Nicaragua’s Sandinista Achievements Baffle World Bank, IMF
teleSUR | August 31, 2017
No one can take at face value any report, governmental or quasi non-governmental, coming out of the imperialist bureaucracy in Washington. Ideological bias and institutional self-justification prevent these reports from giving a true account of virtually anything.
The latest World Bank report on Nicaragua is no exception.
The implicit but unstated truth in this report is that President Daniel Ortega and the Sandinista National Liberation Front have achieved an unprecedented economic turnaround in just seven years, starting in 2010.
Reading the report, it is impossible to ignore the tension between latent ideological and political imperatives and the obligation to report the facts. Put another way, mild conflict clearly prevails between the World Bank’s Washington head office and its reality based local officials. From Washington, the tendency is both to minimize Ortega’s achievement and also to cover up the World Bank’s own lamentable history in Nicaragua. On the other hand, in Nicaragua, local World Bank staff dutifully report the facts as they see them.
A total of 71 people contributed to the report. Supposing those 71 people each worked for a month to prepare the research and say their average salary was about US$80,000, then pro rata a month’s work by that team cost over US$500,000, a very conservative guess. Even so, in summary, that money bought policy recommendations for Nicaragua’s development amounting to little more than better infrastructure; better basic services; more private business investment; more efficient government; better targeted social policies. That’s it, for US$500,000 or more.
In general, the report recognizes Nicaragua’s achievements in reducing poverty and inequality, raising productivity, diversifying economic activity and promoting security and stability. The report’s 130 or so pages include, among the economic and sociological analysis, many self-confessed guesses to fill in “knowledge gaps” and much gerrymandered history to cover up what Harold Pinter in his 2005 Nobel prize winning address justly called “the tragedy of Nicaragua.”
Pinter himself might have remarked the report is almost witty in its audacious, glib omissions. It acknowledges the catastrophic destructive effects of the 1980s war in Nicaragua, but carefully omits the U.S. government’s deliberate role in that destruction, now repeated against Syria and Venezuela.
The report talks about a “democratic transition” starting in 1990. In fact, the Sandinistas organized the first free and fair democratic elections ever in Nicaragua in 1984, but the U.S. government ordered the main Nicaraguan opposition to boycott them. Despite the war, Ortega and the Sandinistas won with 67 percent of the vote, very similar to the most recent presidential elections in 2016.
The heavy ideological bias also explains the World Bank’s curious dating of when Nicaragua’s economic turnaround began, placing it firmly in the neoliberal era prior to 2007. But at just that time, the World Bank was cutting back the public sector as much as they could, pushing, for example, to privatize Nicaragua’s public water utility and its education system.
Back then, Nicaragua’s neglected electrical system collapsed through 2005 and 2006, incapable of generating even 400 megawatts a day, plunging swathes of Nicaragua back into 19th-century darkness for 10 to 12 hours at a time, day after day. That was the World Bank and IMF’s gift to Nicaragua after 17 years of so-called “democratic transition.” That period included Hurricane Mitch, devastating Nicaragua to the tune of 20 percent of its GDP, only for the corrupt neoliberal government at the time to misuse hundreds of millions of dollars in disaster relief. The only structurally significant economic achievement of the neoliberal era in Nicaragua was substantial foreign debt relief.
When Ortega took office in January 2007, he faced four years of domestic crisis with an opposition controlled legislature persistently sabotaging his government’s programs. From 2007 to 2008, Nicaragua and the whole region struggled in vain to contain a balance of payment deficits against oil prices reaching US$147 a barrel in 2008.
That disaster was compounded by the collapse of the Western financial system in late 2008 to 2009, a year when Nicaragua’s economy suffered a 3 percent contraction. Only in 2010, did the Nicaraguan government finally enjoy domestic and international conditions stable enough to be able to consolidate and improve its social programs, improve infrastructure investment, democratize and diversify the economy, extend basic services, and attract foreign investment, among other things.
If that sounds suddenly familiar, it should. It is exactly the development recipe offered up by this latest World Bank report, essentially an embellished review of policies the Nicaraguan government has already been implementing for a decade. Put positively, the government’s National Human Development Plan and other relevant documents suggest that the World Bank’s engagement with the Nicaraguan government has been one of mutual learning. So much so, that the current country program is likely to continue and may even expand.
The political opposition in Nicaragua has seized on parts of the report to try and discredit the Sandinista government’s outstanding achievements. In fact, for 17 years under neoliberal governments implementing World Bank and IMF policies, areas criticized like, for example, access to drinking water and adequate sanitation, or education, suffered chronic lack of investment, compounded by egregious waste and corruption. Now, the World Bank hypocritically criticizes Nicaragua’s government for intractable policy difficulties the IMF and the World Bank themselves originally provoked.
Similarly, when the World Bank report criticizes the targeting of social programs, they omit the unquestionable success of the government’s Zero Usury micro credit program and the Zero Hunger rural family support program, both prioritizing women. These programs have lifted tens of thousands of families out of poverty and, along with unprecedented support for Nicaragua’s cooperative sector, radically democratized Nicaragua’s economy, especially for previously excluded rural families and women. That supremely important national process is entirely absent from the World Bank report.
In its discussions of almost all these issues, the report makes more or less detailed contributions, mostly already identified by the government itself. In every case, the underlying cause of problems or lack of progress, for example, on land titling or social security, has been the legacy of neoliberal governments between 1990 and 2007, that reinstated elite privilege, rolled back the revolutionary gains of the 1980s and failed to guarantee necessary investment.
The World Bank and the IMF were enthusiastic ideological partners in that endeavor. They would have continued their ideological offensive had not Ortega and his government dug in their heels in 2007 and 2008, backed by investment support for social and productive programs from Venezuela as part of the Bolivarian Alliance of the Americas.
Since then, the World Bank, as this report suggests, seems, at least for the moment, to have learned two key lessons from the Sandinistas. In a world dominated by corporate elite globalization, their report implicitly recognizes the importance, firstly, of a mixed economy under a strong central government and, secondly, the crucial role of broad dialogue and consensus, across all sectors of society, to promote and sustain national stability. Essentially, the World Bank has acknowledged the undeniable success of the Sandinista Revolution’s socialist inspired, solidarity based policies, decisively prioritizing the needs of people over corporate profit and demonstrating the systemic inability of capitalism to meet those needs.
Protests in Western Sahara against solar and wind plant construction
MEMO |November 8, 2016
Protests erupted yesterday in the Western Sahara over the construction of renewable energy plants without the permission of the Sahrawi people.
The protests, which took place in the capital Laayoune, coincided with the United Nation’s COP22 conference on climate change yesterday in Marrakech.
Siemens and Enel are building solar and wind plants in the region
“Siemens should not back Morocco’s occupation of Western Sahara through energy infrastructure,” the Western Sahara Resource Watch (WRSW) said on social media.
Siemens has constructed 22 new renewable energy plants in the Western Sahara, which power over 95 per cent of mineral extraction plants in the Sahrawi region.
The World Bank, the European Investment Bank, and the European Union have previously refused to finance development projects in Western Sahara.
“If we support those investments, it would look like we are supporting the Moroccan position. We are neutral regarding that conflict,” a banker told Reuters.
The contested region has recently been engrossed in tensions between Morocco and the Sahrawi Polisario Front which has been ongoing since 1975.
How the Australian, British, and US Governments Shamelessly Helped Kill Countless People in Indonesia in 1965
Asia-Pacific Research – July 23, 2016
The Hague-based International People’s Tribunal has ruled that the Indonesian regime that replaced Indonesian President Sukarno committed crimes against humanity in 1965. The governments of Australia, Britain, and the United States have also been pronounced guilty as complicit partners in the massacre of 500,000 to 1000,000 people or more in Indonesia. People were murdered in Indonesia due to their principles, political ideology, ethnic backgrounds, and opposition to foreign influence. Albeit the ruling is an important historical acknowledgment, the assistance that the Australian, British, and US governments provided to the coup and played in the massacres is not a secret.
