US VP’s son joins Ukrainian gas group board
RT | May 13, 2014
Hunter Biden, son of US Vice President Joe Biden, will join the board of directors of Burisma Holdings, Ukraine’s largest private gas producer. The statement comes amid Ukraine’s growing gas crisis.
“Hunter Biden will be in charge of the Holdings’ legal unit and will provide support for the Company among international organizations,” said the company’s official statement.
Biden, commenting on his appointment, said that his assistance in consulting Burisma Holdings “on matters of transparency, corporate governance and responsibility, international expansion and other priorities will contribute to the economy and benefit the people of Ukraine.”
“Burisma’s track record of innovations and industry leadership in the field of natural gas means that it can be a strong driver of a strong economy in Ukraine,” he added.
The appointment announcement comes on the same day as Russia’s gas giant, Gazprom, switched to a prepayment system with Ukraine and sent Naftogaz, Ukraine’s gas and oil company, a $1.66 billion gas bill for June supplies. Kiev must pay the bill by June 2, otherwise, it may risk a halt in natural gas supplies on June 3, Gazprom CEO Aleksey Miller said.
Ukraine, currently has about 9 billion cubic meters of gas in storage, and by the winter needs 18.5bcm to keep factories open and households warm, Gazprom Deputy Chief Executive Vitaly Markelov said on Tuesday. In 2013, Ukraine bought 27.7 billion cubic meters from Gazprom.
Under the present terms, Kiev has to pay $485 per 1,000 cubic meters. The price was raised in April from $268.50, when Russia withdrew all discounts it provided for Ukraine after the crisis-torn country failed to pay for gas. According to Gazprom’s CEO, Kiev already owes the company more than $3.5 billion.
Kiev has rejected the new price as “politically motivated” and has been refusing to pay back the debt until Gazprom cancels the “unjustified and unacceptable hike.”
Meanwhile, the US may use the critical energy situation in the country to promote its shale energy in Ukraine.
Hunter Biden, 44, is a partner at Rosemont Seneca Partners, business development and policy advisory firm, and is counsel to Boies, Schiller, Flexner, a New York based-law firm. He is also an adjunct professor on Georgetown University’s Master’s Program in the School of Foreign Service.
Biden is on the Chairman’s Advisory Board for the National Democratic Institute, and is also a director for the Center for National Policy and the US Global Leadership Coalition, an influential, broad-based organization formed by a coalition of 400 American businesses and NGOs, senior national security and foreign policy experts.
Meanwhile, former US President Bill Clinton appointed him an Executive Director of E-Commerce Policy Coordination under Secretary of Commerce William Daley. Biden was also honorary co-chair of the 2008 Obama-Biden Inaugural Committee.
Hunter Biden is also known in the political world. He is on the boards of the World Food Program USA, and the Truman National Security Project, a US organization, based in Washington, D.C, that recruits, trains, and positions specialists across America.
Burisma Holdings, a private oil and gas company in Ukraine which was set up back in 2002 and has grown rapidly since. Its licenses cover the Ukraine’s three key hydrocarbon basins, including Dnieper-Donets, Carpathian and Azov-Kuban.
In 2013, daily gas production amounted to 11.6 thousand BOE (barrel of oil equivalent), a unit of energy based on the approximate energy released by burning one barrel (158.98 liters of crude oil), or 1.8 million cubic meters of natural gas. The company sells these volumes in the domestic market, both via traders and directly to consumers.
When Our Land is Free, We are Free
By Silas Kpanan’Ayoung Siakor & Jacinta Fay | The Ecologist | May 7, 2014
Right now in Abuja, Nigeria, agribusiness corporations are courting African governments at the Grow Africa Investment Forum to “further accelerate sustainable agricultural growth in Africa”.
That sounds harmless enough, until you know what it really means. Corporate interest in agriculture in Africa has certainly accelerated corporate control of land, seeds and water. But it has done little to support agriculture that will feed the continent.
Rather than support family farming and smallholder agriculture, private sector investment in agriculture has resulted in grabbing land from communities – the land which they farm sustainably and rely on for their survival.
Resisting the corporate bully boys
Communities are resisting this corporate takeover of their land and they are winning. All over Africa people are sending a clear message to their governments: “Stop selling Africa to corporations!” The Jogbahn Clan in Liberia is one such community and here is their story.
The sense of jubilation in Blayahstown, small town in Liberia, is palpable. People come from surrounding villages to join in the celebrations and the town is filled with singing and dancing.
The Jogbahn Clan is celebrating a victory as the President of Liberia has now recognised their right to say no Equatorial Palm Oil (EPO) a British palm oil company grabbing their land.
This is no small feat in a country where over 50% of the land has been given to corporations without the consent of the communities who customarily own the land.
We come from this land – it is ours!
The sense of accomplishment is not lost on Chief Elder Chio Johnson who looks like he hasn’t stopped smiling since he returned from the Clan’s meeting with the President of Liberia – where she committed to support them in protecting their land from being grabbed by EPO.
“Why should a company take away our livelihood?” asked Chio. “We come from this land. Everything our ancestors left us is preserved in the forest, so why should we give up our forest?”
Walking through the forest with Deyeatee Kardor, the Clan’s Chairlady, she picks leaves and describes the different medicines that they can be used for. She recounts how she and her family hid in the forest throughout the Civil War and managed to survive on the plants and fruits growing in the bush.
Though the land bears the scars of the recent past it also represents the Clan’s ancestral home and they would not willingly allow this deep connection to the land to be fractured.
20,000 hectares of community land given away
“The land gives us everything”, Chio says as he surveys the area; the vegetables, wild palm and sugar cane growing all around. Like other rural communities in Liberia they make their livelihood from the land they manage collectively.
The clan are self-sufficient and manage the land sustainably. For the Clan, to lose their land is to lose everything.
The communities’ resistance began in 2012 when EPO began to expand their plantation onto the community land of eleven towns. The Government of Liberia and EPO had signed a concession agreement allowing the company’s plantation to engulf communities’ land amounting to over 20,000 hectares.
