Economics « Aletho News

The Achievements of Hugo Chavez

By CHARLES MUNTANER, JOAN BENACH, MARIA PAEZ VICTOR | CounterPunch | December 14, 2012

While Venezuela’s president Hugo Chávez is fighting for his life in Cuba, the liberal press of both sides of the Atlantic (e.g., El Pais ) has not stopped trashing his government. The significance of his victory (12 points ahead of his contender) has yet to be analyzed properly, with evidence. It is remarkable that Chávez would win, sick with cancer, outgunned by the local and international media (think of Syriza’s Greece election) and, rarely acknowledged, an electoral map extremely biased towards the middle and upper classes, with geographical barriers and difficult access to Ids for members of the working classes.

One of the main factors for the popularity of the Chávez Government and its landslide victory in the re-election results of October 2012, is the reduction of poverty, made possible because the government took back control of the national petroleum company PDVSA, and has used the abundant oil revenues, not for benefit of a small class of rentiers as previous governments had done, but to build needed infrastructure and invest in the social services that Venezuelans so sorely needed. During the last ten years, the government has increased social spending by 60.6%, a total of $772 billion [i].

Poverty is not defined solely by lack of income nor is health defined as the lack of illness. Both are correlated and both are multi-factorial, that is, determined by a series of social processes. To make a more objective assessment of the real progress achieved by the Bolivarian Revolution in Venezuela during the last 13 years it is essential to review some of the key available data on the social determinants of health and poverty: education, inequality, jobs and income, health care, food security and social support and services.

With regard to these social determinants of health indicators, Venezuela is now the country in the region with the lowest inequality level (measured by the Gini Coefficient) having reduced inequality by 54%, poverty by 44%. Poverty has been reduced from 70.8% (1996) to 21% (2010). And extreme poverty reduced from 40% (1996) to a very low level of 7.3% (2010). About 20 million people have benefited from anti-poverty programs, called “Misiones” (Up to now, 2.1 million elderly people have received old-age pensions – that is 66% of the population while only 387,000 received pensions before the current government.

Education is a key determinant of both health and poverty and the Bolivarian government has placed a particular emphasis on education allotting it more than 6% of GDP. UNESCO has recognized that illiteracy been eliminated, furthermore, Venezuela is the 3^rd most literate country in the region. There is tuition free education from daycare to university; 72% of children attend public daycare and 85% of school age children attend school. There are thousands of new or refurbished schools, including 10 new universities. The country places 2^nd in Latin America and 5^th in the world with the greatest proportions of university students. In fact, 1 out of every 3 Venezuelans are enrolled in some educational program. [ii] . It is also a great achievement that Venezuela is now tied with Finland as the 5th happiest country in the world [iii] .

Before the Chavez government in 1998, 21% of the population was malnourished. Venezuela now has established a network of subsidized food distribution including grocery stores and supermarkets. While 90% of the food was imported in 1980, today this is less than 30%. Misión Agro-Venezuela has given out 454,238 credits to rural producers and 39,000 rural producers have received credit in 2012 alone. Five million Venezuelan receive free food, four million of them are children in schools and 6,000 food kitchens feed 900,000 people. The agrarian reform and policies to help agricultural producers have increased domestic food supply. The results of all these food security measures is that today malnourishment is only 5%, and child malnutrition which was 7.7% in 1990 today is at 2.9%. This is an impressive health achievement by any standard.

Some of the most important available data on health care and public health are the following [iv], [v], [vi]:

*infant mortality dropped from 25 per 1000 (1990) to only 13/1000 (2010);

*An outstanding 96% of the population now has access to clean water (one of the goals of the revolution);

*In 1998, there were 18 doctors per 10,000 inhabitants, currently there are 58, and the public health system has about 95,000 physicians;

*It took four decades for previous governments to build 5,081 clinics, but in just 13 years the Bolivarian government built 13,721 (a 169.6% increase);

*Barrio Adentro (i.e., primary care program with the help of more than 8,300 Cuban doctors) has saved approximately 1.4 million lives in 7,000 clinics and has given 500 million consultations;

*In 2011 alone, 67,000 Venezuelans received free high cost medicines for 139 pathological conditions including cancer, hepatitis, osteoporosis, schizophrenia, and others; there are now 34 centers for addictions,

*In 6 years 19,840 homeless have been assisted through a special program; and there are practically no children living on the streets.

*Venezuela now has the largest intensive care unit in the region.

*A network of public drugstores sell subsidized medicines in 127 stores with savings of 34-40%.

*51,000 people have been treated in Cuba for specialized eye treatment and the eye care program “Mision Milagro”; has restored sight to 1.5 million Venezuelans.

An example of how the government has tried to respond in a timely fashion to the real needs of its people is the situation that occurred in 2011 when heavy tropical rains left 100,000 people homeless. They were immediately sheltered temporarily in all manner of public buildings and hotels and, in one and a half years, the government built 250,000 houses. The government has obviously not eradicated all social ills, but its people do recognize that, despite any shortcomings and mistakes, it is a government that is on their side, trying to use its resources to meet their needs. Part of this equation is the intense political participation that the Venezuelan democracy stands for, that includes 30,000 communal councils, which determine local social needs and oversee their satisfaction and allows the people to be protagonists of the changes they demand.[vii]

The Venezuelan economy has low debts, high petroleum reserves and high savings, yet Western economists that oppose President Chávez repeat ad nauseam that the Venezuelan economy is not “sustainable” and predict its demise when the oil revenues stop. Ironically they do not hurl these dire predictions to other oil economies such as Canada or Saudi Arabia. They conveniently ignore that Venezuela’s oil reserves of 500 billion barrels of oil is the largest in the world and consider the social investment of oil revenues a waste or futile endeavor. However, these past 13 years, the Bolivarian government has been building up an industrial and agricultural infrastructure that 40 years of previous governments had neglected and its economy continues to get stronger even in the face of a global financial crisis.

An indication of the increasing diversification of the economy is the fact that the State now obtains almost as much revenue from tax collection as from the sale of oil, since it strengthened its capacity for tax collection and wealth redistribution.

Economic milestones these last ten years include reduction in unemployment from 11.3% to 7.7%; doubling the number of people receiving social insurance benefits, and the flourishing of cooperatives has strengthened local endogenous economies. In general, the Venezuelan economy has grown 47.4% in ten years, that is, 4.3% per annum. [viii].

Today many European countries would look jealously at these figures. Economists who studied the Venezuelan economy in detail for years indicate that, “The predictions of economic collapse, balance of payments or debt crises and other gloomy prognostications, as well as many economic forecasts along the way, have repeatedly proven wrong… Venezuela’s current economic growth is sustainable and could continue at the current pace or higher for many years.” [ix] .

According to Global Finance and the CIA World Factbook, the Venezuelan economy presents the following indicators [x]: unemployment rate of 8%; 45.5% government (public) debt as a percent of GDP (by contrast the European Union debt/GDP is 82.5%); and a real GDP growth: GDP per capita is $13,070.

In 2011, the Venezuelan economy defied most forecasts by growing 4.2 percent, and was up 5.6 percent in the first half of 2012. It has a debt-to-GDP ratio comfortably below the U.S. and the UK, and stronger than European countries; an inflation rate, an endemic problem during many decades, that has fallen to a four-year low, or 13.7%, over the most recent 2012 quarter. Even The Wall Street Journal reports that Venezuela’s stock exchange is by far the best-performing stock market in the world, reaching an all-time high in October 2012, and Venezuela’s bonds are some of the best performers in emerging markets.

Hugo Chavez’s victory had an impact around the world as he is recognized as having spearheaded radical change not only in his own country but in all Latin America where progressive governments have also been elected, thereby reshaping the global order. The victory was even more significant considering the enormous financial and strategic help that the USA agencies and allies gave to the opposition parties and media. Since 2002, Washington channeled $100 million to opposition groups in Venezuela and this election year alone, distributed US$ 40-50 million there. [xi] But the Venezuelan people disregarded the barrage of propaganda unleashed against the president by the media that is 95% privately owned and anti-Chavez. [xii]. The tide of progressive change in the region has started to build the infrastructure for the first truly independent South America with political integration organizations such as Bank of the South, CELAC, ALBA, PETROSUR, PETROCARIBE, UNASUR, MERCOSUR, TELESUR and thus have demonstrated to the rest of the world that there are, after all, economic and social alternatives in the 21st century [xiii]. Following a different model of development from that of global capitalism in sharp contrast to Europe, debt levels across Latin America are low and falling.

The changes in Venezuela are not abstract. The government of President Chávez has significantly improved the living conditions of Venezuelans and engaged them in dynamic political participation to achieve it [xiv]. This new model of socialist development has had a phenomenal impact all over Latin America, including Colombia of late, and the progressive left of center governments that are now the majority in the region see in Venezuela the catalyst that that has brought more democracy, national sovereignty and economic and social progress to the region [xv]. No amount of neoliberal rhetoric can dispute these facts. Dozens of opinionated experts can go on forever on whether the Bolivarian Revolution is or is not socialist, whether it is revolutionary or reformist (it is likely to be both ), yet at the end of the day these substantial achievements remain. This is what infuriates its opponents the most both inside Venezuela and most notably, from neocolonialist countries. The “objective” and “empiricist” The Economist will not publicize this data, preferring to predict once again the imminent collapse of the Venezuelan economy and El Pais, in Spain, would rather have one of the architects of the Caracazo (the slaughter of 3000 people in Caracas protesting the austerity measures of 1989), the minister of finance of the former government Moises Naim, go on with his anti-Chávez obsession. But none of them can dispute that the UN Human Development Index situates Venezuela in place #61 out of 176 countries having increased 7 places in 10 years.

And that is one more reason why Chavez’s Bolivarian Revolution will survive Venezuela’s Socialist leader.

Carles Muntaner is Professor of Nursing, Public Health and Psychiatry at the University of Toronto. He has been working on the public health aspects of the Bolivarian Revolution for more than a decade including Muntaner C, Chung H, Mahmood Q and Armada F. “History Is Not Over. The Bolivarian Revolution, Barrio Adentro and Health Care in Venezuela.” In T Ponniah and J Eastwood The Revolution in Venezuela. Harvard: HUP, 2011

María Páez Victor is a Venezuelan sociologist, specializing in health and medicine.

