There Are More Oil Seeps Than All The Tankers On Earth
Deep underwater, and deeper underground, scientists see surprising hints that gas and oil deposits can be replenished, filling up again, sometimes rapidly.
Although it sounds too good to be true, increasing evidence from the Gulf of Mexico suggests that some old oil fields are being refilled by petroleum surging up from deep below, scientists report. That may mean that current estimates of oil and gas abundance are far too low.
Recent measurements in a major oil field show “that the fluids were changing over time; that very light oil and gas were being injected from below, even as the producing [oil pumping] was going on,” said chemical oceanographer Mahlon “Chuck” Kennicutt. “They are refilling as we speak. But whether this is a worldwide phenomenon, we don’t know.”
Also not known, Kennicutt said, is whether the injection of new oil from deeper strata is of any economic significance, whether there will be enough to be exploitable. The discovery was unexpected, and it is still “somewhat controversial” within the oil industry.
Kennicutt, a faculty member at Texas A&M University, said it is now clear that gas and oil are coming into the known reservoirs very rapidly in terms of geologic time. The inflow of new gas, and some oil, has been detectable in as little as three to 10 years. In the past, it was not suspected that oil fields can refill because it was assumed the oil formed in place, or nearby, rather than far below.
According to marine geologist Harry Roberts, at Louisiana State University, “petroleum geologists don’t accept it as a general phenomenon because it doesn’t happen in most reservoirs. But in this case, it does seem to be happening. You have a very leaky fault system that does allow it to migrate in. It’s directly connected to an oil and gas generating system at great depth.”
What the scientists suspect is that very old petroleum — formed tens of millions of years ago — has continued migrating up into reservoirs that oil companies have been exploiting for years. But no one had expected that depleted oil fields might refill themselves.
Now, if it is found that gas and oil are coming up in significant amounts, and if the same is occurring in oil fields around the globe, then a lot more fuel than anyone expected could become available eventually. It hints that the world may not, in fact, be running out of petroleum.
“No one has been more astonished by the potential implications of our work than myself,” said analytic chemist Jean Whelan, at the Woods Hole Oceanographic Institution, in Massachusetts. “There already appears to be a large body of evidence consistent with … oil and gas generation and migration on very short time scales in many areas globally,” she wrote in the journal Sea Technology.
“Almost equally surprising,” she added, is that “there seem to be no compelling arguments refuting the existence of these rapid, dynamic migration processes.”
The first sketchy evidence of this emerged in 1984, when Kennicutt and colleagues from Texas A&M University were in the Gulf of Mexico trying to understand a phenomenon called “seeps,” areas on the seafloor where sometimes large amounts of oil and gas escape through natural fissures.
“Our first discovery was with trawls. We knew it was an area of massive seepage, and we expected that the oil seeps would poison everything around” the site. But they found just the opposite.
“On the first trawl, we brought up over two tons of stuff. We had a tough time getting the nets back on board because they were so full” of very odd-looking sea floor creatures, Kennicutt said. “They were long straw-like things that turned out to be tube worms.
“The clams were the first thing I noticed,” he added. “They were pretty big, like the size of your hand, and it was obvious they had red blood inside, which is unusual. And these long tubes — 3, 4 and 5 feet long — we didn’t know what they were, but they started bleeding red fluid, too. We didn’t know what to make of it.”
The biologists they consulted did know what to make of it. “The experts immediately recognized them as chemo-synthetic communities,” creatures that get their energy from hydrocarbons — oil and gas — rather than from ordinary foods. So these animals are very much like, but still different from, recently discovered creatures living near very hot seafloor vent sites in the Pacific, Atlantic and other oceans.
The difference, Kennicutt said, is that the animals living around cold seeps live on methane and oil, while the creatures growing near hot water vents exploit sulfur compounds in the hot water.
The discovery of abundant life where scientists expected a deserted seafloor also suggested that the seeps are a long-duration phenomenon. Indeed, the clams are thought to be about 100 years old, and the tube worms may live as long as 600 years, or more, Kennicutt said.
The surprises kept pouring in as the researchers explored further and in more detail using research submarines. In some areas, the methane-metabolizing organisms even build up structures that resemble coral reefs.
It has long been known by geologists and oil industry workers that seeps exist. In Southern California, for example, there are seeps near Santa Barbara, at a geologic feature called Coal Oil Point. And, Roberts said, it’s clear that “the Gulf of Mexico leaks like a sieve. You can’t take a submarine dive without running into an oil or gas seep. And on a calm day, you can’t take a boat ride without seeing gigantic oil slicks” on the sea surface.
Roberts added that natural seepage in places like the Gulf of Mexico “far exceeds anything that gets spilled” by oil tankers and other sources.
“The results of this have been a big surprise for me,” said Whelan. “I never would have expected that the gas is moving up so quickly and what a huge effect it has on the whole system.”
Although the oil industry hasn’t shown great enthusiasm for the idea — arguing that the upward migration is too slow and too uncommon to do much good — the search for new oil and gas supplies already has been affected, Whelan and Kennicutt said. Now, companies scan the sea surface for signs of oil slicks that might point to new deposits.
“People are using airplane surveys for the slicks and are doing water column fluorescence measurements looking for the oil,” Whelan said. “They’re looking for the sources of the seeps and trying to hook that into the seismic evidence” normally used in searching for buried oil.
Similar research on known oil basins in the North Sea is also under way, and “that oil is very interesting. There are absolutely marvelous pictures of coral reefs which formed from seepage [of gas] from North Sea reservoirs,” Whelan said.
Analysis of the ancient oil that seems to be coming up from deep below in the Gulf of Mexico suggests that the flow of new oil “is coming from deeper, hotter formations” and is not simply a lateral inflow from the old deposits that surround existing oil fields, she said. The chemical composition of the migrating oil also indicates it is being driven upward and is being altered by highly pressurized gases squeezing up from below.
This upwelling phenomenon, Whelan noted, fits into a classic analysis of the world’s oil and gas done years ago by geochemist-geologist John Hunt. He suggested that less than 1 percent of the oil that is generated at depth ever makes it into exploitable reservoirs. About 40 percent of the oil and gas remains hidden, spread out in the tiny pores and fissures of deep sedimentary rock formations.
And “the remaining 60 percent,” Whelan said, “leaks upward and out of the sediment” via the numerous seeps that occur globally.
Also, the idea that dynamic migration of oil and gas is occurring implies that new supplies “are not only charging some reservoirs at the present time, but that a huge fraction of total oil and gas must be episodically or continuously bypassing reservoirs completely and seeping from surface sediments on a relatively large scale,” Whelan explained.
So far, measurements involving biological and geological analysis, plus satellite images, “show widespread and pervasive leakage over the entire northern slope of the Gulf of Mexico,” she added.
“For example, Ian MacDonald at Texas A&M has published some remarkable satellite photographs of oil slicks which go for miles in the Gulf of Mexico in areas where no oil production is occurring.” Before this research in oil basins began, she added, “changes in reservoired oils were not suspected, so no reliable data exists on how widespread the phenomenon might be in the Gulf Coast or elsewhere.”
The researchers, especially the Texas team, have been working on this subject for almost 15 years in collaboration with oil industry experts and various university scientists. Their first focus was on the zone called South Eugene Island block 330, which is 150 miles south of New Orleans. It is known as one of the most productive oil and gas fields in the world. The block lies in water more than 300 feet deep.
As a test, the researchers attempted to drill down into a known fault zone that was thought to be a natural conduit for new petroleum. The drilling was paid for by the U.S. Department of Energy.
Whelan recalled that as the drill dug deeper and deeper, the project seemed to be succeeding, but then it abruptly ended in failure. “We were able to produce only a small amount of oil before the fault closed, like a giant straw,” probably because reducing the pressure there allowed the fissure to collapse.
In addition to the drilling effort and the inspection of seeps, Whelan and her colleagues reported that three-dimensional seismic profiles of the underground reservoirs commonly show giant gas plumes coming from depth and disrupting sediments all the way to the surface.
This also shows that in an area west of the South Eugene Island area, a giant gas plume originates from beneath salt about 15,000 feet down and then disrupts the sediment layers all the way to the surface. The surface expression of this plume is very large — about 1,500 feet in diameter. One surprise, Whelan said, was that the gas plume seems to exist outside of faults, the ground fractures, which at present are the main targets of oil exploration.
It is suspected that the process of upward migration of petroleum is driven by natural gas that is being continually produced both by deeply buried bacteria and from oil being broken down in the deeper, hotter layers of sediment. The pressures and heat at great depth are thought to be increasing because the ground is sinking — subsiding — as a result of new sediments piling up on top. The site is part of the huge delta formed over thousands of years by the southward flow of the massive Mississippi River. Like other major deltas, the Mississippi’s outflow structure is continually being built from sands, muds and silts washed off the continent.
Analysis of the oil being driven into the reservoirs suggests they were created during the so-called Jurassic and Early Cretaceous periods (100 million to 150 million years ago), even before the existing basin itself was formed. This means the source rock is buried and remains invisible to seismic imaging beneath layers of salt.
In studying so-called biomarkers in the oil, Whelan said, it was concluded that the oil is closely related to other very old oils, implying that it “was probably generated very early and then remained trapped at depth until recently.” And, she added, other analyses “show that this oil must have remained trapped at depths and temperatures much greater than those of the present-day producing reservoirs.”
At great depth, where the heat and pressure are high enough, she explained, methane is produced by oil being “cracked,” and production of gas “is able to cause sufficient pressure to periodically open the fracture system and allow upward fluid flow of methane, with entrapment of oil in its path.”
Copyright © 2002, Newsday, Inc.
December 28, 2014
Posted by aletho |
Economics, Malthusian Ideology, Phony Scarcity, Science and Pseudo-Science, Timeless or most popular |
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Hawkish Republican Senator Lindsey Graham has announced that the US Senate will vote on Iran sanctions legislation next month despite ongoing nuclear negotiations.
“In January of next year, there will be a vote on the Kirk-Menendez bill, bipartisan sanction legislation,” he said in a press conference with Israeli Prime Minister Benjamin Netanyahu on Saturday.
