Art Diamond – Page 40 – artdiamondblog.com

Chinese Communists Detain Entrepreneur Who Exhorted Staff to “Go Forward Boldly”

(p. B1) In mid-January [2023], star Chinese investment banker Fan Bao, architect of the deals that created some of China’s most dominant technology companies, appeared at his bank’s annual party in Beijing. . . . He exhorted the hundreds of staffers in attendance to “Go Forward Boldly.”

A few weeks later, he disappeared.

For the past month, the 52-year-old banker—who set out to build the JPMorgan of China and successfully straddled the divide between China and the West—has been held incommunicado in a detention system run by the Communist Party’s anticorruption agency.

. . .

(p. B6) Privately, close associates of Mr. Bao have been dismayed by his detention. China Renaissance Holdings Ltd., the boutique investment bank he founded and ran, is a relatively small firm, making it unusual that it would draw this manner of government scrutiny. Colleagues, business partners, friends and acquaintances of Mr. Bao are worried about his safety and are hoping he will soon resurface publicly. “I feel utterly disillusioned,” said a person close to Mr. Bao.

The jolt to business people’s confidence also comes as anxiety over China’s direction, its curtailing of people’s rights, and the way it managed the Covid-19 pandemic is leading more middle-class and wealthy Chinese citizens to relocate to other countries. Global investors have been rethinking their exposure to the world’s second-largest economy following a selloff over the past two years that was largely caused by Beijing’s regulatory crackdowns and policy decisions.

. . .

Some Chinese entrepreneurs who previously went missing have reappeared quickly. Guo Guangchang, the billionaire chairman of Shanghai-based conglomerate Fosun Group, emerged days after a mysterious detention by authorities in late 2015. He continues to run Fosun and was never charged with any wrongdoing.

Xiao Jianhua, a Chinese financier who ran a conglomerate called the Tomorrow Group, was taken from Hong Kong in 2017 and didn’t reappear for five years. He turned up in a Shanghai court last year to face corruption charges and was sentenced to 13 years in prison.

. . .

Mr. Bao believed China was on the cusp of a new-economy revolution and connected early on with young entrepreneurs who were trying to get their internet-technology startups off the ground.

. . .

Mr. Bao tried to adapt to the new environment, shifting his attention to pursuing deals in industries like semiconductors that remained in Beijing’s good graces.

. . .

Mr. Bao’s last post on Chinese social media WeChat was on Jan. 9 [2023], a few days before the China Renaissance party. He congratulated Fenbi Ltd., a vocational training provider and a portfolio company in his firm’s fund, on its Hong Kong listing. Under his personal status, Mr. Bao had written: “Dream as if u’ll live forever, live as if u’ll die today.”

For the full story, see:

Jing Yang and Rebecca Feng. “China’s M&A Star Vanishing Spurs Alarm.” The Wall Street Journal (Monday, March 20, 2023): B1 & B6.

(Note: ellipses, and bracketed years, added.)

(Note: the online version of the story has the date March 18, 2023, was listed with the title “China’s M&A Star Tells Staff to Be Bold—Then He Disappears,” and had the title “China’s M&A Star Told His Employees to Be Bold—Then He Disappeared” at the top of the story.)

Progressives Now Argue that F.D.R.’s Liberal New Deal “Rested on a Jim Crow Foundation”

(p. C1) In October 1935, President Franklin D. Roosevelt had his administration send letters to thousands of clergy across the country, asking if the New Deal was helping their communities.

Even from admirers, the news wasn’t always good. Local administrators did not “carry out your will and purpose,” J.H. Ellis, a Black pastor in Hot Springs, Ark., wrote, “especially as it relates to the Negro group.” J.W. Hairston, an African American minister in Asheville, N.C., lamented that in the South “there are two states and two cities, one white — one black.”

The Northern Black press, meanwhile, was more blunt. The New Deal, more than one newspaper proclaimed, was also a “Raw Deal.”

Eight decades later, that charge still hangs in the air. Conservatives have long assailed the New Deal, which radically expanded the government’s involvement in the economy, as the epitome of big-government overreach. But in recent years, progressives have increasingly argued that this pillar of 20th-century liberalism rested on a Jim Crow foundation, and laid the groundwork for the yawning Black wealth gap that persists today.

Now, the Franklin D. Roosevelt Presidential Library and Museum in Hyde Park, N.Y., is entering the fray. “Black Americans, Civil Rights and the Roosevelts, 1932-1962,” on view through December 2024, takes a frank, deeply researched view of what it calls Franklin and Eleanor Roosevelt’s “mixed” record on race, from their personal attitudes to the policies they championed.