Joan Benach is a professor of Public Health at the Universitat Pompeu Fabra, Barcelona. He has collaborated in a number of studies on the public health policies of the Bolivarian Revolution.

~~~

[i] Páez Victor, Maria. “Why Do Venezuelan Women Vote for Chavez?” Counterpunch, 24 April 2012

http://www.counterpunch.org/2012/04/24/why-do-venezuelan-women-vote-for-chavez/print

[ii] Venezuela en Noticias, Venezuela en Noticias <venezuelaennoticias@minci.gob.ve> Venezuela en Noticias, Venezuela en Noticias venezuelaennoticias@minci.gob.ve

[iii] Gallup Poll 2010

[iv] Muntaner C, Chung H, Mahmood Q and Armada F. “History Is Not Over. The Bolivarian Revolution, Barrio Adentro and Health Care in Venezuela.” In T Ponniah and J Eastwood The Revolution in Venezuela. Harvard: HUP, 2011 pp 225-256; see also 4, Muntaner et al 2011, 5, Armada et al 2009; 6, Zakrison et al 2012

[v] Armada, F., Muntaner, C., & Navarro, V. (2001). “Health and social security reforms in Latin America: The convergence of the world health organization, the world bank, and transnational corporations.” International Journal of Health Services, 31(4), 729-768.

[vi] Zakrison TL, Armada F, Rai N, Muntaner C. ”The politics of avoidable blindness in Latin America–surgery, solidarity, and solutions: the case of Misión Milagro.”Int J Health Serv. 2012;42(3):425-37.

[vii] Ismi, Asad. “The Bolivarian Revolution Gives Real Power to the People.” The Canadian Centre for Policy Alternatives Monitor , December 2009/January.http://www.policyalternatives.ca/publications/monitor/latin-american-revolution-part-iv

[viii] Carmona, Adrián. “Algunos datos sobre Venezuela”, Rebelión, March 2012

[ix] Weisbrot, Mark and Johnston, Jake. “Venezuela’s Economic Recovery: Is It Sustainable?” Center for Economic and Policy Research, Washington, D.C., September 2012.

[x] Hunziker , Robert. “Venezuela and the Wonders of Equality”. October 15th, 2012

[xi] Golinger, Eva. “US$20 million for the Venezuelan Opposition in 2012”, http://www.chavezcode.com/2011/08/us-20-million-for-venezuelan-opposition.html

[xii] Páez Victor, Maria. “Chavez wins Over Powerful Foreign Conglomerate Against Him”, Periódico América Latina, 11 October, 2012

[xiii] Milne, Seumas. “The Chávez Victory Will be Felt Far Beyond Latin America” , Associate Editor, The Guardian, October 9, 2012:

[xiv] Alvarado, Carlos, César Arismendi, Francisco Armada, Gustavo Bergonzoli, Radamés Borroto, Pedro Luis Castellanos, Arachu Castro, Pablo Feal, José Manuel García, Renato d´A. Gusmão, Silvino Hernández, María Esperanza Martínez, Edgar Medina, Wolfram Metzger, Carles Muntaner, Aldo Muñoz, Standard Núñez, Juan Carlos Pérez, and Sarai Vivas. 2006. “Mission Barrio Adentro: The Right to Health and Social Inclusion in Venezuela”. Caracas: PAHO/Venezuela.

[xv] Weisbrot, Mark.”Why Chávez Was Re-elected”. New York Times. Oct 10th 2012

Does Hugo Chavez Keep Fooling Venezuelans? (alethonews.wordpress.com)

December 14, 2012 Posted by aletho | Deception, Economics, Mainstream Media, Warmongering, Timeless or most popular | Bolivarian Revolution, Cuban medical internationalism, Gini Coefficient, Hugo Chávez, Latin America, Mission Barrio Adentro, Venezuela | Leave a comment

Does Hugo Chavez Keep Fooling Venezuelans?

By Peter Hart – FAIR – December 13, 2012

The New York Times updates readers today (12/13/12) on the health status of left-wing Venezuelan president Hugo Chávez, and the political implications for his country. But the paper starts out by suggesting that the people who keep electing him must have some kind of problem.

According to the Times’ William Neuman, life in Venezuela is pretty dismal. Christmas tree shipments were fouled up, a government ice cream factory closed down, and “all of this happened while the economy was growing — before the slowdown many predict next year.”

He writes:

Such frustrations are typical in Venezuela, for rich and poor alike, and yet President Hugo Chávez has managed to stay in office for nearly 14 years, winning over a significant majority of the public with his outsize personality, his free-spending of state resources and his ability to convince Venezuelans that the Socialist revolution he envisions will make their lives better.

So people believe that, somewhere in the future, life will get better thanks to Chávez? But it’s already happened for the majority of Venezuelans. As Mark Weisbrot wrote (Guardian, 10/3/12):

Since 2004, when the government gained control over the oil industry and the economy had recovered from the devastating, extra-legal attempts to overthrow it (including the 2002 US-backed military coup and oil strike of 2002-2003), poverty has been cut in half and extreme poverty by 70%. And this measures only cash income. Millions have access to healthcare for the first time, and college enrolment has doubled, with free tuition for many students. Inequality has also been considerably reduced. By contrast, the two decades that preceded Chávez amount to one of the worst economic failures in Latin America, with real income per person actually falling by 14% between 1980 and 1998.

It’s not that Neuman is unaware of this. Deep in the piece– after saying that “Mr. Chávez’s own record is mixed”– he admits, in between all the hand-waving and caveats, that maybe there’s something that explains Chávez’s popularity:

He has used price controls to make food affordable for the poor, but that has contributed to shortages in basic goods. He created a popular program of neighborhood clinics often staffed by Cuban doctors, but hospitals frequently lack basic equipment.

There is no doubt that living conditions have improved for the poor under Mr. Chávez, and that is the greatest source of his popularity. But the improvements came at a time when high oil prices were pouring money into the country and fueling economic growth, which some analysts say would have led to similar improvements under many leaders, even some with more market-friendly policies.

So life is better for the vast majority of the country. That’s a far cry from the point he stressed at the beginning, that Chávez has somehow sold people on the questionable idea that the outlook would someday improve. The Times has to downplay that reality so you’ll take away the message: things are bad there. Or, if they’re not, someone else with superior, “market-friendly policies” could have achieved the same results, if not better.

December 14, 2012 Posted by aletho | Deception, Economics, Mainstream Media, Warmongering | Hugo Chávez, Latin America, Mark Weisbrot, New York Times, Peter Hart, Venezuela | Leave a comment

Why Is Cuba’s Health Care System the Best Model for Poor Countries?

By Don Fitz – Black Agenda Report – 12/12/2012

Furious though it may be, the current debate over health care in the US is largely irrelevant to charting a path for poor countries of Africa, Latin America, Asia and the Pacific Islands. That is because the US squanders perhaps 10 to 20 times what is needed for a good, affordable medical system. The waste is far more than 30% overhead by private insurance companies. It includes an enormous amount of over-treatment, making the poor sicker by refusing them treatment, creation of illnesses, exposure to contagion through over-hospitalization, and disease-focused instead of prevention-focused research. [1]

Poor countries simply cannot afford such a health system. Well over 100 countries are looking to the example of Cuba, which has the same 78-year life expectancy of the US while spending 4% per person annually of what the US does. [2]

The most revolutionary idea of the Cuban system is doctors living in the neighborhoods they serve. A doctor-nurse team is part of the community and know their patients well because they live at (or near) the consultorio (doctors’ office) where they work. Consultorios are backed up by policlínicos which provide services during off-hours and offer a wide variety of specialists. Policlínicos coordinate community health delivery and link nationally designed health initiatives with their local implementation.

Cubans call their system medicina general integral (MGI, comprehensive general medicine). Its programs focus on preventing people from getting diseases rather than curing them after they are sick

This has made Cuba extremely effective in control of everyday health issues. Having doctors’ offices in every neighborhood has brought the Cuban infant mortality rate below that of the US and less than half that of US Blacks. [3] Cuba has a record unmatched in dealing with chronic and infectious diseases with amazingly limited resources. These include (with date eradicated): polio (1962), malaria (1967), neonatal tetanus (1972), diphtheria (1979), congenital rubella syndrome (1989), post-mumps meningitis (1989), measles (1993), rubella (1995), and TB meningitis (1997). [4]

The MGI integration of neighborhood doctors’ offices with area clinics and a national hospital system also means the country responds well to emergencies. It has the ability to evacuate entire cities during a hurricane largely because consultorio staff know everyone in their neighborhood and who to call for help getting disabled residents out of harms way. At the same time New York City (roughly the same population as Cuba) had 43,000 cases of AIDS, Cuba had 200 AIDS patients. [5] More recent emergencies such as outbreaks of dengue fever are quickly followed by national mobilizations. [6]

Perhaps the most amazing aspect of Cuban medicine is that, despite its being a poor country itself, Cuba has sent over 124,000 health care professionals to provide care to 154 countries. [7] In addition to providing preventive medicine Cuba sends response teams following emergencies (such as earthquakes and hurricanes) and has over 20,000 students from other countries studying to be doctors at its Latin American School of Medicine in Havana (ELAM, Escuela Latinoamericana de Medicina). [8]

In a recent Monthly Review article, I gave in-depth descriptions of ELAM students participating in Cuban medical efforts in Haiti, Ghana and Peru. [9] What follows are 10 generalizations from Cuba’s extensive experience in developing medical science and sharing its approach with poor countries throughout the world. The concepts form the basis of the New Global Medicine and summarize what many authors have observed in dozens of articles and books.

First, it is not necessary to focus on expensive technology as the initial approach to medical care. Cuban doctors use machines that are available, but they have an amazing ability to treat disaster victims with field surgery. They are very aware that most lives are saved through preventive medicine such as nutrition and hygiene and that traditional cultures have their own healing wisdom. This is in direct contrast to Western medicine, especially as is dominant in the US, which uses costly diagnostic and treatment techniques as the first approach and is contemptuous of natural and alternative approaches.

Second, doctors must be part of the communities where they are working. This could mean living in the same neighborhood as a Peruvian consultorio. It could mean living in a Venezuelan community that is much more violent than a Cuban one. Or it could mean living in emergency tents adjacent to where victims are housed as Cuban medical brigades did after the 2010 earthquake in Haiti. Or staying in a village guesthouse in Ghana. Cuban-trained doctors know their patients by knowing their patients’ communities. This differs sharply from US doctors, who receive zero training on how to assess homes of their patients.

Third, the MGI model outlines relationships between people that go beyond a set of facts. Instead of memorizing mountains of information unlikely to be used in community health, which US students must do to pass medical board exams, Cuban students learn what is necessary to relate to people in consultorios, polyclínicos, field hospitals and remote villages. Far from being nuisance courses, studies in how people are bio-psycho-social beings are critical for the everyday practice of Cuban medicine.

