Egyptian Minister Asks for Direct Flights between Tehran, Cairo
Fars News Agency | August 27, 2012
TEHRAN – Egypt’s Civil Aviation Minister Samir Embaby called for the start of direct flights between Tehran and Cairo due to the two nations’ enthusiasm for making reciprocal visits.
“The measure is necessary due to the eagerness of many Egyptian and Iranian people to make reciprocal visits,” Embaby was quoted by the Egyptian weekly, al-Youm al-Sabe’.
He also underlined that starting direct flights between the two countries would play a vital role for trade and economic ties between Iran and Egypt, and said the economic studies carried out in Iran indicate that 60% of Iranians like to visit different Egyptian cities, partly for religious tourism.
In relevant remarks in June, new Egyptian President Mohammad Mursi also underlined his enthusiasm for the further expansion of ties with Iran, and said relations between Tehran and Cairo will create a strategic balance in the region.
“The issue will create a strategic balance in the region,” Mursi told FNA in June, hours before the final results of the presidential election was announced.
Also in July, Iranian President Mahmoud Ahmadinejad and Mursi, in their first telephone conversation, conferred on the two Muslim countries’ ties and the Non-Aligned Movement (NAM) now underway in Tehran.
President Ahmadinejad said Tehran welcomes close interactions with the Egyptian government and nation, and attaches no limitations to the expansion of ties and cooperation with Cairo.
Ahmadinejad expressed Iran’s preparedness to transfer capabilities, achievements and experiences in various scientific, technological, industrial and economic fields to the Egyptian people.
Mursi is due to travel to Iran on August 30 to attend the NAM summit.
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US arms sales hit record high of $66.3bn in 2011
Press TV – August 27, 2012
The United States’ weapons sales tripled in 2011, reaching to a record high of USD 66.3 billion, with Persian Gulf Arab countries as the main customers, a new Congressional report said.
A new report from the Congressional Research Service said that the country’s weapons sales in 2011 was an “extraordinary increase” over the USD 21.4 billion in deals in 2010.
The report also said that the figure was the largest single-year sales total in the history of US arms sales.
The former high record was in 2009, when the country’s arms exports reached to USD 31bn.
Saudi Arabia was the largest customer of the US arms, as it bought USD 33.4bn worth of weapons, including 84 advanced F-15 fighters, ammunition, missiles and logistics support.
The Kingdom’s arms deal with the US also included dozens of Apache and Black Hawk helicopters and upgrades of 70 of the F-15 fighters in the current fleet.
The United Arab Emirates spent USD 3.49 billion to purchase a Terminal High Altitude Area Defense, which is an advanced anti-missile shield containing radars. The Arab nation also bought 16 Chinook helicopters for USD 939 million.
Oman also spent USD 1.4bn last year to buy 18 F-16 fighters.
Other significant customers for the US arms were India with a USD 4.1bn deal for 10 C-17 transport planes and Taiwan with USD 2bn for Patriot antimissile batteries, that has angered Chinese officials.
Average U.S. Household Has Lost 5% in Annual Income Since Economic “Recovery” Began
By Matt Bewig | AllGov | August 27, 2012
The rich are getting richer, and the poor really are getting poorer. According to a new report, Americans are earning less today on average than they were when the Great Recession, which began in December 2007, ended in June 2009. Using Census Bureau data, economists Gordon Green and John Coder determined that real median household income has actually fallen by 4.8% since the recession’s end. Even more surprisingly, they found that the decline since June 2009 was larger than the 2.6 percent decline that occurred during the recession. Adding them together, Green and Coder conclude that average household income has fallen 7.2% since December 2007.
According to Green, “almost every group is worse off now than it was three years ago, with the exception of households with householders 65 years old and over. For some groups of households—Blacks, men living alone, younger and upper-middle age brackets, those with some college but no degree, the unemployed, the self-employed, and those living in the West—the declines tended to be larger than average.” Racial inequality is reflected in the fact that income for white households declined by 5.2% while income for black households dropped by 11.1%, or more than twice the rate.
Not everyone has experienced a drop in income, however. As AllGov reported in July, a study from Northeastern University found that “corporate profits captured 88 percent of the growth in real national income while aggregate wages and salaries accounted for only slightly more than 1 percent” of growth since the recovery began in 2009. Corporations are posting record profits, while investors, who are disproportionately wealthy already, are earning large capital gains that are taxed at special low rates, leading to greater inequality and even slower economic growth.
