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Massive new debt hides years of negative GDP growth in EU and USA

By Jon Hellevig | Oriental Review | September 29, 2014

Finland – In a groundbreaking study Awara Group reveals that the real GDP growth of Western countries has been in negative territory for years. Only by massively loading up debt have they been able to hide the true picture and delay the onset of an inevitable collapse of their respective economies. The study shows that the real GDP of those countries hides hefty losses after netting the debt figures, which gives the Real-GDP-net-of-debt.

The moral of the study is that GDP growth figures as such reveal very little about the underlying dynamics of an economy if one does not simultaneously attempt to analyze what part of the growth is credited to simply artificially fueling the economy with new loans.

The study has found that the Western countries have lost the capacity to grow their economies. All they have left is a capacity to pile up debts. By massively accumulating new debt, they are able to keep up a semblance of at least sluggish growth, or of hovering around the zero growth mark.

If this massive debt would go towards investments, then there would be nothing wrong with it. But, it is not. The debt is going towards financing the losses in the national economies and essentially it all is wasted on consumption that the countries in reality cannot afford. The Western countries act like a 19th century heir to aristocratic wealth, borrowing from year to year to keep up the former lifestyle, while the estate is relentlessly dwindling. Sooner or later the prodigal heir would be forced to face reality and sell the remaining property to stave off the creditors, downgrade his dwellings, and rein in spending. Inevitably, the European countries and the USA will have to curb their excessive consumption, too, but for the time being they are putting off the final reckoning with new debt rather the way a drunkard reaches for the morning after drink to put off sobering up. In the case of the EU and the USA, we are speaking about a debt binge that has been going on for a decade.

While the situation has been generally bad for the last decade or so, it took a dramatic turn for the worse, or should we say for the catastrophic, following the onset of the global financial crisis in 2008. The shocking figures depicting the virtual crippling of the Western economies from 2009 to 2013 are illustrated in Chart 1. It depicts the development of real-GDP-growth per country in years 2005 to 2013. The chart shows that during this period Russia has been able to deliver real non-debt fueled GDP growth, whereas the Western countries are running huge deficits. The accumulated growth of the Russian economy from 2005 to 2013 was 147% while the Western countries accumulated losses from 16.5% (Germany) to 58% (USA). In the case of Russia, the real-GDP-net-of-debt figure is also corrected to adjust for the calculation error caused by an erroneous GDP deflator that Russian Statistics Agency (Rosstat) has used. We have discussed the persistent problem of Russia’s GDP growth having been underestimated due to the use of a wrong GDP deflator in the study Awara Group Research on the Effects of Putin’s Tax Reforms 2000-2012 on State Tax Revenue and GDP

Chart1

Chart 2 shows the real GDP growth net-of-debt after deducting the growth of public debt from the GDP figure. Net of debt we see the scale of the Western economies, for example the Spanish economy, which amounts to the staggering figure of minus 56.3%. This while the conventional official method of crediting GDP growth with growth of debt would give only minus 6.7%.

Chart2

The analysis shows that by these measures Russian economic growth, unlike that of the Western countries, has been comparatively healthy and not debt-driven. Russia has in fact a resoundingly positive ratio by these measures, where GDP growth has exceeded growth of debt by a staggering 14 times (1400%). The figure is astonishing when compared with the Western countries that have been flooded with new debt.

Chart3

Chart 3 shows how much the accumulation of debt in the Western countries exceeds the official GDP growth. The USA is leading the pack with an increase in the debt load in years 2004 to 2013 of USD 9.8 trillion (in the chart in euros, EUR 7 trillion). In those years, the growth of the USA public debt exceeded the GDP growth 9 times (900%), which is illustrated by Chart 4, comparing the proportion of growth of debt to that of growth of GDP.

The comparison of growth of debt to growth of GDP reveals the UK, as the country that has amassed the most amount of new debt relative to GDP growth, having a new-debt-to-GDP-growth ratio of 9 to 1; in other words UK has taken on 900% new debt relative to the GDP growth. But the picture is grim for all the Western countries surveyed, less so for Germany, while Russia’s debt increase amounts to only a fraction of the GDP growth.

Chart4

The analysis shows that by these measures Russian economic growth, unlike that of the Western countries, has been comparatively healthy and not debt-driven. Russia has in fact a resoundingly positive ratio by these measures, where GDP growth has exceeded growth of debt by a staggering 14 times (1400%). The figure is astonishing when compared with the Western countries that have been flooded with new debt.

The above figures are adjusted taking into account public debt (general government debt), but the situation is even worse when we consider the effect of private debt on the GDP. New debt of corporations and households have at least doubled private debt of most of the Western countries since year 1996 (Chart 5).

Chart5

Reviewing these figures, it becomes evident that in reality Western economies have not grown in the past decade, rather the countries have massively inflated their debt load. With these levels of debt reached this cannot continue for long. There is a real risk that the bluff will be called sooner rather than later dropping the Western economies to GDP levels that they can carry without debt leverage. But in that situation they will not be able to serve the accumulated debts leading to catastrophe scenarios.

We have not included Japan and China in the analysis due to the difficulties attributed to finding consistent data for all the input variables. For those countries we have come across problems of fractured data that do not capture all the relevant years; inconsistent data across the samples we looked at; and uncertainties about conversion of the input data into euros. (We are sure that major research houses could overcome such problems, having greater and more sophisticated resources than ours). This exclusion of Japan and China is regrettable as Japan is the country worst affected by the problem of debt-fueled GDP growth, having a public debt to GDP ratio of well above 200%, and would therefore have been very instructive for our purposes.

Japan has been essentially living on debt since the early 1990’s. However, some of the more irrational Western analysts want to take Japan as a prime example to follow, arguing that since Japan has been able to pile up debt for some 25 years now, all the Western countries would be able to do it as well for the foreseeable future. In this they fail to grasp that Japan earlier had the luxury of being the sole country living on such exorbitant levels of debt. Japan has enjoyed great support from the Western countries to be able to continue that practice, not least for political reasons. Another important consideration against the idea that Western countries could continue to accumulate debt is that they have, since the early 1990’s, rapidly lost their economic hegemony in terms of share of world trade and global GDP. I have written about this in a recent article entitled Why the West is Destined to Decline.

The West is fast shrinking in economic significance relative to the rest of the world. This is demonstrated by comparing the GDP of the Western powers as represented by the G7 countries (USA, Japan, Germany, France, UK, Italy and Canada) with the GDP of emerging powers. As recently as 1990, the combined GDP of the G7 was overwhelming in relation to that of today’s 7 emerging powers: China, India, Russia, Brazil, Indonesia, Mexico and South Korea (not necessarily constituting one political block). In 1990, the G7 countries had a combined GDP of USD 14.4 trillion and the emerging 7 had a GDP of USD 2.3, but by 2013 the tables had been turned, as the G7 had USD 32 trillion and the emerging 7 had USD 35 trillion. (Chart 6).

Chart6

With the challenge of the ever increasing share of world economy belonging to the emerging countries, it becomes clear that the Western countries will not be able to profit sufficiently from world trade to service their debt loads.

For the time being the Western countries benefit from the privilege of having currencies that the rest of the world still largely trusts as reserve currencies. In essence, the USD and the euro enjoy a kind of monopoly status. This is what allows Western countries to gain access to cheap debt and fuel their economies with central bank financing (quantitative easing or “printing of money”). But the risk is that, with the deteriorating debt situation and diminishing share of the global economy, they will forfeit this privilege, perhaps even in the near future. What would follow from this is sharply more expensive financing and inflation, with hyperinflation as the eventual outcome. In this scenario – which I consider inevitable over the next 5 to 10 years – the economies of Western countries would essentially collapse.

The problem is that there is no way of averting this scenario, because the Western powers have lost their competitive advantages as economic powers. Eventually, their economies must shrink to match their resource and population bases. (I have written about this in the article referred to above). But it seems that the ruling Western elites have no intention of facing up to these realities. They will try to keep up a semblance of prosperity with ever new debt, as long as they can. The political parties of the West have been essentially converted into voting machines with one singular concern – that of winning the next elections. To do that they will continue to engage in what amounts to bribing of the electorate – creating new debt that fuels the national economy.

But there is no way to turn back this historical tide. Just as the aristocrat of the old regime eventually squandered his legacy, so will the Western powers. This inevitability of the process is what makes it really scary, because I am afraid that the Western elite might be tempted to bail itself out from this doomsday scenario with a war of epic proportions. We are now truly approaching the Armageddon between the West, with its desperate economic circumstances, and the emerging world powers.

Jon Hellevig is a business consultant and economic and political observer. He is the co-editor and co-author of Putin’s New Russia and several books on philosophy and political and social sciences.

September 30, 2014 Posted by | Deception, Economics | , , , , , , , , | 1 Comment

Strangler Fig Nation

The unique national strategy for the state of Israel

By Paul Larudee | Dissident Voice | September 8, 2014

Strangler fig is the generic name given to a class of vines that sprouts high in the canopy of trees in tropical forests. It is deposited by birds that eat its fruit. Its roots envelope the tree and feed off it, weakening the tree. If the process is allowed to continue indefinitely, it sinks its roots into the ground at the base of the tree and destroys it completely but takes its form, creating a hollow shell of living vines where the tree once stood.

On Friday, July 18, 2014, as one of the most powerful military forces in the world laid waste to the besieged and impoverished Gaza Strip, leaving widows and orphans in its wake while nevertheless killing a significant number of them, the United States Senate, without objection and by unanimous consent from all 100 senators, passed a resolution supporting this act of genocide and condemning its victims for provoking the powerful aggressor by trying to resist.

At that point, Israel had killed more than 250 Palestinians, mostly civilians, while the resistance forces in Gaza had killed one Israeli, who had been delivering food to troops at the time. The Senate resolution had been drafted by the AIPAC, the American Israel Public Affairs Committee, one of the pillars of the Israel Lobby. Fifty days later more than 2000 Palestinians, mostly civilians, and 72 Israelis, mostly soldiers, lay dead.

How did the Israel Lobby come to so totally dominate the US Senate and in fact the entire US government?

The story goes back more than a century, to the early years of the Zionist movement to create a Jewish state. Zionism grew out of the 19th and 20th century European racist and nationalist philosophies like Fascism, Nazism and Falangism, which promoted the idea that each race in the world needed a homeland and should seek to fulfill its national destiny there.

The definition of both race and homeland were given much latitude. Despite all genetic evidence to the contrary, Jews were considered a race, and after considering Uganda and Argentina as potential homelands, the Zionists settled on Palestine.

In order to fulfill its “destiny”, however, the Zionists realized that they would need the support of at least one great power in order to force themselves upon an unwilling population in Palestine and ultimately expel or eliminate them, as the Europeans had largely accomplished in the great genocide of indigenous peoples in the western hemisphere. For this purpose, they selected Great Britain as it was about to take control of Palestine, and when the Zionists might be able to argue that their support could be critical to British ambitions, both during and after the Great War.

Indeed, Britain served their purpose well, facilitating the settlement of Palestine with Zionist Europeans. Zionist leaders also assisted Nazi Germany in removing its Jewish population and transferring them to Palestine, arguing that Nazism and Zionism had complementary interests. Before long, however, the relationship with Britain turned adversarial when Zionist terrorist groups began attacking the British in Palestine, with a view toward forcing the creation of an independent Jewish state in a territory where they constituted a minority of the population.

Although the Zionists continued to maintain an important support community in Great Britain, they knew that they would need other sponsors, and found their warmest welcome in the United States, starting in the late 19th century. Following World War II, President Harry Truman considered the Zionists to be important enough to his 1948 election campaign that he showered them with whatever they wanted, and especially immediate recognition of their declaration of statehood on May 14, 1948. This event set a pattern for Zionist influence in the US that would be repeated on a vast scale decades later.

During the Eisenhower and Kennedy administrations, the Israel Lobby, though powerful, could not act with impunity. Eisenhower suspended aid to Israel and forced it to pull back from its invasion of Sinai in 1956. Kennedy supported Senator J. William Fulbright’s hearings to force AIPAC to register as a foreign agent.

