The Minimum Wage and Immigration
By Ron Unz | February 9, 2013
Earlier this week Washington Post Columnist Matt Miller published an excellent piece making the case for a large increase in the federal minimum wage, including arguments drawn from a wide range of prominent business and political figures, as well as mention of my own recent New America article on that issue.
Given the importance of the topic, it is hardly unexpected that the column attracted some 600 comments. But far more surprising was the overwhelmingly negative response of those readers. Given that the Post is a centrist-liberal newspaper and Miller a centrist-liberal columnist, one suspects that the vast majority of the commenters were similarly of the centrist-liberal orientation. But I suspect that most of their hostile remarks would have been indistinguishable from what would have greeted a similar suggestion posted on National Review or FoxNews or the Koch-funded Americans for Prosperity; and therein lies a tale.
Although the ideological spectrum of American political discourse is casually rendered along a Left-to-Right spectrum, the range of views obviously has high dimensionality; and projecting an idea-space of ten or fifteen independent degrees of freedom onto a single axis is surely absurd, with even the two most prominent dimensions of “social issues” and “economic issues” failing to capture the underlying reality.
Thus in 2008 we saw many of America’s most influential Republican pundits urging Sen. John McCain to select Sen. Joe Lieberman as his vice presidential selection to assuage and reassure distrustful conservatives. This came despite Lieberman having one of the most liberal Senate voting records on hot-button social and economic issues such as abortion, gay rights, gun control, affirmative action, immigration, taxes, regulations, and almost everything else, while even having served as candidate Al Gore’s loyal vice presidential Democratic pick just a few years earlier. But in 2008, Lieberman’s enthusiastic support for the continued Iraq Occupation and Bush’s “Great War on Terror” had momentarily eclipsed all other issues among much of the conservative elite.
Similarly, over the last couple of decades, the economic well-being of America’s working- or middle-classes seems to have been relegated to an afterthought, not merely among Republicans and conservatives, but also among their Democratic and liberal opponents as well. The shocking truth that the average American family is probably poorer today in real terms than they were fifty years ago has been almost entirely ignored by both parties, and therefore ignored by the media as well, presumably under the theory that what people don’t know won’t really hurt them.
Meanwhile, the loud battles over Gay Marriage and Gun Control, whose outcome would directly impact an utterly negligible fraction of our total population, generates front-page headline after front-page headline, perhaps because these issues excite the people who write those headlines or those who fund our campaigns. As a leading Democratic political consultant in California once joked to me during the late 1990s, no wealthy liberals he knew had any interest in funding a minimum wage increase or any similar meat-and-potato economic issue of the traditional Left; instead, the ideal initiative for fundraising purposes would promise to “Save the Gay Whales from Second-Hand Smoke.”
The near-total intellectual hegemony established by neoliberal economics during the last generation is further demonstrated by the skeptical response to Miller’s minimum wage column by Slate financial columnist and progressive pundit Matt Yglesias (refuted here). The latter seems to see Federal Reserve monetary policy as the solution to all our economic problems, worrying that the inflationary impact from increasing wages at the lower end of the spectrum would interfere with attempts to keep interest rates low, thereby derailing the desperately-awaited recovery. Given that five years of exceptionally low interest rates seem to have benefited Wall Street a great deal but Main Street little or nothing, it’s far from clear whether another five years of the same policy would do much different.
In any event, a rise in the minimum wage to $10 or even $12 per hour would simply produce a one-time jump in prices, perhaps in the range of a couple of percent, rather than the sort of continuing inflationary spiral which might unnerve the Fed. Lower wage-earners would gain vastly more than they lost, the affluent wouldn’t even notice the difference, while hundreds of billions of dollars in additional disposable income for those who spend every dollar might finally jumpstart the economy, being an enormous stimulus package funded entirely by the private sector.
In fact, the AFL-CIO has suggested that a Republican Party which strongly supported a higher minimum wage might warrant a strong second look from the vast number of ordinary American workers who had refused to even consider the plutocratic candidacy of a Mitt Romney.
As it happens, I was recently invited by The Aspen Institute to speak at their DC headquarters on a March 6th panel addressing a minimum wage increase, and perhaps some of these important points will come out during the discussion.
This same bipartisan elite consensus on the harmful effects of raising workers’ wages by law also manifests itself in a wide range of other issues. Leading Democrats and Republicans are now lining up in favor of a new amnesty program for America’s 11 million or so illegal immigrants, planning to combine this legislation with expanded quotas for skilled immigrants and also some sort of guestworker program for the lesser skilled.
It is surely an odd thing for a country’s political leaders to propose substantial increases in new immigration at a time of such high unemployment and so much economic misery among the middle- and working-classes. Obviously part of the explanation is that our elites are doing very well financially, with the DC area having become America’s wealthiest region. But the political cross-currents are quite intriguing.
Throughout most times and places, business interests have always tended to favor high immigration levels, for the obvious reason that a greater supply of available workers drives down wages and increases profits. So the responsiveness of Republican officials to their business donor class is hardly surprising, nor is the position of business-funded thinktanks and pundits.
But for exactly the same reason, worker advocates have traditionally been doubtful or hostile to immigration, even if they might often be friendly towards existing immigrants or had themselves originally come from such a background. It is hardly surprising that America’s leading anti-immigrationist figure throughout most of the 1960s and 1970s was famed labor leader Cesar Chavez.
Given such realities, the eagerness with which the Democratic side of the aisle have embraced a softening of immigration policy without any commensurate protections against job loss or wage decline is surely a sign they too have been captured by the business elites, just as was their widespread support for financial bailouts at the top of the economy and their disinterest in minimum wage increases at the bottom. As some Internet pundits have noted, President Obama actually traveled to Las Vegas, Nevada to announce his immigration proposal, selecting the highest-unemployment state to roll out a proposal hardly likely to alleviate that problem, but certainly one which would benefit the mega-wealthy employers of the low-wage service workers who staff the local casino-and-hotel economy. In our current political system, only the views—and dollars—of the latter much matter.
