Everyone is talking about how things will be. How will they be? I have no idea. What I do know is that people are afraid, which makes them very hungry. Some also feel the need to explain why they’re not following the usual courtesies. Some observations made today, Day 7 of the pandemic:
A man scanning the empty aisles of our largest neighborhood grocery store, “I guess I better come early in the morning. They clear the shelves by afternoon.” Indeed, all the raisins are gone. Ditto the Goya beans, my favorite. Ah! I snag a box of golden raisins, pushed to the back of the bottom shelf. Who are “they,” I wonder, and where are “they” putting all of this food?
Pet food, fully stocked. Should I worry about the cats and dogs? My staple Earl Grey tea, all brands. Gone. And I thought I was surrounded by coffee drinkers.
The checker at the same grocery store. He’s about 18. I try to make him laugh by asking where all the groceries were going. I get a smile as he shakes his head. “I don’t know. Don’t they know things go bad?” Together we wonder when we’ll all settle down, perhaps to a very large shared meal with lots of beans and raisins.
A woman opening the door of the UPS Store with her elbow as I approach sheltered behind a 36-in by 36-in box (the lamp my sister has rejected which I couldn’t return to the store which had closed overnight from the day I called to see if they were open): “I’d open the door for you except for this coronavirus thing.” The door closes just as I reach it. I’m impressed that she explains her actions to me.
Is it time to shop online? Should I worry about the environmental implications of paying Amazon Prime $13/month to bring me tea and raisins instantaneously? What about all those young delivery people who have no health insurance? Perhaps a victory garden in the flower pots on my balcony would work.
Like Scarlet O’Hara, I vow to think about it, not tomorrow, but next week when I run out of greens.
Take care. Be safe, and yes, if at all possible, stay home.
Six takeaways from the U.S. response to the Covid-19 pandemic
In a crisis, nothing is more important — aside from saving lives — than clear, consistent communication. Our present crisis, the Covid-19 pandemic — offers some vivid lessons in Crisis Communications 101.
(1) Take responsibility. Have a plan. Trust is everything.
Leadership, leadership, leadership. At the helm of crisis management is a trusted, credible leader supported by a project team with a designated spokesperson and a group of experts germane to addressing situation, each with a clearly-defined role. This team is the source — through multiple channels — of clear, consistent messaging and regular updates.
(2) Deliver the facts clearly, accurately, and on a regular schedule. (Do not lie, obfuscate or bluster.)
A crisis is not the time to wing it. Don’t lie or offer false reassurance. I understand the pressure to deny the reality of a bad situation. But in the end all is revealed, and it’s just not worth it.
We’ve been blessed in Dr. Anthony Fauci, the director of the National Health Institute’s National Institute of Allergy and Infectious Diseases, who has the credentials (2008 Presidential of Freedom for his work with HIV/AIDS) and credibility to steer a rational response and call a spade a spade.
Brene Brown reminds us that we are at our worst when we’re in fear. Address the why/who/what/when to lessen isolation. Help communities figure out how to care for those who don’t have the money, mobility or transportation to prepare. Consider how to give people opportunities to help, despite social distancing. Despite an uptick in first-time gun sales, you probably don’t need an AR-15.
A dedicated website. If Google is developing it, that’s great, because a central repository of accurate information is pivotal.
(3) Stay out of the forecasting business.
Fact: No one knows the future. Set realistic expectations based on the information on hand and leave prognostication to soothsayers. They have disclaimers.
No vaccine or treatment exists for Covid-19. It takes 18-24 months to develop a vaccine for an unknown virus such as the one that causes the disease. The timeline is mandated by federal law which regulates the licensing of vaccines which require a series of clinical trials, animal and human. Here’s an interesting take from Dr. Jason McLellan, a scientist at the University of Texas who has been studying coronaviruses for years, and is working on a Covid-19 vaccine.
Given our proven lack of forecasting abilities, setting a deadline for the end of a crisis, particularly as it unfolds, opens the door to panic and blame.
(4) Use clearly-defined terms.
Hats off to Wired for a clear explanation of the pandemic’s terminology. Coronavirus refers to a family of viruses; SARS-CoV-2 is the name of the germ that causes the disease, and Covid-19 is the disease itself. Coronaviruses are so-called because the germs that cause the disease latch onto cells in a circular formation, like a crown or corona (see the image, above).
(5) Set clear guidelines and explain why.
At heart, we’re all children. We need rules. So give us clear guidelines, tell us why, and enforce them. That way, we know how to respond. The guardrails are in place.