Those hearings were cut short in the aftermath of the Kennedy assassination, and Lyndon Johnson proved much more compliant, twice ordering the US sixth fleet to recall its aircraft sent to defend the US naval ship Liberty, which was attacked by Israeli air and naval forces in June, 1967. The Liberty sustained 34 dead and 171 wounded US military personnel, and barely avoided being sunk with all lives lost. However, the entire affair was quashed, with the Johnson administration foisting flimsy excuses upon a compliant American press and public, which accepted them with little question.

Since then, the Israel Lobby has grown with few constraints, fed by its domination of the American Jewish community, extensive control of publishing and the media, the establishment and control of strategic think tanks that provide governmental advisers, and by a well-coordinated and lavishly funded political campaign machine. This machine is now sufficiently influential to assure huge congressional appropriations to Israel that are filled by contractors who in turn show their gratitude by donating to the lobby that feeds them.

This history is well documented in works like The Lobby: Jewish political power and American foreign policy, by Edward Tivnan (1987), The Israel lobby and U.S. foreign policy, by John J. Mearsheimer and Stephen M. Walt (2008), Against Our Better Judgement, by Alison Weir (2014), and other publications and articles. Today, Israel oversees the careers of politicians throughout the US from the city and county level up to state and national races to make sure that no one hostile to Israel achieves significant political office and that its agenda receives overwhelming approval. It prevails upon the gratitude of elected officials to appoint its candidates as staffers throughout Congress as well as state and local offices. It maintains control of news, cinema, television, publishing and other media, so that its narrative will dominate public portrayal of Middle East issues. It even implants both volunteers and paid staff to populate web comment lists.

As a result, Israel is now much more than a lobby. Powerful lobbies may bend a government to their benefit, but their strength and survival ultimately depend upon the health of the country or countries that are their home. In a sense, therefore, they serve the national interest, even if they serve the interests of certain segments of society more than others. This is also why they care little for the health of the countries that they exploit, which are not their home.

It also explains why Israel increasingly treats the US like an exploited colony: the Israeli elite can use the US to their benefit, but it is not their home. Israel now controls US policy in the Middle East much more than it ever did Great Britain, to such an extent that it can often use US resources and power even in defiance of US national interest.

Trillions of dollars and thousands of American lives have been expended to destroy Iraq, Libya, Syria and Lebanon. Did these wars strengthen or weaken the strategic interest of the US and its economy? Would these wars have been fought if not for the Israel lobby in the US? While Israeli policy has been to weaken and destroy its neighbors, it is far from obvious that the same policy is in the US national interest.

To the contrary, until the end of World War II and even until the 1960s, the US was widely regarded in the Arab world as the “good” western power, untainted by colonialism in the region and without Arab blood on its hands. As John Sheehan, SJ said, “Every time anyone says that Israel is our only friend in the Middle East, I can’t help but think that before Israel, we had no enemies in the Middle East.”

Of course, some will argue that these and other US government policies and actions are in fact consistent with some definition of national interest. That is necessary, because anything that is obviously destructive to the well-being of the country will encounter too much resistance to implement. Every policy benefits someone. However, there is an important difference between those who benefit more than others from enterprise that in fact strengthens the nation and those who benefit from the sacrifices – and to the detriment – of the rest of the nation.

The Middle East wars of the G.W. Bush and Obama administrations are different from earlier ones, including the first Iraq war, primarily with respect to the degree to which Israel supplied the intelligence on which they were based and the extent to which their lobby influenced Congress to act. The Bush administration, for example, is notable for the Office of Special Plans, which was a veritable Israel liaison office in the heart of the Pentagon with extraordinary access to top secret information and in fact set up by Donald Rumsfeld, the Secretary of Defense.

In fact, the G.W. Bush administration marks the maturation of a program of Israel-nurtured neoconservative influence and control that began at least a decade earlier and coalesced into the Project for a New American Century (PNAC), a Washington think tank that brought together many of the principals that would hold high office in that administration. Although initially derided as fanciful in the Clinton administration and its predecessors, it constituted the first open presentation of plans to orient and ultimately subordinate U.S. policy to the goals and policies of the state of Israel.

The plans took shape as part of what became known as the neoconservative agenda. This was a major departure from the paradigm that began in 1947 with the publication of George Kennan’s seminal work counseling the projection of American power in order to maintain an equilibrium of power, (known as the “containment” principle) in international relations, so as to avoid disastrous and dangerous confrontations of the type that characterized the first half of the twentieth century. One may argue the extent to which such policy was effective, but the neoconservatives in PNAC argued that the end of the Soviet Union and the advent of the unipolar world provided the US with an unprecedented opportunity for domination, if only it would pursue a policy of military intervention and adventurism.

It is no accident that the early movement found favor with Israel. Israel quickly saw that neocon interventionism could be made to use American military might to serve Israel’s agenda of crushing its real, potential and perceived opponents in the Middle East. The Israel lobby therefore invested heavily in university departments and think tanks devoted to strategic studies and promoting the careers of neoconservatives that became advisers and appointed officials throughout government.

Examples of these are the Institute for Advanced Strategic and Political Studies, the Hudson Institute, the Brookings Institution, the Cato Institute, the Council on Foreign Relations, the Jewish Institute for National Security Affairs, the Project for a New American Century, the Hoover Institution, the American Enterprise Institute, the Washington Institute for Near East Policy (founded by AIPAC) and others. Through their doors have passed the likes of Richard Perle, Dick Cheney, Paul Wolfowitz, Donald Rumsfeld, Elliott Abrams, John Bolton, Dennis Ross, Douglas Feith, Robert Kagan, Martin Indyk, David Wurmser, Michael Ledeen and many others that have achieved high government office, especially since the start of the G.W. Bush administration in 2001.

Israel’s investments have paid off in a big way. Today, all officials elected or appointed to national office are either pro-Israel or must say they are. In fact, they cannot deviate or dissent or disagree with the Israel lobby in any way without risk of losing their career, as Cynthia McKinney, Paul Findley, Earl Hilliard, Pete McCloskey, William Fulbright, Roger Jepsen, Adlai Stevenson III and others have discovered to their dismay. Other prominent figures, like Vanessa Redgrave and others in entertainment and the arts, that have dared to criticize Israel, also find themselves pilloried in the press and subject to fewer opportunities for their professional practice. Those aspiring to careers in mainstream film, journalism and even sports or music may find the doors closed to them if speak out in any way against Israel.

Israel has thus constructed a strangler fig network of roots and vines that is feeding itself from the resources of world’s most powerful nation while gradually starving that nation. It is placing itself inside the workings of the US government and society so as to hobble its workings to Israel’s requirements under the carefully crafted illusion that they are serving the US national interest.

An example of this is the US relationship with Iran, and specifically the Iranian nuclear program, as set forth in Gareth Porter’s book, Manufactured Crisis [Just World Books, 2014]. As Porter meticulously shows, although Iran has no nuclear weapons program, never had one and never proposed to have one, and although the US has repeatedly found no evidence of an Iranian nuclear weapons program and only evidence to the contrary, the US continues to impose sanctions against Iran for the sole reason that Israel wants to do as much damage as possible to Iran and to prevent good and productive relations between Iran and the United States.

Porter shows that Israel has brought to bear its skill in creating forged documents, its influence in American intelligence, its threat of Congressional opposition to administration policies and other instruments of deception and coercion in order to prevent a rapprochement between the US and Iran. Israel’s hand can also be seen in US policy toward Syria, the rise of ISIS, the overthrow of Egypt’s very first democratically elected government, the destruction of Libya and many other of the developments in the Middle East. If we ask cui bono, Israel will be at the top of the list, at least from its own definition of objectives. Whether the US benefits from a strategic and economic viewpoint is highly questionable, although Israel’s allies in the US rarely fail to come out ahead.

There are of course limitations to Israel’s power. Even a strangler fig cannot change the shape of the tree. The US has thus far resisted the Israeli attempt to create an actual war with Iran, and it barely skirted direct intervention in Syria, which continues to be on Israel’s wish list. Nevertheless, the power of Israel over the workings of the US government and society is unprecedented in international relations that are otherwise as asymmetrical as those of the US and Israel.

Ordinarily the relation is the reverse: powerful nations are infamous for manipulating their vassals and colonial nations for exploiting their colonies. Yet Israeli prime minister Benjamin Netanyahu infamously bragged that “America is a thing you can move very easily.” What Israel has done is to create the potential for a new type of superpower, a small nation that survives and advances its interests by penetrating the workings of nations that have larger economies and militaries, and harnessing those resources.

In fact, Israel appears to be applying this model to other countries. In England, for example, a majority of the MPs of the three major parties belong to the “Friends of Israel” societies within those parties. Similarly, the BBC coverage of Israel and the Middle East is controlled by appointees that are invariably selected for their bias towards Israel. Canada and India are two formerly nonaligned nations that are now governed by parties and coalitions that have sworn allegiance to Israel. In India’s case, Israel’s promotion of Islamophobia has created an alliance with racist Hindu nationalist parties while making India the world’s largest customer of the Israeli arms industry.

Where will it end? Will Israel exhaust the economic and military resources of the US for its own perceived benefit? To what extent did it already contribute to the economic problems of the last decade? Or will Israel overextend its reach and find that the Zionist experiment to create and perpetuate a nation based on dubious historical, ethnic and religious claims and at the expense of other peoples will precipitate the very reaction that it was ostensibly formed to prevent?

This much we know: that if a strangler fig is allowed to thrive, its host will wither and die, and only its form will remain as an empty shell for as long as the parasite continues to survive.

Paul Larudee is one of the founders of the Free Gaza and Free Palestine Movements and an organizer in the International Solidarity Movement.

September 9, 2014 Posted by | Ethnic Cleansing, Racism, Zionism, Timeless or most popular, Wars for Israel | , , , , , , | Leave a comment

Australia blatantly violates the NPT, Iran held to different standard

By Cyrus Safdari | Iran Affairs | September 7, 2014

As if we needed any more proof that the “Iranian nuclear threat” is just a cooked-up pretext which is unrelated to any actual nuclear threat, Australia, which holds about 1/3rd of the world’s uranium reserves, has decided to sell uranium to India. That such a deal violates the terms of the Nuclear Nonproliferation Treaty, doesn’t seem to be an issue.

And why should it, considering that a few years ago, the US agreed to violate the same NPT by selling nuclear technology to India in exchange for buying India’s vote against Iran at the IAEA Board which sent Iran’s file to the UN Security Council even though Iran had not breached the NPT?

On the eve of his visit to New Delhi, US Under Secretary of State Nicholas Burns has said that with India voting in favour of the IAEA [International Atomic Energy Agency] resolution on Iran’s nuclear programme, Congressional opposition to the Indo-US nuclear agreement has disappeared and both sides would meet their commitments before President George W. Bush visits India next year.

Of course the US and Australia claim that this stuff is going to non-military use in India but all that means is that the deal would free-up India’s other resources to be used for non-civilian use.

Now, in the meantime, while the US (and Australia) are blatantly violating their own obligations under the NPT, they’re demanding that Iran apply even greater restrictions on its nuclear program than the NPT requires, by for example giving up uranium enrichment.

September 7, 2014 Posted by | Nuclear Power, Timeless or most popular, Wars for Israel | , , , , | Leave a comment

Instead of Asking Where is Palestinian Gandhi, Let us Stand with Palestinian Resistance

By Frank Castro | The Hampton Institute | August 6, 2014

“The war neither began with us nor is it going to end with our lives.” - Bhagat Singh

On April 13, 1919, in violation of a British colonial ban on meetings or gatherings, peaceful protestors assembled in Punjab, India to object to the killing of nearly 30 Indians in a previous protest. Unprovoked and without warning, colonial forces arrived and opened fire on tens of thousands of unarmed, defenseless Indians, mostly Sikhs, indiscriminately killing 379 men, women, and children. An estimated 1,200 were wounded.

The onslaught known today as the Jallianwala Bagh massacre, or the Amritsar massacre to Punjabi natives, is said to have lasted 20 minutes. Yet, despite its brevity, for the move to action it spurred throughout colonial India, it remains a seminal event in the fight for Indian independence. One man, 12 year old Bhagat Singh, was especially moved. The massacre planted in Singh’s young mind a longing for the freedom of his people that would propel him forward by any means necessary.

