THE HANDSTAND |
july 2005 |
book
reviews Towards a New Paradigm in Monetary Economics, by Joseph Stiglitz & Bruce Greenwald ; Cambridge Univ.Press. by William Krehm (Editor, COMER journal June 2005 issue) Date: Mon, 20 Jun 2005 12:30:44 +0930 From: ERA <hermann@picknowl.com.au> Joseph Stiglitz, once a high official of the World Bank, has achieved renown for his independent critique within the very den of orthodoxy. However, in this imperfect world, even relative heterodoxy carries its price tag. "The material was originally presented at the Raffaele Mattioli Lectures, established by Banca Commerciale Italiana in association with Universita Commerciale Luigi Bocconi as a memorial to the cultural legacy of Raffaele Mattioli, for many years chairman of the bank. This explains the almost lyric naivete of such shrewd investigators in dealing with such delicate issues as the sifting of economic information by banks, and the headlong characterization of the statutory reserves certain countries still require the banks to redeposit with their central banks as"taxes." But despite all that accommodation, in the preface we read: "We would be remiss not to acknowledge the vibrant intellectual atmosphere inside the World Bank, in which the ideas presented here were debated, challenged, and adopted and adapted as we confronted the most dramatic set of economic events of the last half of the twentieth century - the global financial crisis; but we would also be remiss if we did not express our sense of frustration at the attempts of the US Treasury and the IMF to suppress open discussion of these ideas. There cannot be meaningful democracy without transparency and without open public discourse of vital issues that affect the lives and livelihoods of the citizens." To which we can only add our "Amen." At times, our reading of this in some respects rewarding book, left the impression that even while asserting these laudable principles, the authors are inclined to accept the view that transparency itself is a market and rarely a perfectly free one at that. But first of all our applause for the substantial merits of the work. "Professional economists give money an equally mixed review. The monetarists - whose enormous popularity in the early 1980s seems subsequently to have waned - place money as a central determinant of economic activity. By contrast, in the classical dichotomy [of supply and demand], money has no real effects, a view which has been revived in real business cycle theory. Monetary economics has been a curious branch of economics. At times, its central tenet seems to be that it is a subject of no interest to anyone interested in real economics; at other times, it moves front and center.... "The central thesis of this chapter is that the traditional approach to monetary economics, based on the transaction demand for money, is seriously flawed [in that] it does not provide a persuasive explanation for why - or how - money matters. Rather, we argue that the key to understanding monetary economics is the demand and supply of loanable funds, which in turn is contingent on understanding the importance, and consequences of banks. We argue, in particular, that one should not think of the market for loans as identical to the market for ordinary commodities, an auction market in which the interest rate is set simply to equate the demand and supply of funds. That some loans are not repaid is central. A theory of monetary policy which pays no attention to bankruptcy and default is like Hamlet without the Prince of Denmark. Thus, a central function of banks is to determine who is likely to default, and in doing so, banks determine the supply of loans.... While banks are at the center of the credit system, they are also part of a broader credit 'general equilibrium' - an equilibrium whose interdependencies are as important as those that have traditionally been discussed in goods and services markets." The Fly in the Broth The big fly afloat in that otherwise enticing broth, is the frequency with which banks before and during the age of Eliot Spitzer have graced the defendants' dock in celebrated cases such as Enron. Not infrequently the enquiries disclosed our banks' part in the design and execution of derivative games that made possible a double sets of books. (Could this perhaps be excused as a derivative of double entry bookkeeping?) It certainly has done little for the information that is the special function of banks to provide according to the authors' new model. On the other hand, though muted, there is an awareness of the obstacles that have been thrown up against their new model of openness. "Many developing countries have been placed under strong pressures to open up their financial systems - a marked change in their institutional structure. Most of the arguments for this make standard appeals to an institution-free analysis - more competition increases economic efficiency [no matter what the institutions may be]. A closer look at the impact of such reforms on the domestic banking system, and on the flow of credit to small and medium-size enterprises, suggests many circumstances in which these policy reforms have adverse consequences." That undoubtedly contributed to the displeasure of the US Treasury and the IMF. Stiglitz is in fact a little all over the map. I quote: "Establishing a form of Say's law for government debt, Stiglitz showed that if the government reduced taxes and increased its debt, the demand for government bonds increased by an amount exactly equal to the increase in supply." The original Say's Law assured believers that there could not be such a thing as overproduction, because in this best of economic systems the very production of a commodity produced the market for its sale. We thought that the Great Depression and Keynes had knocked the wind out of Say's sails. To add to the confusion of leaning on Say's Law, the authors adopt yet another verbal usage of the dominant financial sector: "remember the characterization of reserve requirements as a