UK changes position on IMF loan for Morsi’s Egypt
British officials refrain from giving full backing to Egypt’s $4.8 billion loan request, having previously supported such funding under military rule
By Amer Sultan | Ahram Online | August 25, 2012
London – The United Kingdom has refrained from backing Egypt’s request of a $4.8 billion loan from the International Monetary Fund (IMF).
“We prefer to wait and see the results of the negotiations between Egypt and the IMF,” a UK Foreign Office spokesperson told Ahram Online.
During her recent visit to Cairo, the IMF’s managing director, Christine Lagarde, received a formal request from Egypt for a $4.8 billion loan.
“The UK thinks that this is a good opportunity for dialogue between the two parties,” the spokesperson added.
Asked whether the UK would back the Egyptian request if the IMF board decides in its favour, the spokesperson replied: “We do not have anything to say for the time being.”
The UK’s caution seems to mark a significant change in its attitude towards Egypt’s calls for international assistance to overcome its economic difficulties.
The UK provides 5 per cent of the IMF budget, making it the fourth biggest contributor, with equivalent voting power. It follows the US (18 per cent), Germany (6 per cent) and Japan (6 per cent).
Early this year, the UK government was enthusiastic about an IMF offer of a $3.2 billion loan at a 1.5 per cent interest during Egypt’s period of direct military rule.
A high level UK diplomat then told Ahram Online that the offer was “an amazingly good deal” with “virtually no conditionality.”
UK support at the time followed a meeting of British representatives with the Supreme Council for Armed Force (SCAF), which until July 2012 had veto power on all political decisions.
The diplomat explained that his government felt the deal the IMF put to Egypt was very favourable.
Speaking this week, the Foreign Office spokesperson insisted there was no change in the UK positions on the IMF loan after President Morsi took the reins of power from SCAF.
During her visit to Egypt last Wednesday, Lagarde met Morsi and his prime minister Hesham Kandil, and praised the Egyptian vision for reform.
“We are impressed by the strategy that President Morsi and Prime Minister Kandil have proposed during our meetings today,” she said at a joint press conference with Kandil.
An IMF technical team is due to arrive in Cairo in early September to begin work on arrangements for the mooted loan.
“We prefer foreign borrowing at this stage given the low interest rate of the IMF loan compared to much higher rates when borrowing domestically,” said Kandil, on the matter.
He added that borrowing domestically would crowd out the private sector and the IMF loan would help ease liquidity problems.
The IMF said in a statement it had maintained close dialogue on economic policy with Egyptian authorities since the start of the transition period in February 2011. It said it has also provided considerable technical assistance upon request from the government.
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Iceland’s recovery continues, declared ‘impressive’
Ice News | August 22, 2012
Experts continue to praise Iceland’s recovery success after the country’s bank bailouts of 2008.
Unlike the US and several countries in the eurozone, Iceland allowed its banking system to fail in the global economic downturn and put the burden on the industry’s creditors rather than taxpayers.
In the following years, the Icelandic government made drastic cuts that reduced the fiscal deficit from 14 percent of GDP to just two percent. At the same time, unemployment in Iceland has shrunk to less than five percent, while analysts predict the North Atlantic economy to grow some 2.8 percent by the end of 2012, according to recent reports.
The rebound continues to wow officials, including International Monetary Fund chief Christine Lagarde, who recently referred to the Icelandic recovery as “impressive”. And experts continue to reiterate that European officials should look to Iceland for lessons regarding austerity measures and similar issues.
The Financial Times outlined a number of important points for countries in the eurozone to consider in an article published on Monday. These include Iceland’s tactic of pursing “politics of social and economic inclusion”. This includes heavier taxes on the higher brackets while cutting welfare schemes less than other areas of the budget to retain the purchasing power of lower income groups.
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Israel: South Africa labeling decision ‘discrimination’
Ma’an – 23/08/2012
BETHLEHEM – Israel on Wednesday denounced South Africa’s cabinet decision to label goods from illegal Israeli settlements as produced in the occupied Palestinian territories.
In a statement, the Israeli foreign ministry said the decision “is without precedent, as no such measure has ever been adopted in South Africa or in any other country. It constitutes therefore a blatant discrimination based on national and political distinction.”