Communities all over Liberia are facing the same threat as their lands are given to companies without their consent. As a result conflict between communities and companies has been widespread.
Police and EPO security intimidation
The Clan organised and came together to resist their land being grabbed. Men, women and youth from the affected towns chose representatives to form a core group to lead the resistance.
They met the company and the government several times to object to the company’s expansion. In spite of this towards the end of 2012 EPO began clearing and planting their land, destroying crops and farmland.
In September 2013 EPO began surveying the communities’ land without their consent. When the communities attempted to stop the survey a paramilitary police unit was deployed into the area, and began to run a campaign of harassment and intimidation by both the police and EPO’s security force.
They drove through villages at night flashing their emergency lights and arrived in villages riding on top of vehicles the same way rebel fighters did during the war.
People were also assaulted during a peaceful march and 17 people suffered arbitrary arrest. The Clan Chief was also suspended from his position by the government because he spoke out against the company.
Divide and rule – this time, it failed
Despite these aggressive tactics the community continued resisting. They lodged a complaint to the Roundtable on Sustainable Palm Oil (RSPO) and presented a petition to the government stating their objections.
“All they have done is try to divide us”, commented Deyeatee. “They offer important people a little money to try to convince them.”
However the community refused to be weakened by division and eventually secured the crucial meeting with the Liberian President Ellen Johnson Sirleaf where she recognised their right to say ‘no’ to the company.
“The struggle has made us stronger than ever before and we’ve learned a lesson to stay united”, said Anthony Johnson, a youth representative.
“The success is so great as it secures my future and the future of my children to come. I will stay on this land and plant crops for my children so future generations can live off the land.”
But for EPO, it’s business as usual
Despite the President’s commitment EPO has still not recognised that the Clan has said no to their operations. They are operating as if things are business as usual and conducting studies of the Clan’s land in preparation for clearing.
But the Clan are not discouraged and they continue their resistance for the hope of a better future.
Land clearance and other preparatory activities would be unlawful, as they do not respect communities’ right to give or withhold their Free Prior and Informed Consent, which is a requirement provided for under both national and international law.
“We want the government to support us to be self-sufficient on our land instead of giving it to a company who will just take the money and go home”, said Garmondeh Benwon, who suffered assault on the march. ”Instead we can keep the money in Liberia and we can live better lives.”
Organise and resist!
Every year, an area five times the land size of Liberia is grabbed from communities around the world. The Jogbahn Clan show that stopping it is possible when communities stand together, mobilise and resist.
The government has recognised their right to say no – and now EPO and KLK, their majority shareholder, must do the same.
It is a privilege to work in solidarity with the Clan and their drive and resilience has been a constant source of inspiration for everyone in SDI / FoE Liberia.
The Clan are preparing to share the lessons of their struggle and give hope to other communities resisting land-grabbing. And as Deyeatee says:
“I am very happy my land is free – because when our land is free, we’re all free.”
Silas Siakor is a campaigner on Community Rights and the founder of the Sustainable Development Institute/Friends of the Earth, Liberia a national civil society organisation promoting the sustainable and just use of Liberia’s natural resources. Silas has received the Goldman Environmental Prize in 2006, the Award for Extraordinary Achievement in Environmental and Human Rights Activism from The Alexander Soros Foundation in 2012 and TIME Magazine chose him as one of the 2008 Heroes of the Environment.
Jacinta Fay is a community worker and campaigner for the Community Rights and Corporate Governance Programme of the Sustainable Development Institute/Friends of the Earth Liberia which supports communities protect their land and resources and challenges corporate and government actions which threaten community rights. She is also Landgrab Campaigner for Friends of the Earth International which works to challenge landgrabbing, defend community territories and protect land rights. She also campaigns on trade justice, reproductive rights and social justice.
Twitter: Join the conversation on Twitter #stopEPO
Petition: Support the Jogbahn Clan to protect their land and resources: Landgrabbing in Liberia: Tell Equatorial Palm Oil NO means NO!
EPO backgrounder: EPO’s majority shareholder is the Malaysian company KLK, widely known to use child labor and other egregious practices. In turn, US-based investment company Dimensional Fund Advisors holds over $12 million in KLK. DFA also holds over $2.5 billion in companies with significant stakes in the palm oil sector. And DFA is partly owned by Arnold Schwarzenegger – who claims to care a great deal about saving forests. DFA also manages money for a wide range of US clients, from cities’ endowments to pension funds.
‘Free Press’? USAID Increases Funding to Pro-Kiev Media
By Daniel McAdams | Ron Paul Institute | May 3, 2014
In the name of a “free and independent media,” the US government through its Agency for International Development (USAID) has announced that it will dedicate an additional $1.25 million to subsidize the Ukrainian media in advance of the May 25th presidential election.
Through its multi-year “U-Media” project, USAID has been a major sponsor of the Ukrainian press. It goes without saying that the media outlets and organizations underwritten by the US government in Ukraine adhere closely to the US government’s foreign policy position in the country and region.
The infusion of more than a million dollars into US government-friendly media outlets and NGOs in Ukraine just weeks before the presidential election should be seen for what it is: direct external manipulation of the democratic process in Ukraine.
Nevertheless, the US interference is advertised as “supporting platforms for free and open communications.”
But USAID makes it clear which side this project is intended to support:
USAID is supporting the Government of Ukraine as it implements constitutional and electoral reforms that fulfill its stated goal of becoming a fully inclusive and economically stable democracy.
It is an attack on language itself for the US government to claim that the media it funds is “independent,” as that belies the meaning of the term. Nevertheless the State Department continues to waterboard the English language:
‘USAID supports a strong and independent media in Ukraine,’ said Paige Alexander, Assistant Administrator for the Bureau for Europe and Eurasia (E&E). ‘This additional funding will help to protect vulnerable journalists while also advancing press freedoms and democratic governance in Ukraine.’