tax on borrowing by the bank." The statutory reserves require banks to redeposit with the central bank a percentage of the deposits they take in from the public - the highest in the case of deposits into their chequing and short-term accounts. These could well be remembered in quite different connections - in their historical context as "seigniorage," a reference to the ancestral crown's monopoly in coining precious metal which has now been surrendered in large degree to our banks. Or it could be remembered as an alternative to raising interest rates to fight a rising price level which might or might not be real inflation - i.e., resulting from an excess of demand beyond what supply could fill. What practically all economists concur in is ignoring that price indexes may also rise not because of an excess of demand, but because of urbanization, population increase, and technological development that require more infrastructures and a more highly educated population. All these create the need for more public services as a proportion of total production. That leads inevitably to a deeper layer of taxation embedded into our prices. Thirty-five years ago I identified this under the name of "social lien" to distinguish it from "market inflation" that does indicate an excess of demand over market supply. But the words we speak can smuggle in great institutional change especially when privileged groups find these useful. The Banks as Masters Thus, we find on page 279, in discussing the bank crisis of the latter 1980s, the authors reach the conclusion that "lower interest rates also reduced the banks' seigniorage." That can only refer to the excess the banks lend out over the cash in their vaults. The Bank for International Settlements' Risk-based Capital Requirements had in 1988 declared the debt of OECD members - the most developed countries - to be risk-free requiring no extra capital to acquire. The Statutory Reserves, unlike the case in Canada, do continue in the US on a very reduced scale, applicable only during banking hours, The interest meters in the case of government bonds that are declared risk-free tick on 24 hours a day, whether the bank doors are closed or open. And that cute innovation reduces the seigniorage regained by the state that had had the free use of the statutory reserve twenty-four hours every day - to match the uninterrupted ticking of the bond interest. In Canada the statutory reserves were abolished outright, though not very publicly, in 1991. Significantly the term "seigniorage' harks back to when the ancestral sovereigns held a monopoly in coining gold and silver. And the significance of the bailout of the banks that the book discusses at this point is that the creation of money, once a sovereign privilege, has now been transferred to the banks. The term "seigniorage" is clearly derived from the Italian for "master" and informs us who is now master in the great counting house. So significant a redistribution of the national income amounted to a shift in the power structure of the nation. Only that could explain how so soon after the bailout of the banks from their gambling losses in the 1980s the firewalls that the Roosevelt bank reform of 1935 that prevented banks from acquiring the other financial sectors were abolished. These other financial sectors - stock brokerages, mortgages, insurance - had their capital pools to meet the needs of their own businesses. But the banks lusted such liquid reserves to expand their cash base on which they could exercise their growing powers of money creation given them by the end of their statutory reserves. Significantly, banks, brokerages, mortgage, and finally insurance and re-insurance conglomerates have featured as star defendants in the investigations of fraud launched by Attorney-General of New York Eliot Spitzer, and the SEC. None of these issues are spotlighted in the book. Seigniorage, of course, had always been shared with banks and the government. The BIS Guidelines of Capital Requirements and the decrease of the statutory reserves, merely changed the proportions of the sharing sharply to the advantage of the banks. But never before have I encountered the use of the term "seigniorage" referring to the banks' part of the take. That in itself, I suppose, should earn the authors high marks for frankness up to a point. And that instance is not unique. For example on page 291 we read: "When [Fed Governor Alan] Greenspan seemed to support Bush's tax proposals, questions were raised not only about his economic judgment, but also his political judgment, and the arguments he gave (the notion that eventually the surpluses would eliminate the supply of government debt, which would have adverse effects on the conduct of monetary policy) did little to help. "If monetary policy must rely on the credibility of the central bank and the central banker, then it is indeed a fragile instrument. For it may increasingly be the case that this particular emperor has no clothes, or is, at the very least, scantily clothed, and while such assertions are seldom made in polite circles, there is a growing suspicion that this may indeed be the case." ************************************************ Saral Sarkar: Eco-socialism or Eco-capitalism, Zed Books, London and New York, 1999 I should like to draw your attention to
the words of Saral Sarkar, the German
Green of Indian origin, who deeply investigated the
possibilities of an environment-friendly eco-society:
The (present) situation
has given rise to a
great confusion and lack of perspective. Socialism (as it
existed) has failed, radical environmentalism has failed
to achieve anything worth mentioning; but capitalism has
also failed and is failing increasingly to solve any of
the problems of the world. One need think only of the
vehemence with which the ruling elites of even the
richest capitalist countries are today trying to
dismantle the welfare state. They are not even justifying
this with the argument that it has to be done in order to
protect the environment.