The statement added: “Israel and South Africa have political differences, and that is legitimate. What is totally unacceptable is the use of tools which, by essence, discriminate and single out, fostering a general boycott. Such exclusion and discrimination bring to mind ideas of racist nature which the government of South Africa, more than any other, should have wholly rejected.”
The ministry said South Africa’s ambassador would be summoned Thursday.
What is wrong with the Trans-Pacific Partnership (TPP)
By Carolina Rossini and Maira Sutton | EFF | August 21, 2012
EFF has been fighting against the Trans-Pacific Partnership (TPP) intellectual property chapter for several years. This agreement poses a great risk to users’ freedoms and access to information on a global scale.
We have created this infographic to capture the most problematic aspects of TPP, and to help users, advocates and innovators from around the world spread the word about how this agreement will impact them and their societies. Right-click and save the image for the PNG file, or you can download the PDF version below.
We thank Lumin Consulting for working with us on this project.
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Egypt requests $4.8bn IMF loan
Al Akhbar | August 22, 2012
Egypt has formally requested a $4.8 billion loan from the International Monetary Fund, a spokesman for its president said on Wednesday during a visit to Cairo by IMF chief Christine Lagarde to discuss support for the country’s ailing economy.
Egypt’s finance minister said last week Cairo would discuss the possibility of the bigger-than-expected loan from the fund. Egypt’s previous government had requested a $3.2 billion package but the deal was not finalized.
Lagarde’s presence was requested by Egypt and could signal a fresh determination on both sides to iron out a loan after President Mohammed Mursi, who took office on June 30, appointed his first government last month.
“We have officially requested a $4.8 billion loan from the IMF and talks are currently going on inside about the request,” spokesman Yasser Ali told Reuters as Lagarde held discussions with Mursi. He said any details would be announced later.
An IMF official also confirmed the request had been made.
During 18 months of political turmoil since the overthrow of autocratic leader Hosni Mubarak, successive Egyptian governments negotiated with the IMF to secure emergency funding.
The Muslim Brotherhood was originally skeptical of the IMF loan, which it feared would undermine Egypt’s sovereignty by keeping it indebted to the IMF.
The IMF has a track record of failed policies in a number of developing countries, including Argentina and a number of African countries.
Sections of Egypt’s political and economic elite fear IMF involvement in resuscitating Egypt’s economy might in fact worsen the situation even further, as previously seen throughout Africa.
But Egypt’s fiscal and balance of payment problems have worsened, prompting the Muslim Brotherhood to surrender its opposition to the deal.
An exodus of foreign investors in the wake of the turmoil left local banks shouldering much of the short-term and other lending to the state. The government has also borrowed directly from the central bank.
Foreign reserves have fallen to well under half levels seen before last year’s popular uprising against Mubarak and investors’ reluctance to return is born partly of fears that a sharp currency devaluation could wipe out any returns.
(Al-Akhbar, Reuters)
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Echoes of the Past: Marikana, Cheap Labour and the 1946 Miners Strike
By Chris Webb | The Bullet | August 21, 2012
On August 4, 1946 over one thousand miners assembled in Market Square in Johannesburg, South Africa. No hall in the town was big enough to hold them, and no one would have rented one to them anyway. The miners were members of the African Mine Worker’s Union (AMWU), a non-European union which was formed five years earlier in order to address the 12 to 1 pay differential between white and black mineworkers. The gathering carried forward just one unanimous resolution: African miners would demand a minimum wage of ten shillings (about 1 Rand) per day. If the Transvaal Chamber of Mines did not meet this demand, all African mine workers would embark on a general strike immediately. Workers mounted the platform one after the other to testify: “When I think of how we left our homes in the reserves, our children naked and starving, we have nothing more to say. Every man must agree to strike on 12 August. It is better to die than go back with empty hands.” The progressive Guardian newspaper reported an old miner getting to his feet and addressing his comrades: “We on the mines are dead men already!”[1]

Mike Constable union-art.com
The massacre of 45 people, including 34 miners, at Marikana in the North West province is an inevitable outcome of a system of production and exploitation that has historically treated human life as cheap and disposable. If there is a central core – a stem in relation to which so many other events are branches – that runs through South African history, it is the demand for cheap labour for South Africa’s mines. “There is no industry of the size and prosperity of this that has managed its cheap labour policy so successfully,” wrote Ruth First in reference to the Chamber of Mines ability to pressure the government for policies that displaced Africans from their land and put them under the boot of mining bosses.[2]