Eventually, he would be hung by British colonial authorities for his propensity to fight brutal occupation with every method employed against the Indian people. In the wake of his death, for the majority of the world which does not know or care about the necessity of armed struggle, he has been forgotten. His story, and those like his, have been put on the back-burner while men like Gandhi have been memorialized as the embodiment of what oppressed peoples should do when faced with a conscienceless occupier.

Such is not far from the expectation of Palestinians in the wake of decades of Israeli apartheid and occupation: In one form or another, the question has been asked, ” Where is Palestinian Gandhi ?”

Though, even if ridiculously, it could be speculated as to where Palestinian Gandhi might be – a thought to be revisited later – we ought to ask why anybody would pose this question at all. The reality is that asking this question is nothing more than a sinister method of delegitimizing Palestinian armed resistance and self-defense. It is a tactical ploy to remove the focus from the violence Israel continues to perpetrate against Palestinians in order to place the impetus for peace solely on those suffering most. It is, in its purest form, victim blaming. And it has been incredibly effective.

Gandhi: A Myth to Which We May Not Want to Aspire

“In order for nonviolence to work, your opponent must have a conscience. - Stokely Carmichael (Kwame Ture)

Nonviolence played a significant role in Indian independence, absolutely; but the premise that, under the tutelage of Gandhi, it was the premier force driving the nation toward liberation is a cherry-picked version of history. It downplays into nothingness the fact that the post-WWII crown could no longer maintain the brute force and financial obligation needed to run a global empire. Indigenous American scholar Ward Churchill, in Pacifism as Pathology, dismantled the myth that nonviolence effectively acted alone or in a vacuum unto itself:

… Gandhian success must be viewed in the context of a general decline in British power brought about by two world wars within a thirty-year period. Prior to the decimation of British troop strength and the virtual bankruptcy of the Imperial treasury during World War II, Gandhi’s movement showed little likelihood of forcing England’s abandonment of India. Without the global violence that destroyed the Empire’s ability to forcibly control territories (and passive populations), India might have continued indefinitely in the pattern of minority rule marking the majority of South Africa’s modern history, the first locale in which the Gandhian recipe for liberation struck the reef of reality. Hence, while the Mahatma and his followers were able to remain “pure,” their victory was contingent upon others physically gutting their opponents for them.

At best, Gandhi worship ignores – at worst, it erases – the revolutionary actions of people like Bhagat Singh and others who galvanized the resistance movement in colonial India. It removes the context of fear created by armed struggle, a reversal of the fear that underpinned British control of a country where Brits were enormously outnumbered. George Orwell, the famous author of 1984, as a former officer in the Indian police noted:

 Gandhi has been regarded for twenty years by the Government of India as one of its right-hand men… It was always admitted in the most cynical way that Gandhi made it easier for the British to rule India, because his influence was always against taking any action that would make any difference. The reason why Gandhi when in prison is always treated with such lenience, and small concessions sometimes made when he has prolonged one of his fasts to a dangerous extent, is that the British officials are in terror that he may die and be replaced by someone who believes less in “soul force” and more in bombs. 

The material and philosophical reality of nonviolence is one of insufficient means dictating for itself an impossible end. The sectarian nature by which many proponents of Gandhian doctrine preclude or lambaste the use of armed resistance only helps doom a people’s fight for liberation because it effectively counteracts any positive gain they together might achieve. A truly encompassing, liberatory praxis must recognize the use of armed resistance as a legitimate and necessary method of achieving liberation. The dismantling of the Gandhi myth is therefore of primary importance in attaining such a praxis.

But what about Gandhi, the man himself, with his political doctrines aside? Recently, feminist writer and activist Arundhati Roy shared her own criticisms of the late nonviolent leader, saying:

The story of Gandhi that we have been told, is a lie. It is time to unveil a few truths, about a person whose doctrine of nonviolence was based on the acceptance of a most brutal social hierarchy ever known, the caste system. Gandhi believed that a scavenger should always remain a scavenger. Do we really need to name our universities after him?

There are, of course, more critical views of Gandhi’s personal habits – his methods for testing his resolve for celibacy for instance – but at the core of his legacy lies an irrational, one-sided lore of a man whose message and methods were inadequate, however helpful, and whose moral character was as flawed as anyone else’s. The real reason Gandhi is lauded while revolutionaries like Singh are diminished has more to do with what we do not know and why we are not taught it, than with what we think we know.

In other words, if we were taught the truth that armed resistance does bring about significant change, we might be inclined to try it.

Reclaiming Resistance from Israel’s Tactical Propaganda

“Respect existence, or expect resistance.”- CrimethInc.

Knowing the pitfalls of Gandhi’s character/nonviolence, that in reality his methods could only be successful when buttressed with armed resistance and the bankrupting of Britain’s military and financial prowess, why would anybody ask “Where is Palestinian Gandhi?” Well, it’s pretty simple, really: If people buy into the idea that there ought to be a Palestinian Gandhi to do what the myth of Gandhi dictates, then if no Palestinian is successfully doing it, the rest of the world can continue to blame Palestinians for Israeli-initiated violence instead of holding Israel accountable.

More importantly, if Palestinians deviate from the doctrine of nonviolence and endorse armed resistance, Israel can portray itself as victimized, or at least only retaliating in an “equally” matched conflict. This is tactical propaganda. If looked for, it is openly visible in the current struggle for Palestinian liberation.

Mainstream media has constantly berated fighters in Gaza for using armed resistance in the face of overwhelming occupation. A principle mechanism of this berating has been the method of blaming-both-sides equally, regardless of the lopsided causalities of Israel’s current and past military offensives. Hamas, an entity ironically helped to prominence by Mossad as a counterweight to the PLO, has been dubbed the central objector to proposed ceasefires by Israel, Egypt, and humanitarian agencies despite the fact that Israel has far more frequently been the provocateur . After Hamas does reject any ceasefire terms, the question of Palestinian Gandhi is mouthed ad nauseam.

But there can be no great peace negotiator when every ceasefire calls for the continuation of Palestinian oppression. Such proposals are not negotiations – they are the demands of a wolf clothed in the rhetoric of the sheep to elicit international sympathy. Palestinians know this, and by majority have claimed an acceptance of such a ceasefire would be a condition of living death .

In the film Rang de Basanti, a historical fiction of Bhagat Singh and his comrades’ revolutionary actions, a group of young friends retrace and relive the struggle for Indian independence. In the course of their reenactment, they discover the corruption of their own government through the death of a loved one and come to understand Singh’s motivations for armed struggle. When they attempt to nonviolently challenge the corruption that led to their friend’s death, they are met with brutal repression, another of them having been beaten into a coma.

They assassinate the Defense Minister of the Indian government, the man responsible, in response. As the Indian government attributes the assassination to terrorists, effectively martyring a corrupt official, in their last act the group seizes a radio station to finally tell the truth about the corruption they acted against. They, like Singh, willingly die for the people they love.

Whether or not their actions were warranted, they did something far too many have not: They realized that in order for nonviolence to work, those trying to kill you have to care about you.

Israel’s Zionist government does not care about Palestinians. The so-called terrorism Israel says it is fighting, in reality, is the armed resistance created by the terrorism it commits. If Israel were really concerned with the alleged “terrorism” of Hamas, its most prudent action would be to immediately cease participating in the terrorizing of Palestinians. Such is the nature of cyclical violence, but by no means is it equivalent when one party has the 6th most powerful military in the world and the backing of United States military power while the other has rocks and homemade rockets.

But this is at the core of asking “Where is Palestinian Gandhi,” to delegitimize Gazan resistance by decoupling the material reality of occupation from the right to self-defense. Jeff Sluka captured it well in National Liberation Movements in Global Context:

The condemnation of liberation movements for resorting to… armed struggle is almost invariably superficial, hypocritical, judgmental, and unfair and tends strongly to represent another example of the generalized phenomenon of “blaming the victim.” The violence of the situation, the pre-existing oppression suffered by those who eventually strike back, is conveniently ignored. The violence of the oppressed is a form of defensive counter-violence to the violence of conquest and oppression. In no armed national liberation movement I know of in history has this not been the case.

After decades of war on Palestinians, Israel has threaded through itself a clearly defined and widely endorsed, yet often unarticulated, acceptance of violent oppression. It is a fully rationalized phenomenon for its government, with full confidence of Israeli Zionists and their sympathizers abroad, to carry out odious acts of state-sanctioned terrorism against Palestinians. Yet when those murdered, so clearly revealed in the scope of recent events, grow weary enough to fight against occupation, their resistance is totally fetishized, their humanity dehumanized.

As in the lived and cinematic experience of Singh’s life, getting past the Gandhi myth is essential to understanding the material reality of what is happening on the ground in Gaza today. This understanding must lay bare the conditions of occupation, colonization, and apartheid. When we fully grasp this, we ought to remember a people’s natural right to armed resistance. Blaming Palestinians for fighting oppression from a racist, Zionist government is outright victim-blaming. It makes us tools of oppression.

If we really must ask “Where is Palestinian Gandhi,” we should realize they likely are buried under the rubble of an Israeli missile.

August 8, 2014 Posted by | Ethnic Cleansing, Racism, Zionism, Timeless or most popular | , , , , | 3 Comments

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.

July 15, 2014 Posted by | Economics | , , , , , , , | Leave a comment

Capitalists, Technocrats and Fanatics: The Ascent of a New Power Bloc

By James Petras :: 05.21.2014

Introduction

The sweeping electoral victory of the Bharatiya Janata Party (BJP) in India is the latest expression of the world-wide advance of a new power bloc which promises to impose a New World Order harnessing ethno-religious fanaticism and narrowly trained technocrats to capitalist absolutism.

The far-right is no longer at the margins of western political discourse. It is center-stage. It is no longer dependent on contributions by local militants; it receives financing from the biggest global corporations. It is no longer dismissed by the mass media. It receives feature coverage, highlighting its ‘dynamic and transformative’ leadership.

Today capitalists everywhere confront great uncertainty, as markets crash and endemic corruption at the highest levels erode competitive markets. Throughout the world, large majorities of the labor force question, challenge and resist the massive transfers of public wealth to an ever reduced oligarchy. Electoral politics no longer define the context for political opposition.

Capitalism, neither in theory nor practice, advances through reason and prosperity. It relies on executive fiats, media manipulation and arbitrary police state intrusions. It increasingly relies on death squads dubbed “Special Forces” and a ‘reserve army’ of para-military fanatics.

The new power bloc is the merger of big business, the wealthy professional classes, upwardly mobile, elite trained technocrats and cadres of ethno-religious fanatics who mobilize the masses.

Capitalism and imperialism advances by uprooting millions, destroying local communities and economies, undermining local trade and production, exploiting labor and repressing social solidarity. Everywhere it erodes community and class solidarity.

Ethno-Religious Fanatics and Elite Technocrats

Today capitalism depends on two seemingly disparate forces. The irrational appeal of ethno-religious supremacists and narrowly trained elite technocrats to advance the rule of capital. Ethno-religious fanatics seek to promote bonds between the corporate-warlord elite and the masses, by appealing to their ‘common’ religious ethnic identities.

The technocrats serve the elite by developing the information systems, formulating the images and messages deceiving and manipulating the masses and designing their economic programs.

The political leaders meet with the corporate elite and warlords to set the political-economic agenda, deciding when to rely on the technocrats and when to moderate or unleash the ethno-religious fanatics.

Imperialism operates via the marriage of science and ethno-religious fanaticism- and both are harnessed to capitalist domination and exploitation.

India: Billionaires, Hindu Fascists and IT “Savants”

The election of Narendra Modi, leader of the BJP and long-time member of the Hindu fascist Rashtriya Swayamsevak Sangh (RSS) para-military organization was based on three essential components:

(1) Multi-billion rupee funding from corporate India at home and abroad.

(2) Thousands of upwardly mobile IT technocrats mounting a massive propaganda campaign.

(3) Hundreds of thousands of RSS activists spreading the “Hindutva” racist doctrine among millions of villagers.

The Modi regime promises his capitalist backers that he will “open India”– namely end the land reserves of the tribes, convert farmland to industrial parks, deregulate labor and environmental controls.

To the Brahmin elite he promises to end compensatory quotas for lower castes, the untouchables, the minorities and Muslims. For the Hindu fascists he promises more temples. For foreign capitalists he promises entry into all formerly protected economic sectors. For the US, Modi promises closer working relations against China, Russia and Iran… The BJP’s ethno-religious Hindu fanaticism resonates with Israel’s notion of a “pure”Jewish state. Modi and Netanyahu have longstanding ties and promise close working relations based on similar ethno-racist doctrines.

