Showing posts with label Chicago school. Show all posts
Showing posts with label Chicago school. Show all posts

Monday, March 12, 2012

Layer 528 . . . Why Are South Africa's Schools Failing Their Pupils? A Lesson From History, and the Shock Doctrine


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There's a distressing story on the BBC website today about the condition of state schools in South Africa and how they're failing their pupils. It's an appalling situation. The story goes on to say that many parents, even those who are not wealthy, are now migrating their children to the 'private' sector in order to get them a decent education. Why is this happening, and can it be changed?

I remember only too well the conditions in the state schools I visited a few years ago on my one and only trip to South Africa - rotten floorboards everywhere, smashed windows and leaking roofs. In many cases there were earth floors, pitifully few books or other resources, and overcrowded classes. But the kids were amazing - so smart in their uniforms, and very eager to learn. It was distressing to see.

Does it have to be this way? Is South Africa such a poor country that it can't afford to repair the broken windows and the holes in the floors in its schools? Apparently so.

But wait a moment - which South Africa are we talking about here? Is it the one where all the pupils are black, and where the schools are situated in blacks-only areas? Too right we are. Because you can be certain that there are plenty of classrooms elsewhere, in a different South Africa, where conditions are very different indeed.

In short, what we're talking about is a multi-cultural country where the real issues are to do with social class, wealth and economics - i.e. the distribution of incomes and the economic policies of the country, which are not dissimilar to those we see in the rich countries that  long ago bought into the 'Washington consensus': 'globalisation', Chicago-school neo-liberal economic thinking, privatisation of public utilities, and the notion of trickle-down economic development. But the money doesn't quite trickle down to the townships and the rural areas - any more than it trickles down to the council estates, the 'housing projects', and the poor rural areas in countries like Britain and the USA.

Naomi Klein explains it all in her brilliant book, The Shock Doctrine.

The really annoying thing about the BBC report itself is its stupid assumption that the problem simply lies with 'mismanagement' and corruption within the school system (though that may well exist), as well as with "a highly unionised teaching profession and low morale":
Nonkqubela Secondary, is struggling with outdoor pit latrines which have fallen into disrepair, while a third of all teaching posts remain vacant.
"We used to have good results, but we are short of maths teachers, science teachers and when staff look at our facilities they decide not to come here," head teacher Khumzi Madikane laments.
He says he cannot blame parents who can afford it, migrating to the private sector. But most of his pupils are dirt poor.
Education in the Eastern Cape is in crisis, and the central government has taken over the running of the department after allegations of corruption and mismanagement.
[An old mate of mine who was working on an EU funded education development project was gently eased out of his post when he took exception to the corruption and mismanagement of petty bureaucrats and middle managers who were more interested in grabbing funds for themselves than passing them along to the schools.]
It is a sad indictment of a rural slice of South Africa which in the past century gave birth to some of the greatest minds in history, including Nelson Mandela and the late freedom fighter Walter Sisulu.
The crisis no longer a dirty little secret, with the government itself admitting that 80% of state schools are failing.
In a recent speech, Basic Education Minister Angie Motsheka revealed that 1,700 schools are still without a water supply and 15,000 schools are without libraries.
But more than 17 years after the end of white minority rule, observers argue that South Africa is struggling with more recent phenomena: Poor teacher training, corruption and maladministration, a highly unionised teaching profession and low morale.
Back in the township, opting for a private school has come with huge sacrifices for Simanye's aunt, Nokwezi.
"I've really had to squeeze myself but it is worth it - in state schools, if they have a disagreement the teachers go on strike," she says.
[Obviously in the private sector the teachers never have any issues they need to address.]
The surge of low-cost private schools shows no sign of slowing down. Thousands of other grandmothers, brothers and sisters are scraping together the funds to send a child to school.
Yet the vast majority of South African children have little choice but to opt for the local state school.
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The real story here is that in post-apartheid South Africa there is as much inequality as there was during the apartheid era, and probably even more, according to Naomi Klein's researches. Nothing really changed because the economic system runs in exactly the same way as it ran before democracy arrived there. The wealth generated within the country stays predominately within the middle and upper classes, and middle class blacks seem no more willing to pay more taxes in order to improve public services than their white counterparts ever did. Needless to say there's been no such thing as a wealth tax, a mansion tax or any steps taken to ensure that the rich elite don't offshore their wealth to avoid paying taxes. The government's income from taxes has also fallen due to rising unemployment.

