Showing posts with label the Nation. Show all posts
Showing posts with label the Nation. Show all posts

Saturday, January 02, 2010


AMERICAN POLITICS:
OBAMA MISSES THE GREEN:
It's been almost one year on, and the sheen is starting to fade from the 'Obama Golden Boy' belief. the man receives an embarrassing 'Nobel Peace Prize' while overseeing not one but two wars. Nothing much happens domestically except a continuation of the massive bailouts to corporate America begun under the previous Administration. The only serious domestic reform-health care ie joining the civilized world- is gutted in the service of the usual special interests while the President sits Buddha-like as the dead is done.
If it was not apparent before it should be apparent now that America's political culture suffers from an illness that goes beyond the left/right divide. The illness is that image has become all, and that there is no substance in the pronouncements of pretty well any politician. Certainly other countries also suffer from this disease, but the USA has travelled furthest along the road. Obama is basically a triumph of image over substance. To be quite frank he said very little in terms of real policy while running for the post of Emperor, aside from the promise to close Guantanamo which has yet to be fulfilled. If it is it means merely transferring the whole atrocity, lock stock and barrel, to Illinois. People on the "progressive side" of the political divide were, more often than not (unless they had an 'ideological halter' such as anarchism), swept up in the romance of Obama's campaign, especially as the alternative was so unappealing.
Now the gloss has fallen off, and it will continue to fall in the years to come. Here is an article written by Naomi Klein for The Nation about another aspect of the Obama failure ie how his "green rhetoric" has not risen to the point of deeds.
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For Obama, No Opportunity Too Big To Blow:
posted by Naomi Klein
Contrary to countless reports, the debacle in Copenhagen was not everyone's fault. It did not happen because human beings are incapable of agreeing, or are inherently self-destructive. Nor was it all was China's fault, or the fault of the hapless UN.

There's plenty of blame to go around, but there was one country that possessed unique power to change the game. It didn't use it. If Barack Obama had come to Copenhagen with a transformative and inspiring commitment to getting the U.S. economy off fossil fuels, all the other major emitters would have stepped up. The EU, Japan, China and India had all indicated that they were willing to increase their levels of commitment, but only if the U.S. took the lead.
Instead of leading, Obama arrived with embarrassingly low targets and the heavy emitters of the world took their cue from him.

(The "deal" that was ultimately rammed through was nothing more than a grubby pact between the world's biggest emitters: I'll pretend that you are doing something about climate change if you pretend that I am too. Deal? Deal.)

I understand all the arguments about not promising what he can't deliver, about the dysfunction of the U.S. Senate, about the art of the possible. But spare me the lecture about how little power poor Obama has. No President since FDR has been handed as many opportunities to transform the U.S. into something that doesn't threaten the stability of life on this planet. He has refused to use each and every one of them. Let's look at the big three.

Blown Opportunity Number 1:
The Stimulus Package
When Obama came to office he had a free hand and a blank check to design a spending package to stimulate the economy. He could have used that power to fashion what many were calling a "Green New Deal" -- to build the best public transit systems and smart grids in the world. Instead, he experimented disastrously with reaching across the aisle to Republicans, low-balling the size of the stimulus and blowing much of it on tax cuts. Sure, he spent some money on weatherization, but public transit was inexplicably short changed while highways that perpetuate car culture won big.
Blown Opportunity Number 2:
The Auto Bailouts
Speaking of the car culture, when Obama took office he also found himself in charge of two of the big three automakers, and all of the emissions for which they are responsible. A visionary leader committed to the fight against climate chaos would obviously have used that power to dramatically reengineer the failing industry so that its factories could build the infrastructure of the green economy the world desperately needs. Instead Obama saw his role as uninspiring down-sizer in chief, leaving the fundamentals of the industry unchanged.
Blown Opportunity Number 3:
The Bank Bailouts
Obama, it's worth remembering, also came to office with the big banks on their knees -- it took real effort not to nationalize them. Once again, if Obama had dared to use the power that was handed to him by history, he could have mandated the banks to provide the loans for factories to be retrofitted and new green infrastructure to be built. Instead he declared that the government shouldn't tell the failed banks how to run their businesses. Green businesses report that it's harder than ever to get a loan.

Imagine if these three huge economic engines -- the banks, the auto companies, the stimulus bill -- had been harnessed to a common green vision. If that had happened, demand for a complementary energy bill would have been part of a coherent transformative agenda.

Whether the bill had passed or not, by the time Copenhagen had rolled around, the U.S. would already have been well on its way to dramatically cutting emissions, poised to inspire, rather than disappoint, the rest of the world.

There are very few U.S. Presidents who have squandered as many once-in-a-generation opportunities as Barack Obama. More than anyone else, the Copenhagen failure belongs to him.

Research support for Naomi Klein's reporting from Copenhagen was provided by the Investigative Fund at The Nation Institute.
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MOLLY NOTE:
Klein is, of course, a 'left social democrat' with all the illusions that follow from that position. Like most people in her ideological camp she makes genuflections to "self-managed socialism" while, at the same time, harbouring illusions about both the power of and the realism of massive state action to "direct this grassroots democracy". All that being said, her criticisms of the Obama Administration have just as much force as if they were advanced from a more libertarian position. In other words, all that she has said is true. It's just that I, as an anarchist, am not surprised at the choices that Obama has made. A lot of "the left" feels betrayed. That is unrealistic. The Emperor is, after all, the Emperor, and it is not unexpected that he continues policies that benefit the ruling strata of the Empire. It would be surprising if the converse was the case.