Asia-Pacific Research presents these excerpts from the Australian journalist John Pilger’s book The New Rulers of the World, which was published by Verso in 2002, in the interest of providing the historical background about the massacres that took place in Indonesia. Reading them will educate one on the despicable and criminal roles that Australia, Britain, and the US played. ”There were bodies being washed up on the lawns of the British consulate in Surabaya, and British warships escorted a ship full of Indonesian troops down the Malacca Straits so that they could take part in this terrible holocaust,” for example Pilger writes. In his work John Pilger also notes that the US was directly involved in the operations of the death squads and helped compile the lists of people to be murdered while the Australian, British, and US media were used as propaganda tools to whitewash the coup and bloodbaths in Indonesia. A key point, however, that is emphasizes is that the underlying economic motivations and plunder hidden behind the ideological discourse of the Cold War that really motivated the massacres in Indonesia. – Mahdi Darius Nazemroaya, Asia-Pacific Research Editor, 22 July 2016.
Indonesians preparing to die in a mass grave
Excerpts from The New Rulers of the World (Verso)
John Pilger, 2002
… according to a CIA memorandum, Prime Minister Harold Macmillan and President John Kennedy had agreed to ‘liquidate President Sukarno, depending on the situation and available opportunities’. The CIA author added, ‘It is not clear to me whether murder or overthrow is intended by the word liquidate.’
Sukarno was a populist, the founder of modern Indonesia and of the non-aligned movement of developing countries, which he hoped would forge a genuine ‘third way’ between the spheres of the two superpowers. In 1955, he convened the ‘Asia-Africa Conference’ in the Javanese hill city of Bandung. It was the first time the leaders of the developing world, the majority of humanity, had met to forge common interests: a prospect that alarmed the western powers, especially as the vision and idealism of nonalignment represented a potentially popular force that might seriously challenge neo-colonialism. The hopes invested in such an unprecedented meeting are glimpsed in the faded tableaux and black-and-white photographs in the museum at Bandung and in the forecourt of the splendid art deco Savoy Hotel, where the following Bandung Principles are displayed:
I – Respect for fundamental human rights and the principles of the United Nations Charter.
2 – Respect for the sovereignty and territorial integrity of all nations.
3 – The recognition of the equality of all peoples.
4 – The settlement of disputes by peaceful means.
Sukarno could be a democrat and a demagogue. For a time, Indonesia was a parliamentary democracy, then became what he called a ‘guided democracy’. He encouraged mass trade unions and peasant, women’s and cultural movements. Between 1959 and 1965, more than 15 million people joined political parties or affiliated mass organisations that were encouraged to challenge British and American influence in the region. With 3 million members, the PKI was the largest communist party in the world outside the Soviet Union and China. According to the Australian historian Harold Crouch, ‘the PKI had won widespread support not as a revolutionary party but as an organisation defending the interests of ‘the poor within the existing system’. It was this popularity, rather than any armed insurgency, that alarmed the Americans. Like Vietnam to the north, Indonesia might ‘go communist’ .
In 1990, the American investigative journalist Kathy Kadane revealed the extent of secret American collaboration in the massacres of 1965-66 which allowed Suharto to seize the presidency. Following a series of interviews with former US officials, she wrote, ‘They systematically compiled comprehensive lists of communist operatives. As many as 5,000 names were furnished to the Indonesian army, and the Americans later checked off the names of those who had been killed or captured.’ One of those interviewed was Robert J Martens, a political officer in the US embassy in Jakarta. ‘It was a big help to the army,’ he said. ‘They probably killed a lot of people and I probably have a lot of blood on my hands, but that’s not all bad. There’s a time when you have to strike hard at a decisive moment.’ Joseph Lazarsky, the deputy CIA station chief in Jakarta, said that confirmation of the killings came straight from Suharto’s headquarters. ‘We were getting a good account in Jakarta of who was being picked up,’ he said. ‘The army had a “shooting list” of about 4,000 or 5,000 people. They didn’t have enough goon squads to zap them all, and some individuals were valuable for interrogation. The infrastructure [of the PKI] was zapped almost immediately. We knew what they were doing . . . Suharto and his advisers said, if you keep them alive you have to feed them.’
Having already armed and equipped much of the army, Washington secretly supplied Suharto’s troops with a field communications network as the killings got under way. Flown in at night by US air force planes based in the Philippines, this was state-of-the-art equipment, whose high frequencies were known to the CIA and the National Security Agency advising President Johnson. Not only did this allow Suharto’s generals to co-ordinate the killings, it meant that the highest echelons of the US administration were listening in and that Suharto could seal off large areas of the country. Although there is archive film of people being herded into trucks and driven away, a single fuzzy photograph of a massacre is, to my knowledge, the only pictorial record of what was Asia’s holocaust.
The American Ambassador in Jakarta was Marshall Green, known in the State Department as ‘the coupmaster’. Green had arrived in Jakarta only months earlier, bringing with him a reputation for having masterminded the overthrow of the Korean leader Syngman Rhee, who had fallen out with the Americans. When the killings got under way in Indonesia, manuals on student organising, written in Korean and English, were distributed by the US embassy to the Indonesian Student Action Command (KAMI), whose leaders were sponsored by the CIA.
On October 5, 1965, Green cabled Washington on how the United States could ‘shape developments to our advantage’. The plan was to blacken the name of the PKI and its ‘protector’, Sukarno. The propaganda should be based on ‘[spreading] the story of the PKI’s guilt, treachery and brutality’. At the height of the bloodbath, Green assured General Suharto: ‘The US is generally sympathetic with and admiring of what the army is doing.” As for the numbers killed, Howard Federspiel, the Indonesia expert at the State Department’s Bureau of Intelligence and Research in 1965, said, ‘No one cared, as long as they were communists, that they were being butchered. No one was getting very worked up about it.’
The Americans worked closely with the British, the reputed masters and inventors of the ‘black’ propaganda admired and adapted by Joseph Goebbels in the 1930s. Sir Andrew Gilchrist, the Ambassador in Jakarta, made his position clear in a cable to the Foreign Office: ‘I have never concealed from you my belief that a little shooting in Indonesia would be an essential preliminary to effective change.’ With more than ‘a little shooting’ under way, and with no evidence of the PKI’s guilt, the embassy advised British intelligence headquarters in Singapore on the line to be taken, with the aim of ‘weakening the PKI permanently’ .
Suitable propaganda themes might be: PKI brutality in murdering Generals and [Foreign Minister] Nasution’s daughter . . . PKI subverting Indonesia as agents of foreign Communists . . . But treatment will need to be subtle, e.g. (a) all activities should be strictly unattributable, (b) British participation or co-operation should be carefully concealed.
Within two weeks, an office of the Foreign Office’s Information Research Department (IRD) had opened in Singapore. The IRD was a top-secret, cold war propaganda unit headed by Norman Reddaway, one of Her Majesty’s most experienced liars. It would be salutary for journalists these days to study the critical role western propaganda played then, as it does now, in shaping the news. Indeed, Reddaway and his colleagues manipulated the press so expertly that he boasted to Gilchrist in a letter marked ‘secret and personal’ that the story he had promoted – that Sukarno’s continued rule would lead to a communist takeover – ‘went all over the world and back again’ . He described how an experienced Fleet Street journalist agreed ‘to give exactly your angle on events in his article … . i.e. that this was a kid glove coup without butchery.’