Masters and Servants
Mechanisms such as poll and hut taxes, pass laws, Masters and Servants Acts and grinding rural poverty were all integral in ensuring a cheap and uninterrupted supply of labour for the mines. Pass laws were created in order to forge a society in which farm work or mining were the only viable employment options for the black population. And yet the low wages and dangerous work conditions kept many within the country away, forcing the Chamber of Mines to recruit labour from as far afield as Malawi and China throughout the nineteenth and twentieth centuries. Sordid deals between Portuguese East Africa and Apartheid South Africa ensured forced labour to be recruited for the mines and by 1929 there were 115,000 Mozambicans working underground. “It has been said,” wrote First in her study of migrant Mozambican miners, “that the wealth of Reef gold mines lies not in the richness of the strike but in the low costs of production kept down by cheap labour.”[3]
When AMWU was formed in 1941 black miners earned 70 Rand a year while white workers received 848 Rand. White miners had been organized for many years, but there was little solidarity between the two groups as evidenced by the 1922 Rand Rebellion led by the whites-only Mine Workers Union. White miners went on strike against management’s attempt at weakening the colour bar in order to facilitate the entry of cheaper black labour into skilled positions. Supported by the Communist Party of South Africa under the banner of “Unite and Fight for a White South Africa!” the rebellion was viciously crushed by the state leaving over 200 dead. The growth of non-European unions in the 1940s was dramatic and for the very first time the interests of African mineworkers were on the table. Their demands threatened the very foundations of the cheap labour system, and so in 1944 Prime Minister Jan Smuts tabled the War Measure 1425 preventing a gathering of 20 or more on mine property. Despite these difficulties the union pressed on and in 1946 they approached the Chamber of Mines with their demand for wage increases. A letter calling for last minute negotiations with the Chamber of Mines was, as usual, ignored.
By August 12th tens-of-thousands of black miners were on strike from the East to the West Rand. The state showed the utmost brutality, chasing workers down mineshafts with live ammunition and cracking down on potential sympathy strikes in the city of Johannesburg. By August 16th the state had bludgeoned 100,000 miners back to work and nine lay dead. Throughout the four-day strike hundreds of trade union leaders were arrested, with the central committee of the Communist Party and local ANC leaders arrested and tried for treason and sedition. The violence came on the cusp of the 1948 elections, which would see further repression and the beginning of the country’s anti-communist hysteria.

National Union of Mineworkers Poster on Fortieth Anniversary of 1946 Strike
While it did not succeed in its immediate aims, the strike was a watershed moment in South African politics and would forever change the consciousness of the labour movement. Thirty years later Monty Naicker, one of the leading figures in the South African Indian Congress, argued that the strike “transformed African politics overnight. It spelt the end of the compromising, concession-begging tendencies that dominated African politics. The timid opportunism and begging for favours disappeared.”[4] The Native Representative Council, formed by the state in 1937 to address the age old ‘native question,’ disbanded on August 15th and ANC president Dr. A.B. Xuma reiterated the demand for “recognition of African trade unions and adequate wages for African workers including mineworkers.”[5]
The 1946 mineworkers strike was the spark that ignited the anti-apartheid movement. The ANC Youth League’s 1949 Program of Action owes much to the militancy of these workers as does the Defiance Campaign of the 1950s and the emergence of the ANC’s armed wing Umkhonto we Sizwe (Spear of the Nation) in the 1960s. It is too early to say what sort of impact the current Lonmin strike will have on South African politics, but it seems unlikely that it will be as transformative as those of the past. The National Union of Mineworkers (NUM), arguably the heirs to the 1946 strike are currently engaged in a series of territorial disputes with the breakaway Association of Mineworkers and Construction Union (AMCU). Meanwhile COSATU’s muted response has echoed the ANC’s line of equal-culpability and half-mast public mourning. The increasingly incoherent South African Communist Party has called for the arrest of AMCU leaders with some of its so-called cadres defending the police action. Former ANC Youth League leader Julius Malema’s plea for miners to hold the line and form a more militant union reek of political opportunism.