He was referring to sanctions legislation drafted by Senate Foreign Relations Chairman Bob Menendez and Sen. Mark Kirk.
The bill that would impose more sanctions against Iran came one month after Tehran and six world powers reached an interim nuclear agreement in Geneva in November 2013.
Several important lobby groups, including the American Israel Public Affairs Committee (AIPAC), are working hard to build support for the measure.
The White House has said President Barack Obama will veto the bill if it is passed.
“We continue to believe that adding on sanctions while negotiations are ongoing would be counterproductive,” White House spokesman Josh Earnest said last month.
The Obama administration is under pressure to put additional sanctions against Iran following the extension of nuclear talks between Tehran and the P5+1 countries — the US, Britain, France, Russia, China and Germany.
Last month, Iran and the six world powers agreed to extend the negotiations.
They also agreed that the interim deal they had signed in Geneva last November remain in place during the remainder of the negotiations until July 1, 2015.
December 28, 2014
Posted by aletho |
Economics, Wars for Israel | Iran, Israel, Sanctions against Iran, United States, Zionism |
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Part I – Predictions
I can make high-probability predictions for 2015 and the near-beyond without the benefit of a crystal ball, tarot cards or tea leaves. The only thing that I need is a list of items from the new 2015 federal budget. Here are some of my forecasts and the budget items that make them so highly probable:
1. There will be more deadly truck-related accidents than necessary on the nation’s highways in 2015. That means more deaths, injuries, highway delays, stress and frustration. How do I know? Because the 2015 budget rolls back the safety requirement that truckers need to get more rest between driving assignments. The regulation that was rolled back was itself barely adequate. It restricted drivers to a 70-hour week with mandated rest times between long periods behind the wheel. Nonetheless, despite obviously being in the public interest, this regulation could not survive the pressure of the lobbies representing the trucking industry and its corporate customers. Now we are back to truckers working 85-hour weeks with hardly any mandated rest at all.
2. Either in 2015 or soon thereafter there will be another major banking crisis requiring the outlay of enormous sums of public money to avert economic meltdown. How do I know? Because the 2015 federal budget rolls back the requirement, put in place after the last financial crisis, that forced the trading of derivatives to be done by corporate entities separated from the banks and not covered by the Federal Deposit Insurance Company. In other words, if the banks wanted to devise unreasonably risky investment strategies for their more gullible customers, they had to insulate these strategies from their main banking operations that are crucial to the national economy. In addition the government was not required to insure such undue risks through the Federal Deposit Insurance Corporation. Although obviously in the public interest, these regulations could not survive the pressure coming from the banking lobbies and so, once more, we all must be prepared to pay the price of this version of insufficiently regulated capitalism.
3. The political influence of the nation’s wealthiest individuals will increase by a factor of ten in 2015, making the United States more of a plutocracy and less of a democracy than at any time since the 1920s. How do I know? Because the new federal budget emasculates what little was left of the 2002 McCain-Feingold Bipartisan Campaign Finance Reform Act by increasing tenfold the amount of money individuals can give to political parties. This is the result of conservatives’ demanding that political campaigns be underwritten wholly by private funds. Common sense tells us that such an arrangement can only confirm political power in the hands of those who are already economically dominant. By the way, most countries claiming to be democracies regulate against just this dominance of private money because it is recognized as politically corrupting.
4. Environmental protection will deteriorate in 2015. If you live in a rural area where there are large farms, your water supply will become more suspect. How do I know all this? Because the 2015 federal budget slashes funding for the Environmental Protection Agency by $60 million and forbids the same agency from applying the Clean Water Act to farm ponds and irrigation ditches. In the public interest? Of course not. However this move pleases agribusiness concerns and other industries.
5. Israel, the economically developed nation that has violated just about every human rights regulation listed under international law, and also has repeatedly broken U.S. law forbidding the use of U.S.-supplied weapons for offensive actions against civilian populations, will continue to be both economically and militarily subsidized by the American taxpayer in 2015. How do I know this? Because the 2015 federal budget follows in the footsteps of so many past budgets by setting aside huge sums of money – in the present case $3.1 billion in total aid – for the Zionist state. Of that aid package, $619.8 million is military related.
I could not get exact gross figures for how much money the federal government gives back per year to U.S. states for various programs, but certainly Israel gets more of your federal tax dollar than any single state does, and maybe more than all fifty states put together.
On the same topic of foreign aid to undeserving governments, the 2015 budget will help insure the survival of the brutal military dictatorship in Egypt. That bunch of gangsters will be getting $1.3 billion in military aid.
These dubious expenditures are also not in the U.S. public interest for they will undermine democracy in Egypt and uphold dictatorship. In the case of Israel the money will help uphold racist authoritarianism, ethnic cleansing and religious bigotry. All of which (including the aid to Egypt) has been successfully encouraged by the financial power of the Zionist lobby.
Part II – John Boehner’s Bipartisanism
According to House Speaker John Boehner, the 2015 federal budget is a product of bipartisan compromise: “Understand all these provisions … were worked out in a bi-partisan, bi-cameral fashion.” However, this can hardly be the whole story. Boehner’s statement implies that there were only Republicans and Democrats in the proverbial back room where the budget was worked out and that everyone was practicing sweet reason so as to come to a compromise that benefits the nation. In truth, looking over the shoulders of those representing both parties were numerous lobbyists who had given a lot of money to all these politicians and now wanted something back for their investment. As a result, we as a nation, as a community, were thoroughly outbid by the trucking industry, the bankers, agribusiness, and a good number of conservative ideologues who want the right to gut the federal government (particularly the Environmental Protection Agency and the Internal Revenue Service) while monopolizing funding of our two major political parties. They want to do this so that, among other things, they don’t have worry about regulations or pay even a reasonable amount of taxes.
Part III – Conclusion
The ultimate conclusion we can draw from this “bipartisan” process is that there is no sense of national interest, and damn little sense of community, in the American political system. Both concepts have been superseded by the particular parochial goals and sense of solidarity of groups and subgroups with the deep pockets necessary to buy legislators and legislation. This is what happens when democracy allows itself to be captured by an increasingly unregulated capitalist ethic – an erosion of any politically based sense of a need to work for the common good.
The really depressing part is that for most of our national history it has not been very different. In the mid nineteenth century President James Polk, himself a man of questionable integrity, observed, “There is more selfishness and less principle among members of Congress than I had any conception of, before I became President of the United States.” Well, the problem persists, and given our political way of doing things, it may never be fully overcome
December 27, 2014
Posted by aletho |
Corruption, Economics, Environmentalism, Ethnic Cleansing, Racism, Zionism | Egypt, Israel, United States, Zionism |
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Politically correct climate change orthodoxy has completely destroyed our ability to think rationally about the environment. – Richard Tol
Richard Tol as an essay at The American Interest entitled Hot Stuff, Cold Logic. This is probably the most sensible overview on climate policy that I’ve encountered. I encourage you to read the entire article, here are some excerpts:
Change, after all, can be for the better or the worse, and at any rate it is inevitable; there has never been a lengthy period of climate stasis.
Just as there is no logical or scientific basis for thinking that climate change is new, there is no self-evident reason to assume that the climate of the past is “better” than the climate of the future.
Others argue that the impacts of climate change are largely unknown but may be catastrophic. The precautionary principle thus enjoins that we should work hard, if not do our utmost, to avoid even the slim possibility of catastrophe. This logic works fine for one-sided risks. Climate policy is about balancing risks, and there are risks to climate policies as well as risks caused by climate change. So there is a cost to human well-being in constraining fossil fuel use.
What this means is that, instead of assuming the worst, we should study the impacts of climate change and seek to balance them against the negative effects of climate policy. It is especially important to maintain an objective attitude toward the tradeoff between possible dangers and the costs of policy, because estimating the impacts of climate change has proven to be remarkably hard.
Besides, the faint signal of past climate change is drowned out by all the other things that have changed. Many things are changing, often much faster than the climate, and in ways that confound all unifactoral explanations potentially relevant to policy.
Studies, assessed by the Intergovernmental Panel on Climate Change in its latest report, that have used such methods find that the initial, net impacts of climate change are small (about 1 percent of income) and may even be positive.
In the long run, however, negative impacts may surge ahead of positive ones. The long-run impacts are what matter most for policy. The climate responds only slowly to changes in emissions, and emissions respond only slowly to changes in policy. The climate of the next few decades is therefore largely beyond our control. It is only in the longer term that our choices affect climate change, and by then its impacts are likely to be negative on net. This implies that climate change is an economic problem, and that if economics could be rid of politics, greenhouse gas emissions should be taxed.
The question is therefore not whether there is an economic case for climate policy; it’s how much emission reduction can be justified at given losses to social welfare. To answer that question, we need to understand the size of the impacts of climate change. The current evidence, weak and incomplete as it may be, as summarized by the Intergovernmental Panel on Climate Change, suggests that a century worth of climate change is about as bad as losing a year of economic growth.
But even if we take this into account [worst case scenario], a century of climate change is not worse than losing a decade of growth. So if, as Bjørn Lomborg has been at pains to point out, we “spend” the equivalent of a decade of growth or more trying to mitigate climate change, we will not have spent wisely.
Climate change is a problem, but at least as an economics problem, it is certainly not the biggest problem humankind faces.
The best course of action is to slowly but surely move away from fossil fuels. Many disagree with this plan of action, of course, calling for a rapid retirement of fossil fuel use. Economically, their justification rests on assuming that we should care more about the future than we do in contexts other than climate change, that we should care more about small risks than we do, or that we should care more about poor people than we do.
If our resources were unlimited, we could do all things worthwhile. With a limited budget, we should focus on those investments with the greatest return.
These three examples—of coastal protection, agriculture, and malaria—show that development and vulnerability to climate change are closely intertwined. Slowing economic growth to reduce climate change may therefore do more harm than good. Concentrating the reduction of greenhouse gas emissions in rich countries will not solve the climate problem. And slower growth in rich countries means less export from and investment in poor countries.
