Karzai meets Chinese FM in Kabul
BRICS Post | February 23, 2014
Kabul’s China-policy will not alter, irrespective of the political situation, said Afghan President Hamid Karzai on Saturday.
Karzai was hosting Chinese Foreign Minister Wang Yi who arrived in Afghanistan on Saturday.
Wang said he made the visit in the crucial year of Afghanistan’s transition to underscore the importance of bilateral ties.
“We hope to see a broad-based and inclusive political reconciliation in Afghanistan as soon as possible, and China will play a constructive role to facilitate that,” he said.
“China firmly supports Afghanistan to realize a smooth transition and hopes Afghanistan’s general election will go ahead smoothly as scheduled. China is willing to keep close communication with Afghanistan and work hard to facilitate Afghanistan’s political reconciliation,” he added.
The Afghan government is trying to reassure foreign investors its economy will not sink following the NATO withdrawal. In their meeting on the sidelines of the Sochi opening in Russia earlier this year, Karzai asked Chinese President Xi Jinping to aid the restructuring of the war-torn nation.
During his visit Wang announced China will increase aid to help infrastructure projects, including the construction of school buildings in Kabul University, offering farm machinery and training classes to Afghan technicians.
“The Chinese government encourages and supports capable Chinese enterprises to invest in Afghanistan to strengthen cooperation with the Afghanistan side in trade, energy and other fields,” said Wang.
In 2007, Chinese mining companies announced the single biggest foreign investment in Afghanistan, a whopping $4 billion into developing a copper mine.
Mineral reserves in the country, including copper, gold, iron ore and rare earths, are estimated to be worth $1 trillion.
In a separate meeting with Rangin Dadfar Spanta, Karzai’s national security advisor, Wang stressed on security cooperation even as the Chinese government battles insurgency in the restive region of Xinjiang.
China lauded Afghanistan’s efforts to crack down on the East Turkestan Islamic Movement and other terrorist forces.
“China hopes both sides would continue strengthening such cooperation,” said Wang.
Spanta said as a good neighbor of China, Afghanistan will keep its policy to cooperate with China to fight the “three evil forces, ” including the East Turkestan Islamic Movement.
The US and its allies invaded Afghanistan on October 7, 2001 as part of Washington’s war on terror.
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Brazil moves to end tension over land disputes
BRICS Post | February 20, 2014
Brazilian President Dilma Rousseff’s government is taking measures to avert a confrontation over disputed territory between Amazon Indian tribes and farmers who are believed to have encroached on their historic lands.
It says it will begin to forcibly evict non-indigenous people occupying reserves and protected forests who have been ordered off the land by local courts.
The disputes go to the heart of the delicate balance between economic growth and conservation as companies pursue forest and mineral expansion into the traditional Amazon forest heartland.
In mid-January, Brasilia redeployed hundreds of soldiers and police, backed by tanks and helicopters, to enforce a June 2013 court order to evict nearly 7,000 farmers and ranchers from the Awá-Guajá reserve in the northeastern state of Maranhão.
Earlier this week, the government said it hoped to have all farmers and ranchers evicted from the area by April. There are concerns that recent clashes between indigenous peoples and ranchers could have a spillover effect into more states.
Last June, Minister of Justice Jose Eduardo Cardozo ordered the deployment of an elite military unit to Sidrolandia in southern Mato Grosso state, after indigenous peasants were killed by landowners’ employees.
The number of land disputes – and the ensuing violence, seizures and confiscations – have increased in the past several years, a 2012 report by the Indigenous Missionary Council (CIMI) said.
“Problems facing the indigenous population include murders, death threats, lack of health care and education, and delays in registering land ownership,” CIMI says in its report.
In the meantime, Rousseff has promised to suspend demarcating borders in disputed zones and said new rules will soon be in place.
Land disputes, and often the violent confrontations that ensue, have for decades posed challenges to Brazil’s government.
Advocates from the Landless Farmers Movement have for the past three years pressured Rousseff to expedite land redistribution to landless and indigenous farmers.