Saturday, February 07, 2009


INTERNATIONAL ANARCHIST MOVEMENT-ICELAND:
ICELAND QUIETER BUT PROTESTS CONTINUE:
Since the fall of the conservative government protests in Iceland have diminished, but they are still continuing, demanding full accountability from those responsible for the country's financial failure. Here is an article from the Sydney Morning Herald on protests that occurred in Reykjavik earlier today and the present state of the Icelandic political crisis.
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Iceland protesters demand accountability:
About 200 to 300 people gathered in Reykjavik on Saturday to demand that the financial tycoons held partly responsible for the country's financial crisis pay back their debts to help Iceland recover.




After months of weekly protests involving pot-banging, egg-throwing and occasional violence, protesters huddled calmly in the cold outside the parliament building on Saturday shouting: "Pay the money back!" and "Do we want the rich to pay their debts? Yes!"




Rumours have circulated in Iceland that some of the financial tycoons who led the Icelandic banking sector's aggressive expansion abroad managed to stash away millions of dollars in foreign accounts before the country's economy collapsed.




Iceland's financial crisis erupted in October amid the global credit crunch, when the financial sector froze up and the government was forced to take over the country's three main banks as the currency lost half its value.




Thousands of Icelanders have lost their savings and their jobs, prompting them to descend into the streets for weekly protests to demand the resignation of the government and the central bank governors.




Faced with mounting public pressure, Prime Minister Geir Haarde announced the immediate resignation of his government on January 26.




A new left-wing government headed by Prime Minister Johanna Sigurdardottir took over on February 1, and one of her first actions was to demand the resignation of the three central bank governors.




Central bank chief David Oddsson, 61, is seen as being particularly responsible for the crisis since he liberalised Iceland's financial markets in the 1990s when he served as prime minister.





Sigurdardottir had demanded that Oddsson and his two colleagues, Ingimundur Fridriksson and Eirikur Gudnason, reply to her request by February 5.





Oddsson has yet to comment on it.





Fridriksson has informed the prime minister he will resign, while Gudnason has said he intends to turn up for work as usual on Monday.





The prime minister appoints the central bank governors but has no power to fire them.
Sigurdardottir has presented a bill to parliament on structural changes to the central bank, proposing there be only one governor instead of three and stipulating that the governor must hold a master's degree in economics, which is not the case with Oddsson.
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Meanwhile the Icelandic police have suffered considerably in their public image because of their actions during the protests. They are now trying to polish that image via propaganda outreach in various youth centres, and their "demons" are, you guessed it, the anarchists. Here's the story of their campaign and the opposition to it from the English language section of the Icelandic anarchist site Aftaka. The following has been slightly edited for reasons of English grammar.
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The Police “Educates” Children and Warns against Anarchists :
The police are now traveling between teen social centers and are stuffing children with propaganda. The issue is protests, pepper spray, police brutality and the “extremely dangerous” anarchists.



After the protests which led to the collapse of the Icelandic government in January, the police have received harsh criticism for violence. Those voices come from all directions of Icelandic society. A lot of media people were sprayed with pepper spray for just being present and taking photographs of the events. At this moment the press association is working on these cases. Many pictures have been released proving the critics' case and people who received the brunt of the police violence have been interviewed.





The police force´s image has of course suffered greatly because of the case; wounds which Stefán Eiríksson (Reykjavík chief of police) has tried to bandage with stoic calm and great “understanding” for the cause of those that want to protest in the traditional (i.e. useless) way. But Stefán’s smiles are not enough and therefore the police are on the move, to protect their image, going between social centers for the purpose of “educating” the youth. A short time ago Aftaka received a letter from the ALMA organization which tells of these police visits and says (the bold is ours):
Kópavogur, February 2. 2009
To the ministers and members of parliament
it may concern.





On behalf of Alma, which is an organization
interested in human rights founded in 1995, I protest in the name of democracy
and freedom of speech that police officers are going between teen social
centers, especially to defame protesters in general and specific groups of
protesters, f.ex anarchists.




Unfortunately we have conclusive proof that
the police have lied, knowingly or unknowingly, but without correcting
themselves later, about the protests and protesters in the media.





The final straw is now when the police force
goes between teen social centers to spread lies about certain groups of
protesters and protesters in general, lies that are both outrageous and highly
political.





With this we are not making light of certain
incidents in the past weeks but the police can not discredit the protester’s
experiences and wounds.”


News like this is probably upsetting for many democratically minded people because nobody suspected the police of such blatant propaganda, or what? The announcement continues:

“It cannot be accepted that the police scares the young people into
forgoing their right to free speech, by telling them they will be as “guilty” as
certain groups of protesters if they attend protests. That is along the same
lines as has been heard from the police lately that those who protest can just
blame themselves for being pushed, beaten with batons, gassed or sprayed. ALMA
demands that the police always tell the truth about everything that they express
themselves about that regards other people, individuals or groups. And that if
those who express themselves on behalf of the police force are caught lying
about certain groups of people or individuals, they will immediately be held
responsible.





ALMA demands that this police campaign of
propaganda and lies be stopped immediately, especially parts of it targeted at
teenagers.





Many teenagers that have sat and listened to
these police lies have parents, siblings, family members or friends who
participated in these protests as a form of expression in a free democratic
society. The police can not allow itself to claim criminal intent about
protesters and certain factions within their ranks. That is a breach of basic
human rights and will be pursued as such if this does not cease.