Roland Challis, the BBC’s South-East Asia correspondent, was a particular target of Reddaway, who claimed that the official version of events could be ‘put almost instantly back to Indonesia via the BBC’. Prevented from entering Indonesia along with other foreign journalists, Challis was unaware of the extent of the slaughter. ‘It was a triumph for western propaganda,’ he told me. ‘My British sources purported not to know what was going on, but they knew what the American plan was. There were bodies being washed up on the lawns of the British consulate in Surabaya, and British warships escorted a ship full of Indonesian troops down the Malacca Straits so that they could take part in this terrible holocaust. It was only much later that we learned the American embassy was supplying names and ticking them off as they were killed. There was a deal, you see. In establishing the Suharto regime, the involvement of the IMF and the World Bank was part of it. Sukarno had kicked them out; now Suharto would bring them back. That was the deal.’
With Sukarno now virtually powerless and ill, and Suharto about to appoint himself acting president, the American press reported the Washington-backed coup not as a great human catastrophe, but in terms of the new economic advantages. The massacres were described by Time as ‘The West’s Best News in Asia’. A headline in US News and World Report read: ‘Indonesia: Hope . . . where there was once none’. The renowned New York Times columnist James Reston celebrated ‘A gleam of light in Asia’ and wrote a kid-glove version that he had clearly been given. The Australian Prime Minister Harold Holt, who was visiting the US, offered a striking example of his sense of humour: ‘With 500,000 to a million communist sympathisers knocked off,’ he said approvingly, ‘I think it’s safe to assume a reorientation has taken place.’
Holt’s remark was an accurate reflection of the complicity of the Australian foreign affairs and political establishment in the agony of its closest neighbour. The Australian embassy in Jakarta described the massacres as a ‘cleansing operation’. The Australian Ambassador, KCO Shann, enthused to Canberra that the Indonesian army was ‘refreshingly determined to do over the PKI’, adding that the generals had spoken approvingly of the reporting on Radio Australia, which he described as ‘a bit dishonest’.’ In the Prime Minister’s Department, officials considered supporting ‘any measures to assist the Indonesian army … cope with the internal situation’.
In February 1966, [British] Ambassador Gilchrist wrote a report on the scale of the massacres based on the findings of the Swedish Ambassador, who had toured central and eastern Java with his Indonesian wife and had been able to speak to people out of earshot of government officials. Gilchrist wrote to the Foreign Office: ‘The Ambassador and I had discussed the killings before he left [on the tour] and he had found my suggested figure of 400,000 quite incredible. His enquiries have led him to reconsider it a very serious under-estimate. A bank manager in Surabaya with twenty employees said that four had been removed one night and beheaded . . . A third of a spinning factory’s technicians, being members of a Communist union, had been killed … The killings in Bali had been particularly monstrous. In certain areas, it was felt that not enough people [emphasis in the original] had been killed.’
On the island of Bali, the ‘reorientation’ described by Prime Minister Holt meant the violent deaths of at least 80,000 people, although this is generally regarded as a conservative figure. The many western, mostly Australian, tourists who have since taken advantage of cheap package holidays to the island might reflect that beneath the car parks of several of the major tourist hotels are buried countless bodies.
The distinguished campaigner and author Carmel Budiardjo, an Englishwoman married to a tapol and herself a former political prisoner, returned to Indonesia in 2000 and found ‘the trauma left by the killings thirty-five years ago still gripping many communities on the island’. She described meeting, in Denpasar, fifty people who had never spoken about their experiences before in public. ‘One witness,’ she wrote, ‘who was 20 years old at the time calmly told us how he had been arrested and held in a large cell by the military, 52 people in all, mostly members of mass organisations from nearby villages. Every few days, a batch of men was taken out, their hands tied behind their backs and driven off to be shot. Only two of the prisoners survived . . . Another witness, an ethnic Chinese Indonesian, gave testimony about the killing of 103 people, some as young as 15. In this case, the people were not arrested but simply taken from their homes and killed, as their names were ticked off a list.’
[…]
‘In the early sixties,’ he said, ‘the pressure on Indonesia to do what the Americans wanted was intense. Sukarno wanted good relations with them, but he didn’t want their economic system. With America, that is never possible. So he became an enemy. All of us who wanted an independent country, free to make our own mistakes, were made the enemy. They didn’t call it globalisation then; but it was the same thing. If you accepted it, you were America’s friend. If you chose another way, you were given warnings, and if you didn’t comply, hell was visited on you. But I am back; I am well; I have my family. They didn’t win.’
Ralph McGehee, a senior CIA operations officer in the 1960s, described the terror in Indonesia from 1965 – 66 as a ‘model operation’ for the American-run coup that got rid of Salvador Allende in Chile seven years later. ‘The CIA forged a document purporting to reveal a leftist plot to murder Chilean military leaders,’ he wrote, ‘[just like] what happened in Indonesia in 1965.’ He says Indonesia was also the model for Operation Phoenix in Vietnam, where American-directed death squads assassinated up to 50,000 people. ‘You can trace back all the major, bloody events run from Washington to the way Suharto came to power,’ he told me. ‘The success of that meant that it would be repeated, again and again.’
[…]
Indonesia, once owing nothing but having been plundered of its gold, precious stones, wood, spices and other natural riches by its colonial masters, the Dutch, today has a total indebtedness estimated at $262 billion, which is 170 per cent of its gross domestic product. There is no debt like it on earth. It can never be repaid. It is a bottomless hole.
Copyright © Asia-Pacific Research, Asia-Pacific Research, 2016
Latin American Revolutions Under Attack
By ANDRE VLTCHEK | CounterPunch | June 26, 2015
Do not take the Latin American revolutions for granted.
They inspired the entire Planet. They brought hope to every corner of our scarred Earth. But now they are themselves in need of our support.
If left alone, they would thrive for decades and centuries. But the Empire is once again on the offensive. It is shaking with fury. It is ready to invade, to smash, burn to ashes all the hopes, all that which had been achieved.
Don’t believe in the “common wisdom” which proclaims that the rulers of the world simply “closed their eyes” more than a decade ago; that George W. Bush was “too busy” ravishing the Middle East, therefore “allowing” most of the Latin American countries to “sneak away” from the iron grip of the Empire.
Such “analyses” are as patronizing as they are false. The Empire never sleeps! What Latin America now has was built on its daring, its sweat, its genius and its blood – it fought against the Empire, courageously, for decades, losing its best sons and daughters. It fought for freedom, for justice and socialism.
The Empire was not “looking the other way”. It was looking straight south, in fury, but for some time it was too confused, too astounded, too shocked at what it was witnessing. Its “slaves” had risen and taken power back into their own hands. They showed to the entire world what freedom really is.
For some time, the Empire was paralyzed by rage and unable to act.
The Empire’s undeniable property, Latin America, inhabited by “un-people” born only in order to supply cheap labor and raw materials to the rich part of the world, was suddenly, proudly and publicly, breaking its shackles, declaring itself free, demanding respect. Its natural resources were now used to feed its own people, to build social housing, create public transportation systems, construct hospitals, schools and public parks.
But after the first wave of panic, the Empire began to do what it does the best – it began the killings.
It attempted to overthrow Venezuelan government in 2002, but it failed. The Venezuelan people rose, and so did the Venezuelan military, defending then President Hugo Chavez. The Empire tried again and again, and it is trying until now. Trying and failing!
“We are at war”, I was told by one of the editors of Caracas-based television network, TeleSUR, for which I made several documentary films. “We are literally working under the barrel of cannon”.
***
Ms. Tamara Pearson, an Australian revolutionary journalist and activist, who recently moved from Venezuela to Ecuador, explained the difficult situation in Venezuela, a country that is under constant attack from both the US, and the local comprador elites:
“People are suffering a lot. Basic food prices are high, much medicine is unavailable, and various services aren’t working. On one level, people are used to this – the business owners would cause shortages and blame the government before each of the many elections. But usually it’s less intense and lasts just a few months. But this has been going on and getting worse, since Chavez died – over two years now. There is no doubt that the US, and more so, Venezuelan and Colombian elites and business owners are a huge or even the main factor…”
All of revolutionary Latin America is “screaming”.