Rousseff is herself also being pressured by landowners.
In April 2012, Brazil’s Congress caved in to land lobbyists and voted greater flexibility regarding how much forest land farmers are required to conserve.
While Brazilian laws since 1965 call for protection of forests – including some 13 per cent of the land allocated as preserves for indigenous populations, the Congress vote weakened the means to enforce them.
There was no provision, for example, that forced landowners to reforest land that they had already cleared.
Although Rousseff vetoed portions of the bill, including a segment that issued amnesty to illegal loggers, and sent it back to Congress for a rewrite in May 2012, deforestation has dramatically surged since.

Analysis: EU aid to Palestinians — help or hindrance?
IRIN – 19/02/2014
JERUSALEM — The European Union has long been one of the most reliable foreign sources of humanitarian, economic and political aid in the Occupied Palestinian Territories (OPT), providing 426 million euros ($575 million) in 2013 alone.
In 2011, overall overseas development aid to the OPT was worth $2.5 billion, according to the Organization for Economic Co-operation and Development.
Much of this aid to the Palestinian people is focused on a single long-term objective, according to EU officials — the building up of the institutions of a future democratic, independent and viable Palestinian state, living side-by-side in peace and security with Israel.
But with limited progress so far in the current US-brokered peace talks and the wider aim of the realization of a Palestinian state, some in the more austerity-minded EU are starting to wonder if the aid is being well spent, when humanitarian crises in Syria and Mali are in need of greater funds.
“By now there is no Palestinian state. The point is: what are we funding here? Are we helping Israel to maintain the occupation, or are we actually helping Palestinians to build independence?” Caroline du Plessix, a French political scientist specialized on EU policy towards the two-state-solution, told IRIN.
“EU member states are today much more aware than before that their aid has not made possible the creation of an independent Palestinian state,” she said, adding: “The EU is trying to figure out what the best strategy may be. Member states need to show that their policy is reaching its ends and is effective. But if the main solution still is the two-state-solution and we are not really going in that direction, this policy is not sustainable and cannot go on for ever.”
Carrot and stick
A substantial reduction in EU aid seems unlikely at the moment. Such a move would have dramatic consequences for the Palestinian economy and the livelihoods of tens of thousands of families.
“There will be a price to pay if these negotiations falter,” the EU’s ambassador to Israel, Lars Faaborg-Andersen, said in late January. In December 2013, an EU official was cited in the Israeli newspaper Haaretz as saying that the EU may cut off financial aid to the Palestinian Authority if peace talks fail, while “some people suggested giving the money to other countries, like Syria, Mali and other places around the world.”
On the other hand, EU foreign ministers are making unprecedented offers, setting out a very substantial set of incentives designed to encourage both parties to finalize a peace agreement.
“These incentives aim at boosting prosperity for both Israelis and Palestinians by increasing access to European markets, facilitating trade and investment and deepening business and cultural ties,” EU-representative John Gatt-Rutter told IRIN, adding: “Therefore, at this stage our approach is one of encouraging both parties to seize this unique opportunity provided by the peace negotiations.”
“In spite of donor fatigue in Europe we will not see more than a limited gradual reduction — say 10 percent a year — in European aid if negotiations fail because European leaders do not want to trigger major instability or a humanitarian crisis,” Ofer Zalzberg, senior analyst at the International Crisis Group, told IRIN.
Building the state to come
Of the 426 million euros provided by the EU to Palestinians in 2013, 168 million was Direct Financial Support to the PA under the so-called PEGASE-mechanism.
PEGASE helps the PA to meet its recurrent expenses through paying salaries, pensions and social allowances to people in extreme poverty, and through supporting essential public services and revitalizing the private sector through policy reforms, institution-building and strengthening the relations between Palestinian enterprises and European counterparts.
The funds are transferred directly to individual beneficiaries like 55-year-old Nabila from the Qaddura refugee camp. “I get 750 shekels ($210) every three months, have a disabled son, and my husband died 10 years ago. How can I move on?” she told IRIN at the Ramallah district office of the PA’s Ministry of Social Affairs.