I reject
eco-capitalism, not only because it cannot function, but
also and mainly because of the values the capitalism
represents: exploitation, brutal competition, worship of
mammon, profit and greed as motive. And I am mainly for
socialism because of the values it represents: equality,
co-operation, solidarity. Freedom and democracy are
compatible with these values, although they did not exist
in the socialist regimes we have experienced up to now,
but they are not compatible with the values of
capitalism, especially not with inequality in wealth and
power.
The World in My Mind, My Mind in the World by Igor Aleksander (Imprint Academic) Alok Jhar Aleksander smiles as he tells the story. For him, it
underlines the counter-intuitive nature of his work for
the past 40 years: the things that humans do most easily
- recognise faces or interact naturally with other
people, for example - are the hardest things to replicate
in machines. He began his career trying to model individual brain
cells by soldering together small electronic circuits.
Now that he is officially retired (a time of life he
cheerfully calls his most productive) he is working on
his most ambitious project: to understand consciousness
and to build a machine that can achieve it artificially. "Consciousness
is an incredibly delicate subject because it
offends," says the emeritus professor of neural
systems engineering at Imperial College London.
"It's a subject that scientific groups kept away
from. They said it was a philosophical concept." Traditionally, research on making a computer do
anything remotely human-like has been the domain of
artificial intelligence. Aleksander says he is too much
of a maverick to follow that herd. "I never went
along with the mainstream of artificial
intelligence," he says. "I don't like the words
artificial intelligence because the intelligence of a
human being has to do with being good at this, being good
at that. Whereas the intelligence of an artificial system
consists in doing very simple things." And despite
frequently grappling with ideas that brush philosophy,
Aleksander is an engineer through and through. Born in Zagreb, Aleksander's family fled the second
world war to Italy when he was three. They didn't stay
long, leaving for the comparative safety of South Africa
as war overtook Europe. With a degree in electrical
engineering from Witwatersrand University in
Johannesburg, he set out for England, flush with
inspiration about the creative potential he saw in
engineering. Part of that enthusiasm came from a lecture he heard
from an Imperial College professor visiting South Africa,
Colin Cherry. "He was saying, you know about
engineering, now you can use this knowledge to study
things in nature," says Aleksander. "The
brain's a pretty complicated machine and it's possible
for an engineer to do that." After a PhD at Queen Mary's College in London,
Aleksander built his first network of artificial neurons.
The inspiration came from the way the brain stores
information: groups of neurons fire in a certain sequence
when a person sees or experiences an object, and that
firing pattern is how a memory of the object is formed. This work was simple, but Aleksander's goal was to
understand how the brain recognises objects. An
artificial neural network could be made to switch on when
it "sees" something it knows - a tortoise, say
- and it will learn to associate a certain pattern of
neuron activity with it. "That was, in those days, called brain-like
because it learned to recognise patterns, the learning
was important," says Aleksander. "But I didn't
think it was brain-like at all because those sorts of
systems can't answer the question, what does a tortoise
look like?" Aleksander wanted to mimic one of things people can do
without much effort but which posed problems for
artificial systems: holding an image of a tortoise in
their head without having one in front of them. In the
human brain, this is done by feedback loops in the neural
networks; the output of each network plugs into its
input. "It's on these feedback wires that you can
have stored knowledge," he says. He proposed building an artificial system with these
feedback loops in the late 1960s but a career in academia
got in the way. For the next decade, he moved between
collaborations with industry at Brunel and Kent
Universities before landing at Imperial in the early
1980s to head a new information technology department. "It's after that, when I came here, I said,
bugger all this industrial stuff, I want to build a
system which is a bit like a brain," he says.