Still Dependent on Cheap and Flexible Labour
What no one has dared to say, aside from the miners themselves, is that the mining industry remains dependent on cheap and flexible labour, much of it continuing to come from neighbouring countries. This has historically been the source of most miner’s grievances. A recent Bench Marks Foundation study of platinum mines in the North West province uncovered a number of factors linked to rising worker discontent in the region. Lonmin was singled out as a mine with high levels of fatalities, very poor living conditions for workers and unfulfilled community demands for employment. Perhaps most significant is the fact that almost a third of Lonmin’s workforce is employed through third party contractors.[6] This form of employment is not new in the mining industry. In fact, since minerals were discovered in the 19th century labour recruiters have scoured the southern half of the continent for workers. The continued presence of these ‘labour brokers’ on the mines and the ANC’s unwillingness to ban them – opting instead for a system of increasing regulation – is the bloody truth of South Africa’s so-called ‘regulated flexibility.’
There are a number other findings from the Bench Marks study that are worth mentioning as they illuminate some of the real grievances that have been lost amid photos of waving pangas. The number of fatalities at Lonmin has doubled since January 2011, and the company has consistently ignored community calls for employment, favouring contractors and migrant workers. A visit by the Bench Marks Foundation research team to Marikana revealed:
“A proliferation of shacks and informal settlements, the rapid deterioration of formal infra-structure and housing in Marikana itself, and the fact that a section of the township constructed by Lonmin did not have electricity for more than a month during the time of our last visit. At the RDP Township we found broken down drainage systems spilling directly into the river at three different points.”[7]
In fact, the study predicted further violent protests at Marikana in the coming year. The mass dismissal of 9,000 workers in May last year inflamed already tense relations between the community and the mine as dismissed workers lost their homes in the company’s housing scheme.
Once again, these facts are hardly new in the world of South African mining. Behind the squalid settlements that surround the mine shafts there are immense profits to be made. In recent years the platinum mining industry has prospered like no other thanks to the increased popularity of platinum jewellery and the use of the metal in vehicle exhaust systems in the United State and European countries. Production increased by 60 per cent between 1980 and 1994, while the price soared almost fivefold. The value of sales, almost all exported, thus increased to almost 12 per cent of total sales by the mining industry. The price rose so dramatically throughout the 1990s that it is on par with gold as the country’s leading mineral export.[8] South Africa’s platinum industry is the largest in the world and in 2011 reported total revenues of $13.3-billion, which is expected to increase by 15.8% over the next five years. Lonmin itself is one of the largest producers of platinum in the world, and the bulk of its tonnage comes from the Marikana mine. The company recorded revenues of $1.9-billion in 2011, an increase of 25.7%, the majority of which would come from the Marikana shafts.[9]
For risking mutilation and death underground workers at Marikana made only 4000 Rand, or $480 a month. As one miner told South Africa’s Mail and Guardian newspaper that, “It’s better to die than to work for that shit … I am not going to stop striking. We are going to protest until we get what we want. They have said nothing to us. Police can try and kill us but we won’t move.” These expressions of frustration and anger could be from 1922, 1946 or today. They are scathing indictments of an industry that continues to treat its workers as disposable and a state that upholds apartheid’s cheap labour policies.
Endnotes:
1. Monty Naicker, “The African Miners Strike of 1946,” 1976.
2. Ruth First, “The Gold of Migrant Labour,” Spearhead, 1962.
3. Ruth First, “The Gold of Migrant Labour,” Spearhead, 1962.
4. Monty Naicker, “The African Miners Strike of 1946,” 1976.
5. Dr. A.B. Xuma quoted in Monty Naicker, “The African Miners Strike of 1946.”
6. The Bench Marks Foundation, “Communities in the Platinum Minefields,” 2012.
7. The Bench Marks Foundation, “Communities in the Platinum Minefields,” 2012.
8. Charles Feinstein, “An Economic History of South Africa,” Cambridge: Cambridge University Press, 2005, 211.
9. Marketline Advantage Reports on South Africa’s Platinum Group Metals, 2011.
•
Chris Webb is a postgraduate student at York University, Toronto where he is researching labour restructuring in South African agriculture. He can be reached at christopherswebb_AT_yahoo.ca.
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- Striking South African miners defy Lonmin ultimatum (guardian.co.uk)
- South Africa tells Lonmin to drop threat to sack striking miners (guardian.co.uk)