Fourth, the MGI model is not static but is evolving and unique for each community. Western medicine searches for the correct pill for a given disease. In its rigid approach, a major reason for research is to discover a new pill after “side effects” of the first pill surface. Since traditional medicine is based on the culture where it has existed for centuries, the MGI model avoids the futility of seeking to impose a Western mindset on other societies.

Fifth, it is necessary to adapt medical aid to the political climate of the host country. This means using whatever resources the host government is able and willing to offer and living with restrictions. Those hosting a Cuban medical brigade may be friendly as in Venezuela and Ghana, hostile as is the Brazilian Medical Association, become increasingly hostile as occurred after the 2009 coup in Honduras, or change from hostile to friendly as occurred in Peru with the 2011 election of Ollanta Humala. This is quite different from US medical aide which, like its food aide, is part of an overall effort to dominate the receiving country and push it into adopting a Western model.

Sixth, the MGI model creates the basis for dramatic health effects. Preventive community health training, a desire to understand traditional healers, the ability to respond quickly to emergencies, and an appreciation of political limitations give Cuban medical teams astounding success. During the first 18 months of Cuba’s work in Honduras following Hurricane Mitch, infant mortality dropped from 80.3 to 30.9 per 1000 live births. When Cuban health professionals intervened in Gambia, malaria decreased from 600,000 cases in 2002 to 200,000 two years later. And Cuban/Venezuelan collaboration resulted in 1.5 million vision corrections by 2009. Kirk and Erisman conclude that “almost 2 million people throughout the world … owe their very lives to the availability of Cuban medical services.” [7]

Seventh, the New Global Medicine can become reality only if medical staff put healing above personal wealth. In Cuba, being a doctor, nurse or support staff and going on a mission to another country is one of the most fulfilling activities a person can do. The program continues to find an increasing number of volunteers despite the low salaries that Cuban health professionals earn. There is definitely a minority of US doctors who focus their practice in low income communities which have the greatest need. But there is no political leadership which makes a concerted effort to get physicians to do anything other than follow the money.

Eighth, dedication to the New Global Medicine is now being transferred to the next generation. When students at Cuban schools learn to be doctors, dentists or nurses their instructors tell them of their own participation in health brigades in Angola, Peru, Haiti, Honduras and dozens of other countries. Venezuela has already developed its own approach of MIC (medicina integral communitaria, comprehensive community medicine) which builds upon but is distinct from Cuban MGI. [10] Many ELAM students who work in Ghana as the Yaa Asantewaa Brigade are from the US. They learn approaches of traditional healers so they can compliment Ghanaian techniques with Cuban medical knowledge.

Ninth, the Cuban model is remaking medicine across the globe. Though best-known for its successes in Latin America, Africa and the Caribbean, Cuba has also provided assistance in Asia and the Pacific Islands. Cuba provided relief to the Ukraine after the 1986 Chernobyl meltdown, Sri Lanka following the 2004 tsunami, and Pakistan after its 2005 earthquake. Many of the countries hosting Cuban medical brigades are eager for them to help redesign their own health care systems. Rather than attempting to make expensive Western techniques available to everyone, the Cuban MGI model helps re-conceptualize how healing systems can meet the needs of a country’s poor.

Tenth, the new global medicine is a microcosm of how a few thousand revolutionaries can change the world. They do not need vast riches, expensive technology, or a massive increase in personal possessions to improve the quality of people’s lives. If dedicated to helping people while learning from those they help, they can prefigure a new world by carefully utilizing the resources in front of them. […]

Discussions of global health in the West typically bemoan the indisputable fact that poor countries still suffer from chronic and infectious diseases that rich countries have controlled for decades. International health organizations wring their hands over the high infant mortality rates and lack of resources to cope with natural disasters in much of the world. [3]

But they ignore the one health system that actually functions in a poor country, providing health care to all of its citizens as well as millions of others around the world. The conspiracy of silence surrounding the resounding success of Cuba’s health system proves the absolute unconcern by those who piously claim to be the most concerned.

How should progressives respond to this feigned ignorance of a meaningful solution to global health problems? A rational response must begin with spreading the word of Cuba’s New Global Medicine through every source of alternative media available. The message needs to be: Good health care is not more expensive — revolutionary medicine is far more cost effective than corporate controlled medicine.

Notes

1. Fitz, D. (December 9, 2010). Eight reasons US healthcare costs 96% more
than Cuba’s—With the same results.
http://www.alternet.org/health/149090/eight_reasons_us_healthcare_costs_96%25_more_than_cuba%27s–with_the_same_results
2. Dresang, L.T., Brebick, L., Murray, D., Shallue, A. & Sullivan-Vedder, L. (July-August, 2005). Family medicine in Cuba: Community-Oriented Primary Care and Complementary and Alternative Medicine, Journal of the American Board of Family Medicine 18 no. 4: 297-303.
3. Cooper, R.S., Kennelly, J.F. & Orduñez-Garcia, P. (2006). Health in Cuba, International Journal of Epidemiology, 35: 817–824.
4. Pérez, J. (May 15, 2012). Gender and HIV Prevention. Slide presentation at the Pedro Kouri Institute of Topical Medicine, Havana, Cuba.
5. Whiteford, L.M. & Branch, L.G. (2008). Primary Health Care in Cuba: The Other Revolution. Lanham: Rowman & Littlefield Publishers, Inc.
6. Fitz, D. (February 14, 2012). Med School Classes Cancelled in Havana.
http://blackagendareport.com/content/med-school-classes-cancelled-havana
7. Kirk, J.M. & Erisman, M.H. (2009). Cuban Medical Internationalism: Origins, Evolution and Goals. New York: Palgrave Macmillan.
8. Fitz, D. (March, 2011). The Latin American School of Medicine Today: ELAM. Monthly Review 62 no. 10: 50–62.
9. Fitz, D. (September, 2012). Cuba: The New Global Medicine. Monthly Review 64 no. 4: 37–46.
10. Brouwer, S. (2011). Revolutionary Doctors: How Venezuela and Cuba are Changing the World’s Conceptualization of Health Care. New York, Monthly Review Press.

Don Fitz can be contacted via fitzdon@aol.com

80 percent of Cuban AIDS patients since 1986 alive (vancouverdesi.com)

December 12, 2012 Posted by aletho | Economics, Science and Pseudo-Science, Solidarity and Activism | Brazilian Medical Association, Cuba, Healthcare in Cuba, Medicine, United States | Leave a comment

Egypt and Argentina: The Right-Left alliance

By Prof. James Petras | The People’s Voice | December 10, 2012

Once again world public opinion faces a most bizarre political event: an alliance between political forces on the extreme Right and the Left, including collaboration between NATO regimes and Marxist sects. The apparent ‘unity of opposites’ is a response to alleged policy and institutional changes made by center-left and center-right regimes, which adversely affect both economic and political elites as well as the popular sectors.

The circumstances, under which this unholy alliance takes place, vary according to the type of regime, its policies and the class orientation of the opposition. The best way to analyze the left-right alliance is to examine the cases of Egypt and Argentina.

Egypt: The Alliance between Mubarak-Appointed Judges, Secular Liberals, Leftist Intellectuals and Disenchanted Workers

To understand the alliance between the corrupt remnants of the Mubarak state apparatus and their former political victims from the center-left and secular-right, it is essential to examine the political context, which has evolved since the overthrow of the Mubarak dictatorship in February 2011.

While Islamist and secular democratic forces played a major role in mobilizing millions of Egyptians in ousting the hated US-Israeli client, Hosni Mubarak, it was the Muslim Brotherhood (MB) and their fundamentalist rivals, the Salafis, who won the majority of votes in the subsequent elections and formed the first democratically-elected government in Egypt.[i] In the beginning, the Muslim Brotherhood was forced to share power with the ‘transitional military junta’, which had seized power immediately after the ouster of Mubarak. Subsequently President Mohamed Morsi, from the Muslim Brotherhood, convoked elections to a constituent assembly and nominated a commission to write a new constitution. This was backed by a majority of the newly-elected Egyptian parliament. Reflecting the Muslim Brotherhood’s electoral victory, the constitutional commission was dominated by its supporters. Many secular liberals and leftists rejected their minority status in the process.

Aside from his work on the constitutional front, Morsi negotiated a financial loan package of $4.5 billion with the IMF, $5 billion from the EU and an additional one billion dollars in US aid. These aid agreements were conditional on President Morsi implementing ‘free market’ policies, including an ‘open-door’ to foreign investment, ending food and fuel price subsidies to the poor and maintaining the humiliating Mubarak-era treaty with Israel, which included Egypt’s participation in the brutal blockade of Gaza.

While the despised US-Israel-backed dictator Hosni Mubarak may have been ousted from power and a new democratically-elected legislature had taken office (temporarily) along with President Morsi, Mubarak supporters continued to dominate key positions in the ministries, the entire judiciary, military and police. Thus powerfully ensconced, the Mubarak elite strove in every way to undermine emerging democratic institutions and processes. The Minister of Defense, Mohamed Hussein Tantawi, shielded the police officials and paramilitary forces responsible for the jailing, torture and murder of thousands of pro-democracy demonstrators. Mubarak-appointed judges arbitrarily disqualified legislative and presidential candidates, invalidated democratic elections and even ordered the closing of parliament. They then moved to outlaw the elected constituent assembly and the commission set-up to draft the new Egyptian constitution.

In other words, Mubarakites, embedded in the state apparatus, were engaged in an institutional coup d’etat to retain power, destabilize and paralyze the democratically-elected Morsi regime and create political disorder, propitious for a return to their dictatorial rule.

It was the Mubarak-appointed judges’ power-grab that eliminated the separation of powers by imposing arbitrary judicial decisions and powers over and above the hard-won electoral rights of Egyptian citizens and their elected legislature. The judges’ self-proclaimed assumption of legislative and executive supremacy was a direct assault on the integrity of the emerging democratic process.

When President Morsi finally moved to counter the Mubarak-allied judges’ dismissal of legitimately-elected bodies by assuming temporary emergency powers, these judges and their cheerleaders in the Western media accused him of subverting democracy and violating the ‘independence’ of the judiciary. The Western ‘liberal’ outcry at Morsi’s so-called ‘power grab’ is laughable given the fact that they ignored the naked ‘power grab’ of the judges when they dismissed Egypt’s parliament, its free elections and the writing of its new constitution under the leadership of Egypt’s new president. These cries of ‘democracy’ ring hollow from a judiciary, which had shamelessly legalized countless murders, tortures and dictatorial acts committed by Mubarak for over 30 years.