. . .

(p. C3) . . . , the title of the opening wall text makes the central question plain: “A New Deal for All Americans?”

While a mainstay of scholarship for decades, that question has recently reached a broader public, thanks to books like Ira Katznelson’s “When Affirmative Action Was White” and Richard Rothstein’s “The Color of Law: A Forgotten History of How Our Government Segregated America.”

On a recent afternoon, a docent directed visitors toward what she called “the most amazing thing” — a 1937 Home Owners Loan Corporation map of the nearby city of Poughkeepsie, labeling predominantly Black areas as “hazardous” for lenders.

In 1935, the newly created Federal Housing Administration issued a manual for lenders, endorsing redlining (so named for the pink shading of “hazardous” areas) and warning that Black families should not be approved for mortgages in white areas. “Incompatible racial groups,” it noted, “should not be permitted to live in the same communities.”

Housing policy is widely seen by historians as one of the New Deal’s most consequential failures, one which over time dramatically deepened residential segregation. But while the exhibition deals bluntly with the issue, it also avoids any simplified counternarrative of the New Deal writ large as inherently, and intentionally, racist at its core.

. . .

The exhibition deals directly with what the library calls the “greatest stain” on Roosevelt’s racial record: his refusal to publicly support federal anti-lynching legislation, out of fear it would alienate the Southern Democrats who dominated Congress and imperil the New Deal.

For the full story, see:

Jennifer Schuessler. “F.D.R.’s Library Takes a Hard Look at Race.” The New York Times (Thursday, August 3, 2023): C1 & C3.

(Note: ellipses added.)

(Note: the online version of the story has the date Aug. 1, 2023, and has the title “At the Roosevelt Library, an Unflinching Look at Race.”)

Communist China Has “Opened Police Outposts in Foreign Countries” to Arrest Chinese Exiles

(p. 10) As a lawyer in China, Lu Siwei belonged to a rare and increasingly besieged group willing to take on sensitive cases to defend rights activists and political pariahs. To stop him, the authorities put him under surveillance and barred him from practice, depriving him of his livelihood.

Mr. Lu’s wife and young daughter fled first, moving to the United States. Nearly two years later, it was Mr. Lu’s turn. He left China last month, crossing over into Laos. A few days later, as he was preparing to board a train to Thailand, he was arrested by local authorities. Accused of using fraudulent travel documents, he was in Laotian custody as of late August and facing the threat of deportation.

Under Xi Jinping, China’s most iron-fisted leader in decades, Chinese authorities have aggressively expanded their net outside the country. They have opened police outposts in foreign countries, offered bounties for critics who have fled overseas, pressured members of the Chinese diaspora to become informants, and secured the detention or deportation of exiles abroad.

For the full story, see:

Tiffany May. “He Fled Repression, but China’s Long Arm Caught Him in Another Country.” The New York Times, First Section (Sunday, Aug. 27, 2023): 10.

(Note: the online version of the story has the date Aug. 26, 2023, and has the title “He Fled China’s Repression. But China’s Long Arm Got Him in Another Country.”)

Okinawans Think Ikigai (a Reason for Living) Is Important for Long Life

(p. A11) Ask most people if they want to live to be 100 and the response is likely to be “Sure!” followed by “Wait a sec . . .” Questions suddenly abound: Am I going to be healthy? Am I going to be lonely? Will I be financially stable? Will I have outlived everyone I knew and loved? What author-researcher Dan Buettner set out to demonstrate in “Live to 100: Secrets of the Blue Zones” is that the solutions to those concerns are also the keys to longevity itself.

. . .

What is clear early on is that what Mr. Buettner “discovers” during his visits to Sardinia; Singapore; Okinawa, Japan; Ikaria, Greece; and even Loma Linda, Calif., is largely what we would expect: that much of what helps people live longer isn’t necessarily the purple Japanese sweet potatoes, or going to church every day, or having the limited stress load of a Greek shepherd. It is an Okinawan diet rich in nutrients and fiber, the walking uphill to the Sardinian church, and the community to which one belongs in Loma Linda when one is, for instance, a Seventh Day Adventist who plays pickleball.

. . .

There are many correlating clues to a longer life across the locations in “Live to 100.” Okinawans emphasize the importance of having an ikigai, or reason for living; in Costa Rica the same thing is called one’s plan de vida.