As I described in two of my recent books, “Exposing Lies Of The Empire” and “Fighting Against Western Imperialism”, the Empire is using similar destabilization strategy against all countries that are resisting its deadly embrace.
Its propaganda is mighty and omnipresent. CNN and FOX TV are beamed into almost all major hotels and airports of Latin America, even in some revolutionary countries like Ecuador. Almost all major newspapers of the continent, including those in Venezuela, Ecuador, Chile and Argentina, are controlled by the right wing business elites. Almost all of the foreign news coverage comes from European and North American sources, making the Latin American public totally confused about Islam, China, Russia, South Africa, Iran, even about their own neighbors.
The local elites continue to serve foreign interests, their loyalties firmly with North America and Europe.
Every left wing Latin American government has been facing bizarre protests and subversion actions conducted by the elites. Destabilization tactics have been clearly designed in far away capitals. They were mass-produced and therefore almost identical to those the West has been using against China, Russia, South Africa, and other “rebellious” nations.
Propaganda, disinformation and spreading of confusion have been some of the mightiest tools of the fascist right wing.
“Economic uncertainty” is an extremely powerful weapon. It was used first in Chile, in the 1973 coup against socialist President Salvador Allende. Pro-Western Chilean elites and businessmen created food shortages, and then blamed it on the socialist government, using El Mercurio and other daily newspapers as their propaganda tools.
Peter Koenig, former World Bank economist and now prominent dissident and critic of the world neoliberal regime, wrote for this essay:
Today Madame Bachelet, the socialist President of Chile has a hard time fighting against the Mercurio inspired Chilean oligarchs. They will not let go. Recently they invited the World Bank to assess the school reform package proposed by Bachelet, basically to return universities to the public sector. Of course, the ‘upper class’ of Chileans knew that the World Bank would come up with nothing less than predicting an economic disaster if the reform is approved. As a result, Bachelet made concessions – which on the other hand are not accepted by professors and teachers. It’s the first step towards chaos – and chaos is what the empire attempts to implant in every country where they strive for ‘regime change’.
But one of the “dirtiest” of their weapons is the accusation of corruption. Corrupt pro-Western politicians and individuals who misused tens, even hundreds of millions of dollars of the peoples money and destroyed the economies of their countries by taking unserviceable loans that kept disappearing into their deep pockets, are now pointing their soiled fingers at relatively clean governments, in countries like Chile and Argentina. Everything in “Southern Cone” and in Brazil is now under scrutiny.
Peter Koenig (who co-authored a book “The World Order and Revolution!: Essays from the Resistance” with leading Canadian international lawyer Christopher Black and me) shows how important it is, for the Empire, destabilization of Brazil, one of the key members of BRICS:
Brazil being a member of the BRICS is particularly in the crosshairs of the empire – as the BRICS have to be destabilized, divided – they are becoming an economic threat to Washington. Brazil is key for the non-Asian part of the BRICS. A fall of Brazil would be a major blow to the cohesion of the BRICS.
There are totally different standards for pro-Western fascist politicians and for those from the Left. The Left can get away with nothing, while the Right has been getting away literally with mass murder and with the disappearance of tens of billions of dollars.
It is, of course, the common strategy in all the client states of the West. For instance, one of the most corrupt countries on earth, Indonesia, tolerates absolute sleaze and graft from former generals, but when progressive socialist Muslim leader, Abdurrahman Wahid, became the President, he was smeared and removed in a short time, on “corruption” charges.
After centuries of the Monroe Doctrine, after mass murder committed in “Latin” America first by Europeans and then by North Americans and their rich local butlers, it will take long decades to fully eradicate the corruption, because corruption comes with the moral collapse of the colonial powers and the local elites. Financial greed is only its byproduct.
The great pre-colonial cultures of what are now Peru, Ecuador and Bolivia did not have corruption. Corruption was injected by Western colonialism.
And now, corruption under left wing, revolutionary governments still exists, since it is difficult to root out all the rats at once, but it is incomparably smaller than under the previous fascist right wing cliques!
***
The rich in Latin America are heartless, servile (to the Empire) and greedy in the extreme. Latin America has still the most unequal distribution of wealth on earth. True, it is much richer (and even its poor are richer, with some exceptions of Central America, Peru or Paraguay) than Africa or even in Southeast Asia, but this cannot be used as an excuse.
Even the most progressive socialist governments now in power would ever dare to touch, to slap the private enterprises too hard. From this angle, China with its central planning and controlled economy is much more socialist than Ecuador or Bolivia.
A few days ago, as I was flying from Ecuador to Peru, I read that the number of multimillionaires in Latin America was actually increasing, and so is the social gap between the rich and the rest of the societies. The article was using some anecdotal evidence, saying that, for instance, in Chile alone, now, more Porsche sports cars are sold than in the entirety of Latin America few years ago. As if confirming it, I noticed a Porsche auto dealership next to my hotel in Asuncion, the capital of the second poorest country in South America. I asked for numbers, but the Porsche manager refused to supply them, still proudly claiming that his company was “doing very well”.
So what do they – the “elites” – really want? They have money, plenty of money. They have luxury cars, estates in their own countries, and condominiums abroad. What more?
As in Thailand, Philippines, Indonesia or Kenya, and all over the West, they want power. They want to feel unique. They want to be admired.
The Socialist governments allow them to stay rich. But they force them to share their wealth and above all, they shame them. They are also trying to minimize the gap – through education, free medical care and countless social projects.
That is, of course, unacceptable to the elites. They want it all, as they always had it. And to have it all, they are ready to murder, to side with the darkest foreign interests, even to commit treason.
***
Increasingly, the interests of the local elites are very closely linked to foreign interests – those of the Empire and those of the private sector.
As I was told in Ecuador, by Ms. Paola Pabón, Assembly Member representing Pichincha area:
Behind the involvement of the US, are some ex-bankers such as Isaiah brothers, who lost power here, escaped courts and went to live in the United States, but there are also huge economic powers such as Chevron. It means that there are not only political interests of the US, but also private, economic ones.
Predominantly, the local elites are using their countries as milking cows, with very little or zero interest in the well being of their people.
That is why their protests against Latin American revolutions are thoroughly hypocritical. They are not fighting for improvements in their countries, but for their own, selfish personal interests. Those shouts and the pathetic hunger strikes of the “opposition” in Venezuela may appear patriotic, but only thanks to propaganda abilities to the Western mass media.
The elites would do anything to make all revolutions, all over Latin America, fail and collapse. They are even spending their own money to make it happen.
They know that if they manage to remove progressive forces from power, they could rule once again, totally unopposed, as their counterparts do in all other client states of the West – in the Middle East, Africa, South and Southeast Asia, and Oceania.
The temptation is tremendous. Most of the elites in Latin America still remember well, how it feels, how it tastes – to control their countries unopposed, and with full support from the West.
***
Eduardo Galeano, the great Uruguayan writer and revolutionary thinker, once told me: “I keep repeating to all those new leaders of Latin America: “Comrades, do not play with poor people’s hopes! Hope is all they have.”
It appears that hope has finally been takes seriously, in Bolivia, Uruguay, Venezuela, Ecuador, Chile, Argentina, Brazil, Nicaragua and elsewhere.
It was also taken seriously in Honduras, but hope was crushed by the US-orchestrated coup. In Paraguay, under a semi-progressive priest who preached liberation theology, hope was taken semi-seriously, but even that was too much in the country that had been ruled, for decades, by fascist cliques. In 2012, a constitutional coup followed by an appalling massacre of predominantly indigenous people, and fascism returned.