The judges’ democratic posturing and cries of injustice were accompanied by theatrical walkouts and protests aimed at mobilizing public opinion. Apart from a few thousand die-hard Mubarak holdovers, these judges managed to attract very little support, until secular liberals, leftists, trade unionists and sectors of the unemployed decided to intervene and try to win in the streets what they lost at the ballot box.

The popular protests, in contrast to the judges’ defense of Mubarak-era privilege and their blatant power grab, was based on Morsi’s failure to tackle the problems of growing unemployment and plummeting income, as well as his acceptance of IMF demands to end public subsidies for the poor. The secular-liberals joined forces with Mubarak-era judges in their clamor against ‘authoritarianism’ and pushed their own secular agenda against the Islamist tendencies in the regime and in the drawing up of the constitution. Pro-democracy youth sought to exploit the legislative vacuum created when the right-wing judges dismissed the parliament and put forward a vague notion of ‘alternative democracy’ … presumably one which would exclude the votes of the Islamist majority. The trade unions, which had led numerous strikes after the fall of Mubarak and remain a force among factory workers, joined the protests against Morsi, rejecting his embrace of the corporate elite. Even some Islamist groups, disgusted with Morsi’s accommodation with Israel and the US, also joined and took to the streets.

The US and the EU took advantage of the judges’ protest to step in and warn Morsi to abide to a ‘power sharing’ agreement with the Mubarak officials and the military or lose financial aid.

Washington has been playing a clever ‘two track policy’: They support Morsi when he implements a neo-liberal ‘free market’ domestic agenda using the Muslim Brotherhood networks to contain and limit popular protest among Egypt’s poor while threatening US aid if he vacillates on Mubarak-era agreements with Israel to starve Gaza. The White House insists that Morsi continue supplying cheap gas to Tel Aviv, as well as backing ongoing and future NATO wars against Syria and Iran. But the US and EU also want to keep the old reliable Mubarak power centers in place as a check and veto on Morsi in case a powerful anti-Zionist, populist urban movement pressures his regime to backtrack on the IMF program and the hated treaty with Israel.

The constitution, presented by the commission, is a compromise between Islamists, neo-liberals and democratic electoralists. This constitution undermines the judges’ power grab and allows the Morsi government to prosecute or fire the corrupt Mubarak-era officials; it guarantees the primacy of private, including foreign, property; it privileges Islamic law and provides ‘space’ and possibilities for Islamist leaders to restrict the rights of Egyptian women and religious minorities, notably the Coptic Christians.

A democratic vote on the constitutional referendum will test the strength of the pro and anti-government forces. A boycott by secular, liberal and populist-democratic forces will only demonstrate their weakness and strengthen the reactionary coup-makers embedded among the Mubarak-era officials in judiciary, police, military and civilian bureaucracy.

The Left and democratic-secular movements and leaders have formed an opportunistic, de-facto alliance with the Mubarak elite: a marriage of ‘the police club’ with its former victims, ‘the clubbed democrats’ of the recent past. The progressives overlook the danger of the judges’ creeping coup, in their blind effort to undermine the Muslim Brotherhood and the Morsi regime: It’s one thing to oppose Morsi’s reactionary agenda and the anti-popular votes of a reactionary legislature; it’s something totally different to promote the ouster of a democratically-elected legislature by hold-over judges pushing for the return of despotism. Undermining the democratic process will not only adversely affect President Morsi and the Muslim Brotherhood but also the democratic opposition. The prime beneficiaries will be the right-wing forces encrusted in the State.

The anti-Muslim Brotherhood demonstrators, who are the clear losers in democratic elections and a minority in the country, burned and trashed the offices and meeting places of the Brotherhood and assaulted their supporters in the worst traditions of the Mubarak era. The self-styled ‘pro-democracy’ activists’ assaults on the Presidential palace and their rejection of Morsi’s call for dialogue has opened the way for the return of military rule. The military command’s thinly veiled threat was evident in their pronouncement that they would intervene with force to maintain order and protect the public if violence continues. The coincidence of prolonged street disorder and assaults on electoral politics with military overtures to take power have a distinct smell of a barnyard confabulation. The right-left alliance makes it difficult to decipher whether the violence is a staged provocation to bring the military back to power or an expression of leftist rage at their electoral impotence.

For strategic, pragmatic and principled reasons, the Left should have denounced the Mubarak-appointed judges the moment they outlawed the elected legislature. The Left should have demanded the ouster of these judges and military leaders and combined their demands with a campaign against Morsi’s ties with the imperial West and Israel and a repudiation of the IMF program. By backing these corrupt judges, progressives gained the short-term support of the Western media and governments while strengthening their strategic enemy.

Argentina: The Right-Left Alliance

President Cristina Fernandez is representative of the center-left regimes, which predominate in Latin America today. Her recent resounding electoral victory[ii] is a product of the popular uprisings (2001-2003), the social reforms and independent foreign policy pursued by her predecessor (and husband) Nestor Kirchner (2003-2007) and several popular reforms implemented under her Presidency.

But like all center-left regimes, President Fernandez (2008-2012) has combined conservative, neo-liberal and populist progressive policies. On the one hand, Fernandez has encouraged foreign mining companies to exploit the Argentina’s great mineral resources, charging very low royalty payments and imposing very few environmental restraints, while, on the other hand, she nationalized the abusive Spanish multinational oil company, Repsol, for non-compliance with its contract.

The government has substantially increased the minimum wage, including for farm workers, while opening up the country to overseas land speculators and investors to buy millions of acres of farmland. The government has allowed highly toxic-chemicals to be sprayed on fields next to rural communities while increasing corporate taxes and controls over agro-export earnings. The government passed legislation to restrict monopoly ownership of the mass media promising to expand media licensing to local communities and diverse social groups, while doing little to limit the power of big agro-export firms. President Fernandez has supported Latin American integration (excluding the US) and welcomed radical President Chavez as a valuable partner in trade and investment and diversified markets. At the same time Argentina has grown increasingly dependent on a narrow range of agro-mineral (‘primary goods’) exports to the detriment of domestic manufacturing. Presidents Fernandez and Kirchner encouraged trade union activity and, until recently, supported hefty increases in wage, pension and medical benefits, drastically reducing poverty levels – but they did so while maintaining the wealth, land, profits and dividends of the capitalist class.

The Argentine President was able to support both the economic elites and the working class as long as commodity prices and international demand remained high. However, with the economic slowdown in Asia and decline in commodity prices and therefore state revenue, the President is being squeezed from both sides. By the end of the first decade of the 21st century, the elite attacked the government more ferociously, led by the big and medium-size landowners and exporters. They demanded the government revoke its increase in export taxes and currency controls. The upper-middle and the affluent middle class of Buenos Aires, backed by supporters of the previous military dictatorship, organized mass marches and demonstrations to protest a medley of government policies, including limits on dollar purchases, inflation and inaction amidst rising crime rates.

Around the same time, conservative and radical leftist trade unionists organized a general strike – ostensibly because wage increases had failed to keep up with ‘real’ rates of inflation (double the ‘official rate’ – so they claimed). The major media monopoly, Clarin, organized a virulent systematic propaganda campaign trumpeting the demands of the economic elite, fabricating stories of government corruption and refusing to comply with the new government legislation in hopes of staving off the dismantling of its huge media monopoly.

The US and EU increased pressure on Argentina by excluding it from international capital markets, questioning its credibility, downgrading its ratings and promoting a virulently hostile anti-Fernandez mass media campaign in the financial press.

The destabilization campaign has been orchestrated by the same economic elites who supported the brutal seven-year military dictatorship during which an estimated 30,000 Argentines were murdered by the juntas. Elite opposition is rooted in reactionary social and economic demands, i.e. lower taxes on exports, deregulation of the dollar market, their monopoly of the mass media and a reversal of popular social legislation.

The ‘left opposition’ includes a variety of movements including Marxist grouplets and trade unions who demand salary increases commensurate with ‘real inflation’ as well as environmentalists demanding tighter controls over agro-chemical pollution, GM seeds and destructive mining operations. Many of these demands have legitimacy, however some of the Marxist and leftist groups have been participating in protests and strikes convoked by the right-wing parties and economic elites designed to destabilize and overthrow the government. Few if any have joined with the government to denounce the blatant US-EU credit squeeze and imperial offensive against Fernandez.

This de-facto Right-Left alliance on the streets is led by the most rancid, authoritarian and neo-liberal elites who ultimately will be the prime beneficiary if the Fernandez regime is destabilized and toppled. By joining general strikes organized by the far-Right, the left claims to be ‘furthering the interests of the workers’ and ‘acting independently’ of the economic elite. However, their activities take place at the same time and same location as the hordes of wealthy upper middle class protestors clamoring for the ouster of the democratically elected center-left regime. The left grouplets maintain that they are in favor of building a ‘workers state’ as they march abreast with the rich and militarists. Objectively, their capacity to catalyze a revolution is nil and the real outcome of their ‘opportunism’ will be a victory for the agro-export elite – mass media monopolies – US-EU alliance. The ‘leftist’ workers protest is mere window dressing for the destabilization of a social-liberal democracy and will help return a far-right regime to power!