For the full television review, see:

John Anderson. “Netflix’s Lessons in Longevity.” The Wall Street Journal (Wednesday, Aug. 30, 2023): A11.

(Note: ellipses added.)

(Note: the online version of the television review has the date August 29, 2023, and has the title “‘Live to 100: Secrets of the Blue Zones’ Review: Lessons in Longevity.” In the original the word ikigai and the phrase plan de vida are in italics.)

Buettner’s latest book on blue zones is:

Buettner, Dan. The Blue Zones Secrets for Living Longer: Lessons from the Healthiest Places on Earth. Washington, D.C.: National Geographic, 2023.

Innovative Air Conditioner Is Quieter and Uses Less Energy

(p. B5) There is nothing cool about window air conditioners.

They’re clunky, ugly and tend to be way too loud. Most of them are more or less identical and have been for a long time: same temperature, same efficiency, same fear of falling out the window during installation.

“There was no meaningful performance difference from unit to unit,” said Liam McCabe, a seasoned window-AC product reviewer. “Everything was a rectangular heavy box.”

At least until a sleeker, quieter, U-shaped AC came along that looked and sounded unlike any that had ever been made. It also produced less noise and required less energy, which solved the biggest problems of window air conditioners. These machines work if you turn them on and never have to think about them again. This one worked so well that it had the opposite effect. It made people completely obsessed with their air conditioning.

. . .

They had reasons to be cynical when they heard about a company disrupting window ACs, which had become commoditized in the century since the first one was patented. But when they tried it out, they found themselves blown away. Wired and Wirecutter both picked the U-shaped AC as the best on the market, and it defied everything McCabe thought he knew about window air conditioners. His years of reviewing the same old boring products turned out to be useful preparation for recognizing one that was totally different and entirely new.

“It fried my brain a bit,” he told me. “I remember thinking: This is too good to be true.”

. . .

There wasn’t much innovation or investment in ACs, said Kurt Jovais, Midea America’s president. His company would come to believe that the window AC had been undervalued.

“We know there’s a better way,” he recalled thinking. “We’re going to make sure we find what that better way is.”

That was Adam Schultz’s job. Midea America’s project manager for residential air conditioning was responsible for turning concepts into a product that wasn’t an eyesore. The quest for a less noisy, more efficient unit inspired his team to design a prototype in the shape of a U. Instead of squeezing a noise dampener inside the box to muffle noise, they essentially split the box in two and stuck the annoying clanks and thunks outside.

That is, the secret to making a better window air conditioner was taking advantage of the window.

The clever engineering solution wasn’t just effective. It was intuitive. All you had to do was look at the U shape and you would see why this AC sounds like a library.

“The window is a sound barrier,” Schultz said.

That wasn’t the only benefit of the unorthodox design. The variable-speed inverter compressor uses less energy, which means you can keep it cranking without having to worry about utility bills. You can also open your window for unconditioned fresh air, rather than bolting it down to a giant box during installation.

For the full commentary, see:

Ben Cohen. “SCIENCE OF SUCCESS; The Ingenuity Behind This Air Conditioner Will Blow U Away.” The Wall Street Journal (Saturday, June 17, 2023): B5.

(Note: ellipses added.)

(Note: the online version of the commentary has the date June 15, 2023, and has the title “SCIENCE OF SUCCESS; How Did the World’s Coolest Air Conditioner Get So Hot?”)

Weight Loss Drugs Discovered Through “Tedious Trial and Error”

The first sentence quoted below implies that weight loss drugs are an exception in being discovered through trial and error rather than “through a logical process.” But I believe that drug discoveries in recent decades for cancer, heart disease, and Alzheimer’s also owe a lot to trial and error processes.

(p. A1) While other drugs discovered in recent decades for diseases like cancer, heart disease and Alzheimer’s were found through a logical process that led to clear targets for drug designers, the path that led to the obesity drugs was not like that. In fact, much about the drugs remains shrouded in mystery. Researchers discovered by accident that exposing the brain to a natural hormone at levels never seen in nature elicited weight loss. They really don’t know why, or if the drugs may have any long-term side effects.

“Everyone would like to say there must be some logical explanation or order in this that would allow predictions about what will work,” said Dr. David D’Alessio, chief of endocrinology at Duke, who consults for Eli Lilly among others. “So far there is not.”

. . .

(p. A16) . . . results from a clinical trial reported last week indicate that Wegovy can do more than help people lose weight — it also can protect against cardiac complications, like heart attacks and strokes.