Turkey: The Transition to Islamic-Capitalist Authoritarianism

Turkey under the rule of Erdogan’s Justice and Development Party has moved decisively toward one-man rule: linking Islam to big capital and police state repression. Erdogan’s ‘triple alliance’ is intent on unleashing mega-capitalist projects, based on the privatization of public spaces and the dispossession of popular neighborhoods. He opened the door to unregulated privatization of mines, communications, banks – leading to exponential growth of profits and the decline of employment security and a rising toll of worker deaths. Erdogan has shed the mask of ‘moderate Islam’ and embraced the jihadist mercenaries invading Syria and legislation expanding religious prerogatives in secular life. Erdogan has launched massive purges of journalists, public officials, civil servants, judges and military officers. He has replaced them with ‘party loyalists’; Erdogan fanatics!

Erdogan has recruited a small army of technocrats who design his mega projects and provide the political infrastructure and programs for his electoral campaigns. Technocrats provide a development agenda that accommodates the foreign and domestic crony corporate elite.

The Anatolian Islamists, small and medium provincial business elite, form the mass base – mobilizing voters, by appealing to chauvinist and ethnocentric beliefs. Erdogan’s repressive, Islamist, capitalist regime’s embrace of the “free market” has been sharply challenged especially in light of the worst mining massacre in Turkish history: the killing of over 300 miners due to corporate negligence and regime complicity. Class polarization threatens the advance of Turkish fascism.

Israel and the “Jewish State”: Billionaires , Ethno-Religious Fanatics and Technocrats

Israel, according to its influential promoters in the US, is a ‘model democracy’. The public pronouncements and the actions of its leaders thoroughly refute that notion. The driving force of Israeli politics is the idea of dispossessing and expelling all Palestinians and converting Israel into a ‘pure’ Jewish state. For decades Israel, funded and colonized by the diaspora, have violently seized Palestinian lands, dispossessed millions and are in the process of Judaizing what remains of the remnant in the “Occupied Territories”.

The Israeli economy is dominated by billionaires. Its “society” is permeated by a highly militarized state. Its highly educated technocrats serve the military-industrial and ethno-religious elite. Big business shares power with both.

High tech Israeli’s apply their knowledge to furthering the high growth, military industrial complex. Medical specialists participate in testing the endurance of Palestinian prisoners undergoing torture (“interrogation”). Highly trained psychologists engage in psych-warfare to gain collaborators among vulnerable Palestinian families. Economists and political scientists, with advanced degrees from prestigious US and British universities (and ‘dual citizenship’) formulate policies furthering the land grabs of neo-fascist settlers. Israel’s best known novelist, Amos Oz condemned the neo-fascist settlers who defecate on the embers of burnt-out mosques.

Billionaire real estate moguls bid up house prices and rents “forcing” many “progressive” Israelies, who occasionally protest, to take the easy road of moving into apartments built on land illegally and violently seized from dispossessed Palestinians. ‘Progressives’ join neo-fascist vigilantes in common colonial settlements. Prestigious urbanologists further the goals of crude ethno-racist political leaders by designing new housing in Occupied Lands. Prominent social scientists trade on their US education to promote Mid-East wars designed by vulgar warlords. Building the Euro American Empire: Riff-Raff of the World Unite!

Empire building is a dirty business. And while the political leaders directing it, feign respectability and are adept at rolling out the moral platitudes and high purposes, the ‘combatants’ they employ are a most unsavory lot of armed thugs, journalistic verbal assassins and highly respected international jurists who prey on victims and exonerate imperial criminals.

In recent years Euro-American warlords have employed “the scum of the slaughterhouse” to destroy political adversaries in Libya, Syria and the Ukraine.

In Libya lacking any semblance of a respectable middle-class democratic proxy, the Euro-American empire builders armed and financed murderous tribal bands, notorious jihadist terrorists, contrabandist groups, arms and drug smugglers. The Euro-Americans counted on a pocketful of educated stooges holed up in London to subdue the thugs, privatize Libya’s oil fields and convert the country into a recruiting ground and launch pad for exporting armed mercenaries for other imperial missions.

The Libyan riff-raff were not satisfied with a paycheck and facile dismissal: they murdered their US paymaster, chased the technocrats back to Europe and set-up rival fiefdoms. Gadhafi was murdered, but so went Libya as a modern viable state. The arranged marriage of Euro-American empire builders, western educated technocrats and the armed riff-raff was never consummated. In the end the entire imperial venture ended up as a petty squabble in the American Congress over who was responsible for the murder of the US Ambassador in Benghazi.

The Euro-American-Saudi proxy war against Syria follows the Libyan script. Thousands of Islamic fundamentalists are financed, armed, trained and transported from bases in Turkey, Jordan, Saudi Arabia, Iraq and Libya to violently overthrow the Bashar Assad government in Syria. The world’s most retrograde fundamentalists travel to the Euro-American training bases in Jordan and Turkey and then proceed to invade Syria, seizing towns, executing thousands of alleged ‘regime loyalists’ and planting car bombs in densely populated city centers.

The fundamentalist influx soon overwhelmed the London based liberals and their armed groups.

The jihadist terrorists fragmented into warring groups fighting over the Syrian oil fields. Hundreds were killed and thousands fled to Government controlled regions. Euro-US strategists, having lost their original liberal mercenaries, turned toward one or another of the fundamentalist groups. No longer in control of the ‘politics’ of the terrorists, Euro-US strategists sought to inflect the maximum destruction on Syrian society. Rejecting a negotiated settlement, the Euro-US strategists turned their backs on the internal political opposition challenging Assad via presidential elections.

In the Ukraine, the Euro-Americans backed a junta of servile neo-liberal technocrats, oligarchical kleptocrats and neo-Nazis, dubbed Svoboda and the Right Sector. The latter were the “shock troops” to overthrow the elected government, massacre the federalist democrats in Odessa and the eastern Ukraine, and back the junta appointed oligarchs serving as “governors”.

The entire western mass media white-washed the savage assaults carried out by the neo-Nazis in propping up the Kiev junta. The powerful presence of the neo-fascists in key ministries, their strategic role as front line fighters attacking eastern cities controlled by pro-democracy militants, establishes them as central actors in converting the Ukraine into a military outpost of NATO.

Euro-America Empire Building and the Role of Riff-Raff

Everywhere the Euro-American imperialists choose to expand – they rely on the ‘scum of the earth’: tribal gangs in Libya, fundamentalist terrorists in Syria, neo-Nazis in the Ukraine.

Is it by choice or necessity? Clearly few consequential democrats would lend themselves to the predatory and destructive assaults on existing regimes which Euro-US strategists design. In the course of imperial wars, the local producers, workers, ordinary citizens would “self-destroy”, whatever the outcome. Hence the empire builders look toward ‘marginal groups’, those with no stake in society or economy. Those alienated from any primary or secondary groups. Footloose fundamentalists fit that bill – provided they are paid, armed and allowed to carry their own ideological baggage. Neo-Nazis hostile to democracy have no qualms about serving empire builders who share their ideological hostility to democrats, socialists, federalists and culturally ‘diverse’ societies and states. So they are targeted for recruitment by the empire builders.

The riff-raff consider themselves ‘strategic allies’ of the Euro-American empire builders. The latter, however, have no strategic allies – only strategic interests. Their tactical alliances with the riff-raff endure until they secure control over the state and eliminate their adversaries. Then the imperialists seek to demote, co-opt, marginalize or eliminate their ‘inconvenient’ riff-raff allies. The falling out comes about when the fundamentalists and neo-Nazis seek to restrict capital, especially foreign capital and impose restrictions on imperial control over resources and territory. At first the empire builders seek ‘opportunists’ among the riff-raff, those willing to sacrifice their ‘ideals’ for money and office. Those who refuse are relegated to secondary positions distant from strategic decision-making or to remote outposts. Those who resist are assassinated or jailed. The disposal of the riff-raff serves the empire on two counts. It provides the client regime with a fig leaf of respectability and disarms western critics targeting the extremist component of the junta.

The riff-raff, however, with arms, fighting experience and financing, in the course of struggle, gains confidence in its own power. They do not easily submit to Euro-US strategies. They also have ‘strategic plans’ of their own, in which they seek political power to further their ideological agenda and enrich their followers.

The riff-raff, want to ‘transition’ from shock troops of empire into rulers in their own right. Hence the assaults on the US embassy in Libya, the assassination of Euro-American proxies in Syria, Right Sector riots against the Kiev junta.

Conclusion

A new power bloc is emerging on a global scale. It is already flexing its muscles. It has come to power in India, Turkey, Ukraine and Israel. It brings together big business, technocrats and ethno-religious fascists. They promote unrestrained capitalist expansion in association with Euro-American imperialism.

Scientists, economists, and IT specialists design the programs and plans to realize the profits of local and foreign capitalists. The ethno-fascists mobilize the ‘masses’ to attack minorities and class organizations threatening high rates of returns.

The Euro-Americans contribute to this ‘new power bloc’ by promoting their own ‘troika’ made up of ‘neo-liberal clients’, fundamentalists and neo-Nazis to overthrow nationalist adversaries. The advance of imperialism and capitalism in the 21st century is based on the harnessing of the most advanced technology and up-to-date media outlets with the most retrograde political and social leaders and ideologies.

May 22, 2014 Posted by | Economics, Ethnic Cleansing, Racism, Zionism | , , , , , , , , | Leave a comment

BRICS countries to set up their own IMF

By Olga Samofalova | Russia Beyond the Headlines | April 14, 2014

The BRICS countries (Brazil, Russia, India, China and South Africa) have made significant progress in setting up structures that would serve as an alternative to the International Monetary Fund and the World Bank, which are dominated by the U.S. and the EU. A currency reserve pool, as a replacement for the IMF, and a BRICS development bank, as a replacement for the World Bank, will begin operating as soon as in 2015, Russian Ambassador at Large Vadim Lukov has said.

Brazil has already drafted a charter for the BRICS Development Bank, while Russia is drawing up intergovernmental agreements on setting the bank up, he added.

In addition, the BRICS countries have already agreed on the amount of authorized capital for the new institutions: $100 billion each. “Talks are under way on the distribution of the initial capital of $50 billion between the partners and on the location for the headquarters of the bank. Each of the BRICS countries has expressed a considerable interest in having the headquarters on its territory,” Lukov said.

It is expected that contributions to the currency reserve pool will be as follows: China, $41 billion; Brazil, India, and Russia, $18 billion each; and South Africa, $5 billion. The amount of the contributions reflects the size of the countries’ economies.

By way of comparison, the IMF reserves, which are set by the Special Drawing Rights (SDR), currently stand at 238.4 billion euros, or $369.52 billion dollars. In terms of amounts, the BRICS currency reserve pool is, of course, inferior to the IMF. However, $100 billion should be quite sufficient for five countries, whereas the IMF comprises 188 countries – which may require financial assistance at any time.

BRICS Development Bank

The BRICS countries are setting up a Development Bank as an alternative to the World Bank in order to grant loans for projects that are beneficial not for the U.S. or the EU, but for developing countries.

The purpose of the bank is to primarily finance external rather than internal projects. The founding countries believe that they are quite capable of developing their own projects themselves. For instance, Russia has a National Wealth Fund for this purpose.

“Loans from the Development Bank will be aimed not so much at the BRICS countries as for investment in infrastructure projects in other countries, say, in Africa,” says Ilya Prilepsky, a member of the Economic Expert Group. “For example, it would be in BRICS’ interest to give a loan to an African country for a hydropower development program, where BRICS countries could supply their equipment or act as the main contractor.”

If the loan is provided by the IMF, the equipment will be supplied by western countries that control its operations.

The creation of the BRICS Development Bank has a political significance too, since it allows its member states to promote their interests abroad. “It is a political move that can highlight the strengthening positions of countries whose opinion is frequently ignored by their developed American and European colleagues. The stronger this union and its positions on the world arena are, the easier it will be for its members to protect their own interests,” points out Natalya Samoilova, head of research at the investment company Golden Hills-Kapital AM.

Having said that, the creation of alternative associations by no means indicates that the BRICS countries will necessarily quit the World Bank or the IMF, at least not initially, says Ilya Prilepsky.