A fifth of official development aid is now diverted to climate policy. Money that used to be spent on strengthening the rule of law, better education for girls, and improved health care, for instance, is now used to plug methane leaks and destroy hydrofluorocarbons.
In sum, while climate change is a problem that must be tackled, we should not lose our sense of proportion or advocate solutions that would do more harm than good. Unfortunately, common sense is sometimes hard to find in the climate debate. Desmond Tutu recently compared climate change to apartheid. Climate experts Michael Mann and Daniel Kammen compared it to the “gathering storm” of Nazism in Europe before World War II. That sort of nonsense just gets in the way of a rational discussion about what climate policy we should pursue, and how vigorously we should pursue it.
JC comments
The American Interest is one of my favorite sources for policy analysis, and I follow Walter Russell Mead on Twitter.
Richard Tol is IMO one of the most interesting thinkers on the economics of climate change.
For my previous posts on climate change policy, see the policy tag.
December 27, 2014
Posted by aletho |
Economics, Science and Pseudo-Science |
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The Five Points district of lower Manhattan, painted by George Catlin in 1827. New York’s first free Black settlement, Five Points was also a destination for Irish immigrants and a focal point for the stormy collective life of the new working class. Cops were invented to gain control over neighborhoods and populations like this.
In England and the United States, the police were invented within the space of just a few decades—roughly from 1825 to 1855.
The new institution was not a response to an increase in crime, and it really didn’t lead to new methods for dealing with crime. The most common way for authorities to solve a crime, before and since the invention of police, has been for someone to tell them who did it.
Besides, crime has to do with the acts of individuals, and the ruling elites who invented the police were responding to challenges posed by collective action. To put it in a nutshell: The authorities created the police in response to large, defiant crowds. That’s
— strikes in England,
— riots in the Northern US,
— and the threat of slave insurrections in the South.
So the police are a response to crowds, not to crime.
I will be focusing a lot on who these crowds were, how they became such a challenge. We’ll see that one difficulty for the rulers, besides the growth of social polarization in the cities, was the breakdown of old methods of personal supervision of the working population. In these decades, the state stepped in to fill the social breach.
We’ll see that, in the North, the invention of the police was just one part of a state effort to manage and shape the workforce on a day-to-day basis. Governments also expanded their systems of poor relief in order to regulate the labor market, and they developed the system of public education to regulate workers’ minds. I will connect those points to police work later on, but mostly I’ll be focusing on how the police developed in London, New York, Charleston (South Carolina), and Philadelphia.
* * * * *
To get a sense of what’s special about modern police, it will help to talk about the situation when capitalism was just beginning. Specifically, let’s consider the market towns of the late medieval period, about 1,000 years ago.
The dominant class of the time wasn’t in the towns. The feudal landholders were based in the countryside. They didn’t have cops. They could pull together armed forces to terrorize the serfs—who were semi-slaves—or they could fight against other nobles. But these forces were not professional or full-time.
The population of the towns was mostly serfs who had bought their freedom, or simply escaped from their masters. They were known as bourgeois, which means town-dweller. The bourgeoisie pioneered economic relations that later became known as capitalism.
For the purposes of our discussion, let’s say that a capitalist is somebody who uses money to make more money. At the beginning, the dominant capitalists were merchants. A merchant takes money to buy goods in order to sell them for more money. There are also capitalists who deal only with money—bankers—who lend out a certain amount in order to get more back.
You could also be a craftsman who buys materials and makes something like shoes in order to sell them for more money. In the guild system, a master craftsman would work alongside and supervise journeymen and apprentices. The masters were profiting from their work, so there was exploitation going on, but the journeymen and apprentices had reasonable hopes of becoming masters themselves eventually. So class relations in the towns were quite fluid, especially in comparison to the relation between noble and serf. Besides, the guilds operated in ways that put some limits on exploitation, so it was the merchants who really accumulated capital at that time.
In France, in the 11th and 12th centuries, these towns became known as communes. They incorporated into communes under various conditions, sometimes with the permission of a feudal lord, but in general they were seen as self-governing entities or even city-states.
But they didn’t have cops. They had their own courts—and small armed forces made up of the townsmen themselves. These forces generally had nothing to do with bringing people up on charges. If you got robbed or assaulted, or were cheated in a business deal, then you, the citizen, would press the charges.
One example of this do-it-yourself justice, a method that lasted for centuries, was known as the hue and cry. If you were in a marketplace and you saw somebody stealing, you were supposed to yell and scream, saying “Stop, thief!” and chase after the thief. The rest of the deal was that anybody who saw you do this was supposed to add to the hue and cry and also run after the thief.
The towns didn’t need cops because they had a high degree of social equality, which gave people a sense of mutual obligation. Over the years, class conflicts did intensify within the towns, but even so, the towns held together—through a common antagonism to the power of the nobles and through continued bonds of mutual obligation.
For hundreds of years, the French carried an idealized memory of these early commune towns—as self-governing communities of equals. So it’s no surprise that in 1871, when workers took over Paris, they named it the Commune. But that’s jumping a little farther forward than we should just yet.
* * * * *
Capitalism underwent major changes as it grew up inside feudal society. First of all, the size of capital holdings grew. Remember, that’s the point—to make smaller piles of money into bigger piles of money. The size of holdings began to grow astronomically during the conquest of the Americas, as gold and silver were looted from the New World and Africans were kidnapped to work on plantations.
More and more things were produced for sale on the market. The losers in market competition began to lose their independence as producers and had to take wage jobs. But in places like England, the biggest force driving people to look for wage work was the state-endorsed movement to drive peasants off the land.
The towns grew as peasants became refugees from the countryside, while inequality grew within the cities. The capitalist bourgeoisie became a social layer that was more distinct from workers than it used to be. The market was having a corrosive effect on solidarity of craft guilds—something I’ll take up in more detail when I talk about New York. Workshops got bigger than ever, as a single English boss would be in command of maybe dozens of workers. I’m talking about the mid-1700s here, the period right before real factory industrialization began.
There still weren’t cops, but the richer classes began to resort to more and more violence to suppress the poor population. Sometimes the army was ordered to shoot into rebellious crowds, and sometimes the constables would arrest the leaders and hang them. So class struggle was beginning to heat up, but things really began to change when the Industrial Revolution took off in England.
* * * * *
At the same time, the French were going through a political and social revolution of their own, beginning in 1789. The response of the British ruling class was to panic over the possibility that English workers would follow the French lead. They outlawed trade unions and meetings of more than 50 people.
Nevertheless, English workers put together bigger and bigger demonstrations and strikes from about 1792 to 1820. The ruling class response was to send in the army. But there are really only two things the army could do, and they’re both bad. They could refuse to shoot, and the crowd would get away with whatever it came to do. Or they could shoot into the crowd and produce working-class martyrs.
This is exactly what happened in Manchester in 1819. Soldiers were sent charging into a crowd of 80,000, injuring hundreds of people and killing 11. Instead of subduing the crowd, this action, known as the Peterloo Massacre, provoked a wave of strikes and protests.
Even the time-honored tactic of hanging the movement’s leaders began to backfire. An execution would exert an intimidating effect on a crowd of 100, but crowds now ranged up to 50,000 supporters of the condemned man, and the executions just made them want to fight. The growth of British cities, and the growth of social polarization within them—that is, two quantitative changes—had begun to produce qualitatively new outbreaks of struggle.
The ruling class needed new institutions to get this under control. One of them was the London police, founded in 1829, just 10 years after Peterloo. The new police force was designed specifically to inflict nonlethal violence upon crowds to break them up while deliberately trying to avoid creating martyrs. Now, any force that’s organized to deliver violence on a routine basis is going to kill some people. But for every police murder, there are hundreds or thousands of acts of police violence that are nonlethal—calculated and calibrated to produce intimidation while avoiding an angry collective response.
When the London police were not concentrated into squads for crowd control, they were dispersed out into the city to police the daily life of the poor and working class. That sums up the distinctive dual function of modern police: There is the dispersed form of surveillance and intimidation that’s done in the name of fighting crime; and then there’s the concentrated form of activity to take on strikes, riots, and major demonstrations.
That’s what they were invented for—to deal with crowds—but what we see most of the time is the presence of the cop on the beat. Before I talk about the evolution of police in New York, I want to explore the connection between these two modes of police work.
*****
I’ll begin with the more general topic of class struggle over the use of outdoor space. This is a very consequential issue for workers and the poor. The outdoors is important to workers
— for work
— for leisure and entertainment
— for living space, if you don’t have a home
… and for politics.
First, about work. While successful merchants could control indoor spaces, those without so many means had to set themselves up as vendors on the street. The established merchants saw them as competitors and got the police to remove them.
Street vendors are also effective purveyors of stolen goods because they’re mobile and anonymous. It wasn’t just pickpockets and burglars who made use of street vendors this way. The servants and slaves of the middle class also stole from their masters and passed the goods on to the local vendors. (By the way, New York City had slavery until 1827.) The leakage of wealth out of the city’s comfortable homes is another reason that the middle class demanded action against street vendors.
The street was also simply where workers would spend their free time—because their homes were not comfortable. The street was a place where they could get friendship and free entertainment, and, depending on the place and time, they might engage in dissident religion or politics. British Marxist historian EP Thompson summed all this up when he wrote that 19th century English police were
impartial, attempting to sweep off the streets with an equable hand street traders, beggars, prostitutes, street-entertainers, pickets, children playing football and freethinking and socialist speakers alike. The pretext very often was that a complaint of interruption of trade had been received from a shopkeeper.
On both sides of the Atlantic, most arrests were related to victimless crimes, or crimes against the public order. Another Marxist historian Sidney Harring noted: “The criminologist’s definition of ‘public order crimes’ comes perilously close to the historian’s description of ‘working-class leisure-time activity.’”
Outdoor life was—and is—especially important to working-class politics. Established politicians and corporate managers can meet indoors and make decisions that have big consequences because these people are in command of bureaucracies and workforces. But when working people meet and make decisions about how to change things, it usually doesn’t count for much unless they can gather some supporters out on the street, whether it’s for a strike or a demonstration. The street is the proving ground for much of working-class politics, and the ruling class is fully aware of that. That’s why they put the police on the street as a counter-force whenever the working class shows its strength.