The majority of the workers, pensioners and trade unionists reject any participation in the bosses’ general strikes – even as they voice their legitimate demands for better pay and the indexing of wage rates to the real inflation rate. However they join with the government in rejecting the international creditor demands and US judicial rulings favoring Wall Street speculators over Argentina’s social interests. Nevertheless, the left-right protest resonates with many rank and file employees, especially when export revenues decline and the Fernandez regime lacks the funds to maintain the social spending of the past decade.

The political challenge for the consequential Left is to defend democracy against this opportunist ‘Left’-Right onslaught while defending workers’ interests in the face of a decaying center-left regime bent on pursuing its contradictory program.

Conclusion: The Dilemmas of Capitalist Democracies

The capitalist democracies of Egypt and Argentina face similar Left-Right alliances, even though they differ sharply in their socio-economic trajectory and social bases of support. Both Argentina and Egypt have emerged from brutal dictatorships in recent years: Argentine democracy is nearly 30 years old while Egyptian democracy is less than a year old. Argentine democracy, like Egypt’s, has been confronting powerful authoritarian institutions leftover from the dictatorial period. These are entrenched especially in three areas: the military and police, the judiciary and among sectors of the capitalist class. They all benefited from the special privileges granted by the dictators.

In Argentina, over the past decade, Presidents Kirchner and Fernandez succeeded in purging the state apparatus of criminals, murderers and torturers among the military, police and judiciary. In Egypt, the Morsi regime, in its short time in office, hesitated at first, but then moved forward replacing some Mubarak military commanders and promising to investigate and prosecute those Mubarak-appointed officials involved in the killing and torture of pro-democracy demonstrators. The Egyptian reactionaries struck back: Mubarak-appointed judges denied the legality of the democratically elected legislature and constituent assembly. In Argentina, powerful agrarian interests and the right-wing mass media conglomerate, which had backed the dictatorships, struck back as the government moved to end the corporate media monopoly and tax concessions to the agro-export elite. The conflict between the dictatorial right and the democratic center-left in Argentina and the conflict between the Mubarak judiciary and the Islamist neo-liberal elected regime is partially obscured by the active involvement of leftists, secular liberals and other ostensibly ‘pro-democracy’ forces on the side of the Right.

Why has ‘the left’ crossed the line, joining forces with the anti-democratic right?

Their opportunism arises primarily from the fact that they did so poorly in the elections and do not see any role for themselves as an electoral opposition. By joining with the right-wing protests, the left and secular liberals mistakenly imagine they can revive their faltering support.

Secondly, the Left senses the economic and social vulnerability of the elected regimes because of the global and local crises, exacerbated by declining export revenues. They hope to attach their political demands to those of the upper and middle class protestors who have been mobilized by the Far Right.

Thirdly, by joining forces with the Right, allied with the US and EU, the leftist protestors hope to gain international (imperial) support, recognition, respectability and legitimacy … temporarily. Of course if the Right succeeds, the Left will be marginalized and discarded as ‘useful idiots’.

The imperial threats to cut off credits, loans and markets to both regimes should logically have led to a united front – a tactical alliance – between the Left and the embattled regime, especially in the case of Argentina. In the case of Egypt, secular liberals and leftists should have joined with the Morsi regime to oust the remnants of the brutal Mubarak regime. They should have supported the elected legislature, even while challenging Morsi’s pacts with the IMF, the US, EU and Israel. Instead, secular liberals appear to agree with the regime in its reactionary socio-economic policies. Worse, by joining with the reactionary judges in totally rejecting the referendum vote on the new constitution, the Left missed an opportunity to mobilize and challenge the regime and educate the public about its specific reactionary clauses.

By opposing the progressive democratic process as well as the regime, the Left has opened the door for the Right to return. By forcing incumbent presidents to ‘make a deal’ or compromise with the elite, the left is further isolating themselves. Both Morsi and Fernandez are vulnerable to leftist pressure and, over time, popular and class-based movements could find themselves in a position to pose a real alternative…. if they clearly and honestly reject the authoritarian and imperialist right. By joining in opportunist alliances to score some small victories today, they foreclose any possible role in the near future of forming progressive democratic leftist governments. By burning government offices and destroying the electoral offices of the Muslim Brotherhood, the self-styled ‘democrats’ are creating the basis for the seizure of state power by the military.

Notes

[i] In the parliamentary elections the two major Islamist parties polled over 27 million votes (18 million for the Muslim Brotherhood and Morsi), the liberal-left opposition received approximately 7.5 million votes and the Mubarac-era parties got 2 million. The Islamist parties totaled about two-thirds of the electorate, which translated into the same proportion of elected legislators (358 out of 508). The liberal-left parties received slightly over 26% of the vote and the Mubarak parties got about 8%. The anti-Morsi rioters are a clear and decisive minority and their violent assault on the governing regime is, by any measure, an attempt to impose minority rule, denying and marginalizing the nearly 18 million voters who elected the Morsi Government and Muslim Brotherhood-dominated Congress.

[ii] Cristina Fernandez was first elected in October 2007 with 45.3% of the vote, a 22% lead over her nearest rival. In the most recent elections in October 2011, she was re-elected with 54.1% of the vote, a 37.3% margin over her nearest competitor.

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James Petras is a Bartle Professor (Emeritus) of Sociology at Binghamton University, New York. He is the author of 64 books published in 29 languages, and over 560 articles in professional journals, including the American Sociological Review, British Journal of Sociology, Social Research, Journal of Contemporary Asia, and Journal of Peasant Studies. He has published over 2000 articles in nonprofessional journals such as the New York Times, the Guardian, the Nation, Christian Science Monitor, Foreign Policy, New Left Review, Partisan Review, Temps Moderne, Le Monde Diplomatique, and his commentary is widely carried on the internet. His most recent books are: The Arab Revolt and the Imperialist Counterattack (Clarity Press 2012) 2nd edition, The Power of Israel in the United States and Rulers and Ruled in the US Empire: Bankers, Zionists and Militants, (acquired for Japanese, German, Italian, Indonesian, Czech and Arabic editions), Zionism, Militarism and the Decline of US Power, Global Depression and Regional Wars: The United States, Latin America and the Middle East, and War Crimes in Gaza and the Zionist Fifth Column in America. He has a long history of commitment to social justice, working in particular with the Brazilian Landless Workers Movement for 11 years. In 1973-76 he was a member of the Bertrand Russell Tribunal on Repression in Latin America. He writes a monthly column for the Mexican newspaper, Le Jornada, and previously, for the Spanish daily, El Mundo. He received his B.A. from Boston University and Ph.D. from the University of California at Berkeley.

December 10, 2012 Posted by aletho | Deception, Economics | 2011 Egyptian revolution, Egypt, Islamism, Morsi, Muslim Brotherhood | Leave a comment

Austerity, Obama-Style

The Plutocrats and the Placeholder President

By Rob Urie | December 7, 2012

In Quentin Tarantino’s movie ‘Jackie Brown’ the illegal arms dealer played by Samuel L. Jackson laughs as he recounts the sales slogan used by the manufacturer of the ‘Tech Nine’ semi-automatic weapon—“the most popular gun in American crime, like they proud of that shit.” Mere weeks after Barack Obama was re-elected farce is added to tragedy with his supporters complaining that while the Republican proposal to cut Federal government spending and social insurance programs is all bluster and misdirection, their guy (Mr. Obama) has a real plan to do so—like they’re proud of that shit. Thanks just the same folks, but I’ll take the fake plan.

The moment when the New Deal as we knew it became history by bi-partisan consensus was a long time coming. A trans-generational core of inherited wealth and right-wing cranks has been trying to undo the New Deal since Social Security became fact in 1935. Ronald Reagan echoed anti-New Deal cries of ‘socialism,’ first as a paid spokesperson of the AMA (American Medical Association) against the implementation of Medicare and Medicaid, and later through his racist caricature of the ‘welfare queen’ living fat on public largesse. Despite the fact that Social Security is an insurance program paid for by its participants, much the same as private insurance but without the executive looting, the charge has always been of an undeserving public sucking on “a milk cow with 310 million tits.”

Democrats first joined the effort in earnest with Bill Clinton’s plan to partially privatize Social Security. The idea was to let our good friends on Wall Street manage a bit of the money for us, for a fee of course. That proposal faltered when Mr. Clinton was impeached. As was the fashion in European Central Bank circles in 2009, Mr. Obama took up the torch of fiscal austerity of his own initiative by creating his very own deficit commission. This should have come as no surprise to anyone paying attention—Mr. Obama publicly stated his intention to ‘fix’ Social Security, Medicare and Medicaid when he allied himself with the Wall Street friendly ‘Hamilton Project’ in 2006.

(In Between Democrats Clinton and Obama came Republican George W. Bush who also tried to partially privatize Social Security. Mr. Bush quickly retreated when he saw the depth of political opposition to the effort. As the saying goes, it takes a Democrat to gut the New Deal).

For the uninitiated, the Hamilton Project is the demon spawn of the Clintonite contingent of the Democratic Party led by former Treasury Secretary and disgraced Citicorp Board member Robert Rubin. The kindest take on the Wall Street lootocracy populating the organization is that they don’t know how money is created (the U.S. has a fiat currency), making them morons. The less kind take is that their greed has no limits. Whichever is more applicable (neither is mutually exclusive), if one group of Wall Street politicos bears responsibility for the economic catastrophe that an unregulated Wall Street has visited upon the world in recent years, the Hamilton Project is it.

Never one to let the wish list of the entrenched plutocracy go unfulfilled, Barack Obama chose Democrat, inheritance baby and Wall Street ‘welfare queen’ Erskine Bowles, to co-head his (Mr. Obama’s) very own ‘deficit commission.’ Of course Mr. Obama knew nothing of Mr. Bowles experience leading the earlier effort to (partially) privatize Social Security when he appointed him to the position. In his speech welcoming the Hamilton Project into existence (link above), Mr. Obama additionally described himself as an enthusiastic ‘free trader’ committed to globalization. And of current relevance, he ascribed fiscal ‘discipline’ as the proximate cause of the Clinton economic ‘boom,’ deftly ignoring the greatest stock market bubble (as measured by price / earnings ratio—twice that of 1929) in human history.