Covid-19 differs from other coronaviruses in that its more contagious. With no vaccine in place, curtailing the virus’ spread is step one. If this means curfews, tell us and make it a national rule. We’ll adapt. Voluntary compliance is rarely effective. If you doubt this, check your neighbor’s (or maybe your) recycling bin. You’ll find the definition of “clean glass, paper and a very limited range of plastics” is far broader than you could have imagined.
(6) Remind people what’s most important.
Our culture is built on community. That’s how we earn a living, worship and create family and community bonds. And therein lies the biggest hurdle (and lesson) of Covid-19. I have no doubt that how we respond will define us for the foreseeable future. There are some really interesting things happening virtually which I’m exploring and will write about in a future blog.
Let’s learn our lessons well. My take: Give us accurate information. Deliver it consistently, through sources that we can trust. That way, we can follow the rules, take care of our neighbors and the vulnerable. And remember to take care of the environment because ultimately, that’s what we depend on.
When is fear a valid reason for protectionism? At what point does openness become bad business and a national security concern? David Firestein, the executive director of the China Public Policy Center, stopped by the “World Spins” to remind us that relationships make the world go round, and punitive tariffs don’t win trade wars.
David Firestein dropped by last week’s “World Spins” session to reassure us that at about $1 trillion, give or take a few million, the U.S.-China trade relationship is too big to fail. But he had some thoughts on where we’re taking it.
Firestein‘s credentials in U.S.-China relations are wide and deep — the State Department, EastWest Institute, and now, president and CEO of the George H.W. Bush Foundation for U.S.-China Relations — in addition to his role in academia launching the LBJ School of Public Affairs’ China Public Policy Center.
Perceptions of growing authoritarianism
“China’s rising authoritarianism colors U.S. views in a profound way.”
The Uighur minority and the telecom giant Huawei are the poster children of American perceptions of China, prompting national security concerns that have underpinned both the administration’s trade narrative and domestic regulatory actions. On the heels of watching China use facial recognition software to persecute the Uighur and other Muslim minorities, San Francisco banned the technology. Last week those same concerns spread to Washington, bubbling up at the House Committee on Oversight and Reform.
Blacklisted by the administration, Huawei typifies China’s state-supported hybrid economy. The telecom giant sits on a deepening Maginot Line between the Internet of the East and that of the West, drawing a line between American interests and increasingly, everyone else’s.
“In public and private statements, American intelligence officials and telecommunications executives and experts have begun to concede that the United Sates will be operating in a world where Huawei and other Chinese telecom companies most likely control 40 percent to 60 percent of the networks over which business, diplomats, spies and citizens do business.”
There’s a silver lining for Big Tech. Nothing unites like a common enemy, and China has provided Qualcomm, Facebook, Google et. al. with a new “America First” narrative to relieve regulatory threats.
The missing quid pro quo
“China is vastly more closed to us than we are to them,” Firestein said. “When someone from China gets off a plane in San Francisco, they have immediate access to their email through WhatsApp. But an American landing in Beijing can’t access their Gmail.”
For an administration determined to deliver on its “America First” campaign promises, protecting America from China is a top priority. Vice President Mike Pence’s watermark speech at the Hudson Institute frames the U.S. response to Chinese “economic aggression.”
With China, all silk roads lead to intellectual property. In the absence of any Chinese quid pro quo to American openness, in 2018 the administration has expanded its powers to protect domestic technology from foreign investment. The Treasury Department’s Committee on Foreign Investment in the United States (CFIUS) began to block mergers and acquisitions considered a threat to national security. The Export Control Reform Act (ECRA) and the Foreign Investment Risk Review Modernization Act (FIRRMA) are charged with protecting tech sectors that map with its “Made in China 2025” strategy — advanced manufacturing, artificial intelligence, self-driving vehicles, semiconductors and telecommunications.
Applying worst-of-breed practices
Unintended consequences abound. The ban on Huawei network technology hits rural areas the hardest because the small network providers have to swap out cheaper Huawei equipment for more expensive offerings. And faced with its American supply chain being cut off, China will accelerate its build-your-own strategy, a trend that is already impacting U.S. tech companies’ stock prices.
Which brings us to where Firestein breaks rank. A trade strategy based almost exclusively on punitive tariffs has penalized American producers by eliminating lucrative markets, disrupted supply chains and cost consumers at check out.
“The United States is adopting “worst of breed” practices that are destructive to the economy … Our trade deficit with China is the largest good and services deficit dating back to 1776.”
