competitiv­e.

“The problem we have today is to find people to sit around the table,” Stéphane Le Foll, a

Algeria Angola Iran Iraq Kuwait Nigeria Qatar Saudi Arabia United Arab Emirates Venezuela

-20% The bottom line France’s trade unions have weakened, but they have enough power to stall labor reform.

Iran told OPEC it produced 3.4m barrels a day in January; the U.S. said Iran’s output was 17 percent lower The monthly oil production numbers submitted to OPEC by its members are just the start of the process of figuring out actual output. The U.S. government, the Internatio­nal Energy Agency, and independen­t analysts arrive at numbers that often deviate from the cartel’s official figures. The chart shows how vast the disparitie­s can be.

Deviation of estimate from figure reported to OPEC

U.S. Department of Energy Internatio­nal Energy Agency

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What’s going to be more powerful is when a year from now, or two years from now, stories start going around the world about how extraordin­arily productive and successful [they are].

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