But why that happens remains poorly understood.

“Companies don’t like the term trial and error,” said Dr. Daniel Drucker, who studies diabetes and obesity at the Lunenfeld-Tanenbaum Research Institute in Toronto and who consults for Novo Nordisk and other companies. “They like to say, ‘We were extremely clever in the way we designed the molecule,” Dr. Drucker said.

But, he said, “They did get lucky.”

. . .

After tedious trial and error, Novo Nordisk produced liraglutide, a GLP-1 drug that lasted long enough for daily injections. They named it Victoza, and the F.D.A. approved it as a treatment for diabetes in 2010.

It had an unexpected side effect: slight weight loss.

. . .

Finally, after liraglutide was approved in 2010 for diabetes, Dr. Knudsen’s proposal to study the drug for weight loss moved forward. After clinical trials, the F.D.A. approved it as Saxenda for obesity in 2014. The dose was about twice the diabetes dose. Patients lost about 5 percent of their weight, a modest amount.

. . .

Despite the progress on weight loss, Novo Nordisk continued to focus on diabetes, trying to find ways to make a longer-lasting GLP-1 so patients would not have to inject themselves every day.

The result was a different GLP-1 drug, semaglutide, that lasted long enough that patients had to inject themselves only once a week. It was approved in 2017 and is now marketed as Ozempic.

It also caused weight loss — 15 percent, which is three times the loss with Saxenda, the once-a-day drug, although there was no obvious reason for that. Suddenly, the company had what looked like a revolutionary treatment for obesity.

. . .

Researchers continue to marvel at these biochemical mysteries. But doctors and patients have their own takeaway: The drugs work. People lose weight.

For the full story, see:

Gina Kolata. “Medical Mystery Shrouds Drugs for Weight Loss.” The New York Times (Friday, August 18, 2023): A1 & A16.

(Note: ellipses added.)

(Note: the online version of the story has the date Aug. 17, 2023, and has the title “We Know Where New Weight Loss Drugs Came From, but Not Why They Work.”)

Paper Makers Lobby to Retain Mandate for Costly and Useless Long Pamphlets with Prescription Drugs

(p. B5) Doctors and pharmacists receive lengthy pamphlets for all prescription drugs that can stretch as long as a dining-room table. Efforts to go digital in this heavily regulated industry are finally making headway, offering drugmakers the chance to provide up-to-date information while also saving money, trees and greenhouse-gas emissions.

. . .

Advocates arguing such prescription information should go fully digital say the instructions are only for medical professionals, who often already consult up-to-date electronic versions and leave the papers unread and discarded. Proponents of keeping paper say the printed instructions are consulted frequently enough to help ensure medicine is used safely.

. . .

“It’s like a dream come true looking in the facility and seeing the packs coming off the manufacturing lines without these paper leaflets,” said Pam Cheng, operations and sustainability chief at pharmaceutical company AstraZeneca. “This is like win, win, win.”

AstraZeneca spends $30 million a year on the papers globally and is pushing to digitize prescribing information as part of its goal to cut 50% of emissions across its value chain by 2030, Cheng said. The company aims to have a plan by 2025 for all its medical information to go electronic by the end of the decade. Many other pharma companies also want to go digital.

. . .

The U.S. Food and Drug Administration in 2014 proposed to replace the paper information with a digital source, saying it would ensure information is up-to-date and bring environmental and cost benefits. However, an obscure clause in the FDA’s Congressional spending bill has blocked the move, with intense lobbying from two dedicated groups: the Alliance to Modernize Prescribing Information, representing drugmakers such as AstraZeneca, Eli Lilly and Pfizer, and the Pharmaceutical Printed Literature Association, backed by paper producers such as Avery Dennison, JP Gould and WestRock.

. . .

Other countries have digitized drug information, with Japan leading the way. In 2021, the country required drug inserts to go digital by August 2023, both those for patients and medical professionals.

For the full story, see:

Dieter Holger. “Bill Would Let Drugmakers Stop Printing Long Pamphlets.” The Wall Street Journal (Friday, June 16, 2023): B5.

(Note: ellipses added.)

(Note: the online version of the story has the date June 15, 2023, and has the title “One Change Could Help U.S. Drugmakers Save 11 Million Trees a Year.”)

Michael Milken Applies “Entrepreneurial Zeal” to Quest to Live Forever

(p. B3) Michael Milken wants to live forever.