“There is poverty and we get tired of this situation,” she said, adding though that restrictions on movement (caused, for example, by the Barrier and numerous Israeli checkpoints allegedly set up for security reasons) highlighted a greater problem that aid would never solve.
“How do you want to solve this problem? Why do we have to be in this miserable situation?”
In addition to the direct financial support, humanitarian aid is provided through the European Commission Humanitarian Aid and Civil Protection Department (ECHO), which spent 35 million euros in 2013 on areas such as humanitarian coordination, legal assistance and emergency response to demolitions and evictions.
Propping up the status quo
EU aid faces the same challenges as non-governmental aid groups have faced — that by providing support they may inadvertently be playing a political role by helping prop up the status quo, giving life-support services that should normally be provided by Israel, as the occupying power.
“EU funding is strategic. Its main aim is to prevent instability. It is thus scared of the PA’s breakdown,” said Caroline Du Plessix.
For Sami Abu Roza, former economic policy adviser to the Palestinian president, this system of dependency has a bitter political aftertaste.
“If you take away the good intention behind the money, aid is a substitute for not having real remedies,” he told IRIN at the PA’s Ministry of Education, where he currently works.
The EU’s approach to solving the conflict, he says, is part of a larger trend he calls “peaceconomics”, the feeding of an illusionary idea that institution-building and economic aid can contribute to real progress, while the actual political causes behind the difficult situation are side-lined and remain unresolved.

Ashraf Azzam sits in the ruins of his house in eastern Gaza City in Jan. 2013 after it was destroyed in an Israeli attack in Nov. 2012. (Ahmed Dalloul/IRIN)
‘Patronizing’ attitude
“The EU’s attitude towards Palestinians is patronizing, as if money was the only thing Palestinians needed,” he said, adding: “They are sacrificing real solutions for economic aid, building a smoke screen around the real problems.”
“Palestinians know that any money coming to Palestinians is political. But they also know that the world won’t stop paying for Palestinians under occupation. That’s the strange kind of peace Palestinians live in.”
In an attempt to decrease the political dependence from aid, the Ministry of Education has implemented a new mechanism, the Joint Financing Agreement, which has been running for about three years.
With aid money flowing from the German KfW Development Bank, Finland, Ireland, Norway and Belgium, directly into a pool at the treasury of the PA’s Ministry of Finance, the Ministry of Education has full ownership of the money and decides how and where it is spent.
“It’s a small path to independence, towards political independence,” Abu Roza said.
But for one senior official in the Ministry, who asked to remain anonymous, the notion of independence remains unreal.
“We don’t have control of our own borders, no taxation, and all of Area C is under Israel’s control. What economic independence are we speaking of?” he said, adding that the PA was not created to become a social entity providing salaries and services to Palestinians. “Its aim was political, and so are our problems.”
‘Aid has not helped to fulfill Palestinians dreams’
Some anomalies in the EU’s funding to the PA emerged recently in a report of the European Court of Auditors (ECA), which criticized the EU’s paying of salaries to Palestinian civil servants in the Gaza Strip “who no longer work.” The report suggested financial assistance “be discontinued and redirected to the West Bank.” Hamas, which took control [won elections] of the Gaza Strip in 2007, is classified by the EU as a terrorist group.
So the EU continues to support the former PA structure in Gaza with salary payments even though the PA no longer has any control: The political cost of stopping funding is seen as too great.
From 2008 to 2012, the average number of civil servants and pensioners whose salaries were at least partly paid by the EU rose from 75,502 to 84,320, about half of the PA’s 170,000 civil servants and pensioners.
During the same period, the average monthly PA wage bill for EU-beneficiaries rose from 45.1 million euros to 62.9 million euros, an increase of 39 percent.
But at the same time, contributions to PEGASE for Civil Servants and Pensioners fell from 21.3 million euros (47 percent of total pay to eligible beneficiaries) in 2008 to 10.4 million euros (16 percent) in 2012, mainly due to reductions in contributions from donors, such as Spain.