ALMA will maintain its rights, as a
non-partial humanitarian organization, to enlist representatives for protesters
and to meet the teenagers as well so the people that the police has slandered
about can themselves tell the teenagers at the social center´s about their
experiences and points of view.
Sincerely on behalf of ALMA,

Helgi Jóhann Hauksson, president.”



We at Aftaka contacted Helgi, to ask him more question´s about the case and he responded right away:

“We know that the police have been going between social centers in
Kópavogur (town close to Reykjavík) and that at one of them, a 19 year old
employee tried to ask critical questions that contained doubts on what the
police was saying, but her boss and coworker chastised her. She is not sure if
she is welcome back at work.





The police told the teenagers amongst other
things that police officers had been seriously injured but that no protesters
had been injured because the police ,,"do not hurt people”.They brought pepper
spray and batons to show the kids and claimed that pepper spray was completely
harmless; it was just like you had cried for a little while and could just be
rinsed away with water. The 19 year old employee then asked if the pepper spray
was not oil based and therefore not so easily rinsed away with just water,
but both the police officers claimed that this was not the case; it was
just rinsed out with water. Then they added that the police never sprayed anyone
in the face, only on the chest… unless they are criminals. Accordingly the
batons were also completely harmless because they where only used on large
muscles and the police officers utterly denied them being used in any other way”



Of course they lie to the children. And it goes on (bold is from us):

Then they told the teenagers that anarchists are very dangerous and
they had to be careful around them. Anarchists are people who do nothing, do not pay taxes but try to fool teenagers like them to throw rocks at the police – they had to watch out for the anarchists.


The police asked the kids and pointed to some of them. “Were you there, at the protests?” the police asked. Some of the kids said yes and then the police replied: “You can be found equally guilty if you stand there or take part in the protests”





We wonder under what division of the police this image and propaganda campaign falls. Has the preventative division of the police force been expanded for the purpose of rescuing the children from forming radical political views, independence, critical thought, hatred of abuse of power and the will to fight injustice?





This should however not surprise anyone because this is exactly what the corrupt society we live in is like. The authorities’ power is so great that if something goes wrong on their behalf – in this case the use of their thoroughly conditioned power abusing people – they just set forth on a a good propaganda campaign in the schools and shove lies into the heads of the children, which already sit under the oppressive education regime of the authorities for the greater part of the day. This police conduct is distasteful, immoral, un-democratic and so forth, but is also without a doubt legal and justifiable on behalf of the authorities.





But anyway, it is good that the police are acknowledging the power of the anarchists and other radical revolutionaries. Anarchists are dangerous! But not to little children and old ladies. They are dangerous to the authorities; corruption and abuse of power. We rip off their costumes and let them show their violent and oppressive nature and actions themselves. Anarchists have had a creative effect on Icelandic society, pushed forth annihilation of the disgusting slave mentality that has colored Icelandic society these last decades, and urged people to take matters into their own hands and fight authority. The fruits of those seeds are very visible these days.
At Aftaka, we will monitor this case and publish more news of it as soon as it arrives.
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Finally, from the blog of Naomi Klein, the following has appeared under several titles in several different places, including The Nation where it was first published. I prefer the one on her blog, 'They All Must Go'. Not that I agree with Klein's general politics. She can charitably be described as a "left social democrat", and laying behind her writings is the assumption that things would be better with a caring, social-democratic government with due (ie limited) popular input. Still, what she says here shows how the popular responses to the present crisis are interconnected and similar.

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Naomi Klein: They All Must Go
By Naomi Klein
Watching the crowds in Iceland banging pots and pans until their government fell reminded me of a chant popular in anti-capitalist circles back in 2002: “You are Enron. We are Argentina.”





Its message was simple enough. You—politicians and CEOs huddled at some trade summit—are like the reckless scamming execs at Enron (of course, we didn’t know the half of it). We—the rabble outside—are like the people of Argentina, who, in the midst of an economic crisis eerily similar to our own, took to the street banging pots and pans. They shouted, “¡Que se vayan todos!” (“All of them must go!”) and forced out a procession of four presidents in less than three weeks.





What made Argentina’s 2001–02 uprising unique was that it wasn’t directed at a particular political party or even at corruption in the abstract. The target was the dominant economic model—this was the first national revolt against contemporary deregulated capitalism.





It’s taken a while, but from Iceland to Latvia, South Korea to Greece, the rest of the world is finally having its ¡Que se vayan todos! moment.





The stoic Icelandic matriarchs beating their pots flat even as their kids ransack the fridge for projectiles (eggs, sure, but yogurt?) echo the tactics made famous in Buenos Aires. So does the collective rage at elites who trashed a once thriving country and thought they could get away with it. As Gudrun Jonsdottir, a 36-year-old Icelandic office worker, put it: “I’ve just had enough of this whole thing. I don’t trust the government, I don’t trust the banks, I don’t trust the political parties and I don’t trust the IMF. We had a good country, and they ruined it.”





Another echo: in Reykjavik, the protesters clearly won’t be bought off by a mere change of face at the top (even if the new PM is a lesbian). They want aid for people, not just banks; criminal investigations into the debacle; and deep electoral reform.





Similar demands can be heard these days in Latvia, whose economy has contracted more sharply than any country in the EU, and where the government is teetering on the brink. For weeks the capital has been rocked by protests, including a full-blown, cobblestone-hurling riot on January 13. As in Iceland, Latvians are appalled by their leaders’ refusal to take any responsibility for the mess. Asked by Bloomberg TV what caused the crisis, Latvia’s finance minister shrugged: “Nothing special.”