"The point of a brain is that it's not one huge
neural network with feedback, it has up to 50 to 60
identified areas, all of which have feedback and all of
which are capable of knowledge storage. We've got a
complex system and, within this complex system, we can
start discovering what the mechanisms that support
deliberation are. Consciousness must come out of these
interactions." Approaching consciousness from a mechanistic viewpoint
was a tough sell for many of his colleagues. Things had
started to change when DNA pioneer Francis Crick wrote
The Astonishing Hypothesis in 1994. Crick concluded that
consciousness is simply a product of the interaction of
neurons, that there is nothing special about it. Studies on the brain in the early 1990s also began to
suggest that consciousness must be driven by particular
mechanisms, since researchers often saw that when
people's brains were damaged, their consciousness, their
view of the world and their place in it, would often
become distorted. At a meeting in the Cold Spring Harbor laboratory in
2001, the few dozen leading researchers in the field
formalised the scientific study of consciousness.
"We started building machines with which one could
study hypotheses about the creation of
consciousness," says Aleksander. "In some
quarters it's still seen as a dodgy subject." At one end of this research are people who want to
build machines that behave in ways that a conscious
organism might. Computers that could interact with
people's unpredictability - on a telephone booking line,
for example - would be a boon. Aleksander works at the
other end of the spectrum, using models of machine
consciousness to understand how consciousness functions
in animals. "I'm not interested so much in behaviour from
which you infer consciousness because that is a mug's
game," he says. "I don't know whether you're
conscious. I take a good guess that you are and you can
take a good guess that I am but it's not something you
can prove. We can't work out what someone else
feels." Aleksander decided that systematic study of
consciousness needed objective guidelines. "What are
the things about my consciousness that are important to
me? These five things come up." These five traits he
calls the axioms of consciousness. They are what anything
needs to exhibit to be called conscious: a sense of self,
imagination, focused attention, forward planning and
emotion. "These seem to me to be absolutely necessary. If
you're not studying those five axioms or mechanisms that
underpin those five axioms, then you're not studying
consciousness," he says. "If you've got those
five and you discover they exist in a system like a bee,
for example, then you can safely say that that organism
is conscious." But how would consciousness be useful in a machine?
"It may be advantageous for a robot you're putting
on a distant planet for exploration to be conscious of
dangers, to be pleased with its own successes," he
says. "Then you would look at the five axioms as a
spec for designing that robot." In biology, the axioms translate into a way of
understanding how brain damage - whether genetic or
because of disease or accident - can distort a person's
consciousness. "We do quite a lot of work on mental illness with
our neuroscience department," he says. "In
axiom one, eye movement is important. Parkinson's being a
disease of movement through lack of dopamine and all
that, the eyes don't attend to things as well. That leads
to a distorted consciousness." Aleksander's work with biologists is important to his
research. "Most of the data we use comes from
neuroscience. When we build a model of the visual system,
for example, it all comes from what neurologists have
discovered." What he adds to biological data is a
method of analysing complex systems that is second nature
to engineers but goes over the heads of most biologists. The biological data feed directly into the models of
consciousness that Aleksander builds in his virtual
machines. These computer programs, which adhere to one or
more of his axioms, are useful tools and, perhaps, the
precursor to fully-operational conscious robots and
computers. "People very often ask me - these virtual
machines that you make, will they some day be conscious
like I am? That's a category mistake," he says.