One could be forgiven for believing that Mr. Obama, or any other placeholder Democrat for that matter, has something of a point regarding ‘entitlement’ spending if his words are the only that are listened to. People in the U.S. are living longer and a strapped citizenry simply cannot afford the lavish promises made in an earlier age of plenty goes the toxic bullshit. By leaving out class divisions this formulation simply furthers the shift in social resources upward from poor to rich. As economist Paul Krugman has effectively argued, the rich are living longer and the working class and poor are not. Additionally, unless those in the ‘gap’ years between the old and new eligibility ages for Medicare simply forgo health care, the change will force them to purchase private health insurance under whatever terms the ‘market’ will bear. But of course, private insurance companies always act in the public interest when people’s backs are to the wall.

At the end of the day this charade is a struggle over social resources. The ‘too-big-to-fail’ guarantee of the banks, which is the only reason why insolvent, predatory Wall Street remains in business, is an entitlement program for connected bankers—for which they pay nothing. The bloated, murderous, military industry that lobbies the U.S. into unnecessary wars for their own benefit and that of corporate welfare receiving multi-national corporations is an entitlement program. And the aforementioned corporate welfare that perpetuates the puffy, gray corporate executives behind the ‘Fix the Debt’ campaign for whom official Washington now apparently works is an entitlement program. So if we want to have a public ‘discussion’ of entitlement spending, by all means let’s do so.

And as far as entitlement programs go, government guarantees and redistribution schemes are only a starting point. As economist Dean Baker has argued, America’s professional class retains monopoly pricing power for their labor through trade restrictions while the working class has been thrown to the wolves. The Federal Reserve has spent upwards of four trillion dollars to entitle the fortunes of the investor class since 2008, returning the already rich to their former wealth. And corporate executives have entitled themselves to robber-baron sized paychecks through the combination of trade policies that have so reduced the fortunes of the working class, tax abatements that have bled the public weal for some forty years, and through the financialization of the economy that has favored, along with Federal Reserve policies, the financial wealth that executives pay themselves with. All of these and more are entitlement programs that have redistributed ever more social wealth from the working class and poor up to the Washington establishment’s beloved plutocrats.

But the trillions of dollars in health care expenditures that we deadbeats intend to sponge off of the blessedly deserving rich is the really big money, right? When Erskine Bowles wakes with night terrors, it is my herniated disk and your gall bladder operation that will sink the country, right? The U.S. pays 30% – 50% more per person than other first world nations for health care that is of substantially lower quality because we have a largely private health care system. Were the system totally public—Medicare for all, we would realize some material proportion of these savings and most likely vastly improve the health of the citizenry. Were the monopoly entitlements of doctors and pharmaceutical companies reduced or eliminated, further cost reductions would be realized. So quickly, who are the main beneficiaries of America’s ‘bloated’ entitlement programs?

As Mr. Obama will offer, his proposals include reducing payments to health care providers and negotiating lower prices for prescription drugs. However, the private health care system in America is the global leader in shifting costs to those with the least social power. Cuts in public payments to private providers have a long history of popping up elsewhere, as health insurer profits will attest. For instance, Mr. Obama’s health care ‘reform’ program, the ACA (Affordable Care Act), requires insurance companies to spend fixed percentages of their revenues providing health care or to rebate the difference to their customers. As corporations constitute the majority of their ‘customers,’ corporations apparently now have an incentive to shop around for health insurers that provide the lowest proportion of health care to their employees to maximize the rebates. (The central business of insurers was already to provide the appearance of coverage without providing actual coverage). And health insurance providers can gain market share, if at lower margins, by doing exactly this. Welcome to America.

Last, any honest discussion of ‘entitlements’ would be to the benefit of America’s poor and working classes. The globetrotting plutocrats behind current ‘discussions’ see working class product as their due. This is the very definition of entitlement. We can either disabuse them of this notion or roll over and play dead. Or better yet, roll over and vote Democrat.

Rob Urie is an artist and political economist in New York.

Source

December 8, 2012 Posted by aletho | Economics, Progressive Hypocrite, Supremacism, Social Darwinism, Timeless or most popular | Erskine Bowles, New Deal, Obama, Social Security, United States, Wall Street | Leave a comment

Bolivia signs Mercosur incorporation protocol and becomes sixth member

MercoPress | December 8th 2012

Bolivian president Evo Morales subscribed on Friday the Mercosur incorporation protocol which makes it the sixth member of the regional group. The event took place in Brasilia during the Mercosur summit hosted by Brazilian president Dilma Rousseff.

At the summit which also included associate members, President Morales and his peers signed the document. “With the signing of the protocol, Bolivia becomes the six member state of Mercosur”, announced officially the spokesperson for the Brazilian Executive.

“The protocol defines the different stages and commitment to reach the full incorporation of Bolivia to Mercosur”, added the spokesperson. “The full membership will take place once the Legislatives of the other full members ratify the protocol”.

“Evo, you are most welcome” said president Rousseff before the signing of the document. “This has been good news for the summit. We have skipped years of negotiations with the Bolivian decision to sign the adhesion protocol”.

At the summit President Rousseff as chair of Mercosur stamped her signature to the definitive incorporation of Venezuela as full member which was decided in an extraordinary meeting last July in Rio do Janeiro.

At the summit also, Brazil handed the rotating chair of Mercosur to Uruguay in the hands of President Jose Mujica, for the next six months, thus skipping Paraguay, temporarily suspended and which according to alphabetical order was to have such responsibility.

Brazil calls for better integrated trading bloc (vancouverdesi.com)

December 8, 2012 Posted by aletho | Economics | Bolivia, Mercosur, South America | Leave a comment

US exempts 9 countries from sanctions on Iranian oil industry

Press TV – December 8, 2012

Nine countries have been granted extended waivers of the illegal US sanctions on Iran due to their reductions of purchases of Iranian crude oil.

On Friday, US Secretary of State Hillary Clinton added China, India, South Korea, Malaysia, Singapore, South Africa, Sri Lanka, Turkey, and Taiwan to the list of countries exempt from the sanctions for another six months, the Associated Press reported.

On September 14, the United States exempted Belgium, Britain, the Czech Republic, France, Germany, Greece, Italy, the Netherlands, Poland, Spain, and Japan from complying with the sanctions on Iran’s oil industry for another 180 days.

At the beginning of 2012, the US and the European Union imposed new sanctions on Iran’s oil and financial sectors with the goal of preventing other countries from purchasing Iranian oil and conducting transactions with the Central Bank of Iran.

The illegal US-engineered sanctions were imposed based on the unfounded accusation that Iran is pursuing non-civilian objectives in its nuclear energy program.

Iran rejects the allegations, arguing that as a committed signatory to the nuclear Non-Proliferation Treaty (NPT) and a member of the International Atomic Energy Agency (IAEA), it has the right to use nuclear technology for peaceful purposes.

In addition, the IAEA has conducted numerous inspections of Iran’s nuclear facilities but has never found any evidence showing that Iran’s civilian nuclear program has been diverted to nuclear weapons production.

December 7, 2012 Posted by aletho | Economics, Wars for Israel | Iran, Sanctions against Iran, United States | Leave a comment

Double Your Trouble With Nuclear Power

By JOSEPH MANGANO and Dr. JANETTE SHERMAN, MD | CounterPunch | December 5, 2012

Industry leaders will have no problem closing nuclear reactors that don’t generate expected profits. Exelon, the Chicago-based company that owns 17 of the 104 U.S. reactors, recently saw its stock price drop below $30 a share, the same level as mid-2003, and a whopping 70% below its peak of over $92 a share in mid-2008.

The standard explanation for this reversal is cost. In particular, electricity from growing natural gas and wind sources costs less to produce than that from nuclear reactors. The famous 1954 promise by Atomic Energy Commission head Lewis Strauss that the atom would create energy “too cheap to meter” has failed miserably. But while cost is the reason why utilities will be closing reactors, most reports fail to look beneath the surface and understand WHY nukes are so expensive.

The answer is that nuclear power poses great danger to safety and health. This danger means that reactors must comply with numerous safety regulations; must be built with many safety features; and must be manned by a large and highly trained work force – each a high-ticket item. In addition, the fleet of 104 U.S. reactors in operation is aging – most over 30 years old – requiring that corroding parts be replaced, pushing costs even higher.

Another element in the high cost of nukes won’t be faced until they are decommissioned (after closing). Decommissioning costs run hundreds of millions of dollars per reactor. Utilities are forced by federal law to keep a large decommissioning fund while operating reactors, to prevent them from simply closing reactors, not securing them, and sticking taxpayers with the bill.

Even with all these extensive and expensive efforts to protect the public, nukes still aren’t safe. The chance of a meltdown exists every day, from human error, natural disaster, or terrorist act. The disasters at Chernobyl in 1986 and at Fukushima last year remind us that catastrophic meltdowns that affect thousands to millions are a sobering reality. In addition to meltdowns, there is the matter of routine emissions from reactors and elevated cancer rates near reactors, demonstrated in many studies. Finally, the U. S. and other nations still have no long-term plans to store the massive amounts of hazardous nuclear waste.

Dominion Nuclear recently announced that the Kewaunee reactor in Wisconsin will permanently shut down in the spring. This action is a milestone. Not only will this be the first U.S. reactor closed since 1998, but it will likely be followed by numerous other shutdowns. An October 23 New York Times article was headlined “Reactors Face Mothballs.”

Kewaunee’s closing also represents a turning point. For over a decade, nuclear leaders steadily proclaimed an era of a revival, after years of no growth. But the word “renaissance” has vanished, and nuclear power is now in full retreat.