At a time when US Secretary of State John Kerry and his State Department continues to attack the Russian-government funded station RT for being state supported, it should be instructive to witness the hundreds of pro-Washington media outlets that are funded by the US government overseas. It should be instructive to see the electoral processes that are manipulated by the US government’s cash infusion to the side it favors.
Pot. Kettle. Black.
Stopping Cleveland’s Corporate Freeloaders
By Ralph Nader | May 1, 2014
On May 6th, Cleveland taxpayers will go to the polls to vote on Issue 7. A no vote will prevent an increase in taxpayer money to the already subsidized, big league sports arenas. A yes vote will reaffirm taxpayer servitude to arrogant corporatists and their cruel, twisted mistreatment of that struggling city.
When I was growing up, tax dollars for public works were used for serious public services. Taxpayers paid to build schools, highways, bridges, libraries, health clinics, public transit and other community needs. Tax dollars were not given over to the mega-rich’s profitable athletic playpens. To even suggest tax money for private major league baseball parks would get you laughed or ridiculed out of town.
Now, there are football, baseball and basketball facilities for the NFL, MLB and NBA leagues (plus other professional sports) that are built and renovated using taxpayer dollars often without majority public support. That is why the sports giants try to avoid referenda and, often with campaign contributions, focus instead on persuading Mayors and Governors.
When big league sports mavens cannot avoid a public vote, they mislead the public with claims that building sports venues is a cost-effective way to produce jobs, but most economists know that building sports facilities is definitely not a cost-effective way to create jobs. Visit League of Fans for more information. And, when empty promises fail, the sports kings threaten to move their teams to another town.
When all that fails, the sports barons go for sin taxes and other micro-targeted tabs (such as parking tax, admissions tax, bed tax, video game tax, rental car tax, and property tax exemption), in addition to keeping high prices for tickets, food and parking to begin with.
This is the situation in Cleveland – a deindustrialized, unfairly poor metropolis, with the largest employer now being the Cleveland Clinic. The more affluent people can go to see the Cleveland Browns, the Cleveland Indians and the Cleveland Cavaliers – whose facilities are named for companies instead of being called “Taxpayers Stadium, Arena and Field.”
The super-rich sports owners, or corporate welfare kings, know “sin taxes” help get more votes for their stadiums. Issue 7 is linked to a 20-year sin tax on alcohol and cigarettes which will be paid by Cuyahoga County residents, totaling between $250 to $350 million. The money will go to “constructing, renovating, improving, or repairing spectator sports facilities.” You can be sure the money will not be going to neighborhood sports programs or playgrounds, otherwise known as participatory sports.
The proposed taxes exclude adjoining counties where fifty percent or more of the paying fans live. Cuyahoga County, which includes the city of Cleveland, already has higher sales and school property taxes than the adjoining counties. Unemployment, prices of necessities and inequality have sky-rocketed in beleaguered Cuyahoga County according to Roldo Bartimole, arguably Cleveland’s greatest investigative reporter of the past half century (see the Cleveland Leader for more information). Any increased taxes – sin or otherwise – should be devoted to the necessities of the local community, not for entertainment.
Big-time sports bosses know that the trump card that enables them to continue with their freeloading ways as crony capitalists is to exploit the spectator joy that comes from being part of a local fan base. The subtext of these demands takes away that joy from those TV watching fans by relocating to another city willing to give away the store. It all reeks of greed, power and extortion.
Rest assured Clevelanders, the Browns, Indians and Cavaliers are going nowhere. They know how much of the “store” (over $1 billion since 1990) your politicians have already given them. The sports bosses like to call themselves capitalists. So let them behave like capitalists and invest their own money and no longer dare to turn your tax dollars into their profits.
The Coalition Against the Sin Tax (CAST) wants full disclosure of the secret “obligations” imposed on the public in these existing corporate welfare contracts so that residents can know what’s going on with their pocketbooks (see the Coalition Against the Sin Tax for more information).
“Who us worry?” non-Clevelanders might be saying. Better think again. The greedy sports billionaires are all over the country. They never stop expanding their mounting wealth at other people’s expense. Until you stop them.
Donald Sterling Thinks He Owns Basketball Players, But Really Does Own the NAACP
A Black Agenda Radio commentary by Bruce A. Dixon | April 30, 2014
For us at Black Agenda Report, the most telling angle on the story of Donald Sterling, the racist billionaire owner of the LA Clippers, was that the Los Angeles NAACP, which had been about to give Sterling a second – not a first but a second “Lifetime Achievement Award” eagerly stepped forward to offer redemption and forgiveness for the small cost of a few more strategic donations from the deep pockets of Donald Sterling.
This won’t be the first time Sterling has purchased absolution for his many sins. In 2003 Sterling settled a housing discrimination lawsuit paying $5 million to plaintiff attorneys alone, and in 2006 he was accused again of refusing to rent apartments to African Americans and Latinos. But a steady stream of donations to big-name so-called civil rights organizations amounting at most to a few ten thousandths of his net worth, were sufficient to make it OK in the eyes of those outfits, and in the case of the NAACP, they were sufficient to get him that first “lifetime award.”
Depending on the rich and powerful to pay their bills while pretending to speak for the poor and oppressed is not a mere bug in the way our 21st century civil rights organizations function, it is a fundamental feature, baked into the bones not just of the NAACP, but of the National Urban League, the League of United Latin American Citizens, the Congressional Black Caucus Foundation, the National Conference of Black State Legislators, the Rainbow PUSH Coalition, Al Sharpton’s National Action Network and many others of this kind.
In the practice of catching corporate racists with their pants down and extracting a franchise here, a dealership there, a TV show or hefty donations to worthy causes the hunter always gets captured by the game. In Georgia where I live, the Southern Christian Leadership Council got the CEO of Georgia Power to head up their building fund. Residents of Shell Bluff, a poor, mostly black town invited Rev. Joseph Lowery of SCLC to their town to show him their cancer epidemic, evidently caused by radiation from a leaking Georgia Power nuclear plant, while federal agencies refused to fund testing of their air, water, soil, wildlife or persons. Georgia Power is now building brand new nuclear plants next to the old ones with $800 million in loan guarantees from the Obama administration. But all that SCLC could do was tell them, “go vote.”