Given the obvious connection between more immigrants competing for jobs and a relentless downward pressure on wages, I would suggest that the easiest way for both Democrats and Republicans to demonstrate that they are not wholly owned subsidiaries of our business class would be to explicitly link the two issues by attaching a large rise in the federal minimum wage to any proposed immigration reform. After all, the primary force which originally drew those 11 million illegals to America was the attractive availability of so many millions of low-wage jobs in our country, and unless this suction force at the bottom of the economy is eliminated, more border crossers will eventually come to take their places once the current ones are legalized.
As I have argued at length elsewhere, immigration and the minimum wage are deeply intertwined policy issues, and should naturally be addressed together. Raising our minimum wage to $12 per hour as part of the proposed amnesty legislation would probably do more to solve future immigration problems than would any sort of electronic fence or national ID card.
Call It Democracy
BRUCE COCKBURN
“Call It Democracy”
Padded with power here they come
International loan sharks backed by the guns
Of market hungry military profiteers
Whose word is a swamp and whose brow is smeared
With the blood of the poor
Who rob life of its quality
Who render rage a necessity
By turning countries into labour camps
Modern slavers in drag as champions of freedom
Sinister cynical instrument
Who makes the gun into a sacrament –
The only response to the deification
Of tyranny by so-called “developed” nations’
Idolatry of ideology
North South East West
Kill the best and buy the rest
It’s just spend a buck to make a buck
You don’t really give a flying fuck
About the people in misery
IMF dirty MF
Takes away everything it can get
Always making certain that there’s one thing left
Keep them on the hook with insupportable debt
See the paid-off local bottom feeders
Passing themselves off as leaders
Kiss the ladies shake hands with the fellows
Open for business like a cheap bordello
And they call it democracy
See the loaded eyes of the children too
Trying to make the best of it the way kids do
One day you’re going to rise from your habitual feast
To find yourself staring down the throat of the beast
They call the revolution
IMF dirty MF
Takes away everything it can get
Always making certain that there’s one thing left
Keep them on the hook with insupportable debt
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Violence and Vulnerability in Buenaventura, the Dark Side of Development
By Margaret Boehme | Red Hot Burning Peace | February 24, 2014
From the tenth-floor balcony of our hotel in Buenaventura, we sit with community leader Miguel Duarte and watch as the sunset over the Pacific Ocean streaks the sky with peach and mauve before fading to a shroud of lavender-gray and darkness. Below us, teenage girls chase a soccer ball. A few hundred yards away, a patch of the island is covered with tree tops like the heads of broccoli. “Take a photo of that island,” says Duarte, pointing at the tree line. “There are thousands of dead bodies buried on it.”
“We need a commission from the Attorney General’s office to count the bodies,” he continues. “The island is controlled by paramilitaries.”
The violence in Buenaventura is staggering, yet reliable statistics are hard to attain: official documentation is lacking and it’s left to community leaders, like 18-year-old Jesús, to try to compile the data independently. At our meeting, he pulls out his notebook and begins reading off his handwritten list of victims from a recent massacre. He gets to the end of his list, glances up, and says, “Children were cut up and heads were found in barrios Santa Monica and Campo Alegro. Last night Alberto’s cousin was killed in a confrontation. That one made the newspaper.”
According to a report issued in January 2014, the city sees two-to-three murders and three-to-six forced disappearances daily. In November 2013 alone, fighting between different armed groups displaced 2,500 families in Buenaventura.
“We’re convinced of one thing,” says Duarte. “This pressure is so that people leave.”
On the heels of shoot-outs in waterfront neighborhoods, city officials arrive and ask residents if they’re ready to sign documents in which they agree to vacate the zone. On February 5 and 6, local security forces staged an elaborately orchestrated tsunami drill for neighborhoods near the port, with armed men blocking off streets and redirecting traffic into the night. According to Colombian Process of Black Communities (PCN), the exercise was yet another effort to brainwash Buenaventura’s Bajamar residents into believing that it’s not safe to live in the area and that they should be ready to evacuate at a moment’s notice.
Many point out that Buenaventura is dangerous for people who live in neighborhoods slated for commercial development but that, paradoxically, these same areas are safe for tourists. Below our hotel, a seafood fusion-sushi bar does slow business just yards from a neighborhood where armed groups recently did battle.
It’s Friday night in this commerce town, and clubs cater to weekend carousers with pockets full of pesos. Against a backdrop of giraffe-like cranes, half-built high-rises sprouting rebar, and a balmy breeze dispersing salsa beats, Duarte explains that 15 or 20 years ago, people began to talk about megaprojects in the region: port expansion, a cargo terminal, a tourist boardwalk, and an international airport in nearby Cali. Those conversations coincided with the beginning of the market liberalization process, as the port changed from public to private ownership.
Over the past 15 years, as the armed conflict arrived to nearby rural areas, many residents fled their farming communities at the outskirts of Buenaventura and settled in ocean-front neighborhoods near the city center, joining communities of Afro-Colombians who had arrived generations ago. In 2005, the FARC and Colombian military battled in Buenaventura. In 2006, paramilitaries entered the urban zone to protect businesses and terrorize the local population.
The first interurban displacement in Buenaventura—in which people fled from one neighborhood to another within the city—was in 2009. Today, ground zero for violent displacement coincides perfectly with zones marked for port expansion, a coal warehouse, a massive container storage area, and a tourist promenade. The violence, PCN states, is “part of the war strategy to control territory and clean out the zone to bring in projects.”