But Latvia’s troubles are indeed special: the very policies that allowed the “Baltic Tiger” to grow at a rate of 12 percent in 2006 are also causing it to contract violently by a projected 10 percent this year: money, freed of all barriers, flows out as quickly as it flows in, with plenty being diverted to political pockets. (It is no coincidence that many of today’s basket cases are yesterday’s “miracles”: Ireland, Estonia, Iceland, Latvia.)





Something else Argentina-esque is in the air. In 2001 Argentina’s leaders responded to the crisis with a brutal International Monetary Fund–prescribed austerity package: $9 billion in spending cuts, much of it hitting health and education. This proved to be a fatal mistake. Unions staged a general strike, teachers moved their classes to the streets and the protests never stopped.





This same bottom-up refusal to bear the brunt of the crisis unites many of today’s protests. In Latvia, much of the popular rage has focused on government austerity measures—mass layoffs, reduced social services and slashed public sector salaries—all to qualify for an IMF emergency loan (no, nothing has changed).





In Greece, December’s riots followed a police shooting of a 15-year-old. But what’s kept them going, with farmers taking the lead from students, is widespread rage at the government’s crisis response: banks got a $36 billion bailout while workers got their pensions cut and farmers received next to nothing. Despite the inconvenience caused by tractors blocking roads, 78 percent of Greeks say the farmers’ demands are reasonable.





Similarly, in France the recent general strike—triggered in part by President Sarkozy’s plans to reduce the number of teachers dramatically—inspired the support of 70 percent of the population.





Perhaps the sturdiest thread connecting this global backlash is a rejection of the logic of “extraordinary politics”—the phrase coined by Polish politician Leszek Balcerowicz to describe how, in a crisis, politicians can ignore legislative rules and rush through unpopular “reforms.” That trick is getting tired, as South Korea’s government recently discovered. In December, the ruling party tried to use the crisis to ram through a highly controversial free trade agreement with the United States. Taking closed-door politics to new extremes, legislators locked them-selves in the chamber so they could vote in private, barricading the door with desks, chairs and couches.





Opposition politicians were having none of it: with sledgehammers and an electric saw, they broke in and staged a twelve-day sit-in of Parliament. The vote was delayed, allowing for more debate—a victory for a new kind of “extraordinary politics.”





Here in Canada, politics is markedly less YouTube-friendly—but it has still been surprisingly eventful. In October the Conservative Party won national elections on an unambitious platform. Six weeks later, our Tory prime minister found his inner ideologue, presenting a budget bill that stripped public sector workers of the right to strike, canceled public funding for political parties, and contained no economic stimulus. Opposition parties responded by forming a historic coalition that was only prevented from taking power by an abrupt suspension of Parliament. The Tories have just come back with a revised budget: the pet right-wing policies have disappeared, and it is packed with economic stimulus.





The pattern is clear: governments that respond to a crisis created by free-market ideology with an acceleration of that same discredited agenda will not survive to tell the tale. As Italy’s students have taken to shouting in the streets: “We won’t pay for your crisis!”
This column was first published in The Nation.
Read more by Naomi Klein at http://www.naomiklein.org/.

Monday, May 19, 2008


AMERICAN POLITICS:
HILLARY'S GIFT TO WOMEN:
While browsing through the source for the last piece reposted here Molly came on this true gem, written by Barbara Ehrenreich. Ehrenreich has always been a favourite of Molly's. She is one of the few leftist pundits in the USA with a truly independent, perceptive and intelligent mind, one never afraid to step on any toes, leftist or rightist, in pursuit of the truth. A person who has never been afraid of the political correctness cultism that smothers the American left. Here's her latest. Enjoy.
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Hillary's Gift to Women
By Barbara Ehrenreich

In Friday's New York Times, Susan Faludi rejoiced over Hillary Clinton's destruction of the myth of female prissiness and innate moral superiority, hailing Clinton's "no-holds-barred pugnacity" and her media reputation as "nasty" and "ruthless." Future female presidential candidates will owe a lot to the race of 2008, Faludi wrote, "when Hillary Clinton broke through the glass floor and got down with the boys."

I share Faludi's glee--up to a point. Surely no one will ever dare argue that women lack the temperament for political combat. But by running a racially tinged campaign, lying about her foreign policy experience and repeatedly seeming to favor McCain over her Democratic opponent, Clinton didn't just break through the "glass floor," she set a new low for floors in general, and would, if she could have gotten within arm's reach, have rubbed the broken glass into Obama's face.

A mere decade ago Francis Fukuyama fretted in Foreign Affairs that the world was too dangerous for the West to be entrusted to graying female leaders, whose aversion to violence was, as he established with numerous examples from chimpanzee society, "rooted in biology." The counter-example of Margaret Thatcher, perhaps the first of head of state to start a war for the sole purpose of pumping up her approval ratings, led him to concede that "biology is not destiny." But it was still a good reason to vote for a prehistoric-style club-wielding male.
Not to worry though, Francis. Far from being the stereotypical feminist-pacifist of your imagination, the woman to get closest to the Oval Office has promised to "obliterate" the toddlers of Tehran--along, of course, with the bomb-builders and Hezbollah supporters. Earlier on, Clinton foreswore even talking to presumptive bad guys, although women are supposed to be the talk addicts of the species. Watch out--was her distinctly unladylike message to Hugo Chávez, Kim Jong-Il and the rest of them--or I'll rip you a new one.