Wells Fargo had aggressively sold sub-prime mortgages to blacks, and is believed to have engaged in thousands or tens of thousands of the same kinds of robo-signings and illegal foreclosures that Bank of America plead guilty to. So after the bailout, Wells Fargo partnered with the NAACP to do “financial literacy” classes for youth. There are examples like this in any direction one cares to look.
Donald Sterling may imagine he owns basketball players. But he really does own the NAACP, just as surely as Verizon and Comcast, Aetna, Wal-Mart, MSNBC and others own the National Action Network, Rainbow-PUSH, the Urban League, the Congressional Black Caucus Foundation and the rest of our politically bankrupt black misleadership class.
Bruce A. Dixon lives and works in Marietta GA and can be reached at bruce.dixon(at)blackagendareport.com
Trade legerdemain on both sides of the Atlantic
By Pete Dolack | Systemic Disorder | April 23, 2014
The Democratic Party has responded to the resistance against ramming through new trade agreements by giving the process a new name. “Fast-track” has been rebranded as “smart-track” and, voilà, new packaging is supposed to make us forget the rotten hulk underneath the thin veneer.
Don’t be fooled. The Obama administration and its Senate enablers are nowhere near giving up on its two gigantic trade deals, the Trans-Pacific Partnership and the Transatlantic Trade and Investment Partnership. Because the stealthy “fast track” route — special rules speeding trade legislation through Congress with little opportunity for debate and no possibility of amendments — is the only way these corporate wish lists can be enacted, a “rebranding” is in order.
The new chair of the U.S. Senate’s Finance Committee, Oregon Democrat Ron Wyden, earlier this month, in a speech given to apparel-industry corporate executives, announced his intention to replace the “fast track” process with a “smart track” process. That is noteworthy because the Finance Committee has responsibility in the Senate for trade legislation. It also noteworthy because Senator Wyden has voted to approve the last five U.S. “free trade” agreements, going back to 2005.
Although the Transatlantic Partnership being negotiated between the United States and the European Union receives less attention than the 12-nation Trans-Pacific Partnership, neither has much chance of passing without special fast-track authority. Should Congress agree to grant the White House fast-track authority, the Obama administration would negotiate a deal and submit the text for approval to Congress under rules that would prohibit any amendments or changes, allow only a limited time for debate, and require a straight yes or no vote.
None other than the previous U.S. trade representative, Ron Kirk, said the Trans-Pacific Partnership has to be secret because if people knew what was in it, it would never pass. We should take him at his word.
Tell the people what they want to hear
On the surface, Senator Wyden’s speech to the American Apparel & Footwear Association Conference on April 10 sounds conciliatory. He made the standard ritual references, calling for trade agreements that create jobs and “expand … the winners’ circle.” The senator proclaimed:
“I want to be very clear: only trade agreements that include several ironclad protections based on today’s great challenges can pass through Congress. I am not going to accept or advance anything less.”
He did not fail to declare that “strong standards and enforcement” on labor and environmental standards “is an imperative.” But we can be forgiven skepticism here because Senator Wyden had this to say on existing labor and environmental standards:
“People on all sides of the trade debate should more openly acknowledge the progress in these areas and the hard work that went into getting those reforms.”
Progress? There are no enforceable rules concerning these areas in existing trade agreements such as the North American Free Trade Agreement. Lost jobs, reduced wages, more unemployment, higher food prices and reversals of environmental laws have invariably been the results. Unaccountable, secret tribunals staffed by corporate lawyers have enabled corporations to overturn regulations in all three NAFTA countries — and the U.S. government, in its current trade negotiations, wants rules even more weighted in favor of multi-national corporations than exists in NAFTA.
If this is what Senator Wyden considers to be “progress,” what possible basis could there be for believing the Trans-Pacific and Transatlantic partnerships will deliver anything other than more corporate-dictated austerity?
The existing version of fast-track legislation — the Bipartisan Congressional Trade Priorities Act of 2014, better known as the Camp-Baucus bill — was effectively dead not long after its January release. It was expected that a new version of fast-track, with a couple of small, cosmetic changes and a cover story that opponents had been heard, would come. Senator Wyden has not disappointed, and it’s coming perhaps quicker than activists expected. This will become a hot potato as the November mid-term elections approach, so the senator was careful in his speech to not provide a timetable:
“I am going to work with my colleagues and stakeholders on a proposal that accomplishes these goals [of more transparency] and attracts more bipartisan support. As far as I’m concerned, substance is going to drive the timeline.”
‘Consultation’ only to let people vent
The perception of more transparency and public participation is all that we are likely to see, perhaps on the model of the European Union’s new public-consultation process. The process centers on a web site that E.U. citizens can use to fill out a questionnaire. The page is complicated to use, and has a 90-minute time limit, after which any imputed data is wiped out. Write fast! And for good measure, the E.U. trade commissioner, Karel De Gucht, once again declared, in his last visit to Washington:
“[W]e are happy to be scrutinized on this: no standard in Europe will be lowered because of this trade deal; not on food, not on the environment, not on social protection, not on data protection. I will make sure that [the Transatlantic Trade and Investment Partnership] does not become a ‘dumping’ agreement.”
Neither his office, nor that of the U.S. trade representative, Michael Froman, have been kind enough to share with the public when the next Transatlantic negotiating session will be held. There has been no lack of communication with corporate lobbyists, however. A European public-interest group, Corporate Europe Observatory, requested documents from the European Commission (the bureaucratic arm of the E.U.) to discover with whom E.U. negotiators are consulting.