Now we can look at the connections between the two major forms of police activity—routine patrols and crowd control. The day-to-day life of patrolling gets police accustomed to using violence and the threat of violence. This gets them ready to pull off the large-scale acts of repression that are necessary when workers and the oppressed rise up in larger groups. It’s not just a question of getting practice with weapons and tactics. Routine patrol work is crucial to creating a mindset among police that their violence is for the greater good.
The day-to-day work also allows commanders to discover which cops are most comfortable inflicting pain—and then to assign them to the front lines when it comes to a crackdown. At the same time, the “good cop” you may meet on the beat provides crucial public-relations cover for the brutal work that needs to be done by the “bad cops.” Routine work can also become useful in periods of political upheaval because the police have already spent time in the neighborhoods trying to identify the leaders and the radicals.
* * * * *
Now we can jump back into the historical narrative and talk about New York City.
I’ll begin with a couple of points about the traditions of crowds before the revolution. During the colonial period, people got rowdy sometimes, but it was often formalized in ways that the colonial elite would approve or at least tolerate. There were various celebrations that fell in the category of “misrule,” in which social positions were reversed and the lower orders could pretend that they were on the top. This was a way for the subordinate classes to blow off steam by satirizing their masters—a way that acknowledged the right of the elite to be in charge on every other day of the year. This tradition of symbolic misrule was especially prominent around Christmas and New Year’s. Even slaves would be allowed to participate.
There was also a yearly celebration of Pope Day, in which members of the Protestant majority would parade around with effigies, including one of the Pope—until they burned them all at the end. A little sectarian provocation, “all in good fun,” all approved by the city fathers. At that point, Pope Day didn’t usually lead to violence against actual Catholics because there were only a few hundred in New York and not a single Catholic church before the revolution.
These crowd traditions were loud and even riotous, but they tended to reinforce the connection between the lower orders and the elite, not to break that connection.
The lower orders were also bound to the elite by constant personal supervision. This applied to slaves and house servants, of course, but apprentices and journeyman craftsmen also lived in the same house with the master. So there were not a lot of these subordinate people roaming around the streets at all hours. In fact, there was a colonial ordinance for a while that said that working people could be on the streets only when they were going to and from work.
This situation left sailors and day laborers as the city’s rowdiest unsupervised elements. But sailors spent most of their time near the waterfront, and the laborers—that is, the class of regular wage workers—were not yet a large group.
Under these circumstances where most people were already supervised during the day, there was no need for regular police force. There was a night watch, which tried to guard against vandalism and arrested any Black person who couldn’t prove that s/he was free. The watch was not professional in any way. All of them had day jobs and rotated into watch duty temporarily, so they didn’t patrol regular beats—and everybody hated doing it. The rich bought their way out of it by paying for substitutes.
During the day, a small number of constables were on duty, but they didn’t patrol. They were agents of the court who executed writs like summonses and arrest warrants. They did not do detective work. In the 1700s and well into the 1800s, the system relied almost entirely on civilian informants who were promised a portion of any fine that the offender might have to pay.
* * * * *
The revolutionary period changed a few things about the role of crowds and the relation between classes. In the 1760s, beginning with the agitation against the Stamp Act, the elite of merchants and property-holders endorsed new forms of popular mobilization. These were new loud demonstrations and riots that borrowed from existing traditions, obviously in the use of effigies. Instead of burning the Pope, they’d burn the governor, or King George.
I don’t have time to go into detail about what they did, but it’s important to note the class composition of these crowds. Members of the elite might be there themselves, but the body of these crowds was the skilled workers, collectively known as the mechanics. That means that a master would be out in the crowd with his journeymen and apprentices. People of higher social rank tended to view the master craftsmen as their lieutenants for mobilizing the rest of the mechanics.
As the conflict with Britain intensified, the mechanics became more radicalized and organized themselves independently from the colonial elite. There was friction between the mechanics and the elite, but never a complete breach.
And, naturally, when the British were defeated and the elite set up their own government, they had had enough of all this street agitation. There continued to be rebellions and riots in the new independent United States, but they were taking new shapes—partly because economic development was breaking up the unity of the mechanics themselves.
* * * * *
I’ll turn now to those developments that followed the revolution—changes that produced a new working class out of a conflicted hodgepodge of social elements.
Let’s start with the skilled workers. Even before the revolution, the division between masters and journeymen had sharpened. To understand this, we should look more closely at the lingering influence of the guild system; formal guilds did not exist in United States, but some of their traditions lived on among skilled workers.
The old guilds had essentially been cartels, unions of workers who had a monopoly on a particular skill that allowed them to manage the market. They could set customary prices for their goods and even decide beforehand how big the market was going to be.
The managed market allowed for some customary stability of relations among workers of the same trade. A master acquired an apprentice as an indentured servant from his parents in return for a promise of teaching him a skill and giving him room and board for seven years. Apprentices graduated to become journeymen, but often continued to work for the same master as long as there is no slot for them to become masters themselves. Journeymen received customary wages with long-term contracts. This meant that pay would keep coming in despite seasonal variations in the amount of work. Even without the formal structure of guilds, much of this customary set of relations was still in place in the pre-revolutionary period.
From about 1750 to 1850, however, this corporative structure within the skilled trades was falling apart because the external relation—the tradesmen’s control of the market—was also beginning to break down. Trade that came from other cities or from overseas would undermine the masters’ ability to set prices, so workshops were thrown into competition with each other in a way that’s familiar today.
Competition drove the masters to become more like entrepreneurs, seeking out labor-saving innovation and treating their workers more like disposable wage workers. Enterprises became larger and more impersonal—more like factories, with dozens of employees.
In the first decades of the 19th century, employees were not only losing their long-term contracts, but they also were losing their place to live in the masters’ households. The apprentices found this to be a liberating experience, as young men got out from under the authority of their parents and their masters. Free to come and go as they pleased, they could meet young women and create their own social life among their peers. Working women were employed mostly in household service of various types unless they were prostitutes.
Outdoor life became transformed as these young people mingled with the other parts of the population that comprised the developing working class.
The mingling wasn’t always peaceful. Irish Catholic immigration expanded after 1800. By 1829, there were about 25,000 Catholics in the city—one person out of eight. The Irish were segregated by neighborhood, often living alongside Blacks, who themselves were now about 5 percent of the population. In 1799, Protestants burned an effigy of St. Patrick, and the Irish fought back. These battles recurred over the next few years, and it was clear to the Irish that the constables and the watch were taking sides against them.
So, before there were even modern police forces, the lawmen were doing racial profiling. The city’s elite took note of the Irish lack of respect for the watch—their open combativeness—and responded by expanding the watch and making its patrols more targeted. This went along with increasing police attention to Africans, who lived in the same areas and often had the same attitude toward the authorities.
Underlying the sectarian and racial divisions were economic competition, since Irish workers were generally less skilled and drew lower wages than craft workers. At the same time, masters were trying to de-skill the jobs in the workshops. In this way, Anglo apprentices became part of a real labor market as they lost their long-term contracts. When this happened, they found themselves just a rung above Irish immigrants on the wage scale. Black workers, who performed domestic service or worked as general laborers, were a further rung or two down the wage scale from the Irish.
At the same time, the older unskilled part of the wage-working class, centered around the docks and building construction, was expanding because trade and construction both expanded after the Revolution.
Overall, population expanded rapidly. New York was 60,000 in 1800, but it doubled in size by 1820. In 1830, New York had more than 200,000 people—and 312,000 by 1840.
* * * * *
That’s a rough profile of New York’s new working class.
In these decades, all sections of the class went into collective action on their own behalf. It’s quite a complicated story, because of the number of actions and the fragmentation of the class. But we could start with a generalization that the most common form of struggle was also the most elementary—the riot.
Now some specifics. From 1801 to 1832, Black New Yorkers rioted four times to prevent former slaves from being sent back to their out-of-town masters. These efforts generally failed, the watch responded violently, and the participants received unusually harsh sentences. White abolitionists joined in the condemnations of these riots. So these riots illustrate popular self-activity despite elite disapproval—not to mention racial disparity in the application of the law.
There was also white harassment of black churches and theaters, sometimes rising to the level of riots. Poor immigrants were involved, but sometimes rich whites and the constables themselves took part. One anti-Black riot raged for three days in 1826, damaging Black houses and churches—along with houses and churches of white abolitionist ministers.
But there wasn’t just conflict between Black and white workers. In 1802, white and Black sailors struck for higher wages. As with most strikes during this period, the method was something that historian Eric Hobsbawm called “collective bargaining by riot.” In this case, strikers disabled the ships that were hiring at the lower wages. Dockworkers also united across racial and sectarian lines for militant strikes in 1825 and 1828.
Job actions by skilled workers like journeymen didn’t usually need to resort to such physical coercion, because they possessed a monopoly on the relevant skills. Journeymen nevertheless became more militant in these years. Strikes in the skilled trades happened in 3 waves, starting in 1809, 1822 and 1829. Each wave was more militant and coercive than the previous—as they targeted other skilled workers who broke solidarity. In 1829, the journeymen led a movement to limit the workday to 10 hours and created the Workingmen’s Party. The party collapsed in the same year, but it led to the founding the General Trade Union in 1833.
While workers grew more conscious of themselves as a class, they also began to engage in more and more “run-of-the-mill” riots wherever crowds gathered, in taverns or in theaters or in the street. Such riots may have had no clear economic or political objective, but they were still instances of collective self-assertion by the working class—or by ethnic and racial fractions of the class. In the opening decades of the century, there was one of these riots about four times a year, but in the period from 1825 to 1830, New Yorkers rioted at a rate of once per month.
One of these riots in particular alarmed the elite. Known as the Christmas riot of 1828, it actually happened at New Year’s. A noisy crowd of about 4,000 young Anglo workers brought out their drums and noisemakers and headed toward Broadway where the rich lived. On the way, they busted up an African church and beat the church members. The watch arrested several of the rioters, but the crowd rescued them and sent the watch running.