Residents in vulnerable neighborhoods are not opposed to the city’s economic growth, per se. But many feel that projects should benefit all people in the area, not bring prosperity to few while forcing misery on most.
That’s what Remedios’ husband, Eduardo believed. Their home in Caucana, about 45 minutes from the port, is along the road being widened to facilitate port expansion and accompanying projects in order to make Buenaventura competitive for Free Trade Agreement projects.
The old road is narrow, windy, and unpaved, meaning that it currently takes a truck seven or eight hours to make the trip from Buenaventura to Bugalagrande, a town along the Pan-American Highway. The new road will reduce the journey to about an hour.
Eduardo opposed the road expansion through their community because small children play there, and the project was contaminating their air and bad for people’s health. Remedios said, “He’d been looking to strengthen the community. He didn’t want to leave people in misery.” He’d been advocating for the community’s right to Free Prior and Informed Consent for new projects on their land guaranteed under Law 70, or the “Law of Black Communities.”
One morning Eduardo got a call that warned him he’d be killed if he ran in upcoming community council elections. For months he lived under the dark cloud of death threats, and on February 23, 2013, he was murdered. A year later, despite the efforts of his wife and other community members to seek justice, the government has made no progress in the investigation of his death.
“It has left me desperate, my kids too. They’re struggling at school. They don’t remember their vowels, just sleep, play, fight, scream….My children want to know why their father was murdered. They’re small, thinking bad thoughts, seeking vengeance. I’m asking for help because I don’t want my kids to become bad people.”
While we are in Buenaventura, a death threat is circulated, naming as military targets indigenous groups, campesinos, Marcha Patriotica members, protestors who block roads, and “guerilla-defending” NGOs—the name often used by paramilitaries to refer to NGOs that work on human rights issues.
Back on the tenth-floor balcony, a man whose community is surrounded by illegal armed groups looks out over the port, past the island of dead bodies, to the green lights blinking at the edge of the bay. He says, “If we don’t act quickly in Buenaventura, there will be more deaths.”
Margaret Boehme is a member of the Witness for Peace Colombia team based in Bogotá.
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Solar warnings, global warming and crimes against humanity
Malaysian Realist
We’ve been seeing a lot of unexpectedly cool weather across the world. While this may be explained by local phenomenon such as the Northeast Monsoon in Malaysia and the Polar Vortex in the USA, a longer term trend of worldwide cooling is headed our way.
I say this because the sun – the main source of light and heat for our planet – is approaching a combined low point in output. Solar activity rises and falls in different overlapping cycles, and the low points of several cycles will coincide in the near future:
A) 11-year Schwabe Cycle which had a minimum in 2008 and is due for the next minimum in 2019, then 2030. Even at its recent peak (2013) the sun had its lowest recorded activity in 200 years.
B) 87-year Gleissberg cycle which has a currently ongoing minimum period from 1997 – 2032, corresponding to the observed ‘lack of global warming’ (more on that later).
C) 210-year Suess cycle which has its next minimum predicted to be around 2040.
Hence, solar output will very likely drop to a substantial low around 2030 – 2040. This may sound pleasant for Malaysians used to sweltering heat, but it is really not a matter to be taken lightly. Previous lows such as the Year Without A Summer (1816) and the Little Ice Age (16th to 19th century) led to many deaths worldwide from crop failures, flooding, superstorms and freezing winters.
But what about the much-ballyhooed global warming, allegedly caused by increasing CO2 levels in the atmosphere? Won’t that more than offset the coming cooling, still dooming us all to a feverish Earth?
Regarding this matter, it is now a plainly accepted fact that there has been no global temperature rise in the past 25 years. This lack of warming is openly admitted by: NASA; The UK Met Office; the University of East Anglia Climatic Research Unit, as well as its former head Dr. Phil Jones (of the Climategate data manipulation controversy); Hans von Storch (Lead Author for Working Group I of the IPCC); James Lovelock (inventor of the Gaia Theory); and media entities the BBC, Forbes, Reuters, The Australian, The Economist, The New York Times, and The Wall Street Journal.
And this is despite CO2 levels having risen more than 13%, from 349 ppm in 1987 to 396ppm today. The central thesis of global warming theory – that rising CO2 levels will inexorably lead to rising global temperatures, followed by environmental catastrophe and massive loss of human life – is proven false.
(All the above are clearly and cleanly depicted by graphs, excerpts, citations and links in my collection at http://globalwarmingisunfactual.wordpress.com – as a public service.)
This is probably why anti-CO2 advocates now warn of ‘climate change’ instead. But pray tell, exactly what mechanism is there for CO2 to cause climate change if not by warming? The greenhouse effect has CO2 trapping solar heat and thus raising temperatures – as we have been warned ad nauseum by climate alarmists – so how does CO2 cause climate change when there is no warming?
Solar activity is a far larger driver of global temperature than CO2 levels, because after all, without the sun there would be no heat for greenhouse gases to trap in the first place. (Remember what I said about the Gleissberg cycle above?)
And why is any of this important to you and I? It matters because countless resources are being spent to meet the wrong challenges. Just think of all the time, energy, public attention and hard cash that have already been squandered on biofuel mandates, subsidies for solar panels and wind turbines, carbon caps and credits, bloated salaries of dignitaries, annual jet-setting climate conferences in posh five-star hotels… To say nothing of the lost opportunities and jobs (two jobs lost for every one ‘green’ job created in Spain, which now has 26% unemployment!). And most of the time it is the common working man, the taxpayer, you and I who foot the bill.
What if all this immense effort and expenditure had been put towards securing food and clean water for the impoverished (combined 11 million deaths/year)? Or fighting dengue and malaria (combined 1.222 million deaths/year)? Or preserving rivers, mangroves, rainforests and endangered species? Or preparing power grids for the increased demand that more severe winters will necessitate – the same power grids now crippled by shutting down reliable coal plants in favour of highly intermittent wind turbines?