Currency reserve pool

In addition, the BRICS currency reserve pool is a form of insurance, a cushion of sorts, in the event a BRICS country faces financial problems or a budget deficit. In Soviet times it would have been called “a mutual benefit society”, says Nikita Kulikov, deputy director of the consulting company HEADS. Some countries in the pool will act as a safety net for the other countries in the pool.

The need for such protection has become evident this year, when developing countries’ currencies, including the Russian ruble, have been falling.

The currency reserve pool will assist a member country with resolving problems with its balance of payments by making up a shortfall in foreign currency.

Assistance can be given when there is a sharp devaluation of the national currency or massive capital flight due to a softer monetary policy by the U.S. Federal Reserve System, or when there are internal problems, or a crisis, in the banking system. If banks have borrowed a lot of foreign currency cash and are unable to repay the debt, then the currency reserve pool will be able to honor those external obligations.

This structure should become a worthy alternative to the IMF, which has traditionally provided support to economies that find themselves in a budgetary emergency.

“A large part of the fund goes toward saving the euro and the national currencies of developed countries. Given that governance of the IMF is in the hands of western powers, there is little hope for assistance from the IMF in case of an emergency. That is why the currency reserve pool would come in very handy,” says ambassador Lukov.

The currency reserve pool will also help the BRICS countries to gradually establish cooperation without the use of the dollar, points out Natalya Samoilova. This, however, will take time. For the time being, it has been decided to replenish the authorized capital of the Development Bank and the Currency Reserve Pool with U.S. dollars. Thus the U.S. currency system is getting an additional boost. However, it cannot be ruled out that very soon (given the threat of U.S. and EU economic sanctions against Russia) the dollar may be replaced by the ruble and other national currencies of the BRICS counties.

April 16, 2014 Posted by | Economics, Solidarity and Activism | , , , , | 1 Comment

BRICS rejects sanctions against Russia over Ukraine

Press TV – March 25, 2014

The group of five major emerging national economies known as the BRICS has rejected the Western sanctions against Russia and the “hostile language” being directed at the country over the crisis in Ukraine.

“The escalation of hostile language, sanctions and counter-sanctions, and force does not contribute to a sustainable and peaceful solution, according to international law, including the principles and purposes of the United Nations Charter,” foreign ministers of the BRICS countries – Brazil, Russia, India, China and South Africa – said in a statement issued on Monday.

The group agreed that the challenges that exist within the regions of the BRICS countries must be addressed within the framework of the United Nations.

“BRICS countries agreed that the challenges that exist within the regions of the BRICS countries must be addressed within the fold of the United Nations in a calm and level-headed manner,” the statement added.

The White House said earlier on Monday that US President Barack Obama and the leaders of Britain, Canada, France, Germany, Italy and Japan decided to end Russia’s role in the G8 over the crisis in Ukraine and the status of Crimea.

Meanwhile, the G7 group of top economic powers has snubbed a planned meeting that Russian President Vladimir Putin was due to host in the Black Sea resort city of Sochi in June.

The G7 said they would hold a meeting in Brussels without Russia instead of the wider G8 summit, and threatened tougher sanctions against Russia.

Russia brushed off the Western threat to expel it from the G8 on the same day. The Autonomous Republic of Crimea declared independence from Ukraine on March 17 and formally applied to become part of Russia following a referendum a day earlier, in which nearly 97 percent of the participants voted in favor of the move.

On March 21, Putin signed into law the documents officially making Crimea part of the Russian territory. Putin said the move was carried out based on the international law.

March 25, 2014 Posted by | Economics | , , , , , | 1 Comment

BRICS at Hague slam attempts to isolate Putin

BRICS Post | March 24, 2014

BRICS have slammed recent reports ahead of the G20 meet to isolate Russian President Vladimir Putin or to place any restrictions on his participation at the G-20 summit in Australia later this year.

“The Ministers noted with concern, the recent media statement on the forthcoming G20 Summit to be held in Brisbane in November 2014.  The custodianship of the G20 belongs to all Member States equally and no one Member State can unilaterally determine its nature and character,” said a joint BRICS statement on Monday. Australian Foreign Minister Julie Bishop had said earlier that Putin could be barred from attending the G20 Summit in November.

BRICS Foreign Ministers met on the sidelines of the Nuclear Security Summit in the Hague on Monday to review cooperation among the bloc of five after the adoption of the eThekwini Action Plan of 2013.

The Ministers noted that the role of global governments should focus on “finance, security, information and production”.

“The BRICS agenda is not centered around any specific country or related issue and shares a common vision which drives it to also increasingly identify common areas for cooperation to assist with finding global solutions to global challenges,” noted the joint communiqué.

The BRICS meet convened by South African Foreign Minister Maite Nkoana-Mashabane was attended by her counterparts Sergey Lavrov, Salman Khurshid, Wang Yi and Carlos Antonio Paranhos, Under-Secretary General for Political Affairs of the Federative Republic of Brazil.

The BRICS Ministers also discussed cybersecurity and challenges to peace and security, “notably the significant infringements of privacy and related rights in the wake of the cyber threats experienced, for which there is a need to address these implications in respect of national laws as well as in terms of international law”, said the statement.

BRICS would “continue to act as positive catalysts for inclusive change in the transformation process towards a new and more equitable global order” asserted the Ministers.

BRICS have opposed sanctions against the Syrian government and have argued for a negotiated settlement of the Iranian issue. They are also pushing for reforms of global financial institutions like the IMF.

The five nations also agreed that the challenges that exist within the regions of the BRICS countries must be addressed within the fold of the United Nations.

“The escalation of hostile language, sanctions and counter-sanctions, and force does not contribute to a sustainable and peaceful solution, according to international law, including the principles and purposes of the United Nations Charter,” said the statement.

March 24, 2014 Posted by | Economics | , , , , , , | Leave a comment

Imperialism and NGOs in Latin America

By James Petras :: 12.18.1997

By the early 1980s the more perceptive sectors of the neoliberal ruling classes realized that their policies were polarizing the society and provoking large-scale social discontent.

Neoliberal politicians began to finance and promote a parallel strategy “from below,” the promotion of “grassroots” organization with an”anti-statist” ideology to intervene among potentially conflictory classes, to create a “social cushion.” These organizations were financially dependent on neoliberal sources and were directly involved in competing with socio-political movements for the allegiance of local leaders and activist communities. By the 1990s these organizations, described as “nongovernmental,” numbered in the thousands and were receiving close to four billion dollars world-wide.

Neoliberalism and the NGOs

The confusion concerning the political character of the nongovernmental organizations (NGOs) stems from their earlier history in the 1970s during the days of the dictatorships. In this period they were active in providing humanitarian support to the victims of the military dictatorship and denouncing human rights violations. The NGOs supported “soup kitchens” which allowed victimized families to survive the first wave of shock treatments administered by the neoliberal dictatorships. This period created a favorable image of NGOs even among the left. They were considered part of the “progressive camp.”

Even then, however, the limits of the NGOs were evident. While they attacked the human rights violations of local dictatorships, they rarely denounced the U.S. and European patrons who financed and advised them. Nor was there a serious effort to link the neoliberal economic policies and human rights violations to the new turn in the imperialist system. Obviously the external sources of funding limited the sphere of criticism and human rights action.

As opposition to neoliberalism grew in the early 1980s, the U.S. and European governments and the World Bank increased their funding ofNGOs. There is a direct relation between the growth of social movements challenging the neoliberal model and the effort to subvert them by creating alternative forms of social action through the NGOs. The basic point of convergence between the NGOs and the World Bank was their common opposition to”statism.” On the surface the NGOs criticized the state from a “left” perspective defending civil society, while the right did so in the name of the market. In reality, however, the World Bank, the neoliberal regimes, and western foundations co-opted and encouraged the NGOs to undermine the national welfare state by providing social services to compensate the victims of the multinational corporations (MNCs). In other words, as the neoliberal regimes at the top devastated communities by inundating the country with cheap imports, extracting external debt payment, abolishing labor legislation, and creating a growing mass of low-paid and unemployed workers, the NGOs were funded to provide “self-help” projects, “popular education,” and job training, to temporarily absorb small groups of poor, to co-opt local leaders, and to undermine anti-system struggles.

The NGOs became the “community face” of neoliberalism, intimately related to those at the top and complementing their destructive work with local projects. In effect the neoliberals organized a “pincer” operation or dual strategy. Unfortunately many on the left focused only on “neoliberalism” from above and the outside (International Monetary Fund, World Bank) and not on neoliberalism from below (NGOs, micro-enterprises). A major reason for this oversight was the conversion of many ex-Marxists to the NGO formula and practice. Anti-Statism was the ideological transit ticket from class politics to “community development,” from Marxism to the NGOs.

Typically, NGO ideologues counterpose “state” power to “local” power. State power is, they argue, distant from its citizens, autonomous, and arbitrary, and it tends to develop interests different from and opposed to those of its citizens, while local power is necessarily closer and more responsive to the people. But apart from historical cases where the reverse has also been true, this leaves out the essential relation between state and local power—the simple truth that state power wielded by a dominant, exploiting class will undermine progressive local initiatives, while that same power in the hands of progressive forces can reinforce such initiatives.

The counter position of state and local power has been used to justify the role of NGOs as brokers between local organizations, neoliberal foreign donors (World Bank, Europe, or the United States) and the local free market regimes. But the effect is to strengthen neoliberal regimes by severing the link between local struggles and organizations and national/international political movements. The emphasis on “local activity” serves the neoliberal regimes since it allows its foreign and domestic backers to dominate macro-socio-economic policy and to channel most of the state’s resources toward subsidies for export capitalists and financial institutions.

So while the neoliberals were transferring lucrative state properties to the private rich, the NGOs were not part of the trade union resistance. On the contrary they were active in local private projects, promoting the private enterprise discourse (self-help) in the local communities by focusing on micro-enterprises. The NGOs built ideological bridges between the small scale capitalists and the monopolies benefiting from privatization—all in the name of “anti-statism”and the building of civil societies. While the rich accumulated vast financial empires from the privatization, the NGO middle class professionals got small sums to finance offices, transportation, and small-scale economic activity.

The important political point is that the NGOs depoliticized sectors of the population, undermined their commitment to public employees, and co-opted potential leaders in small projects. NGOs abstain from public schoolteacher struggles, as the neoliberal regimes attack public education and public educators. Rarely if ever do NGOs support the strikes and protests against low wages and budget cuts. Since their educational funding comes from the neoliberal governments, they avoid solidarity with public educators in struggle. In practice, “non-governmental” translates into anti-public-spending activities, freeing the bulk of funds for neoliberals to subsidize export capitalists while small sums trickle from the government to NGOs.

In reality non-governmental organizations are not non-governmental. They receive funds from overseas governments or work as private subcontractors of local governments. Frequently they openly collaborate with governmental agencies at home or overseas. This “subcontracting”undermines professionals with fixed contracts, replacing them with contingent professionals. The NGOs cannot provide the long-term comprehensive programs that the welfare state can furnish. Instead they provide limited services to narrow groups of communities. More importantly, their programs are not accountable to the local people but to overseas donors. In that sense NGOs undermine democracy by taking social programs out of the hands of the local people and their elected officials to create dependence on non-elected, overseas officials and their locally anointed officials.

NGOs shift people’s attention and struggles away from the national budget and toward self-exploitation to secure local social services. This allows the neoliberals to cut social budgets and transfer state funds to subsidize bad debts of private banks, and provide loans to exporters. Self exploitation (self-help) means that, in addition to paying taxes to the state and not getting anything in return, working people have to work extra hours with marginal resources, and expend scarce energies to obtain services that the bourgeoisie continues to receive from the state. More fundamentally, the NGO ideology of “private voluntaristic activity” undermines the sense of the “public”: the idea that the government has an obligation to look after its citizens and provide them with life, liberty, and the pursuit of happiness; that the political responsibility of the state is essential for the well-being of citizens. Against this notion of public responsibility, the NGOs foster the neoliberal idea of private responsibility for social problems and the importance of private resources to solve these problems. In effect they impose a double burden on the poor who continue to pay taxes to finance the neoliberal state to serve the rich, but are left with private self-exploitation to take care of their own needs.