"It's like saying, is a horse like a dog? In some
ways it is, in some ways it isn't. In the business of
consciousness, the most vital question people often
forget is that if you've made a conscious object, the
question is what's it conscious of? A bee is conscious of
having discovered a yummy field with flowers. I'm
conscious of famine in Somalia." A conscious robot, for example, should be aware of
being a piece of tin with silicon circuits just as a
person is conscious of being a biological organism. If an
artificial device sophisticated enough to hold a
discussion with a person insists that it is conscious
like a human then, says Aleksander, it is malfunctioning.
Science fiction is full of intelligent robots and
computers that somehow go wrong and end up hurting people
or worse. "The ethical question of any machine that
is built has to considered at the time you build the
machine," says Aleksander. "What's that machine
going to be capable of doing? Under what conditions will
it do it, under what conditions could it do harm?" He says these are engineering problems rather than
ethical dilemmas. "A properly functioning conscious
machine is going to drive your car and it's going to
drive it safely. It will be very pleased when it does
that, it's going to be worried if it has an accident. If
suddenly it decides, I'm going to kill my passenger and
drive into a wall, that's a malfunction," he says.
"Human beings can malfunction in that way. For human
beings, you have the law to legislate, for machines you
have engineering procedures." Many of the questions in Aleksander's work tread on
the toes of philosophers and, unlike some colleagues, he
says he finds the philosophy useful. "I have a lot
of respect for philosophy because it raises the right
questions. I think it doesn't provide the answers and a
scientific study of consciousness is more about providing
mechanisms, how do things happen?" His research team at Imperial College is now adding
detail to the five axioms, and even considering adding
new ones. "One obvious thing is language. But then
you're restricted to studying human consciousness,"
he says. So far, there are more questions than answers.
"The five axioms span out a research
programme," he says. "They're absolutely
necessary but they're not sufficient. We're just at the
beginning of a very long path." Life at a glance Education: In Italy and South Africa. Arrived
in Britain in the late 1950s. Career: Joined Standard Telephone and Cable
(STC) as graduate engineer ; lecturer, Queen Mary
College, London (1961); reader in electronics, University
of Kent (1968); professor of electronics, Brunel
University (1974); professor of management of information
technology, Imperial College London (1984); head of
electrical engineering and Gabor professor of neural
systems engineering (1988); emeritus professor (2004). Awards: Fellow, Royal Academy of Engineering
(1988); outstanding achievement medal for informatics,
Institution of Electrical and Electronic Engineering
(2000) He says: "I wouldn't say pioneer, I would
say maverick. I never went along with the
mainstream." They say : "Dan Dennett once said that if he hadn't become a philosopher, he might have become an engineer. I think Igor has shown us that the gap between the two professions may be smaller than we think" Professor Owen Holland, computer science department, Essex University Beyond Chutzpah: On the Misuse of
Anti-Semitism and the Abuse of History,by Norman Finkelstein Giving
Chutzpah New Meaning What do you do when somebody wants
to publish a book that says you're completely wrong? If
you're Alan Dershowitz, the prominent Harvard law
professor, and the book is Norman Finkelstein's you write
the governor of California and suggest that he intervene
with the publisher--because the publisher is the
University of California Press, which conceivably might
be subject to the power of the governor. Schwarzenegger, showing unusual
wisdom, declined to act. The governor's legal affairs
secretary wrote Dershowitz, "You have asked for the
Governor's assistance in preventing the publication of
this book," but "he is not inclined to
otherwise exert influence in this case because of the
clear, academic freedom issue it presents." In a
phone interview Dershowitz denied writing to the
Governor, declaring, "My letter to the Governor
doesn't exist." But when pressed on the issue, he
said, "It was not a letter. It was a polite
note." Old-timers in publishing said
they'd never heard of another case where somebody tried
to get a governor to intervene in the publication of a
book. "I think it's a first," said Andre
Schiffrin, managing director at Pantheon Books for
twenty-eight years and then founder and director of the