In the face of such dire needs that can be met immediately and effectively, continuing to throw away precious money to ‘possibly, perhaps, maybe one day’ solve the non-problem of CO2 emissions is foolish, arrogant and arguably malevolent. To wit, the UN World Food Programme just announced that they are forced to scale back aid to some of the 870 million malnourished worldwide due to a $1 billion funding shortfall and the challenges of the ongoing Syrian crisis. To put this is context, a billion is a mere pittance next to the tens of billions already flushed away by attempted adherence to the Kyoto Protocol (€6.2 billion for just Germany in just 2005 alone!).
During the high times for global warmist doomsaying, sceptics and realists who questioned the unproven theories were baselessly slandered as ‘anti-science’, ‘deniers’, ‘schills for big oil’… Or even ‘war criminals’ deserving Nuremberg-style trials for their ‘crimes against humanity’!
Now that the tables are turned, just let it be known that it was not the sceptics who flushed massive amounts of global resources down the drain – while genuine human and environmental issues languished and withered in the empty shadow of global warming hysteria. Crimes against humanity, indeed.
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UK taxpayer to bear costs of nuclear leaks, not private firms
RT | February 23, 2014
The private consortium that will manage the decommissioning of the UK’s decaying Magnox nuclear reactors won’t be made to bear financial responsibility in the event of a radioactive incident. Taxpayers will have to pick up the tab instead.
Private contractors will be indemnified by the government, despite concerns that exempting them from financial liability for nuclear incidents could prove a disaster for the taxpayer, the Guardian reports.
Earlier this month the Department for Energy and Climate Change (DECC) presented parliament with a departmental minute concerning an indemnity to be given by the Nuclear Decommissioning Authority (NDA) in relation to the proposed Magnox reactors, built five decades ago. Among the reactors are some of the oldest facilities at Sizewell, Hinkley and Dungeness, which have been supplying electricity to the national grid for 40 years.
The Berkeley site in Gloucestershire, which entered service in 1962, was the first commercial nuclear power station in the UK to be decommissioned. After 27 years of operation, generating enough electricity on a typical day to serve an urban area the size of Bristol, the twin reactor station shut down in 1989. The station is currently undergoing work to decommission the site.
Meanwhile, according to the departmental minute, the prospective Parent Body Organizations (PBOs), selected through a competitive process, “are not prepared to accept liability” for certain nuclear liability claims. It adds that “because of the nature of nuclear activities the maximum figure for the potential liability is impossible to accurately quantify.” But there is allegedly only a “low probability” of a claim against the public purse.
Among the fierce critics of the use of the indemnity is Labour MP Paul Flynn, who says the nuclear debate in Parliament has been passed over by the government.
“There have been major nuclear accidents about every decade since Three Mile Island,” Flynn told the Guardian.
“More are very likely from technical failure, terrorism, human error or natural disaster. If risk is minimal, nuclear sites could be insured commercially.”
“The cost of the Fukushima cleanup and damages ranges from $250bn [£150bn] to $500bn and rising,” the politician noted.
“Nuclear installations are uninsurable in normal commercial terms. Only gullible governments can bear the enormous risk. If operators paid for their own insurance indemnities, their case for economic production of nuclear electricity collapses,” he added.
However, Energy Minister Michael Fallon, in his written statement to parliament, entitled “Contingent liability: indemnification by the nuclear decommissioning authority,” argues that there was “a very strong case” for the indemnity.
“An indemnity is a prerequisite to awarding the contract and securing the benefits of the competition. There is only a very low probability of a claim being brought under the indemnity and our assessment is that the benefits of the NDA contracting with a new PBO outweigh the small risk that the indemnity may be called upon,” the minister asserted earlier in February.
Chávez in The Americas: Increasing Autonomy in Latin America and the Caribbean
By Stephanie Pearce, NACLA
This article originally appeared in the Summer 2013 edition “Chavismo After Chávez: What Was Created? What Remains?”
Countries in the “developing world” have, since the end of formal colonialism, seen their ability to act autonomously systematically constrained by a variety of factors. These include, but are not limited to, macroeconomic policy conditions attached to World Bank and IMF loans, poor terms of trade with the Global North, lack of effective agency in international organizations, and the actions of multinational corporations operating in their territory.
Venezuela’s regionally oriented foreign policy during the Chávez era counteracted each of these dynamics, and in doing so opened up autonomous policy space for other states in Latin America and the Caribbean. The concrete achievements of a number of mechanisms, including counter-trading and credit provision within the PetroCaribe framework, and the recent establishment of a virtual regional currency, the SUCRE, all played a part in this process.
The first crucial action undertaken by Hugo Chávez as Venezuelan President in protecting regional economies was to vociferously oppose the proposed Free Trade Area of the Americas (FTAA) at the third summit of the Americas, held in Quebec in 2000. The proposal represented the perfect consolidation of U.S. economic power, and was designed, in the words of General Colin Powell, to “guarantee control for North American businesses…over the entire hemisphere.”1 After Chávez voiced concerns, the Mercosur countries followed suit, stopping the FTAA conclusively at the subsequent Mar del Plata summit in 2005. If the FTAA had gone ahead, it would have resulted in the substantial economic subordination of Latin America to U.S. corporate interests. Agricultural sectors in particular would have suffered from an influx of low-cost subsidized U.S. products. In addition, areas of the public sphere that had previously avoided commoditization or privatization would have been fair game for trans-national corporations. Under the FTAA, Amanothep Zambrano, ALBA Executive Secretary, told me last August that states would not have been able to “lead any aspect of economic policy, and therefore their political capacity to solve social problems” would have been heavily constrained.