It was revealed that of 127 closed meetings concerning the Transatlantic Partnership talks, at least 119 were with large corporations and their lobbyists. The Observatory reports:
“The list of meetings reveals that … there is a parallel world of a very large number of intimate meetings with big business lobbyists behind closed doors — and these are not disclosed online. These meetings, moreover, were about the EU’s preparations of the trade talks, whereas the official civil society consultation was merely an information session after the talks were launched. The Commission’s rhetoric about transparency and about consulting industry and NGOs on an equal basis is misleading and gives entirely the wrong impression of [the European Commission’s] relations with stakeholders.”
Three German Green Party members of the European Parliament (Ska Kellar, Rebecca Harms and Sven Giegold) have leaked the E.U.’s position paper on the Transatlantic Partnership negotiations (Members of the European Parliament are shut out of the negotiations.) Although this leak offers only a glimpse at E.U. negotiating positions, Europeans have a basis for concern. A rough English translation of the leaked document (available only in German) states:
“The agreement will provide for the reciprocal liberalization of trade in goods and services and rules on trade-related issues, which it pursues through ambitious goals that go beyond what is available via the existing WTO commitments.”
Although it also says the agreement will include a “general exception clause” on the basis of articles XX and XXI of the General Agreement on Tariffs and Trade (GATT), which purport to allow exceptions to trade agreements when necessary to safeguard human, animal or plant life or health, such clauses are meaningless. Other agreements have similar clauses, but are consistently superseded by rules such as Article 12.6 of the Trans-Pacific Partnership text that “Each Party shall accord to covered investments treatment in accordance with customary international law.”
‘Customary law’ is what a secret tribunal says it is
Precedents handed down in secret tribunals are what constitute “customary international law.” That the E.U. negotiators intend to “go beyond” the rules of the World Trade Organization should leave no doubt that “law” as desired by multi-national corporations is what is contemplated. Indeed, the leaked E.U. text states an intention to:
“Provide a level playing field for investors in the U.S. and in the EU. … The agreement should provide an effective mechanism for the settlement of disputes between investors and the state.”
That goal should be borne in mind when evaluating the E.U.’s April 10 announcement that it has refused to include the standard investor-state dispute rules in its proposed trade agreement with Canada, despite Canada’s now dropped insistence that it be included. Inside U.S. Trade reports that:
“Canada and the EU have agreed to a ‘closed list’ approach toward defining what constitutes a breach of fair and equitable treatment that was proposed by the EU. … The closed list that the two parties agreed upon is comprised of: denial of justice in criminal, civil or administrative proceedings; a fundamental breach of due process; manifest arbitrariness; targeted discrimination on manifestly wrongful grounds; and abusive treatment of investors.”
On the surface, the “closed list” approach to the bases over which a corporation can sue a government appears to have narrowed from the more common approach that places no limits on corporate suits. But, critics say, the list of arbitrable issues remains open-ended and open to corporate abuse. The Canadian public interest group International Institute for Sustainable Development, in a recently updated paper, warns:
“The definition of investment is defined too broadly, covering any kind of asset, independent of whether or not investments are associated with an existing enterprise in the host state. … [The E.U. proposal would] make the concept of fair and equitable treatment very open-ended and, as a consequence, highly problematic.”
The agreed-upon language, by not defining what constitutes an “asset,” would enable corporations unlimited opportunities to sue governments. Any rule or regulation that a corporation says will reduce its profits remains eligible to be overturned under the precedents of “customary international law.” The text of the agreements — and how they are likely to be interpreted — count for vastly more than the happy talk of trade negotiators, whichever side of the Atlantic or Pacific oceans.
European countries with strong regulations on the environment or food safety are at grave risk from the U.S., and environmental laws everywhere are prime targets. Activist work against these multi-national trade agreements has gained momentum in the past year, but there is much work to be done to stop what constitutes the most destructive corporate power grabs yet. Popular pressure is the only means to stop the Trans-Pacific, Transatlantic and Canada-E.U. trade deals. The next task will be to reverse existing trade deals that have done so much damage.
The Dirty Hand of the National Endowment for Democracy (NED) in Venezuela
By Eva Golinger | Postcards from the Revolution | April 23, 2014
Anti-government protests in Venezuela that seek regime change have been led by several individuals and organizations with close ties to the US government. Leopoldo Lopez and Maria Corina Machado- two of the public leaders behind the violent protests that started in February – have long histories as collaborators, grantees and agents of Washington. The National Endowment for Democracy “NED” and the US Agency for International Development (USAID) have channeled multi-million dollar funding to Lopez’s political parties Primero Justicia and Voluntad Popular, and Machado’s NGO Sumate and her electoral campaigns.
These Washington agencies have also filtered more than $14 million to opposition groups in Venezuela between 2013 and 2014, including funding for their political campaigns in 2013 and for the current anti-government protests in 2014. This continues the pattern of financing from the US government to anti-Chavez groups in Venezuela since 2001, when millions of dollars were given to organizations from so-called “civil society” to execute a coup d’etat against President Chavez in April 2002. After their failure days later, USAID opened an Office of Transition Initiatives (OTI) in Caracas to, together with the NED, inject more than $100 million in efforts to undermine the Chavez government and reinforce the opposition during the following 8 years.
At the beginning of 2011, after being publically exposed for its grave violations of Venezuelan law and sovereignty, the OTI closed its doors in Venezuela and USAID operations were transferred to its offices in the US. The flow of money to anti-government groups didn’t stop, despite the enactment by Venezuela’s National Assembly of the Law of Political Sovereignty and National Self-Determination at the end of 2010, which outright prohibits foreign funding of political groups in the country. US agencies and the Venezuelan groups that receive their money continue to violate the law with impunity. In the Obama Administration’s Foreign Operations Budgets, between $5-6 million have been included to fund opposition groups in Venezuela through USAID since 2012.
The NED, a “foundation” created by Congress in 1983 to essentially do the CIA’s work overtly, has been one of the principal financiers of destabilization in Venezuela throughout the Chavez administration and now against President Maduro. According to NED’s 2013 annual report, the agency channeled more than $2.3 million to Venezuelan opposition groups and projects. Within that figure, $1,787,300 went directly to anti-government groups within Venezuela, while another $590,000 was distributed to regional organizations that work with and fund the Venezuelan opposition. More than $300,000 was directed towards efforts to develop a new generation of youth leaders to oppose Maduro’s government politically.