The crowd picked up some more numbers and turned toward the commercial district, where they busted up the stores. At the Battery, they broke windows in some of the city’s richest homes. Then they headed back up Broadway because they knew that the rich were having their own celebration at the City Hotel. There the crowd blocked the coaches from exiting.
A large contingent of the watch showed up, but the leaders of the crowd called a five-minute truce. This allowed the watch to think about the fight that they were about to get into. When the five minutes were up, the watch stepped aside, and the deafening crowd marched past them up Broadway.
This spectacle of working-class defiance took place in full view of the families that ran New York City. Newspapers immediately began calling for a major expansion of the watch, so the Christmas Riot accelerated a set of incremental reforms that finally lead to the creation the New York City Police Department in 1845.
The reforms of 1845 enlarged the police force, professionalized them, and centralized them with a more military chain of command. The watch was expanded to 24 hours, and policemen were forbidden from taking a second job. The pay was increased, and police no longer received a portion of the fines that were extracted from offenders.
This meant the cops were no longer going out on patrol looking for how they were going to make a living, a process that could lead to a strange selection of prosecutions. Eliminating the fee system gave commanders greater freedom to set policy and priorities—and thus made the department more responsive to the shifting needs of the economic elite.
That’s how the New York police got started.
*****
The story of police in the South is a bit different, as you might expect.
One of the first modern-type police forces came in Charleston, South Carolina, in the years before New York force became fully professional. The precursor of the Charleston’s police force was not a set of urban watchmen but slave patrols that operated in the countryside. As one historian put it, “throughout all of the [Southern] states [before the Civil War], roving armed police patrols scoured the countryside day and night, intimidating, terrorizing, and brutalizing slaves into submission and meekness.”
These were generally volunteer forces of white citizens who provided their own weapons. Over time, the system got adapted to city life. Charleston’s population did not explode like New York’s. In 1820, there were still less than 25,000 people—but half of them were Black.
The only way that the South could pull off any real industrialization was to allow slaves to work in wage jobs in the cities. Some slaves were owned directly by factory owners, especially in the South’s most industrial city, Richmond. Most urban slaves, however, were owned by white town-dwellers who used them for personal service and “rented them out” to wage-paying employers.
At first, the masters found the jobs for their slaves and took all of the wages for themselves. But they quickly found it most convenient to let their slaves find their own jobs while collecting a flat fee from the slave for the time spent away from the master.
This new set of arrangements fundamentally altered the relation between slaves and their masters—not to mention among the slaves themselves. For long stretches of time, the slaves got out from under the direct supervision of their masters, and slaves could make cash for themselves above and beyond the fees they paid their masters. Many African Americans could even afford to live outside their masters’ households. Slaves could marry and cohabit independently. By the first decades of the 19th century, Charleston had a Black suburb, populated mostly by slaves alongside some freedmen.
The South’s white population, both in town and country, lived in constant fear of insurrection. In the countryside, however, Blacks were under constant surveillance, and there were few opportunities within the grueling work regime for slaves to develop wide social connections. The dramatically freer circumstances in the cities meant that the state had to step in to do the job of repression that the slavemasters had usually taken care of themselves.
The Charleston Guard and Watch developed by trial and error into a recognizably modern city-run police force by the 1820s, performing both day-to-day harassment of the Black population and staying on call for rapid mobilization to control crowds. It received a big push toward professionalization in 1822 when plans for a coordinated slave insurrection were discovered. They crushed the insurrection, and then they bulked up the force.
The Southern force was more militarized than in the North, even before professionalization. Mounted police were the exception in the North, but they were the rule in the South. And Southern police carried guns, with bayonets.
The specific history of police forces varied in all American cities, but since they were facing similar problems in repressing urban workers and the poor, they all tended to converge on similar institutional solutions. The Southern experience also reinforces the point that was already clear in the North: Anti-Black racism was built into American police work from the very first day.
* * * * *
Toward the end, I’ll say a few words about Philadelphia, but before that, I’m going to draw out some themes that apply to all of these cases.
First of all, we need to put policing in the context of a bigger ruling-class project of managing and shaping the working class. I said at the beginning that the emergence of workers’ revolt coincided with a breakdown of old methods of constant personal supervision of the workforce. The state stepped in to provide supervision. The cops were part of that effort, but in the North, the state also expanded its programs of poor relief and public schooling.
Police work was integrated with the system of poor relief, as constables worked on registration of the poor and their placement in workhouses. That’s even before the police were professionalized—the constables were sorting out the “deserving poor” from the “undeserving poor.” If people were unemployed and unable to work, constables would direct them toward charity from churches or the city itself. But if folks were able to work, they were judged to be “idlers” and sent off to the horrors of the workhouse.
The system for poor relief made a crucial contribution to the creation of the market for wage labor. The key function of the relief system was to make unemployment so unpleasant and humiliating that people were willing to take ordinary jobs at very low wages just to avoid unemployment. By punishing the poorest people, capitalism creates a low baseline for the wage scale and pulls the whole scale downward.
The police no longer play such a direct role in selecting people for relief, but they do deliver a good deal of the punishment. As we know, lots of police work has to do with making life unpleasant for unemployed people on the street.
The rise of modern policing also coincides with the rise of public education. Public schools accustom children to the discipline of the capitalist workplace; children are separated from their families to perform a series of tasks alongside others, under the direction of an authority figure, according to a schedule ruled by a clock. The school reform movement of the 1830s and 40s also aimed to shape the students’ moral character. The effect of this was supposed to be that students would willingly submit to authority, that they would be able to work hard, exercise self-control, and delay gratification.
In fact, the concepts of good citizenship that came out of school reform movement were perfectly aligned with the concepts of criminology that were being invented to categorize people on the street. The police were to focus not just on crime but on criminal types—a method of profiling backed up by supposedly scientific credentials. The “juvenile delinquent,” for example, is a concept that is common to schooling and policing—and has helped to link the two activities in practice.
This ideology of good citizenship was supposed to have a big effect inside the heads of students, encouraging them to think that the problems in society come from the actions of “bad guys.” A key objective of schooling, according to reformer Horace Mann, should be to implant a certain kind of conscience in the students—so that they discipline their own behavior and begin to police themselves. In Mann’s words, the objective was for children to “think of duty rather than of the policeman.”
Needless to say, an analytic scheme for dividing society between good guys and bad guys is perfect for identifying scapegoats, especially racial ones. Such a moralistic scheme was (and is) also a direct competitor to a class-conscious worldview, which identifies society’s basic antagonism as the conflict between exploiters and exploited. Police activity thus goes beyond simple repression—it “teaches” an ideology of good and bad citizenship that dovetails with the lessons of the classroom and the workhouse.
The overall point here is that the invention of the police was part of a broader expansion of state activity to gain control over the day-to-day behavior of the working class. Schooling, poor relief and police work all aimed to shape workers to become useful to—and loyal to—the capitalist class.
* * * * *
The next general point is about something we all know, and that’s this:
There is the law … and then there’s what cops do.
First, a few words about the law: Despite what you may have learned in civics class, the law is not the framework in which society operates. The law is a product of the way society operates, but it doesn’t tell you how things really work. The law is also not a framework for the way that society should operate, even though some people hold out that hope.
The law is really just one tool among others, in the hands of those who are empowered to use it, to affect the course of events. Corporations are empowered to use this tool because they can hire expensive lawyers. Politicians, prosecutors and the police are also empowered to use the law.
Now, specifically about cops and the law. The law has many more provisions than they actually use, so their enforcement is always selective. That means that they are always profiling what part of the population to target and choosing which kinds of behavior they want to change. It also means that cops have a permanent opportunity for corruption. If they have discretion over who gets picked up for a crime, they can demand a reward for not picking somebody up.
Another way to see the gap between the law and what cops do is to examine the common idea that punishment begins after conviction in a court. The thing is, anybody who’s dealt with the cops will tell you that punishment begins the moment they lay hands on you. They can arrest you and put you in jail without ever filing charges. That’s punishment, and they know it. That’s not to mention the physical abuse you might get, or the ways they can mess with you even if they don’t arrest you.
So the cops order people around every day without a court order, and they punish people every day without a court judgment. Obviously, then, some of the key social functions of the police are not written into the law. They’re part of police culture that cops learn from each other with encouragement and direction from their commanders.
This brings us back to a theme that I started with at the very beginning. The law deals with crimes, and individuals are charged with crimes. But the police were really invented to deal with what workers and the poor had become in their collective expressions: Cops deal with crowds, neighborhoods, targeted parts of the population—all collective entities.
They may use the law as they do this, but their broad directives come to them as policy from their commanders or from their own instincts as experienced cops. The policy directives frequently have a collective nature—say, to gain control of an unruly neighborhood. They decide to do that, and then they figure out what laws to use.
That’s the meaning of “zero tolerance” policies, “broken windows” policies—policies that, in the past, might have been frankly termed “uppity nigger” policies. The aim is to intimidate and assert control over a mass of people by acting on a few. Such tactics have been built into police work from the very beginning. The law is a tool to use on individuals, but the real goal is to control the behavior of the larger mass.
* * * * *
I’ll use my last few minutes to talk about some alternatives.
One of them is a justice system that existed in the United States before the rise of the police. It’s well documented for Philadelphia, so that’s the place I’ll discuss. Colonial Philadelphia developed a system called the minor courts in which most criminal prosecutions took place. The mayor and the aldermen served as the judges—the magistrates. Poor people would save up money so they could pay a fee to the magistrate to hear a case.
Then, as now, most crime was committed by poor people against poor people. In these courts, the victim of assault, theft, or defamation would act as prosecutor. A constable might get involved in order to bring in the accused, but that’s not the same thing as a cop making an arrest. The whole action was driven by the victim’s desires, not the state’s objectives. The accused could also counter-sue.