Their shared opposition to these proposals encouraged Cuba and Venezuela to form an alternative regional integration framework, the Bolivarian Alliance for the Peoples of Our America (ALBA) in 2004. This quickly matured from a bilateral socio-centric cooperation agreement to a nascent regional bloc, or alliance, with the addition of Bolivia in 2006. Bolivia’s newly elected president, Evo Morales, brought with him the idea of a “Peoples Trade Treaty” (TCP), which extended the ALBA’s self-identified principles of solidarity, complementarity between economies, and respect for sovereignty, into a 23-point agreement that systematically opposed the tenets of orthodox free trade agreements. The TCP opened the possibility of pursuing economic policies outside of the market fundamentalist approach of the neoliberal era, for example by stating that people’s right to access healthcare should be prioritized above protecting pharmaceuticals’ corporate profitability. In the following three years, membership of the ALBA-TCP grew to nine countries encompassing much of Central and South America as well as the Caribbean.
During this time, the Venezuelan government also constructed PetroCaribe, a framework designed to facilitate the supply of its oil products to neighboring Caribbean states under preferential conditions, which at the time of writing had 18 members. Through these two channels the Venezuelan government has opened up autonomous policy space in the region, to some extent overcoming the constraints identified above. Venezuela has, largely through ALBA and PetroCaribe, become an important source of funding in the region. Oil supply agreements, signed between Venezuela and several members of both frameworks, permit countries to defer payment on set portions of their oil bill and use the capital obtained for government spending. Crucially this capital is obtained without the macroeconomic conditionality and policy prescriptions associated with World Bank or IMF loans. PetroCaribe agreements, for example, state that “member nations of the group are allowed to defer payment of 60% of their oil bills to Venezuela for 25 years, at 1% interest, in addition to a 90-day grace period on all payments, and a two year initial grace period on the credit facility.”2
This credit facility offers an alternative to IFI loans, while maintaining small Caribbean nations’ ability for autonomous decision making, which is considered critical in the post-colonial context. Specifically, credit provision has enabled Jamaica and Antigua to delay recourse to IMF loans, and put them in a better negotiating position so, I was told in August 2011 by Norman Girvan, former Secretary General of the Association of Caribbean States, “they were able to make an easier deal.” Venezuela, under the current administration, has also purchased billions of dollars’ worth of bonds issued by the Argentine government, enabling the country’s early exit from all of its IMF debts and associated policy prescriptions.
As a result of this mechanism, PetroCaribe funding to the Caribbean now exceeds both EU and U.S. aid by a wide margin, with only remittances from the Caribbean diaspora exceeding it in funding to the signatory states.3 For Dominica, Venezuela is now the “single largest creditor…surpassing traditional sources of credit such as regional development banks and the IMF.” Venezuela is owed 27.7% of the country’s total debt, which grew 12.6% in 2011 alone, to $8.8 billion.4 Such figures inevitably raise concerns that the agreement is increasing debt levels in the region and developing dependence on Venezuelan largesse. Barbados’s Prime Minister, Owen Arthur, has stated that his country would not join because he “would not permit the present generation of Barbadians to consume oil now to be paid for by succeeding generations of Barbadians.”5 However, the deferred portion of the bill does not constitute debt in the orthodox sense, as it is kept by the Caribbean partners and can be spent as capital towards any project deemed socio-productive, or saved to accrue interest to offset the bill, as has been the case in Guyana. The domestic opposition sees the PetroCaribe scheme as Chávez “giving away” oil irresponsibly. However, the amount is relatively small and sustainable. Supply to PetroCaribe members, including Cuba, peaked in 2009 at an average of 196.4 thousand barrels daily, which constituted only 7% of total Venezuelan oil exports that year, and operates under market prices in accordance with Venezuela’s OPEC membership.6
Due to a high level of dependence on imports, Venezuela has also been uniquely able to position itself as a regional alternative to North American and European markets. This dynamic has, again, been apparent within both ALBA-TCP and PetroCaribe. In 2008, the PetroCaribe framework was augmented with a “compensatory exchange mechanism” via which oil bills from Venezuela could be offset by the export of domestically produced goods and services. The Venezuelan market is particularly important for Caribbean countries who suffer from poor terms of trade with the North due to dependence on primary commodity exports, the continued use of tariff and non-tariff barriers by developed nations, and the erosion of colonial trade preferences. For example, up to 90% of Guyanese rice exports per annum were going to EU countries when, in 2000, the Overseas Territories (OCT) loophole was closed, resulting, I was told by the Guyanese Ambassador to Venezuela, in a “50-60%” drop in prices. When the compensation mechanism was announced, the then-president of Guyana, Jagdeo Bharrat, actively sought a better deal with Venezuela through the PetroCaribe framework. The resultant export of both rice and unprocessed paddy has seen Venezuela become the single largest importer of Guyanese rice, replacing Portugal.7
In the case of ALBA countries, a strategic reorientation towards intra-regional trade, and particularly export to Venezuela, has reduced dependence on the United States and subsequently its ability to constrain autonomous action. For example, when Bolivia expelled the U.S. ambassador in 2008 following his alleged involvement in separatist actions in the Santa Cruz Department, Washington retaliated by excluding Bolivia from the Andean Trade Promotion and Drug Eradication Agreement (ATPDEA). Bolivia lost its U.S. tariff advantages, which was a particularly painful blow to its textile industry. Chávez immediately offered them a market under “the same or better conditions” that Bolivia had enjoyed with the United States. As a result, says the Bolivian Ambassador to Venezuela, in 2010 Venezuela “imported almost 50 million dollars in textiles alone, or nearly double that which [Bolivia] used to export to the USA” annually.
The purchase agreement was supported by initiatives by both governments to facilitate small and medium sized businesses’ entry into the regional market. A fund was established in the Bank of ALBA to provide short-term interest-free credit to Venezuelan importers in order to purchase Bolivian textiles, paired with a fund in the Bolivian national development bank to provide small textile producers credit to purchase raw materials. This agreement therefore not only minimized the impact that U.S. market sanctions could have over autonomous decision making by the Bolivian government, but also created direct relations between regional producers and consumers.