Nowhere is the cost of the trade war more obvious than in the agricultural sector. Last week at a “hats on” event, President Trump announced a $16 billion farm aid package in a robbing Peter to pay Paul strategy to offset farmers’ losses with taxpayers’ dollars.
In fact, tariffs can make industries less competitive.
It breeds a kind of laziness here,” said Simon Lester, director of the Herbert A. Stiefel Center for Trade Policy Studies at the Cato Institute. Tariffs are taxes on outside goods, so they inherently protect some U.S. businesses from foreign competition. “You don’t have to compete with the best in the world you can just relax you don’t have to work that hard and face any competition,” he says.
Despite the national security narrative, the relationship between China and the United States is not about military might. Certainly, the U.S. technology industry is rooted in federal defense funding, and the Department of Defense continues to fund innovation. But this is a 21st century struggle not a 20th century one. China’s goals are economic.
“Military interests are a function of power. China is building its military to define its power … But let me assure you, China has no interest in becoming the world’s policeman.”
Relationships make the world go round
The conversation closed with a reminder that relationships grease the wheels that make the world go round. Firestein brought up a flash point from his first few weeks in Austin when two U.S. Congressmen, a U.S. Senator, numerous professors and the University of Texas student newspaper protested an offer from the Confucius Institute to make a donation to the CPPC. Firestein noted, however, that the United States has similar practices, and that in the end:
“Relationship matters. We have to get it in sync.”
What does the future look like?
A year ago, Firestein cautioned that competing with China was like a no-holds barred cage fight in wrestling. China knows what it wants its future to look like. State control provides a longterm planning horizon. It has a clearly written industrial strategy, state funding and a non-interference strategy with its people. The United States operates from tweet to tweet. As for a strategy?
In the end, we’re going to have to step up and compete. China is not our enemy but it is our fiercest competitor.
David Firestein, in a May 2018 talk at the “World Spins”
In the not too distant future artificial intelligence, autonomous vehicles, advanced manufacturing, semiconductors, telecommunications will shape not just American competitiveness but what our world will become. Even the current administration, loathe to cooperate on much of anything, went so far as to endorse a set of international AI guidelines sketched out by the Organization for Economic Cooperation and Development. To echo a comment made by Senator Richard Burr at the University of Texas’ Fifth Annual Texas National Security Forum:
If we don’t create a framework for this technology, who will?
Senator Richard Burr, chairman, Senate Select Committee on Intelligence, Nov. 2018
The March 29 deadline for a Brexit go now/go later/no go (unlikely) is around the corner. Despite some defections, especially in fintech, many U.S. companies are opting to stay. The tragedy has spotlighted two leadership flaws: the hubris in calling for a referendum and the inflexibility in dealing with it.
As I made my way to the Capital Factory, that go-go hive of entrepreneurial-ism in the center of Austin, to hear what the U.K. Dept. of International Trade had to say about Brexit, I thought about a University of London marketing class I took years ago. The professor, a Scot, turned to a world map. He drew a line between Europe and the United Kingdom. Then he drew an arrow across the Atlantic pointing toward the United States and made a prediction: At some point, the British will break away from Europe and join the United States in an economic block. Prescient fellow.
Borders, walls and disagreements
It takes guts to tell your story when the facts aren’t clear, but the U.K. team did an admiral job. Representatives from the British Consulate’s Department for International Trade, law firm Taylor Wessing and accountancy Blick Rotherberg were optimistic that even the Irish border conundrum could be resolved — at the last minute (“That’s the way Europeans do things.”).
It was one day after Parliament sent Prime Minister Theresa May once more into the breach of negotiations with the European Union, and less than a week after Congress reached an agreement to pause the longest government shutdown in U.S. history so our elected officials could settle a disagreement about a wall between neighbors.
Do we stay or do we go?
Ross Allen, the New York City-based director at the U.K. Department for International Trade led the discussion, reminding us that the United Kingdom has a special relationship with the United States. The two countries are genetically linked — in language, history, laws and culture — and those commonalities matter a great deal.
Data Privacy: Privacy continues is a hot button for the U.S. GDPR is in place in the U.K., as is Privacy Shield. Regulation is a moving target, but there is a common foundation.
Business Headquarters: “Pragmatism” is the operative word. Considerations such as degree of industry regulation, the need to move people around Europe, the size of the organization, labor laws and tax rates all factor into a decision.
Regional Differences: London will continue to be its own country, as are all great cities. But other regions, particularly the north, where businesses that rely on international supply chains will be hit hard – Leeds, Northern Ireland, Wales. I read this morning that U.K. automotive production declined 8% in 2018, as investment plummets and jobs disappear.