After these two setbacks, Latin America shook, but kept moving forward. Hugo Chavez died, or was murdered by the North, depending which theory you subscribe to. His demise was a tremendous blow to the entire continent, but still, the continent kept moving. “Here, nobody surrenders!” Chavez shouted, dying, but proud.
“President Correa of Ecuador is one of very few leaders of the “original project””, said Paola Pabón. “Lula in Brazil will not be able to stand for reelection, anymore, mainly due to corruption scandals. Mujica is not in power, anymore, and Cristina Fernandez will be retiring. Evo Morales does not have regional influence, and even Maduro does not have… For this reason, Ecuador is so important, strategically. If ‘they’ hit us, if there is a successful coup, it would be tremendous victory for them, to destroy a President with regional importance; who speaks for the region… and also, because Ecuador is one country where the government actually functions well.”
Walter Bustos, who used to work for this government, is alarmed by developments in Ecuador and the entirety of Latin America. Both he and Paula Pabón realize how fragile the Latin American revolutions are. While driving with me to an indigenous area of Riobamba, Walter lamented:
In case there is a military coup in Ecuador, the difference between here and Venezuela would be enormous: while in Venezuela, Chavez incorporated the military into his revolution, in case of citizens revolution in Ecuador, we have no security; we cannot count on support of the military in case there is some armed, political or economic attack against us.
Hugo Chavez was not only a great revolutionary, but also a tremendous strategist. He knew that any great revolution has to be fought, won, and then defended. Winning the battle is never enough. One has to consolidate forces, and uphold the victory. Chavez was first thinker, and then soldier.
Correa, Morales, Fernandez go forward, brave, proud but unprotected. Under their governments, the lives of ordinary people improve tremendously. That is what matters to them. They are decent and honest beings, unwilling to dirty themselves with intrigues, speculations and conspiracy theories.
But their great success will not gain them any recognition from the Empire, or from their own elites. The success of socialism is the worst nightmare for rulers of the world and their local butlers.
This is how President Salvador Allende died in 1973. He dismissed all rumors, and then all warnings that the coup was coming. “I am not going to arrest people just because of some suspicion that they may do something”, he used to say. After the coup took place, he died proudly, a true hero, committing suicide by marching towards the helicopter gunships and fighter jets that were bombarding the Presidential Palace of La Moneda. But he was not the only victim. As a result of the coup, thousands of Chilean people died, and tens of thousands were savagely tortured and raped. Chile did not die, but went into a horrific coma, from which it only recently manages to recover.
Henry Kissinger summarized the moral corruption/collapse of his country’s regime when he uttered his memorable phrase:
I don’t see why we need to stand by and watch a country go communist due to the irresponsibility of its people. The issues are much too important for the Chilean voters to be left to decide for themselves.
Despite his great intentions, President Salvador Allende failed his people. He underestimated the bestiality of the Empire, and the result were millions of broken lives.
Since then, the Empire’s selfishness and brutality only evolved. The more successful leaders like Correa become, the more real is the danger of a coup – of a devastating, deadly attack from the North, and subversion from within.
The fragility of Latin American revolutions is obvious. The elites cannot be trusted. They showed on many occasions how far they are willing to go, committing treason, collaborating with the West against their own nations: in Chile, Peru, Colombia, Mexico, Honduras, Venezuela, Paraguay and Bolivia, to name just a few cases.
Appeasing both the elites and the Empire, while fighting for social justice and true independence, is impossible. The elites want to have full control of their countries, while the Empire demands full submission. No compromise could be reached. The history speaks clearly about that. And the Empire demonstrated on countless occasions that Latin American democracy would be respected only if the people vote the way that suits Washington.
Latin America has to learn how to defend itself, for the sake of its people.
Its closer and closer cooperation with China and Russia is essential. A coherent regional defense agreement should follow.
The next few years will be crucial. The revolutions have to be institutionalized; they cannot depend only on charisma of its leaders.
Constant sabotages and coup attempts, like those in Venezuela, should not be tolerated. They lead to chaos and to uncertainty. They break countries economically and socially.
It is clear what the Empire and its servants are doing: they are trying to push Latin American revolutionary countries against the wall, as they pushed, in the past, North Korea. They are trying to make them “react”, so they could say: “You see, this is true socialism, this defensive, hermitic and paranoid system.”
The path will not be easy. It will be dangerous and long.
Latin America can only survive through international cooperation and solidarity. It would also have to fight legally, at home and abroad. Those who are committing treason and those who are interrupting development of the country should face justice.
The left wing governments that are ruling South American countries won democratic elections: much more democratic than those in Europe and the United States. If the individuals and groups act against the expressed will of their own people, they should be taken to courts.
If a powerful country tortures other countries and shows total spite for their people, it should face an international legal system. The United States demonstrated, countless times, that it considers itself well above the law. It even forced several government in Latin America and elsewhere, to give its military personnel immunity. One of these countries is Paraguay, historically flooded with CIA, DEA and FBI agents.
In order to legally restrain the Empire, huge international pressure would have to be built. Like in the case of Managua, which legally sued the US for many acts of terror committed against Nicaragua. The Empire will most likely refuse to accept any guilty verdict. But the pressure has to be on!
All this would be meaningless without dedicated, constant coverage of the events by independent or opposition media, be they huge new state-funded networks like RT, TeleSur, CCTV or Press TV, of progressive independent media like Counterpunch, VNN, or ICH. It is essential that Latin Americans demand information from these sources, instead of consuming the toxic lies spread through CNN en Español, FOX, EFE and other right wing Western sources.
The battle for the Latin American people and for their freedom is on. Do not get fooled, it has been on for quite some time, and it is very tough fight.
Latin America is one of the fronts of the integrated fight for the survival of our Planet.
People who admire this part of the world, all those who have been inspired by Latin American revolutions, should participate in the struggle.
The best sons and daughters of this continent are now fighting in their own, quixotic way, as they always did: frontally, with exposed heart, totally unprotected. But their fight is just, and they are in this battle in order to defend the people.
Their opponents are rich, deceitful and brutal. But they are also selfish and they fight only for their own interests. They are not loved by their nations. If they lose, Latin America will win!
Those countries defending themselves against the Empire should unite, before it’s too late. Now as Latin America is rising from its knees, it becomes clear who are its foes and who are real friends, real brothers and sisters!
This scarred but stunning continent of courageous poets, of dreamers and revolutionaries should not be allowed to fall. In Caracas, Quito and La Paz, they are fighting for entire humanity.
Andre Vltchek is a philosopher, novelist, filmmaker and investigative journalist. He covered wars and conflicts in dozens of countries. His latest books are: “Exposing Lies Of The Empire” and “Fighting Against Western Imperialism”.
Uprooted & evicted: World Bank-funded projects force millions off their land
RT | April 17, 2015
World Bank ventures in less developed countries are hurting the people the organization has sworn to protect, with almost four million people across the globe left homeless, forcefully evicted and relocated as a result of World Bank-funded projects.
A probe by the International Consortium of Investigative Journalists (ICIJ), which examined World Bank’s records in 14 countries, discovered that some 3.4 million of the “most vulnerable people” were forced off their land in the last decade.
The World Bank “has regularly failed to live up to its own policies for protecting people harmed by projects it finances,” ICIJ states as one of its key findings.
The World Bank as well as the International Finance Corporation (IFC), which distributes the funds, have invested $455 billion in nearly 7,200 projects between 2004 and 2013 in the developing world, ICIJ says. More than 400 were confirmed to have caused the permanent displacement of local communities, while another 550 may have made locals homeless.
“An ICIJ analysis found that between 20 and 30 percent of all projects the bank funded from 2004 to 2013 were deemed likely to cause resettlement,” report’s summary reads.