These pressures point to a new funding environment in which the PA is finding it increasingly difficult to pay salaries and pensions on time.
The UN Works and Relief Agency for Palestinian Refugees (UNRWA) faces similar challenges. This year it has a deficit of $65 million in its core budget and struggles with declining international funding. The EU is UNRWA’s largest donor.
“Aid has not helped to fulfill Palestinians dreams, nor did it lead to sustainable development. Independence is today further away than 20 years ago,” Alaa Tartir, program director of the Palestinian Policy Network, told IRIN.
Despite the contradictions in EU aid policy, it is clear that without EU aid the humanitarian situation in OPT would worsen significantly.
“If we reach a condition where there is no more aid for PA employees, who will fill this gap? This will have a severe humanitarian impact,” said Tommaso Fabri, head of the Jerusalem office of Doctors Without Borders.
One beneficiary of the EU’s direct assistance to the PA is 49-year-old Said Samara, a teacher at the Secondary Boarding School in Ramallah.
“As a teacher, I hope that this aid will continue. But as a teacher, and for my students, I also need some hope for an independent Palestinian country,” he said.

Obama Admin’s TPP Trade Officials Received Hefty Bonuses From Big Banks
By Lee Fang | Republic Report | February 18, 2014
Officials tapped by the Obama administration to lead the Trans-Pacific Partnership trade negotiations have received multimillion dollar bonuses from CitiGroup and Bank of America, financial disclosures obtained by Republic Report show.
Stefan Selig, a Bank of America investment banker nominated to become the Under Secretary for International Trade at the Department of Commerce, received more than $9 million in bonus pay as he was nominated to join the administration in November. The bonus pay came in addition to the $5.1 million in incentive pay awarded to Selig last year.
Michael Froman, the current U.S. Trade Representative, received over $4 million as part of multiple exit payments when he left CitiGroup to join the Obama administration. Froman told Senate Finance Committee members last summer that he donated approximately 75 percent of the $2.25 million bonus he received for his work in 2008 to charity. CitiGroup also gave Froman a $2 million payment in connection to his holdings in two investment funds, which was awarded “in recognition of [Froman’s] service to Citi in various capacities since 1999.”
Many large corporations with a strong incentive to influence public policy award bonuses and other incentive pay to executives if they take jobs within the government. CitiGroup, for instance, provides an executive contract that awards additional retirement pay upon leaving to take a “full time high level position with the U.S. government or regulatory body.” Goldman Sachs, Morgan Stanley, JPMorgan Chase, the Blackstone Group, Fannie Mae, Northern Trust, and Northrop Grumman are among the other firms that offer financial rewards upon retirement for government service.
Froman joined the administration in 2009. Selig is currently awaiting Senate confirmation before he can take his post, which collaborates with the trade officials to support the TPP.
The controversial TPP trade deal has rankled activists for containing provisions that would newly empower corporations to sue governments in ad hoc arbitration tribunals to demand compensation from governments for laws and regulations they claim undermine their business interests. Leaked TPP negotiation documents show the Obama administration is seeking to prevent foreign governments from issuing a broad variety of financial rules designed to stem another bank crisis.
A leaked text of the TPP’s investment chapter shows that the pact would include the controversial investor-state dispute resolution system. A fact-sheet provided by Public Citizen explains how multi-national corporations may use the TPP deal to skirt domestic courts and local laws. The arrangement would allows corporations to go after governments before foreign tribunals to demand compensations for tobacco, prescription drug and environment protections that they claim would undermine their expected future profits. Last year, Senator Elizabeth Warren warned that trade agreements such as the TPP provide “a chance for these banks to get something done quietly out of sight that they could not accomplish in a public place with the cameras rolling and the lights on.”
Others have raised similar alarm.
“Not only do US treaties mandate that all forms of finance move across borders freely and without delay, but deals such as the TPP would allow private investors to directly file claims against governments that regulate them, as opposed to a WTO-like system where nation states (ie the regulators) decide whether claims are brought,” notes Boston University associate professor Kevin Gallagher.

