2018
February
05
Monday

Monitor Daily Podcast

February 05, 2018
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Mark Sappenfield
Senior global correspondent

As of today, the Berlin Wall has now been gone for as long as it stood. Its fall embodied the promise of German reunification – “blossoming landscapes” of opportunity for all, as then-Chancellor Helmut Kohl said.

The years since have seen progress. Some $3 trillion in federal investment has cut east German unemployment in half and raised life expectancy to west German levels. But unemployment is still double the rate in the west, and east Germans resent a persistent sense of “cultural colonialism” by western elites. As of 2016, easterners occupied only 1.7 percent of Germany’s leadership positions in politics, business, and academia.

In truth, eastern Germany has never been like western Germany. “There is no more chance of Saxony becoming a cultural and political Rhineland … than there is of Mississippi turning into another Massachusetts,” writes a commentator in Handelsblatt. So amid enduring inequities, many easterners are losing faith in institutions and democracy and turning to far-right populism. “There is simply a lack of translators of cultural differences,” one eastern official tells Deutsche Welle.

That, perhaps, puts Germany’s next challenge in different terms: the need to tear down what many Germans call “the wall in the head.”

Today, veteran Monitor contributor Ned Temko will kick off a new feature that looks beyond the headlines to surface rhythms and patterns that defy a sense of tumult on the international stage. Watch for it on alternate Mondays. 

We’re also keeping an eye on stock market developments, with the Dow closing today down 4.6 percent – 1,175 points – in the steepest one-day drop in years. (More, for now, on our website.)


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Today’s stories

And why we wrote them

Amtrak's troubles boil down to a question of blurred responsibility. The rail carrier wants needed changes but runs billions of dollars in debt. It's Congress that (often reluctantly) writes the checks. 

Patterns

Tracing global connections

As Ned Temko notes in his first column, the institutions of the post-World War II order are creaking. So, too, are many countries' domestic political establishments. That makes it particularly relevant now to look beyond the apparent disorder and bring to the surface important patterns and connections.

Christa Case Bryant/The Christian Science Monitor
Manager Paul Jones (foreground) and line operator Brett Jones check pipes near a water tower outside Minco, Okla. The installation is part of a new well system funded by a $13 million federal loan that enabled Grady County Rural Water District No. 6 to become independent from neighboring Chickasha, which used to pump water uphill to serve the county's needs. District No. 6 has become a model for cutting down on water loss across the state.

President John F. Kennedy once asked what we can do for our country. One Oklahoman shows how unusual – and how important – that calling can be. 

Whitney Eulich
Vincent Wang of Black Gold, a company that exports Central American coffee to Asia, tastes five varieties of Coopedota coffee beans. He says his customers don't prioritize the fact that the product is carbon neutral, but he considers it a plus.

There's a bumper sticker that says "leave no footprints." The quest for businesses to reach that environmental gold standard embodies some inventive thinking, as this story about a Costa Rican coffee producer shows.  

Difference-maker

Ann Hermes/Staff
Irene Li is co-owner of Mei Mei, a Boston restaurant known for its creative Chinese-American cuisine that’s made from locally sourced and sustainable ingredients.

This story carries a similar sniff of revolution. Why should the food we eat drive us to accept practices that are wasteful, harmful, and inhumane? In this case, one young rebel's journey began in a takeout truck.  


The Monitor's View

AP Photo/file
A man walks past a Wells Fargo location in Philadelphia. The Federal Reserve is imposing more penalties on Wells Fargo, freezing the bank's growth until it can prove it has improved its internal controls. The new penalties were announced Feb. 2 on Fed Chair Janet Yellen's last day at the central bank.

The directors of financial institutions in the United States should be on high alert after a surprise move by the Federal Reserve. On Feb. 2, the regulator slapped a harsh penalty on Wells Fargo, the third-largest bank by assets, for its board’s inadequate oversight of ethical and legal risks in the company. Until the bank improves its governance and replaces some board members, it will not be allowed to grow in total assets.

“We cannot tolerate pervasive and persistent misconduct at any bank,” said Janet Yellen on her last day as the Fed’s chair.

The Fed has hinted for months that it wants better risk management by bank boards. In effect, it sees them as independent watchdogs of management, assigned to foresee problems and prevent them as well as be proactive in creating a culture of integrity. No longer can a board merely assign blame to underlings when things go wrong. Preventive action is now presumed.

“Across a range of responsibilities, we simply expect much more of boards of directors than ever before,” said Jerome Powell last August. He took over as Fed chief Monday.

Wells Fargo was likely chosen to set an example. It is still reforming its ways after being caught in 2016 for creating fake bank accounts for millions of customers and overcharging on consumer loans. But it is not alone in being the focus of public calls for more accountability.

“One defining feature of 2017 has been seeing corporate directors and officers being held personally responsible for illegal behavior at their companies,” stated the Harvard Business Review in a December article.

Volkswagen’s board, for example, still faces scrutiny over the company’s cheating on emission tests and other scandals. And the trustees of Michigan State University are fending off charges that they should have done more to prevent the sexual abuse of young female athletes by gymnast doctor Larry Nassar.

In its new demands on bank boards, the Fed is not going as far as the central bank in Hong Kong, which has proposed that banks set up a special committee for ethical conduct in corporate culture. Still, banks may be left wondering what further steps are needed to head off adverse surprises by their managers and employees.

Merely selecting highly moral directors for a board may not be enough. Such members may be role models or even help write good ethical codes. But are they probing company practices, encouraging employees to speak frankly, and otherwise promoting good values and being a moral manager?

And it is not only top leaders that need to be proactive. “In hierarchical cultures, it is critical to empower employees at all levels to speak up and take action,” says the Harvard Business Review article.

Such diligence in upholding a company’s ethical practices requires foresight to recognize potential problems and then act to prevent them. Like many corporate boards, the board of Wells Fargo missed warning flags about bad practices. Its new directors are racing to learn skills in moral leadership. The Fed would just like them to move faster.


A Christian Science Perspective

About this feature

Each weekday, the Monitor includes one clearly labeled religious article offering spiritual insight on contemporary issues, including the news. The publication – in its various forms – is produced for anyone who cares about the progress of the human endeavor around the world and seeks news reported with compassion, intelligence, and an essentially constructive lens. For many, that caring has religious roots. For many, it does not. The Monitor has always embraced both audiences. The Monitor is owned by a church – The First Church of Christ, Scientist, in Boston – whose founder was concerned with both the state of the world and the quality of available news.

In today’s column, a woman shares how she was led to see that all – including our seeming “enemies” – have an innate ability to live up to their true nature as divine Love’s reflection.


A message of love

Camden Courier-Post/AP
In a scene with faint echoes of the famous Times Square photo from V-J Day in 1945, a couple from Berlin, N.J., kiss on Philadelphia’s Broad Street Feb. 4 as fans of the city’s Eagles celebrated the NFL football team's victory over the favored New England Patriots in Super Bowl LII. A parade is expected this week.
( The illustrations in today’s Monitor Daily are by Jacob Turcotte. )

A look ahead

Thanks for joining us today. Please come back tomorrow when staff writer Laurent Belsie looks at wage growth, which is finally strengthening. The question is: How real is the progress? And for whom?

More issues

2018
February
05
Monday

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