These patterns are part of a wider renewed focus on South-South trade, both within the region and with extra-hemispheric partners. However, the United States remains the region’s single most important trading partner. The objective is not to be “anti-American,” rather to reduce the U.S. ability to exert controlling influence over its Latin American and Caribbean neighbors by creating alternatives to the dollar in international trade. One way in which this was achieved was through the PetroCaribe mechanism and similar counter-purchase agreements with other regional allies. As direct non-market transactions, they circumvented the use of the dollar, thereby avoiding its automatic privileging in international trade, and avoiding the transaction costs associated with its use.
This concept was extended by the ALBA’s virtual common currency, the Unified Regional System for Economic Compensation (SUCRE). The SUCRE is essentially a series of clearing accounts between Cuba, Bolivia, Venezuela, and Ecuador that allow the countries to trade freely without transaction costs. Accounts are balanced every six months with one hard currency transfer. The value of trade conducted via the SUCRE in its first year of operations, 2010, was just over $8 million. It grew exponentially, to almost 100 times that the following year ($172,905,344).8 Though the SUCRE’s value was originally set against the dollar ($1 to XSU1.25), and it is typically used as the convertible currency to make balancing payments, in the long term the intention is to no longer use the dollar at all. The direct and deliberate countering of U.S. economic hegemony that the SUCRE represents has been of particular importance to Ecuador, whose macroeconomic policy options have been constrained by a prior administration’s decision to dollarize the economy in 2001. In fact, the mechanism was largely designed by Ecuadoran economists, and of the $170 million traded in 2011, $140 million was for Venezuelan purchases from Ecuador (mainly tuna).9
As we have seen, Chávez’s time in office saw an unequivocal reassertion of the state as economic actor throughout the region. This dynamic was particularly felt in the crucial energy sector. In Venezuela, governmental control of the state oil industry was consolidated, while both Bolivia and Argentina nationalized hydrocarbons with investment and technical assistance from Petroleos de Venezuela (PDVSA), via agreements with YPFB and Enarsa, state owned gas and oil companies in Bolivia and Argentina respectively. Even in centrist or center-right Caribbean nations, Venezuelan investment has enabled state-owned oil companies and agencies to supply oil products directly to their population, “to effectively intervene in their markets to minimize retail prices” in the energy sector which had previously been “dominated by foreign companies.”10
Where state energy companies or agencies did not exist prior to PetroCaribe, they have been formed to facilitate the direct import of oil products from PDVSA. These can take the form of joint ventures with the PDVSA subsidiary PDV Caribe. Venezuelan credit and grants have also been used to fund improvements in energy infrastructure; that is namely the capacity of the member countries to store and refine oil, and in turn to generate and distribute energy. Central to this scheme has been investment in the Cienfuegos refinery in Cuba and at the Kingston refinery which now almost exclusively refines Venezuelan crude. The refinery is run by Petrojam Ltd, a mixed state enterprise in which Jamaica Oil Company owns a 51% stake and PDV Caribe 49%. This reassertion of state control over energy resources is seen as a fundamental facet of PetroCaribe’s “new oil geopolitics…at the services of our peoples not at the service of imperialism and big capital.”11
The right and power of multinationals to dictate domestic policy has been systematically undermined, both through a reassertion of the state as economic actor and in the tenets of the TCP which we briefly touched on earlier. This offers a stark contrast to the World Trade Organization’s policies such as Trade Related Intellectual Property Rights (TRIPs), which consistently privilege corporate interests, and/or offer beneficial “loopholes” for developed nations. This has been possible through the creation of new regional forums in Latin America and the Caribbean, in which members’ interests are not subordinate to those of more powerful nations. For example, in the TCP, economic asymmetries between members are recognised and therefore tariff reductions do not have to be reciprocal, disregarding the “most favored nation” principle. In addition, ALBA has no supranationality; it is best described as a framework for cooperation rather than an integration body in the orthodox sense. All programs and agreements are optional, flexible, and voluntary, thereby protecting the national autonomy of members.
Though statist in its organization, ALBA facilitates continual dialogue through presidential and ministerial summits, which have also been attended by international observers. Non-member countries are also represented in the council for social movements, whose proponents include groups such as the Brazilian Landless Workers’ Movement. ALBA proved to be the first in a series of new regional spaces, catalysed by massive rejection of the FTAA proposal—a rejection led by Chávez—and culminating in the formation of the Community of Latin American and Caribbean States (CELAC), which was put together as an alternative to the Organization of American States (OAS), and includes all the countries of the Americas except the United States and Canada. In this way, lessened economic dependence has resulted in increased diplomatic autonomy from the United States.
There are those who argue that Venezuelan projects in the region created new constraints, replaced one set of dependencies with another. But this is not the case. Though he was a catalyst for and investor in regional development, Chávez avoided constructing a position of power or privilege for Venezuela. This is evident in the lack of conditionality attached to credit mechanisms and the fact that the controlling stake of each mixed state enterprise was maintained by the partner country. Though oil wealth put Chávez in a unique position to invest in regional projects, these were not unilaterally devised or constructed; the TCP came from Bolivia, SUCRE is an Ecuadoran concept, and of course ALBA social programs were exported from Cuba. However, these ideas were made a reality by the capacity for rapid implementation that oil largesse afforded. Such apparently altruistic actions led many to question Chávez’s motives. It is important to point out that these frameworks and counter-purchase agreements have also helped reduce Venezuela’s dependence on the United States as a market and refining destination for oil. The volume of Venezuelan oil exported to the United States decreased from 1,500,000 barrels per day in 2008, to 1,166,000 bpd in 2011, a drop of 334,000 barrels per day. This can, in part, be attributed to the diversification of markets in Latin America (190 bpd to PetroCaribe, plus supply agreements with Argentina among others). This is in addition to securing crucial imports without financial outlay, specifically agricultural commodities, which are often then provided to the Venezuelan population at low cost through state owned agencies such as the supermarket chain Mercal.
