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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Will the flowers of Gaza break Israel’s siege this Valentine’s Day?
By Tom Anderson and Therezia Cooper | Corporate Watch | February 12, 2014
Flowers from Gaza being prepared for export (Photo by Corporate Watch)
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.
(Photo by Corporate Watch)
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.
Venezuelan University Developing Experimental Bamboo for Green Homes
By Ryan Mallett-Outtrim | Venezuelanalysis | February 6, 2014
Merida – Venezuelan researchers are studying ways to use bamboo to provide cheap, environmentally friendly housing.
With funding from the Ministry of Science, Technology and Innovation, students and educators at Venezuela’s Simon Bolivar University (USB) are undertaking research into improving the durability and lifespan of bamboo, along with conducting studies into possible uses of the material in housing construction.
Initial tests have already been carried out on experimental, reinforced bamboo developed at the university, according to a press release from the government’s National Foundation for Science and Technology (Fonacit). The foundation is supporting the study.
“The preliminary results were positive,” director of the USB’s Centre for Surface Engineering Professor Joaquín Lira stated.
Lira explained that the experimental bamboo has been strengthened with polymers mixed with ceramic powders. According to the professor, the reinforcing mixture succeeded in “plugging holes made by pests” and improved the uniformity of the material.
In a second phase of the study, researchers hope to construct a prototype apartment block with the reinforced bamboo. According to Lira, the modified bamboo is intended for future use as a “structural element for green, affordable housing”.
A mission to provide affordable housing to the country’s poor was launched by former president Hugo Chavez, has been continued under his successor, President Nicolas Maduro. By the end of last year, over 500,000 homes had been constructed since mid 2011 under the housing mission, according to the government. The Maduro administration has committed to constructing three million new homes by 2019. Although current construction figures are behind schedule, the government has pledged to speed up building.
Lira argued that bamboo is a logical choice for construction material in South America.
“Venezuela , Brazil and Colombia are countries with high production potential for… bamboo…adapted for construction,” Lira stated.
“In these countries, it’s estimated that there are 11 million hectares of bamboo,” the professor said.
The USB is sourcing its bamboo from 200 growers in Aragua state.
Bamboo is one of the fastest growing plants in the world. It can reportedly grow as much as 250cm in 24 hours, depending on climate and soil conditions. Lira also argued that bamboo is cheaper than other construction materials, strong and environmentally friendly.
However, the professor indicated that more research should be undertaken, particularly to reduce bamboo’s susceptibility to insects.
“Technically, we know little about bamboo [construction],” Lira stated, though the plant has been used in buildings for centuries.
“There are three story homes, bridges and churches built with this plant,” Lira said.
The research is expected to be completed by the first quarter of 2015.
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There Will Be More Blood
By Peter Breschard | Dissident Voice | February 5, 2014
The question is no longer what, the question is when.
Very soon, income inequality in the United States will reach such a critical level it is likely violence will be viewed as an acceptable response to America’s social ills.
Unlike Depression Era bank robbers, assaults will be aimed at soft human targets. After all, who uses cash anymore?
Extortion. Kidnapping. Arson. A crime wave of epic proportions might well be the only way those running America will come to their senses and realize that no democracy can continue to exist where so much is controlled by so few. The present system of representative government has failed in such a spectacular fashion to protect the rights of the majority that the government itself has become the criminal.
Do not kid yourself that the present resource inequality will do anything but get much, much worse. Do the math. Tax rates for the extremely wealthy being so extremely low can only lead to the further accumulation of massive fortunes by the select few. That wealth will be taken from those lower on the economic food chain and so the disparity can only become greater.
Let them eat cake.
Public discussion of the critical problems currently facing this nation is so infantile it might as well be Medieval monks chattering on about the number of angels that can fit on the top of a pin. Bridges collapsing. People literally starving. Jobless working class. A country without hope. Yet the rulers natter on about reducing the rations of the most needy while at the same time they loot every household in the name of a putrid for-profit medical system and drone bomb the hell out of any country they wish.
How many military bases does this country have outside our borders? How many countries have U.S. troops stationed in them? Only criminals need those many guns.
Serious problems. There is a total disconnect between those charged with keeping this country on an even keel and reality.
The United States has become a kleptocracy. And criminality is the lesson it is teaching its citizens. Those living outside of the law, whether in skyscrapers or shacks, bring only pain and deprivation to those who strive to maintain a civilized society. When the government itself is the criminal, cutting up the pie solely for itself and its cronies, an equally criminal response will be inevitable.
What to do? It’s Robin Hood time. It’s only a question of who becomes the outlaw of Sherwood. People will only allow a boot to press against their neck for so long before the violence being done to them precipitates a like response. Unless those in positions of power tax the rich until it hurts, there will, like night follows day, be a violent response from those being oppressed against those they see as inflicting their pain.
If this government keeps shirking its responsibility to the vast majority of its citizens, this country is dooming itself to a bloody future.
~
Peter Breschard is the author of Circus Rider and My Love Affair with Barack Obama as well as other lesser works of fact and fiction.
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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.
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New Book
The Garlic Book — 2026
Lies are Unbekoming | November 5, 2026
What The Garlic Book shows
The book is in four parts.
Part One, The Record, treats the history of garlic as evidence. From the clay garlic bulb placed in an Egyptian grave nearly six thousand years ago, through the Ebers Papyrus, through Hippocrates, Dioscorides, Pliny and Galen, the Arab physicians under Avicenna, the medieval herbals, Culpeper, and the plague years, to the last era in which Western physicians prescribed garlic as a matter of course, which ran from 1850 to 1945. It closes with the living traditions that never stopped using it, and with the folklore of charms, vampires and the evil eye.
Part Two, The Chemistry and the Evidence, sets out what is known about why a clove has no smell until it is cut, and why the order of crush, rest and heat changes the medicine. It then reads the clinical evidence against the historical record — bacteria, blood and vessels, cancer epidemiology, metals and fatigue — and names the trials that went against garlic as directly as the trials that went for it, including the 2007 Stanford trial funded by the US National Institutes of Health which found that raw garlic, garlic powder and aged garlic extract moved LDL cholesterol no more than placebo did. It then turns to onion, garlic’s closest relative, and reads the newer evidence published since 2015, before closing with the whole of the record through the terrain lens.
Part Three, Why Medicine Set It Aside, asks the question directly. One chapter contrasts the pharmaceutical model of isolating a single active compound with the folk model of combining whole plants, and reports what the garlic evidence says about which model works better. One chapter examines the economics of research on a plant that cannot be patented. One chapter — Fire Cider — tells the story of a folk preparation whose name was taken into a United States trademark by a Massachusetts company in 2012, and won back by three herbalists in 2014 who documented forty years of prior use through Rosemary Gladstar and her students into the older tradition.
Part Four, Garlic in Practice, is the working manual — the kitchen pharmacy, traditional uses by body system, a full chapter on safety and interactions, and a complaint-by-complaint practical guide. The book closes with The Trial That Was Never Run — a one-chapter reading of the whole evidential architecture.
At the back: two appendices (a traditional list of uses, and a preparation quick-reference), a full bibliography, and a live index.
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