Brazil-Europe Internet cable to cost $185 million
BRICS Post | February 13, 2014
Brazil is pushing ahead with plans to boost its Internet security by developing an undersea fibre-optics communications cable that would reroute its online traffic directly to Europe, bypassing the United States.
State-owned telecom provider Telebras recently announced that it was entering into a joint venture with Spain’s IslaLink Submarine Cables to build a link between the northeastern city of Fortaleza and the Iberian Peninsula.
The undersea cable is budgeted at $185 million and construction is scheduled to begin in July.
Brazil, along with most Central and South American countries, traditionally routes its Internet traffic through the Network Access Point, which is hosted in Miami, Florida.
Brazil, Russia, India, China and South Africa currently use hubs in Europe and the US to connect to one another, which translates into higher costs and leaves open the opportunity for data interception and theft.
Telebras project coordinator Ronald Valladão says the cable will boost Brazil’s Internet security and cut online costs for the consumer.
“This new submarine cable provides a direct connection to the European continent, decreasing latency. It is expected that this will result in cost reductions,” he recently told the media.
Since Edward Snowden, the National Security Agency contractor who leaked vital intelligence to the media on US domestic and overseas surveillance, published information that Washington was aggressively spying on Brazilian officials, including the president, Brasilia has made Internet security and communications a priority.
Brazil and its fellow BRICS partners are also moving ahead with building a massive undersea cable that would connect all members.
By the time it is completed, the BRICS Cable will be the third longest undersea telecommunications cable in the world, covering a distance of 34,000km.
Brazilian President Dilma Rousseff has also pushed a new Internet bill that would compel Google, Facebook and other networks to store locally gathered data in the country, and not on overseas servers.
The new legislation would force foreign-based Internet companies to maintain data centres inside Brazil that would then be governed by Brazilian privacy laws, officials said.
Rousseff has repeatedly said that the US spying regimen is unacceptable, and postponed an official visit to the US originally scheduled for October 23 in protest.
“The illegal practices of intercepting the communications and data of citizens, companies and members of the Brazilian government constitute a serious act against national sovereignty and individual rights, and incompatible with the democratic coexistence of friendly countries,” a presidential statement said when revelations of espionage in Brazil were made public.
On November 24, Brazil and Argentina urged other South American countries to discuss a bilateral treaty on cyber-security.
On November 27, the UN Rights Committee passed a “right to privacy” resolution, drafted by Brazil and Germany.
The Third Committee of the UN General Assembly, which deals with social, humanitarian and cultural affairs, unanimously adopted the resolution, saying surveillance and data interception by governments and companies “may violate or abuse human rights.”
In late January, talks between Brazil and the US failed to satisfactorily answer the spying charges or eke out a “permanent solution” to restore bilateral ties damaged by the Snowden revelations.
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Will the flowers of Gaza break Israel’s siege this Valentine’s Day?
By Tom Anderson and Therezia Cooper | Corporate Watch | February 12, 2014
Gaza, Occupied Palestine – Valentine’s Day is almost upon us and for supermarkets and florists that means a massive increase in the sale of flowers. But how many romantic couples consider where the flowers they exchange are grown?
Farmers in Gaza have long been encouraged by Israeli export companies to focus their production on high risk ‘cash crops’ such as flowers and strawberries, and the arrival of carnations from Rafah to European markets for Christmas or Valentine’s day is often cheered on by the Israeli Government who uses it as a PR exercise to show how it ‘facilitates’ Palestinian exports. Unsurprisingly, this is not the full story.
According to the Palestinian Union of Agricultural Work Committees (UAWC) there used to be over 500 dunams of carnations planted in the Gaza Strip, but since the beginning of the siege in 2007 flower exports have plummeted year on year and there are only around 60 dunams left. The planted land used to produce over forty million stems for export, but now the few carnation farmers who are left are struggling to sell 5-10 million.