***
Under the last ten years of Hugo Chávez’s Presidency, Venezuela’s foreign policies resulted in an opening up of autonomous policy space in Latin America and the Caribbean. What was begun in 2004 with the rejection of the proposed FTAA continued into the post-crisis conjuncture, when Chávez was instrumental in creating a new regional financial architecture to limit the power exerted by Washington-based IFIs. PetroCaribe credit provided funds for capital expenditure, without imposing macroeconomic conditionality. In addition, guaranteed oil supplies allowed the small and energy dependent nations that made up its membership to move beyond reactive policies and look to longer term socio-productive investment.
Venezuela’s concurrent strategy of sourcing imports from the region offered primary-commodity-dependent economies some opportunity to diversify their markets and baskets, with better terms of trade than offered by the United States or ex-colonial metropoles in Europe. Chávez also took the bite out of attempted control via market sanctions, as was clearly demonstrated in the Bolivian example.
These regional imports often took the form of non-market exchanges and counter-purchase agreements within PetroCaribe, ALBA, and beyond. Combined, they arguably represented a strategic de-linking from international trade and finance systems, specifically from the U.S. dollar. As such, these frameworks have lessened both the dependence on, and influence of, the United States in the region, protecting countries’ ability to act autonomously and not follow the dictates of Washington. Chávez effectively undermined U.S. economic power by offering alternatives to the hegemony of the dollar, with the SUCRE in particular offering a concerted challenge. Lessened economic dependence in turn allowed for greater diplomatic autonomy from Washington, demonstrated in its strategic exclusion from the newly formed CELAC. The various new regional initiatives provide space to build development strategies and devise economic policies, beyond the constraints of “market-friendly” logic. This allows for a reassertion of the state as an economic actor and service provider, within a culture of regional cooperation. Though the Venezuelan state is not operating outside of capitalism per se, from the initial rejection of the proposed Free Trade Area of the Americas in 2001 the Chávez government demonstrated that there are alternatives beyond the policy prescriptions of the neoliberal era, and what’s more, facilitated their use throughout the region to mutually beneficial ends.
1. Colin Powell cited in Katharine Ainger, “Trading Away the Americas,” New Internationalist, Issue 351, November 1, 2002, available at newint.org
2. “Venezuela: Two Countries Hold Out Against Cheap Loans and Barters,” Countertrade & Offset, 26:15 (2008)7
3. Sir Ronald Sanders, “The Chavez Effect: A life belt for the Caribbean,” Kaieteur news online, July 27, 2008, available at kaieteurnewsonline.com
4. Andrés Rojas Jiménez “Deuda dominicana con PDVSA aumentó durante 201,” El Nacional, February 16, 2012, available at elnacional.com
5. Wendell Mottley, Trinidad and Tobago’s Industrial Policy 1959-2008 Kingston. (Randle, 2008) 157.
6. This data, and all data not otherwise cited, elaborated from PDVSA annual reports, 2009-2011.
7. Guyana Rice Development Board, “Guyana Rice Development Board Annual Report 2010,” 2011.
8. Consejo Monetario Regional del SUCRE, “SUCRE Informe de Gestión 2011,” 2012.
9. Ibid
10. Curtis Williams, “Venezuela Urged to Fast-track Petrocaribe Initiative,” Oil and Gas Journal, 102 (2004):26.
11. Hugo Chávez Frías, Petrocaribe, Towards A New Order in Our America, (Colecciones Discursos, Ministerio de Poder Popular para Comunicación.)
Stephanie Pearce is a doctoral candidate at the School of Politics & International Relations, Queen Mary College, University of London. Her research focuses on the role of countertrade in Venezuela’s “Bolivarian Revolution.”
Read the rest of NACLA’s Summer 2013 issue: “Chavismo After Chávez: What Was Created? What Remains?”
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.
Globalization and the End of the Left-Right Divide (Part I)
By TAKIS FOTOPOULOS | The International Journal of INCLUSIVE DEMOCRACY
A new political phenomenon, which characterizes the New World Order (NWO) of neoliberal globalization and the parliamentary junta, is the effective abolition of the old political divide – established formally during the French Revolution – between Right and Left. On the Right, were all those political forces that supported the continuation and reproduction of the “establishment”, once represented by the monarchy and later by bourgeois parliamentary “democracy” and the capitalist market economy, while on the Left were those who advocated the overthrow of the establishment in the above sense, ranging from anti-monarchists to Marxists, anarchists, antisystemic ecologists (unlike today’s washed-out Greens) etc. By definition, then, the Right supported “law and order” and whatever that implied in terms of inequality, hierarchy and the privileges of the advantaged social strata, while the Left essentially fought for the overthrow of the “status quo” and ― to varying degrees ― for the equal distribution of political, economic and social power.
The main arena in which the struggle between Left and Right was taking place was the nation-state, even if the Left – particularly the Marxist (but also the libertarian) Left – was traditionally internationalist, until it adopted in practice the strategy of “socialism in one country” because of the objective conditions it faced, although in theory it remained internationalist. However, it is precisely this arena that is being eliminated by the current NWO, which is literally “pulling the rug” from under the traditional Left-Right divide. The consequences are the seismic changes that we see today across the whole political spectrum.