There were no lawyers involved on either side, so the only expense was the fee to the magistrate. The system wasn’t perfect, because the judge might be corrupt, and the life of the poor didn’t stop being miserable when they won a case. But the system was quite popular and continued operating for some time even after a system of modern police and state prosecutors developed in parallel.
The rise of the police, which came along with the rise of the prosecutors, meant that the state was putting its thumb on the scales of justice. In court, you might hope to be treated as innocent until proven guilty. Before you get to court, though, you have to pass through the hands of the cops and prosecutors who certainly don’t treat you like you’re innocent. They have a chance to pressure you or torture you into a confession—or nowadays a confession in the form of a plea bargain—before you ever get to court.
However unfair the system came to be as it was dominated by cops and prosecutors, the minor courts had shown Philadelphians that an alternative was possible that looked a lot more like dispute resolution among equals.
That’s the key—we can make an alternative available again if we abolish the unequal social relations that that police were invented to defend. When the workers of Paris took over the city for two months in 1871, they established a government under the old name of the Commune. The beginnings of social equality in Paris undercut the need for repression and allowed the Communards to experiment with abolishing the police as a separate state force, apart from the citizenry. People would elect their own officers of public safety, accountable to the electors and subject to immediate recall.
This never became a settled routine because the city was under siege from day one, but the Communards had the right idea. In order to overcome a regime of police repression, the crucial work was to live up to the name of the Commune—that is, to build a self-governing community of equals. That’s still pretty much what we need to do.
* * * * *
This is an edited text of a talk I gave in Chicago in late June 2012 at the annual Socialism conference. Audio of the talk is available at wearemany.org, but the text here corrects some mistakes I made back then.
* * * * *
Some sources.
On law and order in the European Middle Ages:
Tigar, Michael. Law and the Rise of Capitalism. New York: Monthly Review Press, 2000.
On the working class and the police in England:
Thompson, E. P. The Making of the English Working Class. Vintage, 1966.
Farrell, Audrey. Crime, Class and Corruption. Bookmarks, 1995.
For some history in the US and insight into the functions of the police:
Williams, Kristian. Our Enemies in Blue: Police and Power in America. Revised Edition. South End Press, 2007.
Silberman, Charles E. Criminal Violence, Criminal Justice. First Edition. New York: Vintage, 1980.
The key source on the evolution of the police in the major cities of the US:
Bacon, Selden Daskam. The Early Development of American Municipal Police: A Study of the Evolution of Formal Controls in a Changing Society. Two volumes. University Microfilms, 1939.
Specific sources on New York, Philadelphia and the South:
Gilje, Paul A. The Road to Mobocracy: Popular Disorder in New York City, 1763-1834. The University of North Carolina Press, 1987.
Steinberg, Allen. The Transformation of Criminal Justice: Philadelphia, 1800-1880. 1st edition. Chapel Hill: The University of North Carolina Press, 1989.
Wade, Richard C. Slavery in the Cities: The South 1820–1860. Oxford University Press, 1964.
On the early years of public schooling in the US:
Bowles, Samuel, and Herbert Gintis. Schooling In Capitalist America: Educational Reform and the Contradictions of Economic Life. Reprint. Haymarket Books, 2011.
December 26, 2014
Posted by aletho |
Civil Liberties, Economics, Supremacism, Social Darwinism, Timeless or most popular | New York Police Department, NYPD, UK, United States |
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Hungary has decided to align itself with Russia against the United States.
The Western Alliance is starting to fray, over the insistence by Barack Obama and the U.S. Congress to go to war against Russia.
This is called a ‘new cold war,’ but it’s actually already a hot war within Ukraine, immediately next door to Russia.
America’s plan to locate nuclear missiles there aimed against Russia has made stunning progress this year. The formerly neutral nation of Ukraine has now become officially anti-Russian. Because of the Obama coup, Ukraine is suffering a civil war between the Ukrainian regime that Obama’s CIA and mercenaries installed in Kiev on 22 February 2014, versus the people in Ukraine’s far eastern districts, where the Ukrainian President whom Obama was overthrowing had received around 90% of all the votes that had been cast there, and so the newly installed Obama regime in Kiev in the west was overwhelmingly rejected by them — hence, Ukraine’s civil war is raging there now, with Obama’s Kiev regime trying to eliminate the residents there.
But, within the European Union, and especially among its former member-states of the Soviet Union, this is, as of yet, still only a cold war, which is in the process of heating up toward perhaps the super-hot temperature of a nuclear conflict between Russia and NATO (the latter organization consisting of the United States and its vassal nations against Russia). And America is already investing heavily in it.
According to German Economic News (GEN), on December 25th, “Hungary Will Not Take Part in the Cold War Against Russia.” They report that, “Hungary’s Prime Minister Viktor Orban takes his distance from the EU, and accuses the US government of trying to instigate a new Cold War against Russia. Hungary will not participate.” GEN also links to an earlier, October 19th, GEN article, which had reported that, “After Russia, Hungary is now apparently also being targeted by Americans: the United States is hitting senior Hungarian government officials and businessmen with entry bans. The Americans throw corruption-charges against the Hungarians.”
Actually, the United States Government is also very corrupt, and uses corruption-charges against other nations’ officials in order to provide a pretext to force them to buckle to America’s aristocracy — to become vassal nations. Will the U.S. Government now place entry-bans against high U.S. officials, also, such as against Joe Biden even now, and perhaps including against Barack Obama after his Presidency ends and he starts taking favors that are widely expected for him, on and from Wall Street (such as did his friend Timothy Geithner)? (And this was already after the cascade of corruption during George W. Bush’s Presidency — none of which Obama allowed to be investigated and prosecuted.)
In 2013, a Gallup poll asked Americans, “Is corruption widespread throughout the government in the United States?” and 73% said “Yes.” But the corrupt Obama Administration pretends to be in the position of international arbiter against corruption in other corrupt nations. Whom is he fooling? (Perhaps people who don’t read this news-site, for example?)
On Tuesday, December 23rd, Reuters headlined, “Hungary PM Orban: U.S. uses corruption charges to gain influence,” and reported that, “The United States is using corruption allegations against some Hungarian public officials as a ‘cover story’ to boost its influence in central Europe amid the Russia-Ukraine conflict, Prime Minister Viktor Orban said on Tuesday. Orban’s comments come amid a wider souring of relations between Hungary, a NATO ally, and the United States over what America perceives as Orban’s increasingly authoritarian rule and Budapest’s warm relations with Russia.”
America’s pervasive NSA snooping, militarizing of local police-forces, and invasions of Iraq, Syria, Libya, and other countries that never threatened the United States, are not considered (by the British Reuters ) ‘authoritarian,’ but somehow Hungary now is ‘authoritarian.’ Suddenly (though the U.S. didn’t say this when Hungary was trying to meet the demands of the American aristocracy), Hungary is ‘authoritarian,’ and is ‘too’ corrupt to do business with.
When more than two-thirds of the United States public are against the U.S. Government’s selling arms to the Ukrainian Government, but 98% of the U.S. House of Representatives wants not only to sell them to Ukraine but to donate them to Ukraine, with U.S. taxpayers paying the tab for this largesse, and when 100% of the U.S. Senate then goes along with that, and the U.S. President signs it into law, how fake is American ‘democracy’?
Even on such a vital war-and-peace issue as nuclear war, America’s aristocracy, which overwhelmingly finances all ‘elections’ to national office, is controlling the U.S. Government, no matter what the U.S. public want.
Obama hasn’t succeeded in fooling the American public into invading Russia, as George W. Bush succeeded in fooling the American public into invading Iraq, but now he won’t even need to.
All of this trouble is being done in order to surround Russia with our nuclear missiles. It’s not resulting from too much democracy; it’s resulting from fake ‘democracy.’
So: now we know that it’s fake.
It’s fake: that’s the reality. Once this reality is understood, everything else can begin to make sense. Getting rid of the illusion from the lies from the many liars is the prerequisite to understanding. Before that, is only myths. They’re getting more dangerous day-by-day. Nuclear war is deadly serious.
December 26, 2014
Posted by aletho |
Corruption, Economics | Hungary, NATO, United States |
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Government propaganda is based on repeating that security has improved with militarization
In Honduras, after one year of President Juan Hernandez’s term, there has been an increase in privatization, militarization and budget cutbacks in public services. It is expected this will continue next year, but social movements say that they will not sit idle.
According to leaders of the social and political movement, next year will see massive dismissals of public sector workers, reductions in health and education budgets, and the unity of the political opposition against President Hernandez.
Juan Barahona, coordinator of the National Resistance Front explained that, “We see that the budget which was recently approved in the National Congress, is a budget that in 2015 cuts millions off the health system, education, and millions off agrarian programs. There is not even a cent for wage increases or for new jobs. And as a response to this national budget, there is going to be a great deal of social protest, but also there is going to be strong repression and that’s why they (the government) are preparing themselves with the militarization of security forces.”
Repression
According to Barahona, in Honduras next year there will be more persecution of social movement leaders, stronger repression during public demonstrations, and more presence of military intelligence agencies in surveillance of government dissidents.
However, in the last two months of 2014, new fronts have been created in Honduras. The Rural Women’s front has been demanding cheap credit and true agrarian reform such as the titles of the land they have been working on. The Public Workers Front faces the privatization of public services and the dismissal of more than 8,000 workers. Also the opposition National Resistance Front is calling on people to go into the streets, and opposition political parties have pledged unity.
Salvador Nasralla of the Anti-Corruption Party said, “If we continue along this path, it is going to be a dictatorship. When there is a dictatorship people don’t have the right to an opinion. And we three opposition political parties believe that this is going to get worse.”
While the national media, which for the most part supports the government, claims that violence has been reduced and that the forthcoming decisions will bring solutions for the profound crisis in Honduras, everyday there are more and more expressions of discontent among the population. Confrontation is expected to be ongoing all through Honduras during 2015.
December 25, 2014
Posted by aletho |
Economics, Militarism | Honduras, Latin America |
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In a setback to efforts to provide affordable healthcare to some of India’s poorest people, the Indian government has decided to cut 20 per cent of its health budget.