The World Bank finances thousands of projects ranging from major oil pipelines and dams to small schools and clinics. In some countries the organization reportedly closed its eyes to numerous human rights violations. The ICIJ investigation was surprised to discover that in some instances, the World Bank continued to fund projects in “undemocratic” states even after evidence of abuses such as rape and torture emerged.
For instance in Ethiopia, former officials told journalists that the state used millions of dollars from health and education projects to fund a violent campaign of mass evictions of local populations. Yet despite numerous complaints from human rights groups and the indigenous Anuak population, the World Bank disputed claims that their money has been misused or misappropriated.
Kenyan forest conservation project using World Bank cash is claimed to be another example where funds were used to chase locals out of their ancestral homes.
The 11-month-long ICIJ investigation revealed that most of forced resettlement cases appear to take place in Asia and Africa. In Asia almost 3 million people were either left homeless or resettled, while in Africa that number stands at over 400,000.
The organization’s investment in China resulted in the resettlement of at least 1 million people, the investigation said.
In Vietnam alone some 1.2 million people were displaced during the construction of dams and power plants by the organization.
“Research has shown that millions of people have lost their livelihood and have been pushed into conditions of poverty because of large hydro-electric dams,” environmental and human rights activist and director of Right and Ecology, Annie Bird, told RT. “It is an investment which has not resulted in furthering the mandate of the World Bank, which is eliminating poverty.”
The full list of affected countries also include Albania, Brazil, China, Ethiopia, Honduras, Ghana, Guatemala, India, Kenya, Kosovo, Nigeria, Peru, Serbia, South Sudan and Uganda.
From 2009 to 2013, the study found, World Bank Group lenders “pumped $50 billion into projects graded highest risk for their “irreversible or unprecedented’” social or environmental impact. That numbers, the authors estimate, is twice as much as the previous five-year span.
ICIJ informed World Bank of their discoveries in March, warning of “systemic gaps”.
“We took a hard look at ourselves on resettlement and what we found caused me deep concern,” Jim Yong Kim, the World Bank’s president, said in a statement at the time. “One is that we haven’t done a good enough job in overseeing projects involving resettlement.”
The organization also compiled a five page “action plan” that it said would improve its programs.
“We must and will do better,” said David Theis, a World Bank spokesman, in response to the reporting team’s questions.
As the largest contributor to the Wold Bank, the US government is largely to blame for the organization’s shortcomings, Bird believes.
“The Bank could take measures to find alternatives for people who are losing their livelihoods to large infrastructure projects, it has just never been prioritized,” she says. “I think a lot of responsibility for that lies with the member nations, particularly with the United States government which has the largest share and voting power in the World Bank and therefore sets an important part of the Bank’s lending agenda.”
Free Trade, Corporate Plunder and the War on Working People
By COLIN TODHUNTER | CounterPunch | April 3, 2015
Prior to last year’s national elections in India, there were calls for a Thatcherite revolution to fast-track the country towards privatisation and neo-liberalism. Under successive Thatcher-led governments in the eighties, however, inequalities skyrocketed in Britain and economic growth was no better than in the seventies.
Traditional manufacturing was decimated and international finance became the bedrock of the ‘new’ economy. Jobs disappeared over the horizon to cheap labour economies, corporations bought up public utilities, the rich got richer and many of Britain’s towns and cities in its former industrial heartland became shadows of their former selves. Low paid, insecure, non-unionised labour is now the norm and unemployment and underemployment are rife. Destroying ordinary people’s livelihoods was done in the name of ‘the national interest’. Destroying industry was done in the name of ‘efficiency’.
In 2010, 28 percent of the UK workforce, some 10.6 million people, either did not have a job, or had stopped looking for one. And that figure was calculated before many public sector jobs were slashed under the lie of ‘austerity’.
Today, much of the mainstream political and media rhetoric revolves around the need to create jobs, facilitate ‘free’ trade, ensure growth and make ‘the nation’ competitive. The endless, tedious mantra says ordinary people have to be ‘flexible’, ‘tighten their belts, expect to do a ‘fair day’s work for a fair day’s pay’ and let the market decide. This creates jobs. This fuels ‘growth’. Unfortunately, it does neither. What we have is austerity. What we have is an on-going economic crisis, a huge national debt, rule by profligate bankers and corporate entities and mass surveillance to keep ordinary people in check.
So what might the future hold? Unfortunately, more of the same.
The Transatlantic Trade and Investment Partnership
The Transatlantic Trade and Investment Partnership being negotiated between the EU and US is intended to be the biggest trade deal in history. The EU and US together account for 40 percent of global economic output. The European Commission tries to sell the deal to the public by claiming that the agreement will increase GDP by one percent and will entail massive job creation.
However, these claims are not supported even by its own studies, which predict a growth rate of just 0.01 percent GDP over the next ten years and the potential loss of jobs in several sectors, including agriculture. Corporations are lobbying EU-US trade negotiators to use the deal to weaken food safety, labour, health and environmental standards and undermine digital rights. Negotiations are shrouded in secrecy and are being driven by corporate interests. And the outcome could entail the bypassing of any democratic processes in order to push through corporate-friendly policies. The proposed agreement represents little more than a corporate power grab.
It should come as little surprise that this is the case. Based on a recent report, the European Commission’s trade and investment policy reveals a bunch of unelected technocrats who care little about what ordinary people want and negotiate on behalf of big business. The Commission has eagerly pursued a corporate agenda and has pushed for policies in sync with the interests of big business. It is effectively a captive but willing servant of a corporate agenda. Big business has been able to translate its massive wealth into political influence to render the European Commission a “disgrace to the democratic traditions of Europe.”
This proposed trade agreement (and others like it being negotiated across the world) is based on a firm belief in ‘the market’ (a euphemism for subsidies for the rich, cronyism, rigged markets and cartels) and the intense dislike of state intervention and state provision of goods and services. The ‘free market’ doctrine that underpins this belief attempts to convince people that nations can prosper by having austerity imposed on them and by embracing neo-liberalism and ‘free’ trade. This is a smokescreen that the financial-corporate elites hide behind while continuing to enrich themselves and secure taxpayer handouts, whether in the form of bank bailouts or other huge amounts of corporate dole.
In much of the West, the actual reality of neo-liberalism and the market is stagnating or declining wages in real terms, high levels of personal debt and a permanent underclass, while the rich and their corporations to rake in record profits and salt away wealth in tax havens.
Corporate plunder in India
Thatcher was a handmaiden of the rich. Her role was to destroy ‘subversive’ or socialist tendencies within Britain and to shatter the post-1945 Keynesian consensus based on full employment, fairness and a robust welfare state. She tilted the balance of power in favour of elite interests by embarking on a pro-privatisation, anti-trade union/anti-welfare state policy agenda. Sections of the public regarded Thatcher as a strong leader who would get things done, where others before her had been too weak and dithered. In India, Narendra Modi has been portrayed in a similar light.
His government is attempting to move ahead with ‘reforms’ that others dragged their feet on. To date, India has experienced a brand of ‘neo-liberalism lite’. Yet what we have seen thus far has been state-backed violence and human rights abuses to ‘secure’ tribal areas for rich foreign and Indian corporations, increasing inequalities, more illicit money than ever pouring into Swiss bank accounts and massive corruption and cronyism.
Under Modi are we to witness an accelerated ‘restructuring’ of agriculture in favour of Western agribusiness? Will more farmers be forced from their land on behalf of commercial interests? Officialdom wants to depopulate rural areas by shifting over 600 million to cities. It begs the question: in an age of increasing automation, how will hundreds of millions of agriculture sector workers earn their livelihoods once they have left the land?
What type of already filthy and overburdened urban centres can play host to such a gigantic mass of humanity who were deemed ‘surplus to requirements’ in rural India and will possibly be (indeed, already are) deemed ‘surplus to requirements’ once in the cities?