NGOs and Socio-political Movements

NGOs emphasize projects, not movements; they “mobilize” people to produce at the margins but not to struggle to control the basic means of production and wealth; they focus on technical financial assistance of projects, not on structural conditions that shape the everyday lives of people. The NGOs co-opt the language of the left: “popular power,” “empowerment,” “gender equality,” “sustainable development,” “bottom-up leadership.” The problem is that this language is linked to a framework of collaboration with donors and government agencies that subordinate practical activity to non-confrontational politics. The local nature of NGO activity means that “empowerment” never goes beyond influencing small areas of social life, with limited resources, and within the conditions permitted by the neoliberal state and macro-economy.

The NGOs and their post-Marxist professional staff directly compete with the socio-political movements for influence among the poor, women, and the racially excluded. Their ideology and practice diverts attention from the sources and solutions of poverty (looking downward and inward instead of upward and outward). To speak of micro-enterprises, instead of the elimination of exploitation by the overseas banks, as the solution, is based on the notion that the problem is one of individual initiative rather than the transference of income overseas. The NGO’s aid affects small sectors of the population, setting up competition between communities for scarce resources, generating insidious distinctions and inter- and intra-community rivalries, thus undermining class solidarity. The same is true among the professionals: each sets up its NGO to solicit overseas funds. They compete by presenting proposals more congenial to the overseas donors, while claiming to speak for their followers.

The net effect is a proliferation of NGOs that fragment poor communities into sectoral and sub-sectoral groupings unable to see the larger social picture that afflicts them and even less able to unite in struggle against the system. Recent experience also demonstrates that foreign donors finance projects during “crises”—political and social challenges to the status quo. Once the movements have ebbed they shift funding to NGO-style “collaboration,” fitting the NGO projects into the neoliberal agenda. Economic development compatible with the “free market” rather than social organization for social change becomes the dominant item on the funding agenda.

The structure and nature of NGOs, with their “apolitical” posture and their focus on self-help, depoliticizes and demobilizes the poor. They reinforce the electoral processes encouraged by the neoliberal parties and mass media. Political education about the nature of imperialism, and the class basis of neoliberalism, the class struggle between exporters and temporary workers, are avoided. Instead the NGOs discuss “the excluded,” the “powerless,” “extreme poverty,” “gender or racial discrimination,” without moving beyond the superficial symptom to the social system that produces these conditions. Incorporating the poor into the neoliberal economy through purely “private voluntary action,” the NGOs create a political world where the appearance of solidarity and social action cloaks a conservative conformity with the international and national structure of power.

It is no coincidence that as NGOs have become dominant in certain regions, independent class political action has declined, and neoliberalism goes uncontested. The bottom line is that the growth of NGOs coincides with increased funding under neoliberalism and the deepening of poverty everywhere. Despite the claims of many local successes, the overall power of neoliberalism stands unchallenged and the NGOs increasingly search for niches in the interstices of power.

The problem of formulating alternatives has been hindered in another way too. Many of the former leaders of guerrilla and social movements, trade union and popular women’s organizations have been co-opted by the NGOs. Some have undoubtedly been attracted by the hope—or the illusion—that this might give them access to levers of power which would allow them to do some good. But in any case, the offer is tempting: higher pay (occasionally in hard currency), prestige and recognition by overseas donors, overseas conferences and networks, office staff, and relative security from repression. In contrast, the socio-political movements offer few material benefits but greater respect and independence and, more importantly, the freedom to challenge the political and economic system. The NGOs and their overseas banking supporters (Inter-American Development Bank, the World Bank) publish newsletters featuring success stories of micro-enterprises and other self-help projects—without mentioning the high rates of failure as popular consumption declines, low-priced imports flood the market, and interest rates spiral, as in Mexico today.

Even the “successes” affect only a small fraction of the total poor and succeed only to the degree that others cannot enter the same market. The propaganda value of individual micro-enterprise success, however, is important in fostering the illusion that neoliberalism is a popular phenomenon. The frequent violent mass outbursts that take place in regions of micro-enterprise promotion suggests that the ideology is not hegemonic and the NGOs have not yet displaced independent class movements.

Finally NGOs foster a new type of cultural and economic colonialism and dependency. Projects are designed, or at least approved, based on the “guidelines” and priorities of the imperial centers and their institutions. They are administered and “sold” to communities. Evaluations are done by and for the imperial institutions. Shifts of funding priorities or bad evaluations result in the dumping of groups, communities, farms, and co-operatives. Everything and everybody is increasingly disciplined to comply with the donors and project evaluators’ demands. The new viceroys supervise and ensure conformity with the goals, values, and ideologies of the donor as well as the proper use of funds. Where “successes” occur they are heavily dependent on continued outside support, without which they could collapse.

In many ways the hierarchical structures and the forms of transmission of “aid” and “training” resemble nineteenth-century charity, and the promoters are not very different from Christian missionaries. The NGOs emphasize “self-help” in attacking “paternalism and dependence” on the state. In this competition among NGOs to capture the victims of neoliberals, they receive important subsidies from their counterparts in Europe and the United States. The self-help ideology emphasizes the replacement of public employees by volunteers, and upwardly mobile professionals contracted on a temporary basis. The basic philosophy of the NGO intellectuals is to transform “solidarity” into collaboration and subordination to the macro-economy of neoliberalism, by focusing attention away from state resources of the wealthy classes toward self-exploitation of the poor.

But, while the mass of NGOs are increasingly instruments of neoliberalism, there is a small minority which attempt to develop an alternative strategy that is supportive of anti-imperialist and class politics. None of them receive funds from the World Bank, European, or U.S. governmental agencies. They support efforts to link local power to struggles for state power. They link local projects to national socio-political movements: occupying large landed estates, defending public property and national ownership against multinationals. They provide political solidarity to social movements involved in struggles to expropriate land. They support women’s struggles linked to class perspectives. They recognize the importance of politics in defining local and immediate struggles. They believe that local organizations should fight at the national level and that national leaders must be accountable to local activists.

Some Examples

Let us examine some examples of the role of NGOs and their relation to neoliberalism and imperialism in specific countries:

Bolivia

In 1985 the Bolivian government launched its New Economic Policy (NEP) by decree: freezing wages for four months while inflation raged at a 15,000 percent annual rate. The NEP annulled all price controls and reduced or ended food and fuel subsidies. It also laid the basis for the privatization of most state enterprises and the firing of public-sector employees. Massive cutbacks in health and education programs eliminated most public services. These structural adjustment policies (SAP) were designed and dictated by the World Bank and the IMF and approved by the U.S. and European governments and banks. The number of poverty stricken Bolivians grew geometrically. Prolonged general strikes and violent confrontations followed. In response the World Bank, European, and U.S. governments provided massive aid to fund a “poverty alleviation program.” Most of the money was directed to a Bolivian government agency, the Emergency Social Fund (ESF), which channeled funds to the NGOs to implement its program. The funds were not insignificant: in 1990 foreign aid totaled $738 million.

The number of NGOs in Bolivia grew rapidly in response to international funding: prior to 1980 there were 100 NGOs; by 1992 there were 530 and growing. Almost all the NGOs are directed toward addressing social problems created by the World Bank and the Bolivian government’s free market policies, which the dismantled state institutions no longer can deal with. Of the tens of millions allocated to the NGOs, only 15 to 20 percent reached the poor. The rest was siphoned off to pay administrative costs and professional salaries. The Bolivian NGOs functioned as appendages of the state and served to consolidate its power. The absolute levels of poverty stayed the same and the long-term structural causes—the neoliberal policies—were cushioned by the NGOs. While not solving the poverty problem, the NGO-administered poverty programs strengthened the regime and weakened opposition to the SAP. The NGOs, with their big budgets, exploited vulnerable groups and were able to convince some leaders of the opposition that they could benefit from working with the government. According to one observer, commenting on the NGO role in the “poverty program”: “If this (NGO programs) did not create direct support, it at least reduced potential opposition to the government and its program.”

When the public school teachers of La Paz went on strike to protest $50-a-month wages and crowded classrooms, the NGOs ignored it; when cholera and yellow fever epidemics raged in the countryside, the NGO self-help programs were helpless where a comprehensive public health program would have been successful in preventing them. The NGOs did absorb many of Bolivia’s former leftist intellectuals and turned them into apologists for the neoliberal system. Their seminars about “civil society” and “globalization” obscured the fact that the worst exploiters (the private mine owners, new rich agro-exporters, and high paid consultants) were members of “civil society” and that the SAP was an imperial design to open the country’s mineral resources to unregulated pillage.

Chile

In Chile under the Pinochet dictatorship in 1973-1989, the NGOs played an important role denouncing human rights violations, preparing studies critical of the neoliberal model and sustaining soup kitchens and other poverty programs. Their numbers multiplied with the advent of the massive popular struggles between 1982 and 1986 that threatened to overthrow the dictatorship. To the extent that they expressed an ideology, it was oriented toward “democracy” and “development with equity.” Of the close to two hundred NGOs, fewer than five provided a clear critical analysis and exposition of the links between U.S. imperialism and the dictatorship, the ties between World Bank funded free market policies and the 47 percent level of poverty.

In July of 1986 there was a successful general strike—a guerrilla group almost succeeded in killing Pinochet—and the United States sent a representative (Gelbard) to broker an electoral transition between the more conservative sectors of the opposition and Pinochet. An electoral calendar was established, a plebiscite was organized, and the electoral parties re-emerged. An alliance between Christian Democrats and Socialists was forged and eventually won the plebiscite, ending Pinochet’s rule (but not his command of the armed forces and secret police); this alliance subsequently won the presidency.

The social movements which played a vital role in ending the dictatorships were marginalized. The NGOs turned from supporting the movements to collaborating with the government. The Socialist and Christian Democratic NGO professionals became government ministers. From critics of Pinochet’s free market policies they became its celebrants. Former President of CIEPLAN (a major research institute) Alejandro Foxley publicly promised to continue managing the macro-economic indicators in the same fashion as Pinochet’s minister. The NGOs were instructed by their foreign donors to end their support for independent grassroots movements and to collaborate with the new civilian neoliberal regime. Sur Profesionales, one of the best known research NGOs, carried out research on the “propensity for violence” in the shantytowns—information that was useful to the police and the new regime in repressing independent social movements. Two of its chief researchers (specialty: social movements) became government ministers administering economic policies that created the most lopsided income inequalities in recent Chilean history.

The NGOs’ external links and the professional ambitions of its leaders played a major role in undermining the burgeoning popular movement. Most of its leaders became government functionaries who co-opted local leaders, while undermining rank-and-file style community assemblies. Interviews with women active in the shantytown Lo Hermida revealed the shift in the post-electoral period. “The NGOs told us that because democracy has arrived there is no need to continue the (soup-kitchen) programs. You don’t need us.” Increasingly the NGOs conditioned their activities on supporting the “democratic” free market regime. The NGO functionaries continued to use their participatory rhetoric to hustle votes for their parties in the government and to secure government contracts.

One striking impact of the NGOs in Chile was its relationship to the “women’s movement.” What started as a promising activist group in the mid-1980s was gradually taken over by NGOs who published expensive newsletters from well-furnished offices. The “leaders” who lived in fashionable neighborhoods represented a shrinking number of women. During the Latin American Feminist Conference in Chile in 1997, a militant group of rank-and-file Chilean feminist (”the autonomists”) provided a radical critique of the NGO feminists as sellouts to government subsidies.

Brazil

The most dynamic social movement in Brazil is the Landless Rural Workers Movement (MST). With over five thousand organizers and several hundred thousand sympathizers and activists, it has been directly involved in hundreds of land occupations over the past few years. At a conference organized in May 1996, by the MST, at which I spoke, the role of NGOs was one of the subjects of debate. A representative from a Dutch NGO appeared on the scene and insisted on participating. When he was told the meeting was closed, he told them that he had a “proposal” for funding ($300 thousand) community development, and insisted on entering. In no uncertain terms the MST leaders told him that they were not for sale and that anyway, they, the MST, design their own “projects” according to their own needs and don’t need NGO tutors.