“The Israeli occupation allows us to export a small quantity of produce, just to show the world that they are nice to the Palestinians, but they are using us. Everything we do is controlled by them”, said Saad Ziada from UAWC when we met him in his Gaza City office in November last year, just before what was supposed to be the start of the flower exporting season. This statement is true of all produce in Gaza but flower exporters are particularly susceptible to the control Israel holds over exports, as their produce relies on hitting the market at exactly the right time for popular flower buying holidays. If the border is closed for a week and the flowers miss the export window for Valentine’s Day, for instance, their profit for the whole year can be lost.
We visited Rafah to talk to one of the few flower growers still in business and hear about the situation for farmers under the siege.
“The problem is the border and the siege”
Hassan Gazi al Hijazi has been in the flower business for over 25 years and has seen many changes in the flower export industry. When he started out he had to be registered as an Israeli grower, despite growing his flowers in Gaza, and he gave classes in the art of flower growing to new farmers. “There used to be 53 flower farmers in the Rafah area and now there are only 4 of us left” he told us. “I personally used to have 40 dunams and now I only have 4”. He said that he needs assistance from outside to even operate them now, his flower packing house displays signs showing that he receives financial support from Spain.
Just as with all produce from Gaza, his flowers have to be exported via Israel, through an Israeli company. In the past this used to be Carmel Agrexco, which used the name Coral for Palestinian produce, but after its liquidation he now works with a Palestinian Co-operative which exports under the brand name Palestine Crops using the slogan ‘From Palestine Land to Global Markets’. Palestine Crops is a Gaza initiative which works with agricultural co-ops in the strip and aims to create a market for Palestinian labelled goods and, eventually, independent exports. For now, however, this is impossible and although some exports from Gaza come with Palestine Crops branding, they are dependent on their Israeli distributor. In the case of flowers, this is primarily the Flower Board of Israel. Once transported out of Gaza, the flowers are taken to the big flower auction houses in Holland, where they are sold by grower name. By the time the bouquets reach our shops they will have been mixed with other flowers and it is unlikely the the buyer will be aware of their origin.
Talking to Hassan, it becomes obvious just how much the farmers of Gaza are at the mercy of the Israeli occupation forces. Palestine’s flower export season lasts from December until May. The most important sales periods are Christmas and Valentine’s Day. According to Hassan, these are often the seasons when the border is closed. Our interview took place on 5 December, a time which should be busy in Rafah. “I should be exporting my flowers around the 15th of December to be in time for the Christmas market, but I do not know how much I will be allowed to export yet”, Hassan told us. “if you are not able to export for those occasions the price for flowers drops and you lose”. Farmers in Gaza are not able to export flowers during the summer as this is the season when Holland grows the same crops.
“The problem is not the growing of the flowers, the problem is the border and the siege” Hassan said whilst showing us his beautiful dunams of ready to go flowers. As with most custom designed cash crops there is not enough of a local market for Hassan’s flowers if he fails to export them, they either just go to waste or become animal food. No one in Gaza can pay a price which would even make the enterprise break even.
In the past Hassan could get around $120 000 for exporting two million flowers if he had a good season, but for the last five years he has been paying the big upfront outlay necessary in flower growing from his own pocket, just dreaming that he will be able to get a return on his investment.
The statistics: The decline of Gaza’s flower exports
Recorded Gaza Flower Exports (according to Palestine Crops):
Date Carnations Stems Trucks End of 2004 44,000,000 200 2005 30,700,000 210 2006 21,500,000 205 2007 37,400,000 187 2008 2,100,000 10 2009 0 0 2010 10,668,520 74 2011 8,974,890 57 2012 0 0
The table above shows that flower exports have decreased to a fraction of what they were in 2004. During 2012 and 2009, the years of major Israeli attacks on the Strip, exports were prevented entirely.
Gaza’s flower growers see no light at the end of the tunnel with most not having the cash flow to continue their profession. Exports are declining and becoming even more unpredictable with increased border closures.