Trade: Separate trade agreements are in the works with Israel and talks are underway with South Korean and Japan.
Defense: NATO, an intelligence community that’s joined at the hip.
Worst case scenario? On March 29, Parliament decides not to decide. A second referendum to stay in the E.U.? Too late and too expensive. Unlikely.
“I am England”
Every muddle has its heroes, and I asked Vice Consul Haileigh Meyers and her Silicon Valley-based colleague David what they thought about Prime Minister Theresa May.
She (Mrs. May) is a true public servant, and she realizes she needs to get this done. She’s driven by a commitment to public service.
UK International Trade and Investment British Consulate-General
Imagine taking a job that no one else wants, a job that brings you defeat and humiliation by even your closest allies. Imagine sticking with that job as other opportunities more to your liking and skill set pass you by. If you haven’t read the New Yorker piece on Mrs. May, do. Here’s hoping Queen Elizabeth, another woman who knows a great deal about sacrifice in the name of public service, can offer guidance from her own long tenure as leader of a nation that faced and dealt with dwindling political and economic power.
Closing the session, Allen tossed out a provocative idea: “What if it’s just like Y2K, and we wake up and nothing happens?” Some of us remember the panic that preceded the turn of the century hysteria about whether networks and data centers could tolerate the transition between “1999” and “2000.”
After the session, I rode down in the elevator with Drew Haas, who is moving to London next week to open the U.K. office of San Saba Pecan. They have a warehouse outside of York, and Drew will be growing the business in Europe, where almonds are vulnerable to some stiff Texas competition.
POSTSCRIPT: Inflexibility: The flip side of determined leadership?
UPDATE March 18, 2019: The BBC reports Mrs. May will try to get her proposal passed after two rejections, something the now-famous House of Commons Speaker John Bercow has ruled as a no-go unless there are “substantive changes” to the proposal. Will Mrs. May charge into the same brick wall once again?
On the heels of bad news from Poland, three brilliant scientists call for a shared vision that embraces both energy and climate.
This week saw the follow-on meeting to the Paris Climate Accord. The news is not good; or, as the Washington Post put it, “We are in trouble.” But at least the facts are clear. The Global Carbon Project reported that carbon emission levels are not only growing (this year, 1.6 percent), they’re expected to jump another 2.7 percent, to 37.1 billion tons in 2019.
Building ashared vision
Which brings me to a conversation among three brilliant scientists. Held during the Texas Tribune’s always-fascinating TribFest and sponsored by BP, an early champion of carbon reduction. The panel included:
Jason Bordoff, formerly the senior director for energy and climate change at the NSA (yes, climate change impacts national security in a big way), now at Columbia
Michael Webber, the Webber Energy Group, soon to be scientific and technical director at the French energy powerhouse ENGIE, on leave from the University of Texas at Austin
Embracing both energy and climate
The consensus: Effective climate change policy has to grounded in a shared vision in terms of food, jobs and opportunity. It must embrace both climate and energy. As Hayhoe pointed out, it starts with a simple question: What do you care about?
“The only reason we care about climate is because it affects things we already care about. It’s not an environmental issue; it’s a human issue. This is why I care about a changing climate, because it exacerbates our greatest humanitarian challenges: poverty, hunger, inequality, and more.” @KHayhoe
Epic droughts punctuated by Biblical Floods
Texas is among the fastest-growing states in the country and number one in terms of climate vulnerability. Thanks to the EPA’s rolling back restrictive guidelines, drilling is booming along the Gulf Coast, one of the nation’s most environmentally vulnerable regions. Houston, at the epicenter of drilling activity is still recovering from the most expensive ($125 billion and counting) hurricanes in history.
The most frightening trait of climate change is its pace: 50 percent faster than the rate of at which its been historically measured. Are we too late?
Final note: I attended the session thanks to an invitation from Paula Barnett-Bulcao, BP’s senior director of government relations and public affairs. I’ve admired BP for years for their vision and willingness to wear a white hat in an industry known for climate degradation. Barnett, who’s been with BP for 16 years, told me that when she was starting out in the industry, BP was the company she knew she wanted to work for. High praise.
I wanted to let you know about a project I’m working on with the World Affairs Council. Its best described as a salon series showcasing some of the forces re-shaping the world we think we know — climate change, blockchain technology, the shift of global power from military to technological supremacy. Our new series “The World Spins,” will bring people at the forefront of issues that are re-shaping the world we live in: climate change, national security, blockchain technology, China and innovation. I’m thrilled to have these brilliant people — thought leaders, participants – not observers — share their time with us. If you’re in Austin, please join us!