One of the groups funded by NED to specifically work with youth is FORMA (http://www.forma.org.ve), an organization led by Cesar Briceño and tied to Venezuelan banker Oscar Garcia Mendoza. Garcia Mendoza runs the Banco Venezolano de Credito, a Venezuelan bank that has served as the filter for the flow of dollars from NED and USAID to opposition groups in Venezuela, including Sumate, CEDICE, Sin Mordaza, Observatorio Venezolano de Prisiones and FORMA, amongst others.
Another significant part of NED funds in Venezuela from 2013-2014 was given to groups and initiatives that work in media and run the campaign to discredit the government of President Maduro. Some of the more active media organizations outwardly opposed to Maduro and receiving NED funds include Espacio Publico, Instituto Prensa y Sociedad (IPYS), Sin Mordaza and GALI. Throughout the past year, an unprecedented media war has been waged against the Venezuelan government and President Maduro directly, which has intensified during the past few months of protests.
In direct violation of Venezuelan law, NED also funded the opposition coalition, the Democratic Unity Table (MUD), via the US International Republican Institute (IRI), with $100,000 to “share lessons learned with [anti-government groups] in Nicaragua, Argentina and Bolivia… and allow for the adaption of the Venezuelan experience in these countries”. Regarding this initiative, the NED 2013 annual report specifically states its aim: “To develop the ability of political and civil society actors from Nicaragua, Argentina and Bolivia to work on national, issue-based agendas for their respective countries using lessons learned and best practices from successful Venezuelan counterparts. The Institute will facilitate an exchange of experiences between the Venezuelan Democratic Unity Roundtable and counterparts in Bolivia, Nicaragua and Argentina. IRI will bring these actors together through a series of tailored activities that will allow for the adaptation of the Venezuelan experience in these countries.”
IRI has helped to build right-wing opposition parties Primero Justicia and Voluntad Popular, and has worked with the anti-government coalition in Venezuela since before the 2002 coup d’etat against Chavez. In fact, IRI’s president at that time, George Folsom, outwardly applauded the coup and celebrated IRI’s role in a press release claiming, “The Institute has served as a bridge between the nation’s political parties and all civil society groups to help Venezuelans forge a new democratic future…”
Detailed in a report published by the Spanish institute FRIDE in 2010, international agencies that fund the Venezuelan opposition violate currency control laws in order to get their dollars to the recipients. Also confirmed in the FRIDE report was the fact that the majority of international agencies, with the exception of the European Commission, are bringing in foreign money and changing it on the black market, in clear violation of Venezuelan law. In some cases, as the FRIDE analysis reports, the agencies open bank accounts abroad for the Venezuelan groups or they bring them the money in hard cash. The US Embassy in Caracas could also use the diplomatic pouch to bring large quantities of unaccounted dollars and euros into the country that are later handed over illegally to anti-government groups in Venezuela.
What is clear is that the US government continues to feed efforts to destabilize Venezuela in clear violation of law. Stronger legal measures and enforcement may be necessary to ensure the sovereignty and defense of Venezuela’s democracy.
Honduras: Gangsters’ Paradise
By Nick Alexandrov | CounterPunch | April 25, 2014
Nearly five years after the Inter-American Commission on Human Rights (IACHR) first called on the Honduran government to protect Carlos Mejía Orellana, the Radio Progreso marketing manager was found stabbed to death in his home on April 11. “The IACHR and its Office of the Special Rapporteur consider this a particularly serious crime given the precautionary measures granted,” the Commission stated, assuming Mejía really was being guarded. But since the 2009 coup, asking the Honduran state to defend journalists is as effective as entreating a spider to spare a web-ensnared fly.
The coup, which four School of the Americas (SOA) graduates oversaw, toppled elected president Manuel Zelaya, and was “a crime,” as even the military lawyer—another SOA alum—charged with giving the overthrow a veneer of legitimacy couldn’t deny. A pair of marred general elections followed. Journalist Michael Corcoran recognized widespread “state violence against dissidents” and “ballot irregularities” as hallmarks of the first, in November 2009, which Obama later hailed as the return of Honduran democracy. And there was little dispute that the subsequent contest, held last November, was equally flawed. The State Department, for example, admitted “inconsistencies” plagued the vote, the same charge Zelaya himself leveled and an echo of the SOA Watch delegation’s findings, which identified “numerous irregularities and problems during the elections and vote counting process[.]” But while grassroots and governmental observers described the election in similar terms, they drew dramatically different conclusions about its validity. Canadian activist Raul Burbano, for example, acknowledged that “corruption, fraud, violence, murder, and human rights violations” dominated the situation. For Secretary of State Kerry, “the election process was generally transparent, peaceful, and reflected the will of the Honduran people.”
Kerry, to be sure, was referring to the class of “worthy” Hondurans, whose will was indeed reflected in the contest. One might be “a policeman, a lumber magnate, an agro-industrialist, a congressman, a mayor, an owner of a national media outlet, a cattle rancher, a businessman, or a drug trafficker”—all belong to this sector, Radio Progreso director Rev. Ismael Moreno Coto, S.J., known as Padre Melo, points out, adding that these “worthy” Hondurans use the state as a tool to maintain, if not enhance, their power. The results for the rest of the population are what you’d expect. The government no longer pays many of its employees, for example; Peter J. Meyer’s Congressional Research Service report on “Honduran-U.S. Relations,” released last July, cites “misused government funds” and “weak tax collection” as two factors contributing to the current situation, a kind of wage slavery sans wages. Doctors, nurses and educators toil for free throughout the country, and the Center for Economic and Policy Research reported last fall that over 43% of Honduran workers labored full-time in 2012 without receiving the minimum wage. That same year, nearly half of the population was living in extreme poverty—the rate had dropped to 36% under Zelaya—and 13,000 inmates now crowd a prison system designed for 8,000. In San Pedro Sula, the second-largest city after Tegucigalpa, some 5,000 children try not to starve to death while living on the streets; this figure includes 3,000 girls, aged 12-17, who roam the roads as prostitutes.