There's a reason it's been so easy for men to overlook women's capacity for aggression. As every student of Women's Studies 101 knows, what's called aggression in men is usually trivialized as "bitchiness" in women: men get angry; women suffer from bouts of inexplicable, hormonally-driven, hostility. So give Clinton credit for defying the belittling stereotype: she's been visibly angry for months, if not decades, and it can't all have been PMS.

But did we really need another lesson in the female capacity for ruthless aggression? Any illusions I had about the innate moral superiority of women ended four years ago with Abu Ghraib. Recall that three out of the five prison guards prosecuted for the torture and sexual humiliation of prisoners were women. The prison was directed by a woman, Gen. Janis Karpinski, and the top US intelligence officer in Iraq, who also was responsible for reviewing the status of detainees before their release, was Major Gen. Barbara Fast. Not to mention that the US official ultimately responsible for managing the occupation of Iraq at the time was Condoleezza Rice. Whatever violent and evil things men can do, women can do too, and if the capacity for cruelty is a criterion for leadership, as Fukuyama suggested, then Lynndie England should consider following up her stint in the brig with a run for the Senate.

It's important--even kind of exhilarating--for women to embrace their inner bitch, but the point should be to expand our sense of human possibility, not to enshrine aggression as a virtue. Women can behave like the warrior queen Boadicea, credited with slaughtering 70,000, many of them civilians, or like Margaret Thatcher, who attempted to dismantle the British welfare state. Men, for their part, are free to take as their role models the pacifist leaders Martin Luther King and Mahatma Gandhi. Biology conditions us in all kinds of ways we might not even be aware of yet. But virtue is always a choice.

Hillary Clinton smashed the myth of innate female moral superiority in the worst possible way--by demonstrating female moral inferiority. We didn't really need her racial innuendos and free-floating bellicosity to establish that women aren't wimps. As a generation of young feminists realizes, the values once thought to be uniquely and genetically female--such as compassion and an aversion to violence--can be found in either sex, and sometimes it's a man who best upholds them.
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GLOBALIZATION:

HOW TO MANUFACTURE A GLOBAL FOOD CRISIS:

The following article was recently published in the June 2, 2008 edition of The Nation, a US leftist magazine under the title of 'Blame the Bankers". It has been posted on the Autonomy and Solidarity site in Ontario, from which Molly takes this version and title.

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HOW TO MANUFACTURE A GLOBAL FOOD CRISIS

Lessons from the World Bank, IMF, and WTO

How "free trade" is destroying Third World agriculture-and who's fighting back May 18, 2008 By Walden Bello, Source: The Nation




The global rise in food prices is not only a consequence of using food crops to produce biofuels, but of the "free trade" policies promoted by international financial institutions. Now peasant organisations are leading the opposition to a capitalist industrial agriculture.




When tens of thousands of people staged demonstrations in Mexico last year to protest a 60 percent increase in the price of tortillas, many analysts pointed to biofuel as the culprit. Because of US government subsidies, American farmers were devoting more and more acreage to corn for ethanol than for food, which sparked a steep rise in corn prices. The diversion of corn from tortillas to biofuel was certainly one cause of skyrocketing prices, though speculation on biofuel demand by transnational middlemen may have played a bigger role. However, an intriguing question escaped many observers: how on earth did Mexicans, who live in the land where corn was domesticated, become dependent on US imports in the first place?
Eroding Mexican Agriculture
The Mexican food crisis cannot be fully understood without taking into account the fact that in the years preceding the tortilla crisis, the homeland of corn had been converted to a corn-importing economy by "free market" policies promoted by the International Monetary Fund (IMF), the World Bank and Washington. The process began with the early 1980s debt crisis. One of the two largest developing-country debtors, Mexico was forced to beg for money from the Bank and IMF to service its debt to international commercial banks. The quid pro quo for a multibillion-dollar bailout was what a member of the World Bank executive board described as "unprecedented thoroughgoing interventionism" designed to eliminate high tariffs, state regulations and government support institutions, which neoliberal doctrine identified as barriers to economic efficiency.




Interest payments rose from 19 percent of total government expenditures in 1982 to 57 percent in 1988, while capital expenditures dropped from an already low 19.3 percent to 4.4 percent. The contraction of government spending translated into the dismantling of state credit, government-subsidized agricultural inputs, price supports, state marketing boards and extension services. Unilateral liberalization of agricultural trade pushed by the IMF and World Bank also contributed to the destabilization of peasant producers.




This blow to peasant agriculture was followed by an even larger one in 1994, when the North American Free Trade Agreement went into effect. Although NAFTA had a fifteen-year phaseout of tariff protection for agricultural products, including corn, highly subsidized US corn quickly flooded in, reducing prices by half and plunging the corn sector into chronic crisis. Largely as a result of this agreement, Mexico's status as a net food importer has now been firmly established.




With the shutting down of the state marketing agency for corn, distribution of US corn imports and Mexican grain has come to be monopolized by a few transnational traders, like US-owned Cargill and partly US-owned Maseca, operating on both sides of the border. This has given them tremendous power to speculate on trade trends, so that movements in biofuel demand can be manipulated and magnified many times over. At the same time, monopoly control of domestic trade has ensured that a rise in international corn prices does not translate into significantly higher prices paid to small producers.