. . .

Milken in April [2023] published “Faster Cures,” a book that is part memoir, part a recounting of his efforts to bring the results of medical research to patients more quickly.

. . .

Shortly after his release from prison in 1993, he received a diagnosis of terminal prostate cancer and was told he had 12 to 18 months to live. He survived thanks to a relentless pursuit of the latest treatments and a dramatic change in diet. Longevity is one focus of the Milken Institute.

. . .

While at Berkeley, Milken read a book called “Corporate Bond Quality and Investor Experience” that examined, among other things, yield charts and default rates for bonds issued by railroads, utilities and industrial companies between 1900 and 1943.

The data revealed something surprising, he recounted in “Faster Cures:” While risk and return had always been presumed to be directly correlated, the reality was that the market had historically overestimated the risk of higher-yielding investments. Investors actually got lower returns on a portfolio of high-grade bonds than they did on a portfolio of low-grade ones over time because the higher yields more than made up for the higher level of defaults.

Milken continued his work on high-yield bonds while pursuing an M.B.A. from the University of Pennsylvania’s Wharton School. When he graduated in 1970, he joined the staff of Drexel, where he had previously worked as a consultant.

Bonds issued by Drexel were the primary source of financing for the likes of cable-industry titan Ted Turner, cellular pioneer Craig McCaw, fiber-optic entrepreneur William McGowan and casino magnate Steve Wynn.

“There was an entrepreneurial zeal in that firm that I haven’t seen since,” said Ted Virtue, a Drexel alumnus who now runs private-equity firm MidOcean Partners.

. . .

Milken’s work on prostate cancer has also made him an influential figure in medical research, where he has developed a reputation for being data-driven and impatient with bureaucracy. Every year he hosts a summit for scientists working on prostate cancer.

“Mike looked at the problem of cancer like a business problem to be solved,” said Dr. Karen Knudsen, CEO of the American Cancer Society. “He wasn’t focused on the flashy. He really focused on what is going to make a difference.”

When the Prostate Cancer Foundation lacked the resources to fund a major study Knudsen needed to conduct to advance her research, she said, Milken introduced her to executives from a pharmaceutical company who he thought would be interested in the science. The company ended up funding the study.

For the full story, see:

Miriam Gottfried. “Bond King, Felon, Billionaire Philanthropist.” The Wall Street Journal (Saturday, July 15, 2023): B3.

(Note: ellipses, and bracketed year, added.)

(Note: the online version of the story was updated July 14, 2023, and has the title “Bond King, Felon, Billionaire Philanthropist: The Nine Lives of Michael Milken.”)

Milken’s book on how to cure more diseases faster is:

Milken, Michael. Faster Cures: Accelerating the Future of Health. New York: William Morrow, 2023.

Wind and Solar Power Prices Have Doubled Since Pandemic, Due Partly to Regulatory and Policy Challenges

(p. B1) After more than a decade of declining prices for wind and solar power, the cost of renewables has been ticking up, pushed by everything from macroeconomic forces to countries’ attempts to take control of their energy-supply chains.

The cost of large-scale solar and wind power rose as much as 20% last year versus the year before in most of the world, the International Energy Agency said in a June report. In the U.S., financial-services company Lazard’s widely watched report on the cost of power generation logged its first increase for renewables this year since it started (p. B4) tracking it nearly 15 years ago.

The whiplash has been particularly bad among renewables developers in the U.S., many of whom have rewritten contracts to stay afloat. The price they are charging long-term buyers for their electricity has doubled since the pandemic and risen nearly 30% in the past year alone, according to clean-energy marketplace LevelTen Energy.

. . .

The U.S. has . . . challenges, including policies that make it harder and more costly to import solar panels and other clean-energy components. Rising labor costs and delays in permitting or getting projects hooked up to the power grid have made building solar and wind projects more expensive.

For the full story, see:

Phred Dvorak. “Price of Green Power Is on the Rise.” The Wall Street Journal (Monday, Aug. 14, 2023): B1 & B4.

(Note: ellipses added.)

(Note: the online version of the story has the date August 13, 2023, and has the title “Green Power Gets Pricier After Years of Declines.”)

“Unexpected” New Evidence of the Ubiquity and Resilience of Life on Earth

(p. D3) Off the western shores of Central and South America, there is a Lovecraftian, lava-licked realm thousands of feet beneath the ocean. There, on the seafloor, volcanically powered exhaust ports known as hydrothermal vents fire off jets of water that reach temperatures of up to 700 degrees Fahrenheit. While the surfaces and peripheries of these vents have long been known to host a diverse mosaic of life, scientists had never known animals to find a home beneath these hellish geysers.