New Press. Lynne Withey, director of the University of
California Press, where she has been for nineteen years,
said, "I've never heard of such a case in
California." But if you're Alan Dershowitz, you
don't stop when the governor declines. You try to get the
president of the University of California to intervene
with the press. You get a prominent law firm to send
threatening letters to the counsel to the university
regents, to the university provost, to seventeen
directors of the press and to nineteen members of the
press's faculty editorial committee. A typical letter,
from Dershowitz's attorney Rory Millson of Cravath,
Swaine & Moore, describes "the press's decision
to publish this book" as "wholly
illegitimate" and "part of a conspiracy to
defame" Dershowitz. It concludes, "The only way
to extricate yourself is immediately to terminate all
professional contact with this full-time malicious
defamer." Dershowitz's own letter to members of the
faculty editorial committee calls on them to
"reconsider your decision" to recommend
publication of the book. Why would a prominent First
Amendment advocate take such an action? Dershowitz told Publishers
Weekly that "my goal has never been to stop
publication of this book." He told me in an e-mail,
"I want Finkelstein's book to be published, so that
it can be demolished in the court of public
opinion." He told Publishers Weekly his only
purpose in writing the people at the University of
California Press was "to eliminate as many of the
demonstrable falsehoods as possible" from the book
before it was published. Everyone knows who Alan Dershowitz
is--the famed Harvard professor, part of the O.J. Simpson
defense team, author of the number-one bestseller Chutzpah,
portrayed by Ron Silver in the film Reversal of
Fortune, about his successful defense of accused
wife-murderer Klaus von Bülow. He's also one of the most
outspoken defenders of Israel, especially in his 2003
book The Case for Israel; it reached number twelve
on the New York Times bestseller list. That's the
book Finkelstein challenges in Beyond Chutzpah. Norman Finkelstein is not so
famous. The son of Holocaust survivors, he is an
assistant professor of political science at DePaul
University in Chicago. He's the often embattled author of
several books, of which the best known is The
Holocaust Industry: Reflections on the Exploitation of
Jewish Suffering--an exposé of what he calls
"the blackmail of Swiss banks." It was
originally published by Verso in 2000, with an expanded
second edition in 2003, and has been translated into
seventeen languages. The book was reviewed in the New
York Times Book Review by the distinguished Holocaust
historian Omer Bartov, who holds a chair at Brown
University; he wrote that the book "is filled with
precisely the kind of shrill hyperbole that Finkelstein
rightly deplores in much of the current media hype over
the Holocaust; it is brimming with the same indifference
to historical facts, inner contradictions, strident
politics and dubious contextualizations; and it oozes
with the same smug sense of moral and intellectual
superiority." (A positive review, written by Neve Gordon, appeared
in these pages on November 13, 2000.) Finkelstein's Holocaust
Industry, however, has some prominent supporters, and
not only leftists like Noam Chomsky and Alexander
Cockburn. Most significant is Raul Hilberg, the
semi-official dean of Holocaust studies and author of the
classic The Destruction of the European Jews, who
wrote of The Holocaust Industry, "I would now
say in retrospect that he was actually conservative,
moderate and that his conclusions are trustworthy.... I
am by no means the only one who, in the coming months or
years, will totally agree with Finkelstein's
breakthrough." Dershowitz did not see the
manuscript for Beyond Chutzpah before writing his
letters, which were based instead on statements
Finkelstein had made in interviews and lectures.
Dershowitz's attorney objected first of all to
Finkelstein's statements that Dershowitz "almost
certainly didn't write [The Case for Israel], and
perhaps didn't even read it prior to publication."
He also objected to the charge that Dershowitz is guilty
of plagiarism--more on that later--and that "every
substantive sentence" in the Dershowitz book
"is fraudulent." Finkelstein has been telling
this to anyone who will listen, and wrote as much in an
e-mail to me: "I devote some 200 pages to
documenting that every substantive fact in the book is
a flat-out lie." (Emphasis in original.) Now that the "uncorrected
pages" of Beyond Chutzpah are being sent out
to reviewers, it's possible to see what Finkelstein's
book actually says. (Disclosure: A senior editor of The
Nation served as a freelance editor of Beyond Chutzpah.)