Gandhi stated that the future of India lies in its villages. Rural society was regarded as India’s bedrock. But now that bedrock is being dug up. Global agritech companies have been granted license to influence key aspects of agriculture by controlling seeds and chemical inputs and by funding and thus distorting the biotech research agenda and aspects of overall development policy.
Part of that ‘development’ agenda is based on dismantling the Public Distribution System for food. Policy analyst Devinder Sharma notes that the government may eventually stop supporting farmers by doing away with the system of announcing the minimum support price for farmers and thereby reduce the subsidy outgo. He argues that farmers would be encouraged to grow cash crops for supermarkets and to ‘compete’ in a market based on trade policies that work in favour of big landowners and heavily subsidised Western agriculture.
By shifting towards a commercialised system that would also give the poor cash to buy food in the market place, rather than the almost half a million ‘ration shops’ that currently exist, the result will be what the WTO/ World Bank/IMF have been telling India to for a long time: to displace the farming population so that agribusiness can find a stronghold in India.
We need only look at what happened to the soy industry in India during the nineties, or last year’s report by GRAIN, to see how small farmers are forced from their land to benefit powerful global agritech. If it cannot be achieved by unfair trade policies and other duplicitous practices, it is achieved by repression and violence, as Helena Paul notes:
“Repression and displacement, often violent, of remaining rural populations, illness, falling local food production have all featured in this picture. Indigenous communities have been displaced and reduced to living on the capital’s rubbish dumps. This is a crime that we can rightly call genocide – the extinguishment of entire Peoples, their culture, their way of life and their environment.”
Although Helena Paul is referring to the situation in Paraguay, what she describes could well apply to India or elsewhere.
In addition, the secretive corporate-driven trade agreement being negotiated between the EU and India could fundamentally restructure Indian society in favour of Western corporate interests and adversely impact hundreds of millions and their livelihoods and traditional ways of living. And as with the proposed US-EU agreement, powerful transnational corporations would be able to by-pass national legislation that was implemented to safeguard the public’s rights. Governments could be sued by multinational companies for billions of dollars in private arbitration panels outside of national courts if laws, policies, court decisions or other actions are perceived to interfere with their investments.
A massive shift in global power and wealth from poor to rich
Current negotiations over ‘free’ trade agreements have little to do with free trade. They are more concerned with loosening regulatory barriers and bypassing any democratic processes to allow large corporations to destroy competition and siphon off wealth to the detriment of smaller, locally based firms and producers.
The planet’s super rich comprise a global elite. It is not a unified elite. But whether based in China, Russia or India, its members have to varying extents been incorporated into the Anglo-American system of trade and finance. For them, the ability to ‘do business’ is what matters, not national identity or the ability to empathise with someone toiling in a field who happened to be born on the same land mass. And in order ‘to do business’, government machinery has been corrupted and bent to serve their ends. In turn, organisations that were intended to be ‘by’ and ‘for’ ordinary working people have been successfully infiltrated and dealt with.
The increasing global takeover of agriculture by powerful agribusiness, the selling off of industrial developments built with public money and strategic assets and secretive corporate-driven trade agreements represent a massive corporate heist of wealth and power across the world. The world’s super rich regard ‘nations’ as population holding centres to be exploited whereby people are stripped of control of their livelihoods for personal gain. Whether it concerns rich oligarchs in the US or India’s billionaire business men, corporate profits and personal gain trump any notion of the ‘national interest’.
Still want a Thatcherite revolution?
Colin Todhunter is an extensively published independent writer and former social policy researcher based in the UK and India.
The Corporate Takeover of Ukrainian Agriculture
By Frédéric Mousseau | IPS | January 27, 2015
OAKLAND, CA – At the same time as the United States, Canada and the European Union announced a set of new sanctions against Russia in mid-December last year, Ukraine received 350 million dollars in U.S. military aid, coming on top of a one billion dollar aid package approved by the U.S. Congress in March 2014.
Western governments’ further involvement in the Ukraine conflict signals their confidence in the cabinet appointed by the new government earlier in December 2014. This new government is unique given that three of its most important ministries were granted to foreign-born individuals who received Ukrainian citizenship just hours before their appointment.
The Ministry of Finance went to Natalie Jaresko, a U.S.-born and educated businesswoman who has been working in Ukraine since the mid-1990s, overseeing a private equity fund established by the U.S. government to invest in the country. Jaresko is also the CEO of Horizon Capital, an investment firm that administers various Western investments in the country.
As unusual as it may seem, this appointment is consistent with what looks more like a takeover of the Ukrainian economy by Western interests. In two reports – The Corporate Takeover of Ukrainian Agriculture and Walking on the West Side: The World Bank and the IMF in the Ukraine Conflict – the Oakland Institute has documented this takeover, particularly in the agricultural sector.
A major factor in the crisis that led to deadly protests and eventually to president Viktor Yanukovych’s removal from office in February 2014 was his rejection of a European Union (EU) Association agreement aimed at expanding trade and integrating Ukraine with the EU – an agreement that was tied to a 17 billion dollar loan from the International Monetary Fund (IMF).
After the president’s departure and the installation of a pro-Western government, the IMF initiated a reform programme that was a condition of its loan with the goal of increasing private investment in the country.
The package of measures includes reforming the public provision of water and energy, and, more important, attempts to address what the World Bank identified as the “structural roots” of the current economic crisis in Ukraine, notably the high cost of doing business in the country.
The Ukrainian agricultural sector has been a prime target for foreign private investment and is logically seen by the IMF and World Bank as a priority sector for reform. Both institutions praise the new government’s readiness to follow their advice.
For example, the foreign-driven agricultural reform roadmap provided to Ukraine includes facilitating the acquisition of agricultural land, cutting food and plant regulations and controls, and reducing corporate taxes and custom duties.
The stakes around Ukraine’s vast agricultural sector – the world’s third largest exporter of corn and fifth largest exporter of wheat – could not be higher. Ukraine is known for its ample fields of rich black soil, and the country boasts more than 32 million hectares of fertile, arable land – the equivalent of one-third of the entire arable land in the European Union.
The manoeuvring for control over the country’s agricultural system is a pivotal factor in the struggle that has been taking place over the last year in the greatest East-West confrontation since the Cold War.
The presence of foreign corporations in Ukrainian agriculture is growing quickly, with more than 1.6 million hectares signed over to foreign companies for agricultural purposes in recent years. While Monsanto, Cargill, and DuPont have been in Ukraine for quite some time, their investments in the country have grown significantly over the past few years.
Cargill is involved in the sale of pesticides, seeds and fertilisers and has recently expanded its agricultural investments to include grain storage, animal nutrition and a stake in UkrLandFarming, the largest agribusiness in the country.
Similarly, Monsanto has been in Ukraine for years but has doubled the size of its team over the last three years. In March 2014, just weeks after Yanukovych was deposed, the company invested 140 million dollars in building a new seed plant in Ukraine.
DuPont has also expanded its investments and announced in June 2013 that it too would be investing in a new seed plant in the country.
Western corporations have not just taken control of certain profitable agribusinesses and agricultural activities, they have now initiated a vertical integration of the agricultural sector and extended their grip on infrastructure and shipping.
For instance, Cargill now owns at least four grain elevators and two sunflower seed processing plants used for the production of sunflower oil. In December 2013, the company bought a “25% +1 share” in a grain terminal at the Black Sea port of Novorossiysk with a capacity of 3.5 million tons of grain per year.
All aspects of Ukraine’s agricultural supply chain – from the production of seeds and other agricultural inputs to the actual shipment of commodities out of the country – are thus increasingly controlled by Western firms.
European institutions and the U.S. government have actively promoted this expansion. It started with the push for a change of government at a time when president Yanukovych was seen as pro-Russian interests. This was further pushed, starting in February 2014, through the promotion of a “pro-business” reform agenda, as described by the U.S. Secretary of Commerce Penny Pritzker when she met with Prime Minister Arsenly Yatsenyuk in October 2014.