It has become increasingly difficult for Mexican corn farmers to avoid the fate of many of their fellow corn cultivators and other smallholders in sectors such as rice, beef, poultry and pork, who have gone under because of the advantages conferred by NAFTA on subsidized US producers. According to a 2003 Carnegie Endowment report, imports of US agricultural products threw at least 1.3 million farmers out of work--many of whom have since found their way to the United States.




Prospects are not good, since the Mexican government continues to be controlled by neoliberals who are systematically dismantling the peasant support system, a key legacy of the Mexican Revolution. As Food First executive director Eric Holt-Gimenez sees it, "It will take time and effort to recover smallholder capacity, and there does not appear to be any political will for this--to say nothing of the fact that NAFTA would have to be renegotiated."
Creating a Rice Crisis in the Philippines
That the global food crisis stems mainly from free-market restructuring of agriculture is clearer in the case of rice. Unlike corn, less than 10 percent of world rice production is traded. Moreover, there has been no diversion of rice from food consumption to biofuels. Yet this year alone, prices nearly tripled, from $380 a ton in January to more than $1,000 in April. Undoubtedly the inflation stems partly from speculation by wholesaler cartels at a time of tightening supplies. However, as with Mexico and corn, the big puzzle is why a number of formerly self-sufficient rice-consuming countries have become severely dependent on imports.




The Philippines provides a grim example of how neoliberal economic restructuring transforms a country from a net food exporter to a net food importer. The Philippines is the world's largest importer of rice. Manila's desperate effort to secure supplies at any price has become front-page news, and pictures of soldiers providing security for rice distribution in poor communities have become emblematic of the global crisis.




The broad contours of the Philippines story are similar to those of Mexico. Dictator Ferdinand Marcos was guilty of many crimes and misdeeds, including failure to follow through on land reform, but one thing he cannot be accused of is starving the agricultural sector of government funds. To head off peasant discontent, the regime provided farmers with subsidized fertilizer and seeds, launched credit schemes, and built rural infrastructure. During the 14 years of the dictatorship, it was only during one year, 1973, that rice had to be imported owing to widespread damage wrought by typhoons. When Marcos fled the country in 1986, there were reported to be 900,000 metric tons of rice in government warehouses.




Paradoxically, the next few years under the new democratic dispensation saw the gutting of government investment capacity. As in Mexico the World Bank and IMF, working on behalf of international creditors, pressured the Corazon Aquino administration to make repayment of the $26 billion foreign debt a priority. Aquino acquiesced, though she was warned by the country's top economists that the "search for a recovery program that is consistent with a debt repayment schedule determined by our creditors is a futile one."




Between 1986 and 1993 8 percent to 10 percent of GDP left the Philippines yearly in debt-service payments--roughly the same proportion as in Mexico. Interest payments as a percentage of expenditures rose from 7 percent in 1980 to 28 percent in 1994;capital expenditures plunged from 26 percent to 16 percent. In short, debt servicing became the national budgetary priority.




Spending on agriculture fell by more than half. The World Bank and its local acolytes were not worried, however, since one purpose of the belt-tightening was to get the private sector to energize the countryside. But agricultural capacity quickly eroded. Irrigation stagnated, and by the end of the 1990s only 17 percent of the Philippines' road network was paved, compared with 82 percent in Thailand and 75 percent in Malaysia. Crop yields were generally anemic, with the average rice yield in rice of 2.8 metric tons per hectare way below those in China, Vietnam and Thailand, where governments actively promoted rural production. The post-Marcos agrarian reform program shriveled, deprived of funding for support services, which had been the key to successful reforms in Taiwan and South Korea.




As in Mexico Filipino peasants were confronted with full-scale retreat of the state as provider of comprehensive support-a role they had come to depend on.




And the cutback in agricultural programs was followed by trade liberalization, with the Philippines' 1995 entry into the World Trade Organization having the same effect as Mexico's joining NAFTA. WTO membership required the Philippines to eliminate quotas on all agricultural imports except rice and allow a certain amount of each commodity to enter at low tariff rates. While the country was allowed to maintain a quota on rice imports, it nevertheless had to admit the equivalent of 1 to 4 percent of domestic consumption over the next ten years.



In fact, because of gravely weakened production resulting from lack of state support, the government imported much more than that to make up for possible shortfalls. These imports, which rose from 263,000 metric tons in 1995 to 2.1 million tons in 1998, depressed the price of rice, discouraging farmers and keeping growth in production at a rate far below that of the country's two top suppliers, Thailand and Vietnam.




The consequences of the Philippines' joining the WTO barreled through the rest of its agriculture like a super-typhoon. Swamped by cheap corn imports--much of it subsidized US grain--farmers reduced land devoted to corn from 3.1 million hectares in 1993 to 2.5 million in 2000. Massive importation of chicken parts nearly killed that industry, while surges in imports destabilized the poultry, hog and vegetable industries.




During the 1994 campaign to ratify WTO membership, government economists, coached by their World Bank handlers, promised that losses in corn and other traditional crops would be more than compensated for by the new export industry of "high-value-added" crops like cut flowers, asparagus and broccoli. Little of this materialized. Nor did many of the 500,000 agricultural jobs that were supposed to be created yearly by the magic of the market; instead, agricultural employment dropped from 11.2 million in 1994 to 10.8 million in 2001.