NATIONAL SECURITY & CLIMATE CHANGE, Dr. Joshua Busby, an associate professor,
the LBJ School of Public Affairs, University of Texas at Austin, has been deeply involved in climate change policy since 2008. He participated in the discussions around Paris Accord, as well as their follow-on sessions, the next scheduled to take place in Poland later this year, as well as managing multi-million dollar grants for the Dept. of Defense. Quick update: President Trump announced the United States’ intention to withdraw last December. Former National Security Advisor H. R. McMaster recognized the relationship between the weather and security. He’s out, and former ambassador and Fox News analyst John Bolton is in. What’s next? April 12 at 6:30
BLOCKCHAIN, Pete Harris, founder of Lighthouse Partners, works with companies who are integrating blockchain technology into their business strategy. Talk about disruption, blockchain promises to dramatically reshape our financial, supply chain and trade relationships. Think Walmart tracking the safety of sliced papaya from Central America to a store in Iowa. Pete, who consults internationally, is part of the axis of the blockchain
community in Austin, Texas, where there are over 70 start ups involved in commercializing this nascent technology into our financial, health care, food safety and transportation ecosystems. A nascent technology, the growing use of blockchain is overshadowed by its trendy subset, bitcoin. But companies like IBM and Oracle are integrating it into the way their customers do business. Pete founded the hub of Austin’s blockchain innovation, the Austin Blockchain Collective and chairs a monthly Blockchain for Business Meetup at the Capitol Factory which is free and open to all. March 29 at 6:30
CHINA AND INNOVATION, David Firestein, is the founding director of the new China
Public Policy Center at the LBJ School. From his bio: Throughout his career, Firestein has played an active role advancing U.S.-China and U.S.-Asia trade. He has also produced path-breaking thought leadership, scholarship and Capitol Hill testimony on a range of topics, including U.S. arms sales to Taiwan, U.S.-China infrastructure investment cooperation, and the role of national exceptionalism as a driver of major international conflict today. Firestein is native Austinite who speaks Mandarin at near-native level (hard to imagine in a Texan) and has published a book on what else – country music and diplomacy. May 22 at 6:30
If you’re in town, please join us! All sessions are held at the historic Neill-Cochran House where you can park right behind the building for free — speaking of a changing world.
Editor’s Note: I was thinking about this post in terms of a session on Predictive Adaptation I sat in on last month. Dr. Liz Alexander moderated. She is considering a book on the subject which boils down to:
Can we stay tuned in enough to adapt prior to a change in our marketplace?
As the shelf life of companies grows shorter and shorter, the ability to adapt is on the short list of survival strategies. How do we cultivate it? One way is to not be stuck in our habits.
I’m a tea drinker, I have a teapot with an infuser, numerous immersion devices and a cabinet stuffed full of teas – black, herbal, medicinal, green. When I drank coffee, it was the same scenario, with different props. My freezer was full of Peets’ (now, alas, part of Starbucks) Major Dickinson blend and my cabinet, coffee brewers — drip, stovetop, percolator, French and Italian press – you get the drift.
Two weeks ago I ran out of tea. I reordered in a such a panic that I used an old address. My tea — a special blend I’d grown to depend on to get me out of the door in the morning — never arrived. The tea blender refused to fix the delivery snafu. So I didn’t reorder.
That’s how one habit (getting in a snit when things didn’t go my way) forced me to re-evaluate another (my tea drinking compulsions). I was forced to rethink that morning ritual. Now I’m brewing tea bags (Choice) I buy at the grocery store. I don’t enjoy my tea nearly as much, but it’s saving me time. Unintended consequence: I’m actually getting to work on time.
Habits can be helpful, but they can also lock us into position. I’ve noticed that whatever it is hoard is a habit – wine, ice cream, tea, coffee, graham crackers. In the same way, my response to the tea blender was a habit — he chided me about my carelessness, I felt like a bad child, and I didn’t want anything more to do with him. Other habits I’ve flagged since my tea disruption:
Who I greet in the morning
Where I walk the dog
What I do with my spare time
Who I telephone to spend time with
How I think about my abilities (and shortcomings)
The books I read
How I view people with ideas that are different from mine
A search on “habits” took my to former Googler Matt Cutts’ Ted Talk, “Try Something New for 30 Days.” (Editorial note: Why is the guys can look like slobs and the women have to look like they’re ready for the Academy Awards?) Regardless, I’ve resolved, for at least 30 days (when Choice tea bags will probably already be my new habit), not to reorder tea. We’ll see what happens.