Confronting this reality—asking fundamental questions, like whose interests dominant Honduran institutions serve—“means living with anxiety, insecurity, suspicion, distrust, demands, warnings, and threats. It also means having to come to grips with the idea of death,” Padre Melo emphasizes, explaining that a reporter in Honduras “only has to publish or disseminate some news that negatively affects the interests [of] a powerful person with money and influence…for the life of that news reporter to be endangered.” Melo was making these points in July 2012, well before Mejía’s recent murder, but when it was already obvious that open season had been declared on Honduran correspondents. It’s likely that “few observers could have foreseen the deluge of threats, attacks, and targeted killings that has swept through Honduras during the last five years,” PEN International noted in January, highlighting “the surge in violence directed against journalists following the ouster of President José Manuel Zelaya in June 2009.” A great deal “of the violence is produced by the state itself, perhaps most significantly by a corrupt police force,” and now over 32 Honduran journalists—the equivalent U.S. figure, as a percentage of the total population, would be well over 1,200—are dead.
These killings are part of a broader Honduran trend, namely what Reporters Without Borders calls “a murder rate comparable to that of a country at war—80 per 100,000 in a population of 7 million.” One crucial battlefield is the Bajo Aguán Valley, where at least 102 peasant farmers were killed between January 2010 and May 2013. The conflict there can be traced back to the ’90s, when a “paradigm promoted by the World Bank” spurred “a massive re-concentration of land in the Aguán into the hands of a few influential elites,” Tanya Kerssen writes in Grabbing Power, her excellent book. These land barons, particularly Dinant Corporation’s Miguel Facussé, thrived as “the Aguán cooperative sector was decimated,” some three-quarters of its land seized, Kerssen concludes. Campesinos, suddenly dispossessed, first sought legal recourse, which failed. They subsequently “protested and occupied disputed land,” Rights Action’s Annie Bird observes in an invaluable study (“Human Rights Violations Attributed to Military Forces in the Bajo Aguán Valley in Honduras,” February 2013), prompting government authorities to review the legitimacy of World Bank-promoted territorial transfer. But the June 2009 coup ended this appraisal, and since then Honduras’ 15th Battalion, Washington-aided “since at least 2008,” has “consistently been identified as initiating acts of violence against campesino movements,” with police forces and Dinant’s security guards getting in on the kills, Bird explains
After Brazil, Honduras is the most dangerous place on the planet for land-rights defenders, according to “Deadly Environment,” a new Global Witness investigation, which notes that “more and more ordinary people are finding themselves on the frontline of the battle to defend their environment from corporate or state abuse, and from unsustainable exploitation.” At least 908 worldwide died in this conflict from 2002-2013, and Washington’s “counterdrug” policies in the region have helped raise the stakes, Dr. Kendra McSweeney’s research suggests. “In Honduras, the level of large-scale deforestation per year more than quadrupled between 2007 and 2011, at the same time as cocaine movements in the country also showed a significant rise,” BBC correspondent Matt McGrath summarizes her findings. “Once you start fighting” the traffickers, McSweeney elaborates, “you scatter them into more remote locales and greater areas become impacted,” as smugglers clear forests to build airstrips and roads, and “worthy” Hondurans in, say, the palm oil and ranching sectors capitalize on booming drug profits.
“Today it’s the same” as it was in the 1980s, Honduran activist Bertha Oliva remarked a year ago, referring to the decade when “the presence of the U.S. in the country was extremely significant,” and “it was clear that political opponents were being eliminated.” Obama’s Honduras policy is Reagan’s redux, in other words. The thousands of child prostitutes and street children, the prisons teeming with inmates, the scores of slaughtered peasants and dozens of murdered journalists—all indicate the type of nation Washington helps build in a region where it’s free to operate unimpeded, revealing which “American values” really drive U.S. foreign policy.
Nick Alexandrov lives in Washington, DC.
Critics say new Egyptian business law to foster corruption
Al-Akhbar | April 24, 2014
A new Egyptian law that prevents third parties from challenging contracts made with the government may encourage foreign investors, but critics say it will increase scope for corruption.
President Adly Mansour on Tuesday approved the law that will restrict the right to challenge state business and real estate deals to only the government, the institutions involved and business partners.
The law is meant to revive investment hit by political instability since a 2011 uprising toppled autocratic president Hosni Mubarak.
“Uncertainty over the legality of contracts has been one factor behind the lack of foreign investment into Egypt since the Arab Spring revolution, and so this law could provide the protection that some investors have been craving,” said Jason Tuvey, assistant economist at Capital Economics.
Many state-land and business deals were revoked after court challenges by people with no direct links to the transactions, harming business confidence in a country where population growth has long outpaced job creation.
The lawsuits have been brought by activists and lawyers who allege that companies were sold off too cheaply, reflecting corrupt business practices during the Mubarak era.
Since the 2011 uprising, Egyptian courts have issued at least 11 rulings ordering the state to reverse deals signed by former administrations.
Direct foreign investment in Egypt fell to $3 billion in the fiscal year ending June 2013, $1 billion less than the previous year. Foreign reserves fell to a critical low of $13.4 billion last year and the economy grew a meager 2.1 percent.
Gulf investors have been lobbying for more assurances that their money will be safe in Egypt.
In 2011 a court annulled a deal to sell Egypt’s historic Omar Effendi department store chain to a Saudi investor after activists argued it was sold too cheaply. Similar cases have kept wealthy Saudis wary of buying Egyptian assets, said Abdullah Bin Mahfouz, Chairman of the Saudi Egyptian Business Council.
“I’m sure that due to this law we will see an inflow of investment no less than $15 billion in the next three years because there are huge opportunities in steel and mining and factories that are considered the biggest in the Middle East,” Mahfouz said.