More than 60 billion rupees ($948 million) has been slashed from their budgetary allocation for the year ending 31 March 2015, said officials from the Indian Ministry of Health on Tuesday. The move could severely tax government-run hospitals and clinics that are invariably over-stretched and under-resourced.
Apart from being lowest among BRICS, India’s health expenditure is lower than military expenditure. India spends about 1.3 per cent of its gross domestic product (GDP) on public health while it spends 2.4 per cent on military defense. In contrast, India’s BRICS partner South Africa spent more than 8.5 per cent of GDP on healthcare in 2012.
The Indian Finance Minister Arun Jaitley is struggling to achieve the 2014/15 fiscal deficit target of 4.1 per cent of GDP.
A Reuters report quoted unnamed Indian Health Ministry officials as saying the Finance Ministry has also ordered a spending cut for India’s HIV/AIDS programme by about 30 per cent to 13 billion rupees ($205.4 million).
According to a 2011 study in the medical publication Lancet, 39 million Indians are pushed into poverty every year due to medical costs.
Meanwhile, the neighbouring Chinese government has poured billions of pounds into healthcare reform in recent years, and the system has improved accordingly. Currently, 99 per cent of the rural population gets some kind of insurance, up from 21 per cent a decade ago. China plans to roll out universal coverage by 2020.
India fares poorly in socio-economic indicators, writes development economist, Professor Reeitka Khera.
“India’s use of its meagre public resources is also a cause for concern. Public services tend to have the first claim on public revenues in other countries. With close of half of Indian children being undernourished, one-third being illiterate it is not clear how the ruling class obsessed with “superpower” status hopes to achieve it. The refusal to invest in its main economic “resource” – her own people – will ultimately prove counterproductive for the ruling class as well as ordinary people,” says Khera.
December 25, 2014
Posted by aletho |
Economics, Militarism | India |
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Strict public spending cuts imposed by the International Monetary Fund (IMF) on Guinea, Liberia and Sierra Leone may have contributed to the rapid spread of Ebola in these countries, according to Cambridge University researchers.
“A major reason why the Ebola outbreak spread so rapidly was the weakness of healthcare systems in the region,” said Cambridge sociologist Alexander Kentikelenis, lead author of the study that appeared in the latest issue of medical journal The Lancet.
“Policies advocated by the IMF have contributed to underfunded, insufficiently staffed and poorly prepared health systems in the countries with Ebola outbreaks,” added Kentikelenis.
The first cases of the deadly virus were discovered in Guinea earlier this year, but quickly spread to neighboring Liberia and Sierra Leone. The three countries have been the worst affected by the epidemic, both in terms of lives lost and the damages to their already fragile economies.
According to the researchers, all three countries have been receiving aid from the IMF since the 1990s. However, the lending came with what the IMF calls “conditionalities” that required all three governments “to adopt policies that favor short-term economic objectives over investment in health and education,” reads the report.
Kentikelenis told the BBC that IMF imposed government spending cuts and caps on wages meant countries could not hire health staff and pay them adequately. He also added that the IMF emphasizes and supports decentralized health care systems, which made it harder to mobilize a coordinated response to the virus outbreak.
The IMF denied all accusations in a press release, and called them “factual inaccuracies.”
As of Dec. 21, at least 7,580 people have died from Ebola in six countries: Liberia, Guinea, Sierra Leone, Nigeria, the United States and Mali, making it the worse outbreak of the virus since it was first identified in 1976 in what is now the Democratic Republic of the Congo.
December 25, 2014
Posted by aletho |
Economics | Africa, IMF, International Monetary Fund |
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Introduction
China is in the midst of its second ‘cultural revolution’ in a half century. While the first (under Chairman Mao Tse Tung) was intended to ‘revitalize socialism’; the current is directed to ‘moralizing’ capitalism.
The first CR was a frontal attack on the hierarchy of power and privilege inside and outside of the Communist Party, launched from above by Mao Tse Tung, but taken up from below by Red Guards in order to bring about a more egalitarian society.
The current ‘cultural revolution’, launched by President Xi Jinping, is directed at ending widespread corruption, theft and pillage of the Chinese economy and society by high and low officials in government and the capitalist sector.
The two cultural revolutions are linked by Deng Xiaoping, the Chinese leader who officially put closure on the first and set in motion the policies and slogans (“Getting Rich is Good!”), necessitating a second cultural revolution three decades later.
The Socio-Economic Roots of the Cultural Revolution Today
Deng’s call to ‘get rich’ was directed at the Communist Party elite, their family, friends and overseas backers; it was an open invitation to the multi-nationals of the world to freely exploit China’s resources, infrastructure and labor – educated, nurtured and organized through the collective efforts of the preceding Communist regime. Deng ‘liberated’- or privatized – the means of production and rapidly turned public control and appropriation of earnings over to emerging private capitalists. The corollary was the elimination of all social rights, benefits and protections of labor. The dual incentives were designed to maximize private profits in order to attract long-term, large-scale investments and to achieve high growth in the shortest time possible. Deng telescoped a century of growth and exploitation into a few decades.
His strategy succeeded.
Profits soared. By the late 1980’s and early 1990’s millionaires multiplied like mushrooms after a downpour. Then came the billionaires. Aided and abetted by the wholesale privatization of lucrative industries and public lands, a new class of real estate speculators and so-called ‘developers’ emerged , closely linked to corrupt local municipal, regional and national state officials. Millions of peasants were dispossessed and barely (if ever) compensated; hundreds of millions of workers were employed at starvation wages without the free housing, medical care, education, recreational benefits and lifetime employment of the past, socialist system.
China’s GNP exploded at a double-digit rate for three decades – an unprecedented performance. Most of the profits circulated among a narrow elite of party – state officials and capitalists, while a smaller share ‘trickled down’ to middle and low level functionaries. The seizure of public wealth, followed by three decades of intense exploitation of labor and the private land grabbing of farmland and homesteads, spurred the boom in real estate profits and laid the basis for all pervasive and large-scale corruption .The pillage of the public treasury led to large-scale conspicuous consumption – of imported luxury goods, multi-tiered mansions in gated communities, multiple purchases of luxury condos for offspring, mistresses and bribe-takers and givers.
By the mid 2000’s the concentration of wealth, property and privilege had reached astronomical heights: hundreds of billions accrued to the top 2%, millions to the top 10%, and hundreds of thousands to the top 15% – the self-styled ‘middle class’ who thrived on lesser but equally pervasive corruption and theft and who aped the elite and imitated their life style of luxury consumerism.
Beginning in the mid-2000s, hundreds of strikes by exploited factory workers demanded and secured higher wages; millions of households, farmers and peasants fought against municipal party officials, linked to real estate capitalists, who were attempting to ‘grab’ their land, homes and neighborhoods. Hundreds of millions of Chinese in the countryside protested exorbitant medical and educational costs, induced by the privatized health and educational system, which had bankrupted millions of households. They quickly became aware of the luxurious private medical facilities and specialized clinics for the rich -capitalists and corrupt officials. The internal migrant workers, who built the hyper-luxury condos and mansions, lived in paper shacks, far from the twelve-course banquets celebrating the ‘grand openings’ by business swindlers and ‘bought officials’. As wealth grew among the elite, so did the people’s hostility and rejection of the Party and the State, which they personified.
The ever-cautious klepto-capitalists and public pillagers, fearing for their illicit fortunes, smuggled out enormous wealth. Big swindlers, with big fortunes engaged in massive money laundering while publicly demanding the ‘de-regulation” of the financial sector (i.e. to make it easier to launder and hide their fortunes in overseas accounts). Between 2005-2011 China hemorrhaged over $2.83 trillion in illegal overseas financial outflows.
Part II: The Consequences of Corruption, Pillage and Exploitation
The illicit flow of Chinese wealth overseas resulted from the elite’s savage and illegal exploitation of labor (failure to meet minimum official standards concerning pay, work safety, child labor, excessive hours). Wealth from bribes, kickbacks on government contracts, speculation on illicit seizures of land, and making false invoices overpricing imports and underpricing exports, flowed upward and outward. While China was profiting from double-digit growth the regime could ‘tolerate’ corruption and illicit outflows. However, by the beginning of the second decade of the 21st century, when China’s economy de-accelerated to about 7 – 7.5%, the regime became less tolerant of wholesale corruption accompanied by capital flight.
Moreover, the new billionaires, millionaires and affluent middle class indulged in what Thorsten Veblen described as “conspicuous consumption”, the purchase and ostentatious display of superfluous luxury products as status symbols of “success”. According to a Special Report on “Luxury” in the Economist (12/13/14, p.8 -10) “nearly one-third of all personal luxury goods sold worldwide are bought by Chinese consumers.” Since the global crises of 2009, 70 – 80% of global growth in the (luxury) sector has come from China.
China’s emerging private-public ruling class has advanced from concentrating wealth, to consolidating political power to seeking prestige and social status – recognition from their domestic and foreign peers. Ideologically, they are decidedly neo-liberal and pro-Western – as evidenced by the billions they spend in the top-end real estate markets of North America, Europe and Australia as well as the millions they spend on their pampered offspring for ‘elite’ private education. Their children live in half-million dollar condos in Cambridge, Massachusetts, Oxford and Cambridge (England), Toronto and Vancouver (Canada), Sydney and Melbourne Australia. The Chinese oligarchs “make the market” for six-figure Swiss watches, five figure handbags and four digit French cognac.
Corruption, conspicuous consumption and class polarization has delegitimized the ruling Communist Party elite in the eyes of the great mass of the Chinese working class, as well as the professionals and salaried employees who make-up the lower middle class.
The ‘political rot’- the privileged social networks derived from kinship ties-is leading to a relative closed ruling class – excluding the mass of urban workers and rural peasants, with potentially explosive social consequences.
Already thousands of local protests, strikes and other forms of direct action occur every year, even as they are repressed or resolved.
In addition to the social and political dangers resulting from the massive illegal, ‘squandering and theft of wealth’, the illicit outflow of wealth is undermining domestic investment and productive overseas investments, and corruption is preparing the way for stagnation and financial crisis.