Later the women’s caucus of the MST discussed a recent meeting with rural-based feminist NGOs. The MST women pushed for a class struggle perspective, combining direct action (land occupations) and the struggle for agrarian reform with gender equality. The NGO professionals insisted that the MST women break with their organizations and support a minimalist program of strictly feminist reforms. The end result was a tactical agreement opposing domestic violence, registering women as heads of families, and encouraging gender equality. The MST women, mostly daughters of landless peasants, perceived the NGO professionals as divisive careerists, not willing to challenge the political and economic elite that oppressed all peasants. Despite their criticisms of their male comrades, they clearly felt greater affinity with the movement than with the class-collaborationist “feminist” NGOs.

In our discussion, the MST distinguished between NGOs that contribute to the movement (money, resources, etc.) to finance class struggle, and NGOs that are essentially missionary outfits that fragment and isolate peasants, as is the case with many pentecostal and USAID and World Bank sponsored NGO projects.

El Salvador

Throughout Latin America peasant militants have voiced serious criticisms of the role and politics of the vast majority of NGOs, particularly about the patronizing and domineering attitude that they display behind their ingratiating rhetoric of “popular empowerment” and participation. I encountered this directly during a recent visit to El Salvador, where I was giving a seminar for the Alianza Democratica Campesino (the ADC, or Democratic Peasant Alliance) which represents 26 peasant and landless workers’ organizations.

Part of our collaboration involved the joint development of a project to fund a peasant-directed research and training center. Together with the leaders of the ADC we visited a private Canadian agency, CRC SOGEMA, which was subcontracted by CIDA, the Canadian government’s foreign assistance agency. They administered a $25 million (Canadian) aid packet for El Salvador. Before our visit, one of the ADC leaders had held an informal discussion with one of the Salvadoran associates of CRC SOGEMA. He explained the proposal and its importance for stimulating peasant-based participatory research. The CRC SOGEMA representative proceeded to draw a figure of a person on a piece of paper. He pointed to the head. “That,” he said, “is the NGOs: they think, write, and prepare programs.” He then pointed to the hands and feet, “that’s the peasants: they provide data and implement the projects.”

This revealing episode was the background to our formal meeting with the head of CRC SOGEMA. The director told us that the money was already earmarked for a Salvadoran NGO: FUNDE (Fundacion Nacional para el Desarrollo, the National Foundation for Development), a consulting firm of upwardly mobile professionals. She encouraged the peasant leaders to co-operate and to become involved because, she said, it would be “empowering.” In the course of our conversation, it emerged that the Salvadoran associate of CRC SOGEMA who had expressed that outrageous view of the relation between NGOs (the head) and peasants (the hands and feet) was a “link” between FUNDE and SOGEMA. The ADC leaders responded that, while FUNDE was technically competent, their “courses” and research did not meet the needs of the peasants and that they had a very paternalistic attitude toward the peasants. When the Canadian director asked for an example, the ADC leaders related the incident of the “political drawing” and the role to which it relegated peasants.

This was, said the director of SOGEMA, a “very unfortunate incident,” but they were nonetheless committed to working with the FUNDE. If the ADC wished to have an impact they would best attend FUNDE meetings. The ADC leaders pointed out that the project’s design and goals were elaborated by middle class professionals, while peasants were invited to collaborate by providing data and attending their “seminars.” In a fit of annoyance, the director called the meeting to an end. The peasant leaders were furious. “Why were we led to believe that they (the Canadian agency) were interested in peasant participation, democracy, and all the other crap, when they are already plugged into the NGOs, who don’t represent a single peasant? That study will never be read by any peasant, nor will it be at all relevant to our struggle for land. It will be about “modernization” and how to swindle the peasants out of their land and turn them into commercial farms or tourist areas.”

The managers of NGOs have become skilled in designing projects. They transmit the new rhetoric of “identity” and “globalism” into the popular movements. Their activities and texts promote international cooperation, self-help, micro-enterprises, and forge ideological bonds with the neoliberals while forcing people into economic dependency on external donors. After a decade of NGO activity these professionals have “depoliticized” and de-radicalized whole areas of social life: women, neighborhoods, and youth organizations. In Peru and Chile, where the NGO’s have become firmly established, the radical social movements have declined.

Local struggles over immediate issues are the food and substance that nurture emerging movements. NGOs certainly emphasize the “local,” but the crucial question is what direction local actions will take: whether they will raise the larger issues of the social system and link up with other local forces to confront the state and its imperial backers, or whether they will turn inward, while looking to foreign donors and fragmenting into a series of competing supplicants for external subsidies. The ideology of NGOs encourages the latter.

NGO intellectuals frequently write about “co-operation” but without dwelling on the price and conditions for securing the co-operation of neoliberal regimes and overseas funding agencies. In their role as mediators and brokers, hustling funds overseas and matching the funds to projects acceptable to donors and local recipients, the “foundation entrepreneurs” are engaged in a new type of politics similar to the “labor contractors” (enganchadores) of the not too distant past: herding together women to be “trained”; setting up micro-firms subcontracted to larger producers or exporters employing cheap labor. The new politics of the NGOs is essentially the politics of compradores: they produce no national products; instead, they link foreign funders with local labor (self-help micro-enterprises) to facilitate the continuation of the neoliberal regime. The managers of NGOs are fundamentally political actors whose projects and training workshops do not make any significant economic impact in raising workers’ and peasants’ incomes. But their activities do make an impact in diverting people from the class struggle into forms of collaboration with their oppressors.

To justify this approach, NGO ideologies will often invoke “pragmatism” or “realism,” citing the decline of the revolutionary left, the triumph of capitalism in the East, the “crisis of Marxism,” the loss of alternatives, the strength of the United States, the coups and repression by the military. This “possibilism” is used to convince the left to work within the niches of the free market imposed by the World Bank and structural adjustment, and to confine politics to the electoral parameters imposed by the military.

The pessimistic “possibilism” of the NGO ideologues is necessarily one-sided. They focus on neoliberal electoral victories and not on the post-electoral mass protests and general strikes that mobilize large numbers of people in extra-parliamentary activity. They look at the demise of communism in the late eighties and not to the revival of radical social movements in the mid-nineties. They describe the constraints of the military on electoral politicians without looking at the challenges to the military by the Zapatista guerrillas, the urban rebellions in Caracas, the general strikes in Bolivia. In a word, the possibilists overlook the dynamics of struggles that begin at the sectoral or local level within the electoral parameters of the military, and then are propelled upward and beyond those limits by the failures of the possibilists to satisfy the elementary demands and needs of the people.

The pragmatism of the NGOs is matched by the extremism of the neoliberals. The 1990’s has witnessed a radicalization of neoliberal policies, designed to forestall crisis by handing over even more lucrative investment and speculative opportunities to overseas banks and multinationals: petroleum in Brazil, Argentina, Mexico, Venezuela; lower wages and less social security payments; greater tax exemption; and the elimination of all protective labor legislation. Contemporary Latin American class structure is more rigid and the state more directly tied to the ruling classes than ever. The irony is that the neoliberals are creating a polarized class structure much closer to the Marxist paradigm of society than to the NGO vision.

This is why Marxism offers a real alternative to NGOism. And in Latin America, there do exist Marxist intellectuals who write and speak for the social movements in struggle, committed to sharing the same political consequences. They are “organic” intellectuals who are basically part of the movement—the resource people providing analysis and education for class struggle, in contrast to the “post-Marxist” NGO intellectuals, who are embedded in the world of institutions, academic seminars, foreign foundations, international conferences and bureaucratic reports. These Marxist intellectuals recognize the centrality of local struggles, but they also acknowledge that the success of those struggles depends to a large extent on the outcome of the conflict between classes over state power at the national level.

What they offer is not the hierarchical “solidarity” of foreign aid and collaboration with neoliberalism, but class solidarity, and within the class, the solidarity of oppressed groups (women and people of color) against their foreign and domestic exploiters. The major focus is not on the donations that divide classes and pacify small groups for a limited time, but on the common action by members of the same class, sharing their common economic, predicament struggling for collective improvement.

The strength of the critical Marxist intellectuals resides in the fact that their ideas are in tune with changing social realities. The growing polarization of classes and the increasingly violent confrontations are apparent. So while the Marxists are numerically weak in the institutional sense, they are strategically strong as they begin to connect with a new generation of revolutionary militants, from the Zapatistas in Mexico to the MST in Brazil.

March 3, 2014 Posted by | Deception, Economics, Solidarity and Activism, Timeless or most popular | , , , , , , | 1 Comment

Are Palestinians Allowed to Resist? Part II

By Dina Jadallah-Taschler | Palestine Chronicle | February 28, 2009

There is an abundance of discourse over the means and methods that are pursued and/or justified by the Palestinians in their quest for independence and liberation. In the first part of this essay, I presented the legal, historical, and current context that forms the root of their current predicament. In this segment, I want to address the pros and cons of pursuing an exclusively non-armed struggle both by looking at the uniqueness of Palestinian circumstances and also by comparing it with the Indian National Liberation Movement, which is usually presented in Western narratives as almost exclusively non-violent, and successful, for having (ostensibly) been so.

A Brief History of Palestinian Non-Violent Resistance

Palestinians are continuously asked to not resist. The truth is that whether they resist violently or non-violently, Israeli violence continues unabated. Perhaps the scale, ugliness and the immediacy of the trauma are exaggerated in a massacre like we recently saw in Gaza, but the reality of purposeful eradication persists.

Examples of Palestinian non-violent resistance have existed since the very start of Jewish immigration into Palestine, but were never enough to attain freedom. Ultimately it is an imperative but frequently unstated precondition, that Palestinians accept a permanent subjugated and defeated status, preferably outside of their historic lands.  It is otherwise known as the Yigal Allon Plan (1967), a policy actively pursued by even the “Dove” Shimon Peres and entailing the expulsion of Palestinians. The Allon plan formed the basis of Israel’s settlements/colonization. Frequently unacknowledged in mainstream Western coverage is that only after acceptance of defeat and eradication can Israel’s violence (aka “retaliation”) against Palestinians stop.

Unwilling to accept that, and choosing a policy of “sumoud”/steadfastness on the land, Palestinians pursue(d) non-violent resistance as a complimentary and grassroots approach against the occupation. Here are just a few examples of Palestinian non-violent resistance to Israeli aggression: in 1902, villages of al-Shajara, Misha, and Melhamiyya peacefully protested against the takeover of 7000 hectares of agricultural land by the first Zionist settlers; in 1936, Palestinians held a six-month industrial strike protesting the British Mandate’s refusal to grant them self-determination; in 1986, Hannah Siniora and Mubarak ‘Awad (who advocates the power of non-violence and is a self-described disciple of Gandhi; recently deported by Israel) drew a list of civic disobedience activities heavily reliant on boycotting Israeli products and economic self-sufficiency, helping launch the 1987-93 First Intifada; in 1993, the signing of the Oslo Accords and the pursuit of the “settlement” path; and currently, the holding of protests in the villages of Jayyous, Budrus, Bil’in, Ni’lin and Umm Salamonah against the apartheid wall (1: See here). Today, the tradition of non-violence is still practiced and promoted by some secular and independent Palestinian political leaders, like the Palestinian National Initiative led by Mustafa Barghouti. And even Hamas, often presented as the ultimate terrorist organization, upheld a six month ceasefire with Israel but was still subjected to a non-lifting of the suffocating siege of Gaza. (The ceasefire ended on November 4, 2008 when Israel conducted a targeted assassination that killed six Hamas members.)

Needless to say, these facts are rarely, if ever covered in mainstream accounts.  Instead the focus is consistently on “terror” and “Israel’s right to defend itself,” ignoring the cumulative suffering of the occupation. As for Israel’s response, it consistently uses overwhelming force, including tear gas, rubber bullets, live ammunition, etc.  against protesters and justifies this as “self-defense,” even when protecting illegal settlement colonies.

Which raises the question of the efficacy of non-violent resistance as the sole or primary means of achieving national liberation. While each national liberation struggle is unique, there are certain conditions and methods that may translate across people. One thing that many have in common is that non-violent resistance was not pursued exclusively. This was true of the African National Congress’ anti-apartheid Boycott and Divestment Movement in South Africa, which accompanied armed struggle. It was also true of the struggle for national liberation from British rule in India, a fact usually unmentioned in Western press, which tends to focus on Mahatma Gandhi’s satyagraha / non-violent path to resistance. In doing so, there is a grave disservice done to explaining how Indian independence came to be. There is also a convenient decontextualization of the struggle.  And I use “convenient” intentionally, because Gandhi’s model is often held up (by Israel and the West) as the best and “most civilized” one that ought to be emulated by the oppressed Palestinians.