The one-two punch of IMF-imposed adjustment and WTO-imposed trade liberalization swiftly transformed a largely self-sufficient agricultural economy into an import-dependent one as it steadily marginalized farmers. It was a wrenching process, the pain of which was captured by a Filipino government negotiator during a WTO session in Geneva. "Our small producers," he said, "are being slaughtered by the gross unfairness of the international trading environment."
The Great Transformation
The experience of Mexico and the Philippines was paralleled in one country after another subjected to the ministrations of the IMF and the WTO. A study of fourteen countries by the UN's Food and Agricultural Organization found that the levels of food imports in 1995-98 exceeded those in 1990-94. This was not surprising, since one of the main goals of the WTO's Agreement on Agriculture was to open up markets in developing countries so they could absorb surplus production in the North. As then-US Agriculture Secretary John Block put it in 1986, "The idea that developing countries should feed themselves is an anachronism from a bygone era. They could better ensure their food security by relying on US agricultural products, which are available in most cases at lower cost."




What Block did not say was that the lower cost of US products stemmed from subsidies, which became more massive with each passing year despite the fact that the WTO was supposed to phase them out. From $367 billion in 1995, the total amount of agricultural subsidies provided by developed-country governments rose to $388 billion in 2004. Since the late 1990s subsidies have accounted for 40 percent of the value of agricultural production in the European Union and 25 percent in the United States.




The apostles of the free market and the defenders of dumping may seem to be at different ends of the spectrum, but the policies they advocate are bringing about the same result: a globalized capitalist industrial agriculture. Developing countries are being integrated into a system where export-oriented production of meat and grain is dominated by large industrial farms like those run by the Thai multinational CP and where technology is continually upgraded by advances in genetic engineering from firms like Monsanto. And the elimination of tariff and non-tariff barriers is facilitating a global agricultural supermarket of elite and middle-class consumers serviced by grain-trading corporations like Cargill and Archer Daniels Midland and transnational food retailers like the British-owned Tesco and the French-owned Carrefour.




There is little room for the hundreds of millions of rural and urban poor in this integrated global market. They are confined to giant suburban favelas, where they contend with food prices that are often much higher than the supermarket prices, or to rural reservations, where they are trapped in marginal agricultural activities and increasingly vulnerable to hunger. Indeed, within the same country, famine in the marginalized sector sometimes coexists with prosperity in the globalized sector.




This is not simply the erosion of national food self-sufficiency or food security but what Africanist Deborah Bryce-son of Oxford calls "de-peasantization"-the phasing out of a mode of production to make the countryside a more congenial site for intensive capital accumulation. This transformation is a traumatic one for hundreds of millions of people, since peasant production is not simply an economic activity. It is an ancient way of life, a culture, which is one reason displaced or marginalized peasants in India have taken to committing suicide. In the state of Andhra Pradesh, farmer suicides rose from 233 in 1998 to 2,600 in 2002; in Maharashtra, suicides more than tripled, from 1,083 in 1995 to 3,926 in 2005. One estimate is that some 150,000 Indian farmers have taken their lives. Collapse of prices from trade liberalization and loss of control over seeds to biotech firms is part of a comprehensive problem, says global justice activist Vandana Shiva: "Under globalization, the farmer is losing her/his social, cultural, economic identity as a producer. A farmer is now a ‘consumer' of costly seeds and costly chemicals sold by powerful global corporations through powerful landlords and money lenders locally."
African Agriculture: From Compliance to Defiance
De-peasantization is at an advanced state in Latin America and Asia. And if the World Bank has its way, Africa will travel in the same direction. As Bryceson and her colleagues correctly point out in a recent article, the World Development Report for 2008, which touches extensively on agriculture in Africa, is practically a blueprint for the transformation of the continent's peasant-based agriculture into large-scale commercial farming. However, as in many other places today, the Bank's wards are moving from sullen resentment to outright defiance.




At the time of decolonization, in the 1960s, Africa was actually a net food exporter. Today the continent imports 25 percent of its food; almost every country is a net importer. Hunger and famine have become recurrent phenomena, with the past three years alone seeing food emergencies break out in the Horn of Africa, the Sahel, and Southern and Central Africa.




Agriculture in Africa is in deep crisis, and the causes range from wars to bad governance, lack of agricultural technology and the spread of HIV/AIDS. However, as in Mexico and the Philippines, an important part of the explanation is the phasing out of government controls and support mechanisms under the IMF and World Bank structural adjustment programs imposed as the price for assistance in servicing external debt.




Structural adjustment brought about declining investment, increased unemployment, reduced social spending, reduced consumption and low output. Lifting price controls on fertilizers while simultaneously cutting back on agricultural credit systems simply led to reduced fertilizer use, lower yields and lower investment. Moreover, reality refused to conform to the doctrinal expectation that withdrawal of the state would pave the way for the market to dynamize agriculture.




Instead, the private sector, which correctly saw reduced state expenditures as creating more risk, failed to step into the breach. In country after country, the departure of the state "crowded out" rather than "crowded in" private investment. Where private traders did replace the state, noted an Oxfam report, "they have sometimes done so on highly unfavorable terms for poor farmers," leaving "farmers more food insecure, and governments reliant on unpredictable international aid flows." The usually pro-private sector Economist agreed, admitting that "many of the private firms brought in to replace state researchers turned out to be rent-seeking monopolists."




The support that African governments were allowed to muster was channeled by the World Bank toward export agriculture to generate foreign exchange, which states needed to service debt. But, as in Ethiopia during the 1980s famine, this led to the dedication of good land to export crops, with food crops forced into less suitable soil, thus exacerbating food insecurity. Moreover, the World Bank's encouragement of several economies to focus on the same export crops often led to overproduction, triggering price collapses in international markets. For instance, the very success of Ghana's expansion of cocoa production triggered a 48 percent drop in the international price between 1986 and 1989. In 2002-03 a collapse in coffee prices contributed to another food emergency in Ethiopia.