But that changed in July [2023] when a diving robot overturned volcanic bedrock pockmarked with hydrothermal vents and revealed an explosion of animal life — including an abundance of tubeworms, bizarre creatures that resemble sentient spaghetti.

“This is the first time that animal life was found below the surface” of hydrothermal vents, said Monika Bright, an ecologist at the University of Vienna and lead scientist on the expedition.

. . .

Much about these unusual habitats is a mystery. But, like many revelations found at the bottom of the sea, this discovery once again pushes the boundaries of what scientists consider possible — perhaps even normal — for life on Earth.

Hydrothermal vents, first discovered off the Galápagos Islands, are Dalí-esque chimneys and chasms that often grow atop or close to midoceanic ridges — vast volcanic fissures in the seafloor made by the divergence of two tectonic plates. Deep below, the magmatic heat roasts percolating seawater, which jets back out into the water column as superheated, mineral-rich soups.

Despite their extreme natures, these vents are metropolises of strange critters. Common among them are tubeworms, which start life as free-swimming larvae before becoming immobile adults that grow to several feet in length and that are fed by sulfur-eating bacteria living in their guts.

Dr. Bright suspected that these wiggly weirdos could also be found beneath the vents. “It’s kind of a really crazy idea I had,” she said.

. . .

. . . for Dr. Bright, Earth is all that matters. “I’m not thinking of other planets and moons — I’m thinking that there’s so much mystery to be discovered in our Earth,” she said. “I feel like I know this place. I’ve studied this place for 30 years. And still, you can find something unexpected.”

For the full story, see:

Robin George Andrews. “Odd Creatures Found Under Oceanic Vents.” The New York Times (Tuesday, August 15, 2023): D3.

(Note: ellipses, and bracketed years, added.)

(Note: the online version of the story has the date Aug. 8, 2023, and has the title “Under a Hellish Ocean Habitat, Bizarre Animals Are Lurking.”)

Long Waits for Italian Cabs Due to Regulations Limiting More Cabs and Ride-Sharing

(p. A4) Returning to Rome from Naples one Monday afternoon in June [2023], a train trip that takes just over an hour, Daniele Renzoni said that he and his wife waited for more than an hour and a half at Termini station for a cab under a blazing sun.

“Just image a long line of grumbling, frustrated people, complaining, cursing. Hot day, angry tourists, there’s not much else to say,” said Mr. Renzoni, who is retired. “Taxi drivers will tell you there’s too much traffic, too many requests, too much everything, but the fact is, the customer pays.”

The situation is “a disgrace to Italy,” said Furio Truzzi, president of the consumer rights group Assoutenti, one of several associations that protested the shortage.

. . .

Thanks to the taxi lobby, ride-sharing services are almost nonexistent in Italy, where Uber is the only platform in use, with many restrictions.

The government lost an opportunity for real change, said Andrea Giuricin, a transportation economist at a research center at the University of Milan Bicocca. He said the best way to meet consumer needs would be to increase the number of licenses for Italy’s chauffeur services, known as N.C.C., which work with Uber.

“It’s very difficult in Italy” because “there isn’t a culture of liberalization in general,” creating little opportunity for competition, said Professor Giuricin. Taxis “are a small but powerful lobby” that easily influences politics, “which is very weak” in Italy, he said.

Angela Stefania Bergantino, a professor of transportation economics at the University of Bari, pointed out that previous governments had tried to open up the taxi market. But they failed.

“The problem is that taxis are regulated by municipal governments, which can find themselves captive in the sense that it is difficult for City Hall to implement policies that the cab lobby doesn’t like,” she said. “These are lobbies that have effective strike tools,” like wildcat strikes or traffic blockages that can paralyze entire cities, she said.

. . .

Above all, though licenses are issued by the city, they can then be sold by the drivers, for sums that can reach 250,000 euros, or about $276,000, depending on the city — a retirement nest egg for many. With an influx of new licenses, the value of an existing license would depreciate.

City administrators fear cabbies could revolt and strike if the status quo changes. “If I decide to issue new licenses,” said Eugenio Patanè, Rome’s city councilor in charge of transportation, “I’m going to find 1,000 taxis blocking traffic in Piazza Venezia,” the downtown Rome square that taxi drivers habitually clog while protesting.