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Yes, I missed last week — apologies. I am, however, partial to a counter-terror strategy in Afghanistan. The Rising Power of the Chinese Worker. Higher Chinese wages would also be good for the West. Just as expanding the global labour force by a quarter through the addition of cheap Chinese workers helped to keep prices down in the West, so higher Chinese wages might start to export inflation.
Furthermore, from the point of view of the global economy, labour is a resource, like land or oil. Give the Poor Money. A few have woken up to their limitations, and are thinking about the next generation of programmes, which might require children who are about to leave school to go for vocational training in exchange for continuing to receive the stipend, or encouraging cities to add an urban top-up to the nationwide scheme, perhaps paid for by the municipal authority.
The more that follow, the better. CCTs are a good start. But they are only a start. In a few years newly trained Afghan forces may be able to take over the job. Meanwhile, development and diplomacy are needed to reform the frustratingly poor Afghan government. It is not pretty and there is no guarantee that it can be done before voters lose patience, if ever.
Now that cap and trade has proved unacceptable, expect a swing back towards carbon taxes in policy circles. During a wholesale revision of the tax code they might yet have their day.