So which reactors will join Kewaunee and be the next to close? Nobody knows for sure, but there are a number of reactors that are faring poorly, and are candidates for shutdown:

– Crystal River (Florida), closed for over three years, needs considerable funds to replace defective parts

– San Onofre (California, two reactors), closed for nearly one year due to faulty steam generators, will require millions to repair.

– Oyster Creek (New Jersey), which must shut down by 2019, may close sooner according to Exelon executives who cite costs and market forces

– Vermont Yankee (Vermont), up for sale (and like Kewaunee with no buyers), along with stiff opposition from local citizens and elected officials

– Clinton (Illinois), another Exelon reactor, has been hit hard by cheaper alternatives

– Indian Point (New York, two reactors), faced considerable citizen and political opposition ever since a plane hijacked by terrorists on 9/11 flew directly over it on its way to the World Trade Center.

This autumn has been the worst period for U.S. nuclear reactors in a long time. Hurricane Sandy caused six reactors to close temporarily, while others were shut to change fuel, and others closed due to mechanical problems. From mid-October to late November, U.S. reactors operated at just 70-75% of capacity, down sharply from the 90% figure of the past decade.

Shrinking nuclear power is even more pronounced overseas. In Japan, nearly two years after Fukushima, only 2 of 54 reactors are operating, and the majority of Japanese are fiercely opposed to restarting any reactors. Soon after Fukushima, governments in Germany, Belgium, and Switzerland announced plans to phase out nuclear power, and Germany has already closed half a dozen reactors.

The business troubles facing reactors are nothing new – historical construction costs far exceeded original estimates, and Wall Street executives stopped lending money for new reactors in the 1970s. Fewer reactors will mean reduced threats to health but also reduced costs – proving what’s good for the environment is also good for business.

Joseph Mangano, MPH MBA, is an epidemiologist, and Executive Director of the Radiation and Public Health Project (www.radiation.org).

Janette Sherman, MD is an internist and toxicologist. (www.janettesherman.com).

‘A huge setback for, if not the end of, the American nuclear renaissance’ (alethonews)
EDF Falls in Paris on Rising Costs for Normandy Nuclear Reactor – Bloomberg (bloomberg.com)
Even France can’t build a nuclear reactor economically, and in the planned time (nuclear-news.net)
South Korea Shuts Down 2 Nuclear Reactors (blogs.voanews.com)

December 5, 2012 Posted by aletho | Economics, Environmentalism, Nuclear Power | Exelon, Fukushima, Joseph Mangano, Lewis Strauss, Nuclear power | Leave a comment

Mexico strikes largest on land light oil deposit in a decade

MercoPress | December 4, 2012

Mexico’s government oil and gas giant Pemex confirmed the discovery of a crude reserve which could hold over 500 million barrels, and described as the largest on land strike in the last decade.

“Navegante 1” is located in the southern state of Tabasco, 20 kilometres from the state capital of Villahermosa and was drilled to 6.800 metres. The 3P reserves test (proven, possible, probable) of the well is estimated in over 500 million barrels, although other exploratory wells in the basin could take that figure to a billion barrels.

Pemex said that the drilling showed the existence of a column of 315 metres of light crude covering an area of 87 square kilometres, which makes it the largest discovery on land in the last decade in the country.

“The assessment of the oil potential of the field which covers 87 square kilometres indicates a 3P reserve estimate of over 500 million barrels of oil equivalent” said Pemex anticipating that further wells to establish the delimitation of the deposit are to be drilled.

The ‘Navegante 1’ on land adds to several discoveries offshore in the Gulf of Mexico which ensures Pemex can recover its level of reserves that have been falling for years. The discovery was also excellent news for the recently sworn in President Enrique Peña Nieto. Oil is a major export of the country and a strong contributor to the national budget.

December 4, 2012 Posted by aletho | Economics, Malthusian Ideology, Phony Scarcity | Light crude oil, Mexico, Navegante Group, Pemex | Leave a comment

FARC has ‘always wanted peace’ in Columbia – RT exclusive

RT | December 4, 2012

Colombian rebel militants FARC seek dialogue and peace with the country’s government, FARC negotiator Tanja Nijmeijer told RT in an exclusive interview. But despite renewed peace talks, government forces killed at least 20 rebels in a recent attack.

Dutch militant Tanja Nijmeijer – who left the Netherlands 10 years ago to join the Revolutionary Armed Forces of Colombia (FARC) and fight for what she calls social justice – spoke with RT, saying that the rebel organization wants to end the country’s 50-year conflict.

“We as an armed organization have always wanted a dialogue, we’ve always wanted peace, we have always asked for peace,” she said.

“We have not taken the arms because we wanted so. We have taken the arms because the Colombian State and the United States imperialism have obliged us to do so,” Nijmeijer said.

Talks between the Colombian government and FARC over fragile peace negotiations are set to resume in Havana, Cuba, on December 7.

At least 20 left-wing rebels were killed in Colombia on Sunday after airstrikes against their camp near the Ecuadorian border, the army said. The attack came after FARC announced a ceasefire until January 1, 2013, for the negotiations.

“People who are in Colombia want to fight for ideas different from neoliberal are killed,” Nijmeijer told RT. “So how is it possible to participate in politics if people who have other ideas are killed. And that’s the reason of arm struggle in Colombia. That’s the reason why we are still fighting.”

Colombian President Juan Manuel Santos has set a deadline of November 2013 for an agreement to be reached in the peace talks with FARC. “This has to be a process of months, rather than years. In other words, this should not last any longer than November next year at the latest,” Santos said.

The president’s statement followed an acknowledgement by FARC that it was holding “prisoners of war” – reportedly soldiers or police captured during combat. FARC stated that the prisoners would be freed in exchange for the release of rebels held by the government.

The Colombian government currently detains around 700 rebel prisoners, according to Sandra Ramirez, one of FARC’s representatives.

The US has been criticized for its role in helping the Colombian government kill members of FARC; Washington’s military assistance to Columbia has been directed primarily towards killing FARC militants.

In nearly a half-century of conflict in Columbia, an estimated 600,000 people have died and another 15,000 gone missing. Some 4 million people have also been internally displaced.

Find out more about FARC and the peace process from RT’s full exclusive interview with Tanja Nijmeijer, airing Wednesday at 18:45 GMT.

December 4, 2012 Posted by aletho | Civil Liberties, Economics | Colombia, FARC, Juan Manuel Santos, Revolutionary Armed Forces of Colombia, Tanja Nijmeijer | Leave a comment

Mexico: Peña Nieto Takes Office as Youths Riot

Weekly News Update on the Americas | December 3, 2012

Protests against Mexican president Enrique Peña Nieto during his inauguration on Dec. 1 quickly turned into violent confrontations between police and demonstrators that disrupted much of downtown Mexico City. The protests were called by the National Convention Against the Imposition, a coalition of groups holding that Peña Nieto’s election last July was manipulated, and #YoSoy132 (“I’m number 132”), a student movement that arose in the spring in response to the election campaign [see Update #1130]. But masked youths, many of them wearing black t-shirts with anarchist symbols, quickly became the center of attention at the Dec. 1 demonstration.

The confrontations began around 7 am near the San Lázaro subway and bus stations at the heavily guarded and barricaded Chamber of Deputies, where the inauguration was to take place about three hours later. Determined to break through the metal barriers, the masked youths threw rocks, metal pipes and Molotov cocktails at the federal police, who responded with exceptional violence, using tear gas, pepper spray and water cannons. The media reported that the agents also used rubber bullets; police spokespeople denied the reports. Many #YoSoy132 supporters moved away from the masked youths, as did the famously militant teachers from the southern state of Oaxaca, although both groups organized brigades to assist protesters who were wounded or were overwhelmed by the tear gas.

Dozens of protesters were injured. At around 10 am #YoSoy132 reported that a youth named Carlos Yahir Valdés had been killed by a tear gas canister or a rubber bullet; Adrián Ramírez, president of the Mexican League for the Defense of Human Rights (LIMEDDH), said the victim was named Carlos Valdivia and had been seriously wounded but not killed.

Eventually the youths in black moved west towards the Zócalo plaza and then on to the Palacio de Bellas Artes cultural center and the Alameda park. Along the way they smashed windows, streetlights, phone booths and ATMs; looted stores and gas stations; and battled the Mexico City police. At times passers-by supplied the protesters with bricks to throw at the police, while smiling tourists took pictures. At least one private car was destroyed and one motorcycle was set on fire. (La Jornada (Mexico) 12/2/12)

During his first day in office, President Peña Nieto announced “13 specific decisions” to improve the situation in Mexico, including a universal social security system, life insurance for heads of households, educational reforms, and revival of passenger railroads. He also promised to maintain a zero deficit in the budget while carrying out his programs. (LJ 12/2/12)

Outgoing president Felipe Calderón Hinojosa (2006-2012)–whose militarized fight against drug trafficking set off the violence in which 50,000 Mexicans died, according to critics—is planning to leave Mexico, at least temporarily. On Nov. 28 Harvard University’s John F. Kennedy School of Government in Cambridge, Massachusetts, announced that Calderón will hold a one-year fellowship at the school starting in January. “This fellowship will be a tremendous opportunity for me to reflect upon my six years in office,” Calderón said in a statement.

Calderón received a master’s degree from the Kennedy school in 2000. The Reuters wire service noted that other recent students at the school include Bo Guagua, son of ousted Chinese politician Bo Xilai, and Paula Broadwell, co-author of a book about former US Central Intelligence Agency (CIA) director Gen. David Petraeus, who resigned after acknowledging that he’d had an affair with her. (Reuters 11/28/12) Another former student was the late Guatemalan general Héctor Alejandro Gramajo Morales. At his graduation in June 1991 human rights activists served Gramajo with court papers for a federal civil suit under the Alien Tort Claims Act; nine Guatemalans charged him with acts of torture, abduction and murder during counterinsurgency operations in western Guatemala in 1982, when he was army chief of staff. Gramajo lost that and another human rights suit later in the year by default [see Update #737].

Photos: Protests as Mexico’s President Enrique Pena Nieto takes office (photos.denverpost.com)

December 4, 2012 Posted by aletho | Civil Liberties, Economics | Enrique Peña Nieto, Felipe Calderón, Institutional Revolutionary Party, Mexico, Mexico City, Peña Nieto, President of Mexico | Leave a comment

Peña’s Promises

By Laura Carlsen – Americas Program – 03/12/2012