We asked Hassan for his opinion about the boycott, divestment and sanctions movement. We particularly wanted his opinion as his livelihood relies on exporting produce through Israeli companies. “You should continue these campaigns even if it damages our business” he said. “The problem for us is that there is no other way we can export, but people on the outside should continue to boycott and help us keep the borders open”.
This sentiment was one that was repeated over and over again across the Gaza Strip, and the challenge for the solidarity movement is clear: in order for Palestinians to be able to control their own exports we first need to break the siege -permanently.
We will publish some further articles on the problems faced by Palestinian exporters in the coming weeks.
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US penalizes companies for doing business with Iran
Press TV – February 7, 2014
The United States has penalized nearly three dozen companies and individuals in eight countries, accusing them of evading unilateral sanctions against Iran.
The move is aimed at blunting “an atmosphere of optimism” that has resulted from an interim nuclear deal reached between Iran and six world powers late last year, the New York Times reports.
The US Treasury Department said the targeted entities operated in Turkey, Spain, Germany, Georgia, Afghanistan, Iran, Liechtenstein and the United Arab Emirates.
The announcement marks the second time the Obama administration has penalized businesses since the deal was inked on November 24 and put into effect last month.
As part of the current agreement, the West offered Tehran modest sanctions relief in return for Iran taking steps to limit its uranium enrichment activities. The deal called for negotiation of a full agreement within a year.
Many members of Congress and Israel have denounced the agreement, arguing that the easing of sanctions disproportionately favored Iran.
Washington has said it will continue to enforce existing sanctions until a more comprehensive deal is reached. “We strongly believe that sustaining sanctions pressure will be critical,” a senior US Treasury Department official said in a conference call with reporters on Thursday.
A recent visit to Iran by a French delegation of more than 100 businesspeople has greatly irritated senior US officials.
Secretary of State John Kerry called his French counterpart, Laurent Fabius, on Tuesday to express concern about the business delegation.
In testimony to the Senate Foreign Relations Committee on Tuesday, Wendy Sherman, under secretary of state for political affairs and the Obama administration’s top negotiator with Iran, said Kerry and other senior US officials believe these trade visits are “not helpful.”
“Tehran is not open for business because our sanctions relief is quite temporary, quite limited and quite targeted,” Sherman said.
David Cohen, top Treasury sanctions official, also warned that companies or governments still risk heavy penalties under United Nations, US or European sanctions if they expanded trade with Iran.
The Treasury prohibits companies and individuals from carrying out financial transactions with Iran under US jurisdiction.

Bum Rap for the Rapa Nui
By Thomas Riggins | Dissident Voice | February 5, 2014
A new report in Science News Magazine (1-25-2014) by Bruce Bower details a reevaluation of the view that the Rapa Nuians, the native inhabitants of Easter Island (Rapa Nui), were responsible for the collapse of their population and society due to over exploitation of natural resources and the destruction of the rain forest on their island, a view recently popularized by Jared Diamond in his book Collapse (2005).
As Bower reports, the anthropologist Maria Mulrooney has published the results of her studies of the Rapa Nui culture (Journal of Archeological Science, December 2013) based on new radiocarbon dates from archeological sites on the island. She has concluded that after the clear cutting of the forest in the 1500s, to make room for agricultural production, the population of Rapa Nui remained sufficiently vibrant to carry on food production and continue their cultural development.
Exactly when the Rapa Nui arrived on Easter Island is unknown but it was on or before 1200 A.D. or so. Mulrooney maintains they had a thriving culture which was still going strong even after their “discovery” by the Dutch explorer Jacob Roggeveen on Easter Sunday 1722. This would indicate that they had not suffered “collapse” as a result of forest clearance.
Roggeveen reported that the island had about 2000 to 3000 inhabitants. He was the first to report on the moai– the giant statues (erected as religious symbols as part of an ancestor cult) for which the island is famous. They were all in place and standing when he was visiting the island (for less than two weeks). In his short time there he managed to kill a dozen or so natives and so his estimate of the population may be incorrect as many people fled and hid out until after he left.