The claim that Dershowitz didn't write The Case for
Israel has been removed--the UC Press explained in a
statement accompanying review copies that "Professor
Finkelstein's only claim on the issue was speculative. He
wondered why Alan Dershowitz, in recorded appearances
after his book was published, seemed to know so little
about the contents of his own book. We felt this weakened
the argument and distracted from the central issues of
the book. Finkelstein agreed." But the rest of the claims
Dershowitz and his attorney railed against are still
there: Beyond Chutzpah describes Dershowitz's Case
for Israel as "among the most spectacular
academic frauds ever published on the Israel-Palestine
conflict." In Dershowitz's book, "It's
difficult to find a single claim...that's not either
based on mangling a reputable source or referencing a
preposterous one, or simply pulled out of the air."
He charges that Dershowitz "plagiarizes large
swaths" of his book from Joan Peters's From Time
Immemorial, whose scholarship Finkelstein had
debunked in an earlier book. The introduction concludes
by calling The Case for Israel
"rubbish." The body of Beyond Chutzpah shows Finkelstein to be an indefatigable researcher with a forensic ability to take apart other people's arguments. The core of the book challenges Dershowitz's defense of Israel's human rights record by citing the findings of mainstream groups, including Amnesty International, the Israeli human rights organization B'Tselem and Human Rights Watch. The most important part of the
book examines Israel's treatment of Palestinian civilians
during the second intifada, which began in September
2000. Since then Israel has killed three Palestinians for
every Israeli killed. Dershowitz tries to defend this
ratio, writing that "when only innocent civilians
are counted, significantly more Israelis than
Palestinians have been killed." But Finkelstein
cites Amnesty International's conclusion that "the
vast majority of those killed and injured on both sides
have been unarmed civilians and bystanders." That
means Israel has killed something like three times as
many unarmed civilians and bystanders as Palestinians
have. Dershowitz has a second argument:
While Palestinian terrorists have targeted Israeli
civilians intentionally, the killing of Palestinian
civilians by the Israel Defense Forces is
"unintended," "inadvertent" and
"caused accidentally," because the IDF follows
international law, which requires the protection of
civilian noncombatants. For example, Dershowitz writes,
the IDF tries to use rubber bullets "and aims at the
legs whenever possible" in a policy designed to
"reduce fatalities." But Finkelstein's evidence
to the contrary is convincing: Amnesty International
reported in 2001 that "the overwhelming majority of
cases of unlawful killings and injuries in Israel and the
Occupied Territories have been committed by the IDF using
excessive force." Amnesty cited the use of
"helicopters in punitive rocket attacks where there
was no imminent danger to life." As for the rubber
bullets, Amnesty reported in 2002 that the IDF
"regularly" used them against demonstrators who
were children "at distances considerably closer than
the minimum permitted range...and the pattern of injury
indicates that IDF practice has not been to aim at the
legs of demonstrators, as the majority of injuries
suffered by children from rubber-coated bullets are to
the upper body and the head." Another of Dershowitz's examples
of Israeli protection of Palestinian civilians concerns
Hamas leader Salah Shehadeh. Dershowitz writes that on
several occasions, the army passed up opportunities to
attack him "because he was with his wife or
children." But in July 2002 an Israeli F-16 dropped
a one-ton bomb on Shehadeh's apartment building in Gaza
City, killing Shehadeh and fourteen Palestinian
civilians, nine of whom were children. Most of Beyond Chutzpah
consists of these kinds of juxtapositions--arguments by
Dershowitz on Israeli practices of torture,
assassinations, treatment of Palestinian children, and
water and land rights, refuted by documentation from
human rights organizations. The cumulative effect is a
devastating portrait of widespread Israeli violations of
human rights principles and international law. Finkelstein has won support for
his book from leading scholars, whose statements appear
in the book's publicity materials: Baruch Kimmerling, who
holds a chair in sociology at Hebrew University of
Jerusalem, and whose book on Palestinian history was
published by Harvard University Press, calls Beyond
Chutzpah "the most comprehensive, systematic and
well documented work of its kind." Sara Roy of the
Center for Middle Eastern Studies at Harvard, whose book
on political Islam in Palestine has just been published
by Princeton University Press, calls Beyond Chutzpah