Although the new law is expected to remove legal hurdles, political stability may still deter investment. The new legislation is also likely to anger activists and lawyers who say it would foster corruption.
“Although the law prior to this change was abused constantly, and to a large extent by vexatious litigants, this amendment effectively removes part of the judicial and civilian oversight over government deals,” Mustafa Bassiouny, an economist at Signet Institute, said.
Another concern is that companies that miss out on a tender process have no legal avenue to challenge government decisions.
“This could lead to a situation where the authorities agree to contracts that ultimately represent poor value for money,” said Tuvey at Capital Economics.
Mika Minio-Paluello, researcher at Platform London, an advocacy group focused on social and environmental justice issues, said the new law would undermine democratic oversight.
“There’s no mechanism or means for citizens to intervene and prevent corruption, to challenge breaches of the law and unfair contracts,” said Minio-Paluello.
“If you are a decent investor, it is not in your interest because you will come up against other investors who are dodgy – breaching environmental standards, not paying workers properly.”
Egypt’s government has faced 37 international and domestic arbitration cases worth $14.3 billion in the three years since the 2011 uprising, Ezzat Ouda, head of the state’s lawsuits authority, told state newspaper Al-Ahram.
Since general Abdel Fattah al-Sisi toppled the country’s first freely elected president, Mohammed Mursi of the Muslim Brotherhood, last July, Islamist militants based in the Sinai Peninsula have stepped up attacks on security forces, killing hundreds.
The government has outlawed the Brotherhood, quashed protests and sentenced hundreds of its members to death.
(Reuters, Al-Akhbar)
US Nuclear Weapons Proliferation
By John LaForge | CounterPunch | April 18, 2014
The corporate media is focused on the question of how or if Iran could ever break out of its promise under the Nuclear Nonproliferation Treaty to eschew nuclear weapons and use reactors only for civilian purposes. So many headlines refer to sanctions imposed against Iran that millions of people mistakenly think Iran has a nuclear arsenal. It doesn’t.
Meanwhile the Congress in January fully funded production of a new B61 thermonuclear gravity bomb, a program dubbed “Life Extension.” This year’s $537 million is the down payment on the new version of the B61 that the millionaires in DC agreed should get $11 billion over the next few years.
Dubbed the “solid gold nuke” by critics, the 700 pound H-bomb is running $28 million apiece at the moment. That much gold bullion is only worth $16 million.
The program to replace today’s B61s with a new “mod12,” is being condemned by our allies in NATO, by Congressional budget hawks and of course by the entire arms control community. Even former Vice Chairman of the Joint Chiefs of Staff Gen. James Cartwright has said the bombs are “practically nil” in military value. (Gen. Cartwright only is partly right: Since it seems the Department of Defense is in the business of producing suicides by the thousands, among veterans and active duty soldiers, the suicidal mission of deploying B61s across Europe — for detonation there — seems a perfect fit.)
“This decision represents the triumph of entrenched nuclear interests over good government. The B-61 is no longer relevant for U.S. national security, but continues to rob billions of dollars from programs that would make America safer,” President Joe Cirincione of the Ploughshares Fund told Hans M. Kristensen for the Federation of American Scientists.
Kristensen reported March 12 that the Pentagon has decided that the new B61 will begin its deployment in Europe next year.
This 300-to-500 kiloton “variable yield” thermonuclear device has 24 to 40 times the destructive power of the US bomb that killed 170,000 people at Hiroshima in 1945. Still, this machine’s threat of meaningless, genocidal, radioactive violence is called “tactical.”
Rush to Deploy New H-bomb Before it’s Killed by Public Opposition
The Air Force budget makes it appear that the older B61s will all be replaced — in Turkey, Italy, Belgium, The Netherlands and Germany — by 2020. This rush job is being hustled through the military-industrial-complex in a very big hurry because the broad international condemnation of the program is gaining depth and breadth.
Even the rightwing Senator Dianne Feinstein, D-Calif., along with Rep. Mike Quigley, D-Ill., and Rep Jared Polis, D-Colo., tried to curtail the program last year. Five NATO partners — Belgium, Germany, Luxembourg, The Netherlands and Norway — asked four years ago that all B61s be removed permanently from Europe. In Germany, every major political party has formally resolved to pursue final withdrawal of the 20 remaining B61s at Buchel AFB.
Major US allies in Europe informed Gen. Cartwright’s critical opinion. High-level European politicians have been saying the B61s are “militarily useless” since the end of the Cold War. In a widely published op/ed in 2010, former NATO secretary-general Willy Claes and three senior Belgian politicians said, “The US tactical nuclear weapons in Europe have lost all military importance.”
Still, Kristensen reports, “integration” of the new B61 is supposed to take place on Belgian, Dutch, and Turkish F-16 jets and on German and Italian Tornado fighter-bombers soon.
Another reason for the rush to deploy this perfect candidate for dumb bomb retirement is that Germany is considering replacing its Tornado jets in short order. All the expense of refitting its current Tornadoes to carry the “more accurate” and “more usable” B61-mod 12 would be wasted. New B61 production could also be made expensively moot by progress in arms control.
The “nuclear sharing” arrangement with the five technically non-nuclear NATO partners glaringly contradicts, in Kristensen’s words, “the non-proliferation standards that member countries are trying to promote in the post-Cold War world.” In its 2012 posture review, even NATO’s ministers pledged to work for a world without nuclear weapons.
So as the White House and its Secretary of State wag fingers at Iran, we and our NATO friends openly violate the binding promise made in the Nuclear Non-Proliferation Treaty “not to receive the transfer from any transferor whatsoever of nuclear weapons or other nuclear explosive devices or of control over such weapons or explosive devices directly, or indirectly.”
Maybe Iran can arrange for some sanctions to be imposed on us.
John LaForge works for Nukewatch, edits its Quarterly, and lives at the Plowshares Land Trust out of Luck, Wisconsin.