Against the sharply contrasting backdrop of violent conflicts in the streets and carefully staged official events, Enrique Peña Nieto took office yesterday. The general outlines of the plan for his six-year term, although still not detailed, reveal proposed changes not unlike the new president–mostly cosmetic and devoted to appearances on the surface.

After taking the oath of office in the Chamber of Deputies at San Lazaro and swearing in his cabinet, the newly inaugurated president appeared before guests at the National Palace in the central plaza to deliver his first speech as Chief Executive.

Peña Nieto began his speech with a rapid pass through Mexican history, citing pre-hispanic and Spanish culture, the liberal and revolutionary currents and “the recent past”. Without mentioning the PRI, he emphasized the orderly change of power since 1934 and “accelerating democracy”, ironically dating from 1968–the year his party massacred hundreds of students in Tlatelolco.

He concluded with what would be the tonic of the speech-that Mexico is “ready to take off” and “everyone agrees that we have an historic opportunity.” His speech centered on the “Mexican Moment”, the idea of a turning point when Mexico would finally enter into a period of peace, prosperity and global recognition.

He did mention the challenges along the way, stating that Mexico is a nation that “grows at two speeds, one of progress and development and the other in backwardness and poverty” and citing the lack of employment and educational opportunities. His speech included a number of specific if not detailed measures that provide fodder for analysis.

Peña Nieto began with the “five strategic points” of his new government:

1. Mexico at peace: Peña offered to “put the citizen at the center of security policy.” He referred to this as a “change in paradigm”, without mentioning the drug war by name or the 60 to 80,000 killed under this model during the Calderon administration. He promised greater coordination between agencies and an effort to combat impunity and concluded, “There can be no security as long as there is no justice.”

2. An inclusive Mexico: Peña Nieto promoted to build an “inclusive” Mexico and close the gap of inequality so all mothers and fathers can support their families. He said Mexico should become a fair, middle-class society.

3. Quality education for all: that educates students to be responsible and committed to their communities.

4. Economic growth: through greater competitiveness, more credit, more investment in infrastructure, strengthening the domestic market and expanding the global market so Mexico can take its place as an emerging economy.

5. Mexico as a responsible global actor: Participation in the world through modern diplomacy, so Mexico becomes a factor of stability in the world and a voice that defends liberty. He also used this point to thank the leaders from abroad present.

Behind the promises

The five points are formulated in vague terms, as is usually the case with presidential promises. However, we can use what was said to anticipate the challenges and possible contradictions they pose, and gauge the political will to carry them out over the next six years.

Security policy. Peña Nieto explicitly referred to “a change in paradigm”. This is notable, since it is what the peace movement and critical analysts (CIP Americas Program among them) have been calling for for years. But there is very little in the strategic point or the “13 decisions” listed afterward to back it up.

A real change in paradigm would require two measures that the Peña government has said it will not take: withdrawing the armed forces from counternarcotics efforts and renegotiating security cooperation with the U.S. government. Peña has proposed a “gendarmery”, which is a militarized police force, or a military force charged with police duties among civilian populations. This is what Mexico already has, as the lines between police and military have been blurred precisely by the drug war. Without a plan for reducing militarization, promises to “rethink” the drug war pale.

The U.S. government has actively promoted and supported the drug war model of enforcement and interdiction through the Merida Initiative and spearheaded the massive expansion of U.S. counternarcotics activities in the country. Although both the US and Mexican governments have privately (in Wikileaks cables) and publicly admitted that the strategy has not worked — they insist it’s just a matter of time–the response is to continue with no major adjustments or real evaluations.

U.S. defense, intelligence and security companies depend on the Mexican drug war to obtain multi-million dollar government contracts. The Pentagon and other U.S. agencies have achieved unprecedented freedom to act and even direct actions on Mexican soil as a result of the Merida Initiative. The hawks in government and the war industry will not give that up easily. Peña Nieto knows that and he also knows that his nation’s economy is highly dependent on its northern neighbor. U.S. politicians worried aloud that his government would attempt to negotiate deals with drug cartels, an option which is practically impossible now due to the changes in structures of organized crime. Peña Nieto has reassured the U.S. that his administration will continue the drug war. That means continued deaths, disappearances and social upheaval. There is no mention of redefining security or human security, although the concept of putting the citizen in the center, rather the state, could be construed as coming closer to that concept.

Referring to the need for justice and eliminating impunity is a politically correct but unsubstantiated move. Impunity underlies government institutions and the corruption of the justice system historically is a PRI construct. Impunity has to be attacked from above, because it has been condoned and even promoted from above for so long. The examples of what has happened to former PRI governors accused of serious crimes against the population such as Ulises Ruiz in Oaxaca and Mario Marín in Puebla and even Peña Nieto himself for his role in the murders and rapes in the community of Atenco are illustrative. Nothing at all has happened to them. The teflon coating of PRI politicians has been carefully preserved, with a few notable exceptions such as ex-governors Tomas Yarrington (charged and on the run) and Mario Villanueva (extradited to the U.S.), who have been prosecuted for drug war crimes at the behest of U.S. authorities.

Economic policy:Making Mexico truly “inclusive” would require some structural changes in economic policy that are not likely to come about in a Peña government. The goal of this strategy is largely contradicted by the formula for economic growth indicated in the fourth point and in other statements by the new president.

He has committed to deepening rather than fixing NAFTA, meaning the countryside will continue to be decimated by unfair competition with subsidized U.S. agricultural imports and the state is barred from basic measures such as favoring national industries in purchases and contracting or protecting vulnerable sectors from oblivion. Strengthening the internal market while expanding the global market sounds great, very balanced, but in reality they require different, and often contradictory, policies.

For example, building a strong domestic market requires supporting national production, which is logical and needed but prohibited under neoliberal trade rules, where Mexico is a world leader in signing draconian free trade agreements. It also requires having a population with purchasing power, while emphasizing foreign investment and being competitive on a global market rigged against workers requires suppressing salaries–something Mexican governments have been doing over the past three decades of PRI and PAN governments.

The laudable goal of investment in infrastructure begs the question of ‘investment for who?’ and leaves open how the administration will deal with controversial infrastructure projects that violate indigenous and human rights. More credit would be a good idea, but up to now what little has been available has gone overwhelmingly to large and powerful producers, further skewing the distribution of income.

Improving education: This requires two major moves–devoting more public resources to education and taking on the entrenched leadership of the corrupt teachers’ union. Several analysts have stated that the appointment of Emilio Chauyfett as Secretary of Education is a blow to Elba Esther Gordillo, the life-long leader of the teachers’ union (SNTE). I am not convinced.

Gordillo is a political operator who climbed to the top by wielding the power of an enormous machine for generating votes and political clientele. This machine was created and sustained by the PRI. Her capacity to exchange favors allows her to call the shots in the nation’s education system. To change that would require democratizing the union. The principle forces to democratize do, and must, come from below. The CNTE, organized to crack open the patronage and corruption of the union, is largely anti-PRI and opposed Peña Nieto. His administration is unlikely to do anything that would strengthen the grassroots union democracy (his party blocked the transparency in union matters part of the labor reform) or permanently alienate the SNTE leadership.

Global affairs: So little of substance was said here that it’s hard to know what the Peña administration will change. The written version speaks of restoring Mexico’s rightful place in the concert of nations” as a “country supportive and committed to the best causes of humanity”. It’s anyone’s guess what that refers to. Peña Nieto told Wolf Blitzer of CNN, who pointedly asked what relations with Castro and Hugo Chavez would be like, that he would be building relations in the south and north. This is a recognition that the PAN governments were early exclusively oriented northward to the U.S. and hostile to center-left governments of the South.

Mexico has at times acted as a U.S. proxy in the region, causing other countries to view it with certain suspicion. The U.S. government has actively used the Mexican government in this sense. As the Obama administration pushes divisions in the region with the Pathways to Prosperity program that allies only nations that agreed to sign free trade agreements with the US and increasing military presence of allied countries under the drug war strategy, it will not be easy for Peña Nieto to trace a neutral or balanced foreign policy within the hemisphere, if that is indeed the objective.

Opposition organizations have vowed to shift their efforts from challenges to the elections to challenges to policies they believe are harmful to the country. The center-left leader and former candidate Andrés Manuel López Obrador refused to recognize the new president and is building a new party. The youth movement now is stunned and angered by the violent response of the police while also calling on its members to reject violent confrontation.

The most commonly heard phrase from analysts following Peña Nieto’s inaugural speech, is “the devil’s in the details”. Although Peña Nieto followed up on these five strategic points with 13 decisions that included more specific actions, he still left much room to speculate.

Political promises are often, if not usually, set aside when the real task of governing begins, and one is left to wonder if they were sincere and not practical, or designed to build an image, not a government. The PRI is well-practiced in the art of simulation, of developing a public discourse and a backroom practice.

In any case, the country and the rest of the world now have more clues as to what the return of the PRI will mean for Mexico, for the United States and for the region.

Laura Carlsen is Director of the CIP Americas Program in Mexico City http://www.cipamericas.org.

December 4, 2012 Posted by aletho | Civil Liberties, Economics | Enrique Peña Nieto, Institutional Revolutionary Party, Mario Villanueva, Mérida Initiative, Mexico, Peña Nieto, PRI | Leave a comment

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