"a vigorous, intelligent, succinct and powerfully
argued analysis." Avi Shlaim, professor of
international relations at Oxford, calls it a work of
"erudition, originality, spark, [and] meticulous
attention to detail." Daniel Boyarin, professor of
Near Eastern studies at UC Berkeley, calls the book
"accurate, well-written, and devastatingly
important." The argument about plagiarism,
which has figured prominently in the pre-publication
controversy over the book, has been relegated to an
appendix. Finkelstein's evidence has already been
presented in these pages by Alexander Cockburn and
debated by Dershowitz in letters exchanges with Cockburn
[October 13, October 27 and December 15, 2003]; thus it can be summarized here
briefly. In the Dershowitz book, twenty-two out of
fifty-two quotations and endnotes in the first two
chapters "match almost exactly" material quoted
in Joan Peters's From Time Immemorial--including
the placement of ellipses in quotations. Beyond
Chutzpah has an eleven-page chart comparing these
quotations. They are virtually identical. But Dershowitz
never acknowledges Peters as the source for these
quotations; instead, he cites the original sources that
appear in Peters's footnotes. The official policy on plagiarism
at Harvard, where Dershowitz teaches, is clear on this
issue: "Plagiarism is passing off a source's
information, ideas, or words as your own by omitting to
cite them." Dershowitz in an e-mail made three
arguments in his defense: first, for three of the
quotations in question, "I have incontrovertible
evidence that I was using those quotations in the 1970s
in debates," and thus "I did not originally
find them in the Peters book." Second, although he
did not cite Peters for the quotations listed by
Finkelstein, he did cite her as the source of "at
least eight" others. As to why he failed to cite
Peters for the quotations in question, Dershowitz
acknowledges that he found them originally in Peters, but
"I then went to the Harvard library, read them, and
cited them in the original," without indicating that
he found them first in the Peters book--a citation
practice that he (and some of his defenders) regards as
proper. But Finkelstein somehow obtained a
copy of the uncorrected page proofs of The Case for
Israel containing some devastating footnotes, which
he reproduces in Beyond Chutzpah--including one
that says "Holly Beth: cite sources on pp. 160, 485,
486 fns 141-145." Holly Beth Billington is credited
on Dershowitz's acknowledgments page as one of his
research assistants; the pages to which he refers her are
from Peters's book. The note doesn't tell Holly Beth that
Dershowitz is going to the Harvard library to check the
original sources, nor does it tell Holly Beth that she
should go to the library to check; it says she should
"cite" them--copy the citations from Peters
into his footnote, presumably to give readers the
impression that he consulted the original source. That's
not plagiarism in the sense of failing to put in
quotation marks the words of somebody else, and the
Harvard administration has taken no action in response to
Finkelstein's charge. But it's clearly dishonest for
Dershowitz to have passed off another scholar's research
as his own. The Finkelstein book was
originally under contract to the New Press, and
Dershowitz claims he succeeded in persuading the New
Press to drop it. He told me in an e-mail that after he
wrote the New Press pointing out "numerous factual
inaccuracies in Finkelstein's manuscript, New Press
cancelled it's [sic] contract with him." New
Press publisher Colin Robinson says that's not true:
"We did not cancel the agreement to publish Norman's
book and never wanted to do so." Finkelstein said
the same thing in an e-mail: "I was the one who
pulled out of the contract when publication was delayed
due to Dershowitz's letters. In fact, Colin urged me to
reconsider the decision and stay with New Press." Now, despite Dershowitz's best
efforts, UC Press is publishing the book--to the great
credit of director Withey and history editor Niels
Hooper. The book is appearing in August rather than
June--because, according to the press statement,
"editing and production took longer than we
hoped." Hooper explained that California published
the book not as part of a personal feud between
Finkelstein and Dershowitz but because the chapters on
human rights "show what is going on in the Occupied
Territories and Israel." Dershowitz is relevant as a
prominent defender of Israeli policies and practices. Will Dershowitz now sue for libel
in federal court in Boston, or in London, where the law
makes it easier for libel plaintiffs to win--as his
attorney at Cravath, Swaine & Moore has threatened?
That would be another shameful act by a man who claims to
be a defender of free speech. |