Gandhi in Context: Was the Indian National Liberation Struggle Entirely Non-Violent? The name Gandhi and non-violent resistance (satyagraha) are almost synonymous in most people’s minds. Satyagraha’s aim is not just to defeat the opponent, but aims to convert the adversary as well. And yet there are important nuances and definite progression in Gandhi’s approach to war and colonialism. On the subject of whether it is better to be a coward or to resist violently, he said: “I do believe that, where there is only a choice between cowardice and violence, I would advise violence… I would rather have India resort to arms in order to defend her honour than that she should, in a cowardly manner, become or remain a helpless witness to her own dishonour…” (2:  Eds. R. K. Rabhu & U. R. Rao, “Between Cowardice and Violence,” The Mind of Mahatma Gandhi, Ahemadabad, India, 1967, p. 3) He also said: “Though violence is not lawful, when it is offered in self-defence or for the defence of the defenseless, it is an act of bravery far better than cowardly submission. The latter befits neither man nor woman. Under violence, there are many stages and varieties of bravery.  Every man must judge this for himself. No other person can or has the right. (3: Ibid, pp. 369-70) Applied to the Palestinian context, this would indicate that Palestinians have the duty to fight back against their own annihilation. However, he would have probably qualified that by saying that non-violence could cause the same changes with lower loss in life.

Historically, too Gandhi’s attitudes to war evolved.  While still in South Africa, and in reaction to the Bambatha (Zulu) Rebellion of 1906 against a new British poll-tax, to which Britain responded by declaring a war, Gandhi encouraged the British to recruit Indians. He wanted to advance Indian claims as full citizens of the Empire.  He also encouraged Indians to join the war through his columns in Indian Opinion.

Gandhi’s statecraft and thought did not happen in a vacuum. Likewise, India’s independence was not the work of only one man or one concept or one strategy.  In fact, India’s nationalist feelings pre-existed Gandhi and the Congress Party, and evidence of it can be found as early as 1857.  The first group to call for complete independence was the uncompromisingly secular Ghadar Party, organized in 1913 by Indian immigrants in California. (3: See here) The party actively pursued violent resistance and revolution (rejecting caste as well) and predictably, their actions were labeled as “terrorism” by Britain. Operating mainly in the first two decades of the 20th Century, the Ghadarites were successful in recruiting Indian soldiers in the British Army (in Hong Kong, Singapore, Rangoon, and Basra) and urging them to revolt.

As for Gandhi, once in India, he progressed to advocating non-violent resistance as a “weapon.” His political views on Indian independence evolved as well. Consider that at the age of 45, Gandhi still held some esteem for the British empire, calling it a “spiritual foundation,” in contrast to the views of most Indian revolutionaries. (4: See here) It wasn’t until after the Amritsar Massacre of civilians by British troops in the Punjab, that Gandhi advocated complete self-government  maturing into independence (swaraj). In the intervening years there was a constant push and pull between Gandhi’s satyagraha policy and other political personalities and groups pursuing independence — not always non-violently.

A massive wave of revolutionary unrest swept India in 1919.  British violent retaliation was unable to quell it. For example, there were more than 200 strikes in the first six months of 1920 alone. And yet in 1921, when Muslim leader Hasrat Mohani wrote a resolution asking for complete independence, Gandhi led the opposition against it and secured its rejection. Likewise, he supported Britain in WWI by trying to recruit Indians for the war effort. He himself volunteered twice for it, in present-day Iraq and in France, reasoning that he “owed” this to the empire in return for military protection. (5: Ibid) This led to deep divisions within the Congress party and also caused a dramatic drop in the popularity of Congress. Young revolutionaries like Rash Behari Bose, Shaheed Bhagat Singh, and revolutionary groups like the Workers and Peasant Party (Kirti Kisan Party) and militant unions like the Bombay textile workers were frequently at odds with Congress. Armed revolutionary groups that emerged in this period included the Hindustan Republican Army and the Hindustan Socialist Republican Army in northern India, as well as the “Revolt Groups” in Bengal (e.g. Chittagong group led by Surya Sen).  Working class and union resistance continued throughout the 1930s. Eventually, it was in response to this revolutionary tide, that the Congress Party became less conservative and more supportive of the more militant attitude. As for Gandhi, he returned to advocating non-violent struggle and launched the salt satyagraha (1930-31) and the boycott campaigns. He has been criticized by some for not taking advantage of this revolutionary tide, thereby delaying independence.

Even at the time of World War II, Gandhi prevaricated on non-violence: first offering “non-violent moral support” to the British effort, and only later rescinding that decision when members of the Congress Party objected to the inclusion of India in the war effort without her consultation. In 1939-40, strikes and uprisings in the countryside swelled dramatically. Afterwards, the Congress party was compelled by grassroots pressure to launch the Quit India movement in August of 1942. It is important to note that this period in the struggle was one of extreme violence, mass arrests, and so forth. And yet, Quit India’s success in contributing to independence is controversial.  Those arguing that it failed say that it fizzled out after five months (largely due to the army’s loyalty) and didn’t topple the Raj or bring it to the negotiating table for independence. In contrast, those who see it as a success, focus on how it sapped colonial energy and resources and on its success at mobilizing masses of people.(5: See here)  Importantly, it inspired the final phase of the fight for independence, which witnessed increasingly militant peasant uprisings, sometimes joined by some of the landlords.

By the end of the war, Britain was indicating that power would be transferred to Indians.  Aware that they couldn’t hold on any longer, they instead focused on partitioning India – bringing to mind Israel’s recent attempts to divide Gaza from the West Bank. In the meantime, Congress’ adherence to a policy of non-violence was entirely dependent on the British soldiers – as opposed to the armed Muslim League – and were unable to prevent partition. Thus, Congress’ inherent conservatism with regards to armed struggle hindered its goal of keeping India intact. They failed to build on numerous past instances of Hindu-Muslim cooperation against British colonialism. (Not all members of the Muslim league supported Muslim self-determination: Communist leader Ghaffar Ali opposed it vociferously.)

As is evident from the history recounted above, the agreeable and reasonable- sounding frame of the superiority of peaceful resistance sets up a false dichotomy. Presenting satyagraha as the exemplary approach to liberation is deceptive mainly because India’s independence was not achieved through non-violence alone. Moreover, its historical context and enemy are do not translate well across time and location.  Finally, while inspirational and useful on many levels, it is not sufficient as sole guide or solution to achieving Palestinian liberation.

Options for Palestinian Resistance

Fundamentally, all theories of national liberation emanate from the ethical and legal principle that a people have the right to be free from alien occupation and exploitation.  Resistance is their inalienable right. Insistence on non-violent resistance can sometimes be counterproductive – as happened with Gandhi’s insistence on it when confronting partition. Relying solely on non-violence subordinates the fundamental moral and ethical goal of independence to all sorts of conditionalities in order to achieve it in the “right” way.

All events so far indicate that non-violent resistance has been of modest benefit to Palestinians, with the important exceptions of tarnishing Israel’s image and moral claims.  One could argue that Israel pursued the (sham) Oslo peace process precisely because the First Intifada rendered the population ungovernable. Unfortunately for the Palestinians, the Fateh leadership of the PLO squandered those achievements and marginalized popular input.  Since then, pursuit of “settlement” and “negotiation” in the absence of a concomitant armed struggle has produced regressive and contradictory effects. Why is that?

One reason is the nature of the adversary. Zionist and Israeli ideology and statecraft are fundamentally violent, involving ethnic cleansing and relying first and foremost on war as an instrument in achieving Greater (Eretz) Israel. Unlike Great Britain, which had developed a liberal democratic tradition when Indians were struggling for their independence, Israel is essentially a highly militarized, ethnically-based and legally privileged society. It made no difference whatsoever how the Palestinians resisted, whether violently or not. As happened in other Western colonial historical experiences, like the US, Australia, or apartheid South Africa, the settlers use overwhelming force to convince the native populations of their ultimate defeat.

A second important difference is that after World War II, England could no longer hold onto its colonies. This is in sharp contrast to the US-superpower-backed-Israel, which maintains a pronounced military superiority over all its neighbors.

A third difference is that ever since the Jewish Land Agency started buying Palestinian lands from absentee landowners, and continuing after its war-time conquest of land, Israel stipulated that Palestinians cannot lease or be employed on purchased land.  As a result, Palestinians are less important to the Israeli economy than India was to Britain.  Their marginalization and de-development are intentional and serve to facilitate Israeli expropriation of valuable water, land, and other resources. Moreover, Israel receives significant financial and military “aid” from the United States which also reduces its need to integrate economically with its neighbors. The lack of economic dependency makes non-violent resistance much less effective as a weapon in fighting the occupation.  Any economic levers the Palestinians may have had were further diminished (intentionally) via their PA leadership’s dependency on and distribution of foreign “aid.” This had the double effects of corrupting and ensuring the cooptation and cooperation of the leadership, as well as minimizing the size and role of an educated middle class that could lead the struggle – as was the case in India.

A fourth difference is the lack of a charismatic leader like Gandhi. Which brings us right back to the first reason, the nature of the opponent. Israel has a long history of assassinating and / or deporting any potential leader who is incorruptible or charismatic or effective. (6: For a partial list of Palestinian leaders assassinated by Mossad, see here.)

In the final analysis, non-violence is still a worthy means of resistance. Significantly, it enhances growing international perceptions of the brutality of the occupation and builds on the legal consensus and framework of the legitimacy of Palestinian rights, as recurrently affirmed through UN General Assembly annual resolutions and the most recent ruling against the apartheid wall at the International Court of Justice. Non-violent resistance, by being more accessible to ordinary people, additionally creates more sustainable and widespread networks of resistance. At a minimum, it establishes a network of interdependence for the newly liberated society to build on.

But it is not enough. And arguably, it has never been enough, especially in the absence of a more just as opposed to legalistic international relations.

- Dina Jadallah-Taschler is an Arab-American of Palestinian and Egyptian descent, a political science graduate, an artist and a writer. Contact her at: dina.jadallah.taschler@gmail.com.

February 18, 2014 Posted by | Ethnic Cleansing, Racism, Zionism, Subjugation - Torture, Timeless or most popular | , , , , , | Leave a comment

UK admits role in India Golden Temple massacre

Press TV – February 5, 2014

The British government has admitted complicity in a deadly attack on Sikhism’s holiest shrine in India, the Golden Temple, almost three decades age.

Appearing in the House of Commons on Tuesday, British Foreign Secretary William Hague disclosed the findings of a government investigation into the level of British involvement in the June 1984 massacre of Sikhs in India’s northwestern city of Amritsar.

Hague acknowledged that a British officer from the Special Air Service (SAS) travelled to India in February that year and advised Indian authorities on planning one of the most notorious atrocities in Britain’s imperial history in the South Asian country.

The UK’s top diplomat, however, sought to play down the SAS role in the assault, as he insisted that the advice to the Indian Intelligence Services on their Operation Blue Star raid on the temple had “little impact” on the outcome.

“The nature of the UK’s assistance was purely advisory, limited and provided to the Indian government at an early stage,” he said.

British Prime Minister David Cameron launched the probe in January after newly-released documents showed that the government of former British premier Margaret Thatcher was involved in the Amritsar raid.

Cameron said in a video message that he hopes the report would give “reassurance to the Sikh community here in Britain and elsewhere.”

But Sikh groups criticized the scope of the Whitehall review, saying it failed to cover the British complicity during the time of the massacre.

In a letter to Cameron, Bhai Amrik Singh, the chairman of the Sikh Federation, said he was “hugely disappointed” with the probe’s “narrow terms.”

“It appears the review has looked at a narrow period and not covered the period in the latter half of 1984 and may not have addressed some of the concerns raised by UK politicians in the last three weeks,” Singh wrote.

The death toll from the temple raid still remains disputed, with Indian authorities putting it in the hundreds and Sikh groups in the thousands.

In February last year, Cameron visited the scene of the massacre in the state of Punjab at the end of his three-day trade trip to India but he stopped short of making a formal apology.

February 5, 2014 Posted by | Deception, Subjugation - Torture, Timeless or most popular | , , , , , | 1 Comment

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