As regards the Left, an undeniable symptom of this phenomenon is the political bankruptcy of the traditional Left, both in the narrow sense of its electoral percentages, and, most importantly, in the broader sense of its traditional conception as the subversive mass movement that mainly attracted the popular strata, and not the privileged “Leftists” of the bourgeoisie who seek minor reforms through the degenerate “Left”, as is the case now. In other words, even though this “Left” continues to survive politically, this does not change the fact that it has been fully integrated into the NWO, as its demands are anything but subversive. On the other hand, the part of it which belongs to the communist Left theoretically makes subversive demands, which however remain theoretical, since they are not accompanied by a transitional programme and subversive political action. And this is true of any party or organization today that defines itself as Left, communist, anarchist, “Green”, etc, if it does not challenge – both in theory and in practice – the NWO itself, i.e. globalization (which can only be neoliberal within the system of a capitalist market economy) and the main international institutions implementing the neoliberal policies, such as the EU, preferring instead to wait for revolution before demanding withdrawal from such institutions and imposing economic self-reliance. That is why this entire “Left” can no longer attract the popular strata – who are the main victims of globalization – on a mass scale.
But seismic changes can also be seen on the Right, as evidenced by the fact that the traditional conservative parties of today have only survived thanks to the social strata which have clearly benefited from globalization and which therefore sustain them, while they have been losing support from the popular strata who were embourgeoised during the period of social democracy but are now getting poorer because of the mass unemployment and poverty that globalization brings! Thus, these increasingly conservative popular strata that are being crushed by globalization are now leaving the established Right but are not crossing over to the degenerate “Left” which has been fully integrated into the NWO either. Crucially, these popular strata are not joining the communist, or the pseudo-libertarian Left forces, who are supposedly fighting for self-management but who “fail” to see the strangulation of the popular strata through globalization, the EU etc going on right under their noses!
It is these popular strata which are currently shifting en masse towards nationalist parties such as the UK Independence Party (UKIP), to the point that even the most authoritative newspaper of the economic elite, the Financial Times, has emphasized that a wind of Euroscepticism, going as far as to raise the demand for withdrawal from the EU, is sweeping across Europe[1] (15.10.2013). Contrary to the malicious propaganda of the transnational elite, which enjoys the support of the entire degenerate Left, this does not mean that the millions of Europeans who are turning against the EU and, indirectly, against globalization itself, have suddenly become Nazis, as though we were living in the 1930s. National socialism and social democracy itself are impossible today, as both flourished during the era of the nation-state which, under globalization is dead and buried. Nor does it mean that the fact that as much as 30 per cent of the new parliament, following next year’s Euro-elections, will comprise eurosceptics, have suddenly become racists. As the FT report stresses, the exptected massive influx of Eurosceptics in the next European Parliament, which even ardent European federalists now concede, will simply mean that the nationalist parties ‘are capitalising on the economic misery and high levels of unemployment that are plaguing the continent’.[2] It is indeed characteristic that the more these parties get rid of racist or extremist right-wing elements in their politics, the more their percentages rise, as the meteoric rise of Le Pen in France showed lately.
At this crucial historical juncture that will determine whether we shall all become subservient to neoliberal globalization and the transnational elite, it is imperative that we create a Popular Front in each country which will include all the victims of globalization among the popular strata, regardless of their current political affiliations. In Greece, in particular, where the popular strata are facing economic disaster, what is needed urgently is not an “antifascist” Front, as proposed by the parties of the parliamentary junta, supported also by the degenerate “Left” (such as SYRIZA, whose leader A. Tsipras is a candidate for the post of the president of the European Commission!) which would unite aggressors and victims. An ‘antifascist’ front would simply disorient the masses and make them incapable of facing the real fascism being imposed on them by the political and economic elites, which constitute the transnational and local elites. Their criminal policies have already led to almost a third of the active population and over 60 percent of the young being unemployed, to Greek disposable income being almost halved and to a huge rise in poverty with thousands of people having committed suicide since the “crisis” began three years ago. Instead, what is needed is a Popular Front that could attract the vast majority of the people who would fight for immediate unilateral withdrawal from the EU – which is managed by the European part of the transnational elite – as well as for economic self-reliance, thus breaking with globalization.
This would allow also a genuine, new form of internationalism to be built from below, while creating the preconditions necessary for the people to decide, democratically, what kind of socio-economic system they would like in order to achieve an authentic form of popular power.
[1] Joshua Chaffin, “Europe: United by hostility”, Financial Times, 15/10/2013
[2] ibid.
~
This is an edited version of an article that was first published (in Greek) in the Athens daily Sunday’s Eleftherotypia, on 20/10/2013
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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$1.5bn up in smoke: US THAAD missile stockpile dries up defending Israel against Iran
By Ivan Kesic | Press TV | July 2, 2025
According to American media, defense news outlets, and independent analysts, the 12-day Israeli military aggression against Iran significantly depleted the US stockpile of THAAD (Terminal High Altitude Area Defense) interceptor missiles.
Citing official sources, American magazine Newsweek reported on Friday that the US transferred a substantial portion of its advanced missile defense capabilities to support the Israeli regime, an effort with questionable results and a critical impact on US strategic reserves.
THAAD, developed by Lockheed Martin arms manufacturing company, is a key component of Israel’s multi-layered air defense architecture. It is designed to intercept medium-range ballistic missiles, including those launched from Iran and Yemen.
The US-made system is capable of targeting short-, medium-, and intermediate-range ballistic missiles during their terminal phase, whether inside or outside Earth’s atmosphere.
THAAD uses a “hit-to-kill” method, relying on kinetic energy rather than explosive warheads to destroy incoming threats, intercepting at altitudes of up to 150 km and ranges between 150-200 km.
Operated exclusively by American personnel, the US military maintains eight THAAD batteries with an estimated 350–400 interceptors in total. The eighth battery was activated during the June 20 Israeli aggression against Iran and is capable of intercepting hypersonic missiles. … continue
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