The European Union and the United States are working hand in hand in the takeover of Ukrainian agriculture. Although Ukraine does not allow the production of genetically modified (GM) crops, the Association Agreement between Ukraine and the European Union, which ignited the conflict that ousted Yanukovych, includes a clause (Article 404) that commits both parties to cooperate to “extend the use of biotechnologies” within the country.
This clause is surprising given that most European consumers reject GM crops. However, it creates an opening to bring GM products into Europe, an opportunity sought after by large agro-seed companies such as Monsanto.
Opening up Ukraine to the cultivation of GM crops would go against the will of European citizens, and it is unclear how the change would benefit Ukrainians.
It is similarly unclear how Ukrainians will benefit from this wave of foreign investment in their agriculture, and what impact these investments will have on the seven million local farmers.
Once they eventually look away from the conflict in the Eastern “pro-Russian” part of the country, Ukrainians may wonder what remains of their country’s ability to control its food supply and manage the economy to their own benefit.
As for U.S. and European citizens, will they eventually awaken from the headlines and grand rhetoric about Russian aggression and human rights abuses and question their governments’ involvement in the Ukraine conflict?
Frédéric Mousseau is the Policy Director at the Oakland Institute.
BRICS create new Development Bank as well as a $100 billion foreign currency reserves pool
By Helmo Preuss | The BRICS Post | July 15, 2014
Fortaleza, Brazil – After some tough rounds of negotiations, BRICS nations (Brazil, Russia, India, China and South Africa) have created not only a new $100 billion Development Bank, but also a $100 billion foreign currency reserves pool.
The announcement was made after a plenary meet of the five BRICS heads of state in Fortaleza on Tuesday.
Shanghai finally won the bid to host the Bank while India will get the presidency of the Bank for the first six years. The Bank will have a rotating chair. The Bank will also have a regional office in Johannesburg, South Africa. All the five countries will have equal shareholding in the BRICS Bank.
The five Finance Ministers will constitute the Bank’s board which will be chaired by Brazil.
The Bank will initially be involved in infrastructure projects in the BRICS nations.
The authorized, dedicated and paid in capital will amount to $100 billion, $50 billion and $10 billion respectively.
The idea of the BRICS Bank was proposed by India during the 2012 Summit in New Delhi.
BRICS have long alleged that the IMF and World Bank impose belt-tightening policies in exchange for loans while giving them little say in deciding terms. Total trade between the countries is $6.14 trillion, or nearly 17 percent of the world’s total. The last decade saw the BRICS combined GDP grow more than 300 per cent, while that of the developed word grew 60 per cent.
Apart from the new development Bank, the group of five leading emerging economies also created a Contingency Reserve Arrangement on Tuesday.
BRICS central banks will keep their reserves in gold and foreign currencies.
China will fund $41 billion, Brazil, India and Russia $18 billion each and South Africa with $5 billion. The funds will be provided according to a multiple. China’s multiple is 0.5, which means that if needed, the country will get half of $41 billion. The multiple is 2 for South Africa and 1 for the rest.
BRICS Finance ministers or central banks’ governors will form a governing body to manage the CRA while it will be presided over by the BRICS President.
The BRICS CRA will not be open to outsiders.
Meanwhile, at the Summit in Fortaleza, Russian President Vladimir Putin said BRICS must form an energy alliance.
“We propose the establishment of the Energy Association of BRICS. Under this ‘umbrella’, a Fuel Reserve Bank and BRICS Energy Policy Institute could be set up,” Putin said on Tuesday.
Tired of World Bank, China to launch alternative
RT | June 26, 2014
China is moving forward with a plan to create its own version of the World Bank, which will rival institutions that are under the sway of the US and the West. The bank will start with $100 billion in capital.
The Asian Infrastructure Investment Bank (AIIB) will extend China’s financial reach and compete not only with the World Bank, but also with the Asian Development Bank, which is heavily dominated by Japan. The $100 billion in capital is double that originally proposed, the Financial Times (FT) reported.
A member of the World Bank, China has less voting power than countries like the US, Japan, and the UK. It is in the ‘Category II’ voting bloc, giving it less of a voice. In the Asian Development Bank, China only holds a 5.5 percent share, compared to America’s 15.7 percent share and Japan’s 15.6 share.
At the International Monetary Fund, China pays a 4 percent quota, whereas the US pays nearly 18 percent, and therefore has more influence within the organization and where loans go.
“China feels it can’t get anything done in the World Bank or the IMF so it wants to set up its own World Bank that it can control itself,” the FT quoted a source close to discussions as saying.
To date, 22 countries have expressed interest in the project, including oil-rich Middle Eastern nations, the US, India, Europe, and even Japan, the FT reported.
“There is a lot of interest from across Asia but China is going to go ahead with this even if nobody else joins it,” the FT source said.
Funding for the Asian Infrastructure Investment Bank will mostly be sourced from the People’s Republic of China and be used to pay for infrastructure projects.
The bank’s first project will be a reincarnation of the ancient Silk Road, the vast network of trade routes between China and its regional neighbors. Another proposed project is a railway from Beijing to Baghdad.
The idea for the bank was first floated in October 2013, when China unveiled plans to create the bank. Then it was initially to be funded with $50 billion in capital.
Separately, the BRICS nations plan to have a $100 billion development bank ready by 2015.
Funds will be reserved for emerging market members who are often bypassed by institutions like the IMF and World Bank.
Bank preparations will likely be finalized at the 6th annual BRICS summit on July 14-16, when the five world leaders convene in Brazil.
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The saturated fat scam: What’s the real story?
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There’s more to climate fraud than just tax hikes
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Aletho News- There Is No Climate Crisis November 14, 2019
- Takeover of Venezuela’s embassy in Brazil timed to coincide with launch of BRICS summit – Russia November 14, 2019
- Federal Court Rules Suspicionless Searches of Travelers’ Phones and Laptops Unconstitutional November 13, 2019
- The “Officer Friendly” Police Fantasy November 13, 2019
- Whilst 18 Israelis are treated for anxiety, 22 Palestinians are taken to the mortuary November 13, 2019
- Exiled Bolivian president Morales blasts coup & hints at US role in it November 13, 2019
- The mouse that roared November 13, 2019
- The Strange Death of White Helmets Founder Leaves Many Questions to Be Answered November 13, 2019
- Legacy of Climategate – 10 years later November 13, 2019
- Opposition senator declares herself ‘interim president’ of Bolivia without quorum or vote November 13, 2019
- Pathologizing conspiracy theories is the lazy government’s method of suppressing dissent November 13, 2019
- Syria: Assad accuses US of ‘supporting terrorism’ in rare interview November 13, 2019
- The Sad Death of James Le Mesurier November 13, 2019
- Casualties of War: Military Veterans Have Become America’s Walking Wounded November 13, 2019
- Israel murders senior Islamic Jihad official and his wife in Gaza November 12, 2019
- US, Israel won’t partake in confab on WMD-free Mideast November 12, 2019
- Iran fully prepared; US never dares to attack: Deputy FM November 12, 2019
- Uranium Particles Discovered by IAEA in Iran Not Related to JCPOA – Russian Senior Official November 12, 2019
- If Americans Knew
- Israeli group opposes: ‘A war to keep Netanyahu on his throne’ November 13, 2019
- Breaking: Israeli forces kill 23, injure 69, in bombardment of Gaza November 13, 2019
- Jihad Ayman Abu Khater November 13, 2019
- Indian Punchline
- Tehran taunts US with Fordow; pokes at Trump with Agent Levinson November 12, 2019
- 40 years after Berlin Wall November 11, 2019
- Not A Lot Of People Know That