The Spanish showed up in 1770, claimed the island for King Carlos III, then sailed away. The moai were all standing and the people were still engaged in agriculture. Captain Cook showed up in 1774 and noticed some of the moai had fallen but there was no sign of cultural “collapse.”
Bower quotes Mulrooney as saying, “Deforestation did not equal societal failure on Rapi Nui. We should celebrate the remarkable achievements of this island civilization”
Yet the culture did end up almost completely destroyed. After Capitan Cook’s visit Europeans visited more regularly in the 19th Century. It has been suggested that Rapa Nui’s decline may have been caused by the introduction of European diseases. By the early 1800s most of the moai had been toppled and the society had broken up into warring factions.
Peruvian slavers invaded in the 1860s and carried away 1500 of the 2000 or so Rapa Nuians into bondage in the mines of Peru. By 1878 only 111 natives were still living on the island. 97 per cent of the cultural memory of the people had been lost after contact with the Europeans. The greatest loss may have been that of rongorongo, the native writing system of Rapa Nui, and the only writing system created by any Polynesian group. All of those who knew the writing system died in the mines of Peru or from European introduced TB which ravaged the survivors.
Chile annexed the island in 1888. The Rapa Nui were given citizenship in 1966 but they no longer rule on their island. Of the 6000 or so people living on the island today about 3600 are Rapa Nui. The archeologist Carl Lipo is quoted as saying, “The idea of societal collapse on Rapa Nui has long been assumed but there is no scientific basis for it.” He is referring to a self induced collapse. Their traditional culture was destroyed, and the people today are trying to reinvigorate it, but it is a bum rap to blame them for the loss of their civilization.

Retailers Adjust to Rich Getting Richer and Middle Class Fading
By Noel Brinkerhoff | AllGov | February 4, 2014
As Americans in the economic middle struggle to keep up, many retailers and other businesses have decided to focus on the demands of the wealthy.
Since the end of the Great Recession, the nation’s top earners have been doing a significant portion of the consumer spending during the weak economic recovery, which is great news for high-end businesses that cater to this class.
But retailers and restaurants that have long catered to the middle class are fading because middle-earners have so little disposal income these days.
The rich (considered the top 5%) don’t have the same problem. They were responsible for nearly 40% of domestic consumption in 2012. Two decades earlier, the rate was only 28% in 1995, according to research performed by economists Steven Fazzari, of Washington University in St. Louis, and Barry Cynamon, a visiting scholar at the Federal Reserve Bank of St. Louis.
They say inflation-adjusted spending by the top 5% has increased 17% since 2009, compared with just 1% among the bottom 95%.
The beneficiaries of increased spending by the wealthy have been luxury gambling properties like the Wynn and the Venetian in Las Vegas, five-star hotels like the Four Seasons and St. Regis, upscale clothing retailer Barneys New York, and others.
Meanwhile, many other companies are floundering, filing for bankruptcy, or closing their doors because they cater to the middle class. These businesses include Olive Garden and Red Lobster restaurants, and retailers Sears, J.C. Penney, and Loehmann’s.
“As a retailer or restaurant chain, if you’re not at the really high level or the low level, that’s a tough place to be,” John G. Maxwell, head of the global retail and consumer practice at PricewaterhouseCoopers, told The New York Times. “You don’t want to be stuck in the middle.”
Fazzari warns that relying too much on the rich to keep the economy going is not a sound long-term strategy.
“It’s going to be hard to maintain strong economic growth with such a large proportion of the population falling behind,” he told the Times. “We might be able to muddle along—but can we really recover?”
To Learn More:
The Middle Class Is Steadily Eroding. Just Ask the Business World. (by Nelson Schwartz, New York Times)
Inequality, the Great Recession, and Slow Recovery (by Barry Z. Cynamon and Steven M. Fazzari, Washington University) (pdf)
U.S. Income Inequality Reaches Record Extreme (by Noel Brinkerhoff, AllGov)
Richest 7% Get Richer; Poorest 93% Get Poorer (by Noel Brinkerhoff, AllGov)