As in Mexico and the Philippines, structural adjustment in Africa was not simply about underinvestment but state divestment. But there was one major difference. In Africa the World Bank and IMF micromanaged, making decisions on how fast subsidies should be phased out, how many civil servants had to be fired and even, as in the case of Malawi, how much of the country's grain reserve should be sold and to whom. In other words, Bank and IMF resident proconsuls reached to the very innards of the state's involvement in the agricultural economy to rip it up.




Compounding the negative impact of adjustment were unfair EU and US trade practices. Liberalization allowed subsidized EU beef to drive many West African and South African cattle raisers to ruin. With their subsidies legitimized by the WTO, US growers offloaded cotton on world markets at 20 per-cent to 55 percent of production cost, thereby bankrupting West and Central African farmers.




According to Oxfam, the number of sub-Saharan Africans living on less than a dollar a day almost doubled, to 313 million, between 1981 and 2001-46 percent of the whole continent. The role of structural adjustment in creating poverty was hard to deny. As the World Bank's chief economist for Africa admitted, "We did not think that the human costs of these programs could be so great, and the economic gains would be so slow in coming."




Malawi is representative of the African tragedy spawned by the IMF and the World Bank. In 1999 the government of Malawi initiated a program to give each smallholder family a starter pack of free fertilizers and seeds. The result was a national surplus of corn. What came after is a story that should be enshrined as a classic case study of one of the greatest blunders of neoliberal economics.




The World Bank and other aid donors forced the scaling down and eventual scrapping of the program, arguing that the subsidy distorted trade. Without the free packs, output plummeted. In the meantime, the IMF insisted that the government sell off a large portion of its grain reserves to enable the food reserve agency to settle its commercial debts. The government complied. When the food crisis turned into a famine in 2001-02, there were hardly any reserves left. About 1,500 people perished. The IMF was unrepentant; in fact, it suspended its disbursements on an adjustment program on the grounds that "the parastatal sector will continue to pose risks to the successful implementation of the 2002/03 budget. Government interventions in the food and other agricultural markets...[are] crowding out more productive spending."




By the time an even worse food crisis developed in 2005, the government had had enough of World Bank/IMF stupidity. A new president reintroduced the fertilizer subsidy, enabling 2 million households to buy it at a third of the retail price and seeds at a discount. The result: bumper harvests for two years, a million-ton maize surplus and the country transformed into a supplier of corn to Southern Africa.




Malawi's defiance of the World Bank would probably have been an act of heroic but futile resistance a decade ago. The environment is different today, since structural adjustment has been discredited throughout Africa. Even some donor governments and NGOs that used to subscribe to it have distanced themselves from the Bank. Perhaps the motivation is to prevent their influence in the continent from being further eroded by association with a failed approach and unpopular institutions when Chinese aid is emerging as an alternative to World Bank, IMF and Western government aid programs.
Food Sovereignty: An Alternative Paradigm?
It is not only defiance from governments like Malawi and dissent from their erstwhile allies that are undermining the IMF and the World Bank. Peasant organizations around the world have become increasingly militant in their resistance to the globalization of industrial agriculture. Indeed, it is because of pressure from farmers' groups that the governments of the South have refused to grant wider access to their agricultural markets and demanded a massive slashing of US and EU agricultural subsidies, which brought the WTO's Doha Round of negotiations to a standstill.




Farmers' groups have networked internationally; one of the most dynamic to emerge is Via Campesina (Peasant's Path). Via not only seeks to get "WTO out of agriculture" and opposes the paradigm of a globalized capitalist industrial agriculture; it also proposes an alternative-food sovereignty. Food sovereignty means, first of all, the right of a country to determine its production and consumption of food and the exemption of agriculture from global trade regimes like that of the WTO. It also means consolidation of a smallholder-centered agriculture via protection of the domestic market from low-priced imports; remunerative prices for farmers and fisherfolk; abolition of all direct and indirect export subsidies; and the phasing out of domestic subsidies that promote unsustainable agriculture. Via's platform also calls for an end to the Trade Related Intellectual Property Rights regime, or TRIPs, which allows corporations to patent plant seeds; opposes agro-technology based on genetic engineering; and demands land reform. In contrast to an integrated global monoculture, Via offers the vision of an international agricultural economy composed of diverse national agricultural economies trading with one another but focused primarily on domestic production.




Once regarded as relics of the pre-industrial era, peasants are now leading the opposition to a capitalist industrial agriculture that would consign them to the dustbin of history. They have become what Karl Marx described as a politically conscious "class for itself,"contradicting his predictions about their demise. With the global food crisis, they are moving to center stage-and they have allies and supporters. For as peasants refuse to go gently into that good night and fight de-peasantization, developments in the twenty-first century are revealing the panacea of globalized capitalist industrial agriculture to be a nightmare. With environmental crises multiplying, the social dysfunctions of urban-industrial life piling up and industrialized agriculture creating greater food insecurity, the farmers' movement increasingly has relevance not only to peasants but to everyone threatened by the catastrophic consequences of global capital's vision for organizing production, community and life itself.
(This article appears in the June 2, 2008, edition of The Nation)
Walden Bello, a fellow of the Transnational Institute, is professor of sociology at the University of the Philippines, president of the Freedom from Debt Coalition and senior analyst at Focus on the Global South.