The stars are lining up for a ‘perfect political storm’ – which has unfolded in the form of President Xi Jingping’s launch of China’s second cultural revolution (CR).
Xi Jingping’s Cultural Revolution
From the start of the 2nd CR in 2012 to mid-2014, the Chinese Communist Party’s internal corruption body has prosecuted and punished 270,000 cadres. That figure includes both the “tigers” (high officials) and the “flies” (low level functionaries). “Over three dozen officials with ranks of ministers or above, including former security Tsar and Politburo Standing Committee member Zhou Yongkang”, have been arrested and jailed (Financial Times 12/4/14, p. 4). Earlier, the former Railways Minister was arrested and sentenced to death for rigging contracts worth about $26 billion dollars over his seven-year tenure. Hundreds of thousands of private business people, paying bribes, have been arrested and sentenced.
President Xi’s campaign has attacked bribes, ‘gift giving’, frequent ostentatious banquets serving expensive delicacies, and high Party officials’ lodging in five star hotels for weeks on end, ostensibly “tending to business”, but more frequently ‘cavorting with their mistresses’.
To be precise, President Xi is attacking the triple evils of corruption, conspicuous consumption, and pillage of public wealth. The new austerity agenda and the public revelations of ill-gained wealth are focused on exposing public officials and private business people in order to regain public legitimacy. And it is succeeding,…. as far as it goes. Public indignation at the revelations is matched by high approval for the Xi leadership’s anti –corruption campaign.
What makes this far more than just a “power struggle among privileged elites” as the Wall Street Journal and the Financial Times have routinely claimed, are: 1. the duration of the campaign of over 2 years, 2. the scope of the campaign, covering top officials and Chinese business equivalents of Wall Street moguls, 3. The nature of the punishment including long prison terms and even death sentences (rather than the mere ‘slap on the wrists and paltry fines’ that US regulators have given to Wall Street’s billion-dollar swindlers), and 4. the ongoing nature of the process. The sweep and magnitude of Xi’s campaign has all the makings of a ‘cultural revolution’ – not the episodic ‘blowing off steam’ or ‘scapegoating of rivals’ described in the Western press.
The Nature of Xi’s Cultural Revolution
Xi’s ‘cultural revolution’ is directed and driven from above – established legal authorities are in charge – the masses are excluded, and preemptory justice is eschewed: regular court proceedings decide guilt and sentencing.
Secondly, Xi’s ‘cultural revolution’ does not, in any way or place, call into question capitalist property relations, foreign investors, or large-scale inflows and outflows of investment or legally registered speculative capital. Nor has Xi called into question existing capital-labor relations.
Xi’s ‘cultural revolution’ is an attempt to sanitize existing capitalist relations, and to infuse a new capitalist ethic. He wants to ‘revise’ Deng’s famous precept “Getting Rich is Good” to read “Get Rich Lawfully . . . or Face Jail”. China is rated number 100 out of 175, on a corruption scale published by Transparency in 2014 (Financial Times 12/4/14, p. 4). Xi’s war on corruption is based on the premise that corruption undermines China’s status as a global power – it ranks with Algeria and Surinam. Secondly, Xi hopes that he can ‘reform’ the public sector in order to privatize it and he wants the sale to go to the highest bidder, not the biggest bribe giver.
His campaign attacks privileged elites, who accumulate and dispose of wealth illegally but he has never sought to diminish the class system, the hierarchy and inequalities which concentrate political power and forms the basis of corrupt bribe giving and taking.
Xi’s ‘cultural revolution’ is continuing and corruption may lessen. Ostentatious public spending is declining. But this layer of ‘new morality’ is spread thinly over a system of power that can easily revert to the ‘old system’ once the ‘revolution’ ends.
Xi’s noteworthy ‘cultural revolution’, the moralization of public administration and private capitalism, can only succeed if it is accompanied by a social transformation: ethics at the service of social justice and equality and by a democratization of the economic decision-making process. The problem is that Xi, by family, social ties and political allegiances is deeply embedded in a milieu which absolutely rejects any such ‘deepening’ of Xi’s ‘cultural revolution’.
His cultural revolution is strictly guided by a singular objective: to force ‘morality’ on the ‘captains of capital’ in order to facilitate the smooth transition to fully liberalizing China’s economy. President Xi, along with his anti-corruption campaign, is steadily loosening state control over foreign financial investments in Chinese stocks and financial sector; he is moving strongly to expand China’s overseas investments; he is accelerating the privatization of public enterprises and increasingly opening financial services to Wall Street and the City of London. He is also internationalizing the use of the yuan-the Chinese currency- in global transactions, displacing the dollar.
In other words, his cultural revolution is a bridge to a new stage of Chinese capitalist expansion; it will lessen the crude open plunder of the public treasury, but it will not lessen the exploitation of labor nor slow the increasing concentration of wealth and privilege. That will require a different kind of ‘cultural’ revolution- one led from below by workers, peasants and salaried employees. A real ‘cultural revolution’ that realizes the ethical ideals of ‘good government’ through a transformation of class relations.
Xi’s anti-corruption campaign confirms what many workers already knew – but it also unmasks the systemic decay and forges an elementary class consciousness: counter-posing honest, hardworking workers to corrupt privileged oligarchs. Xi is aware of the danger that his campaign could ignite a popular fire: That is why he has kept a tight hold on the process. He is trying to navigate the liberal capitalist transition around the shoals of existing capitalist rot without arousing mass unrest.
December 23, 2014
Posted by aletho |
Corruption, Economics | China |
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Economic ties appear to be at the top of the agenda, as Egyptian President Abdel Fattah al-Sisi prepares for a state visit to China this week.
At a December 18 press briefing for Chinese official media, Sisi announced, “we are looking forward to developing our strategic relations with our friends in China,” reported Xinhua news agency.
“Cooperation between Egypt and China is not new, and the purpose of the visit is to confirm and develop this cooperation and discuss Chinese investment chances in Egypt,” the president reportedly added.
During the visit, which is scheduled to run from December 22 to 25, officials expect to sign 25 bilateral agreements, mostly concerning economic and investment plans, according to Egypt’s State Information Service.
The president’s visit is preceded by a delegation including the ministers of trade and industry, transport and international cooperation. The delegation set off for Beijing on December 19, and is scheduled to meet with Chinese companies interested in investing in Egypt. They are also set to discuss ways of boosting trade, investment and cooperation in industry and transport.
Trade between Egypt and China was worth around US$10 billion in 2013, a figure officials expect to exceed $11 billion in 2014. However, the balance of trade is overwhelmingly in favor of China. Egypt’s exports to China have historically made up around 10 percent of the total trade volume.
China’s investments in Egypt amount to $8.4 billion, according to The China Global Investment Tracker, a project of the US based Heritage Foundation. These investments include the North West Suez Special Economic Zone, a joint Egyptian-Chinese venture near Ain Sokhna. The project is part of a 2006 plan by China to internationalize its economy by developing 50 such zones in strategic locations around the world.
Sisi is hoping to increase investment and boost exports to China during his visit, which comes ahead of a March summit for international investors in Egypt. As a sign of the state’s hopes for Chinese involvement in the summit, one potential date was nixed due to a conflict with the Chinese New Year holiday.
During his meeting with the Chinese press, Sisi mentioned the Suez Canal Development Project as a potential area for Chinese investment, as well as plans to redevelop Egypt’s road network.
Sisi’s predecessor, Mohamed Morsi, made a similar state visit to China in 2012. For his first state visit outside of the MENA region, Morsi traveled to Beijing, along with a delegation of seven ministers and 80 businessmen. Whilst he was there, China agreed to grant Egypt US$69 million in development assistance, and to facilitate access to a multi-billion dollar credit line for development projects in Africa. Private companies claimed to have secured billions of dollars worth of deals.
At the time, Morsi’s decision to visit China was viewed as an assertion of independence from the United States and other Western powers.
Despite its hostility to the regime it ousted from power, the Sisi administration appears to be continuing this policy, courting aid from foreign powers like Russia and China, as well as from the United States and its allies in the Arab Gulf.
Sisi has praised China, in particular, for separating economic aid from political issues. “China has balanced policies and does not interfere in other countries’ domestic affairs, which is one of the reasons for China’s success,” Xinhua quotes Sisi as saying.
By contrast, Western powers like the United States and the European Union are more likely to tie aid money to human rights and other political concerns. The United States has suspended hundreds of millions of dollars in aid until Egypt can meet democracy and human rights benchmarks, although earlier this month it allowed an exemption in the case of national security interests.
December 22, 2014
Posted by aletho |
Economics | China, Egypt |
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Ukrainian Prime Minister Arseniy Yatsenyuk justified his country’s recently passed neoliberal reforms Monday, referring to them as essential for Ukraine’s incorporation into the European Union.
In an interview with German media outlet Der Spiegel, Yatsenyuk assured that the measures taken represent “the greatest triumph in this process as Ukrainian youth want to go to Europe.”
Regarding international support, the Ukrainian official indicated that assistance from the United States and the EU has been invaluable since the coup on Feb. 22 that ousted former President Viktor Yanukovich.
“The West does what it can in this situation, because the operational space is limited in relation to Putin,” said Yatseniuk.
The reforms include cost increases in public services, the dismissal of additional public officials, the elimination of free medicine, and the sale of certain state enterprises.
Minister of Economic Development Aivaras Abramovicius said that Ukraine “is bankrupt.”
Ukrainian official statistics show an increase of 20 percent in prices since 2014, while industrial production has decreased by nine percentage points, reports Slavic media outlet Segodnia.
Another economic indicator that is rapidly growing is Ukraine’s external debt, which is expected to rise this year above 41 percent, according to the International Monetary Fund. The debt currently stands at $US42 billion. Foreign investment has also decreased from 15.7 percent to 8.2 percent.
Last week, the United States signed new sanctions against Russia under the Ukraine Freedom Support Act of 2014. The latest sanctions target Russia’s defense industry and allows the United States to provide military aid to Ukraine.
December 22, 2014
Posted by aletho |
Economics | European Union, Ukraine, United States |
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