What's more, the country is still servicing massive debts that were accumulated by the apartheid regime and which were partly the reason why the National Party decided to do a deal with the ANC and Nelson Mandela - on the grounds that it was better to hang on to their private wealth (even at the cost of giving the vote to non-whites) and hand over the country's debts to a new government, rather than lose their private wealth by going down with a ship that was sinking under the weight of apartheid debt, at the same time as losing the war with the ANC.

Some quotes from Naomi Klein might help to make this clearer - pages 194 - 217 - Chapter 10 - Democracy Born In Chains - The Shock Doctrine
" . . . to be able to send your children to school and to have accessible health care. I mean, what's the point of having made this transition if the quality of life of these people is not enhanced and improved? If not, the vote is useless."
- Archbishop Desmond Tutu, chair of the Truth & Reconciliation Commission, 2001
"Before transferring power, the Nationalist Party . . . negotiated a kind of swap where it gave up the right to run the country its way in exchange for the right to stop blacks from running it their own way."
- Allister Sparks, South African journalist
[Naturally the 'blacks' referred to by Sparks were people like Nelson Mandela - who had declared an intention to nationalise industries and banks - and not the black politicians who subsequently emerged and were interested mainly in doing well out of the system themselves, not changing the system in order to promote greater fairness and equality. Many of the ANC's current politicians are as right wing and neo-liberal in their economic views as New Labour or George Osborne and his chums They have, after all, in many cases been to the same universities and had the same economics and MBA tutors.]
In January 1990 Nelson Mandela sat down in his prison compound to write a note. The note was only two sentences long - 
"The nationalisation of the mines, banks and monopoly industries is the policy of the ANC, and the modification of our views in this regard is inconceivable. Black economic empowerment is a goal we fully support and encourage, and in our situation state control of certain sectors of the economy is unavoidable."
[The ANC's Freedom Charter] enshrined the right to work, to decent housing, to freedom of thought, and most radically, to a share of the wealth in the richest country in Africa, containing, among other treasures, the largest goldfield in the world. 
"The national wealth of our country, the heritage of South Africans, shall be restored to the people; the mineral wealth beneath the soil; the Banks and monopoly industry shall be transferred to the ownership of the people as a whole; all other industry and trade shall be controlled to assist the well-being of the people," the Charter states.
What the Freedom Charter asserted was the baseline consensus in the liberation movement that freedom would not come merely when blacks took control of the state but when the wealth of the land that had been illegitimately confiscated was reclaimed and redistributed to society as a whole. 
If Mandela led the ANC to power and nationalised the banks and the mines, [then] the precedent would make it far more difficult for Chicago School economists to dismiss such proposals in other countries as relics of the past and insist that only unfettered free markets and free trade had the ability to redress deep inequalities.
On February 11, 1990, two weeks after writing that note, Mandela walked out of prison a free  man, as close to a living saint as existed anywhere in the world.
The ANC had a unique opportunity to reject the free-market orthodoxy of the day. Since there was already widespread agreement that corporations shared responsibility for the crimes of apartheid, the stage was set for Mandela to explain why key sectors of South Africa's economy needed to be nationalised just as the freedom charter demanded. 
In the years that passed between Mandela writing his note from prison and the ANC's 1994 election sweep in which he was elected president, something happened to convince the party hierarchy that it could not use its grassroots prestige to reclaim and redistribute the country's stolen wealth. So, rather than meeting in the middle between California and the Congo, the ANC adopted policies that exploded both inequality and crime to such a degree that South Africa's divide is now closer to Beverly Hills and Baghdad. Today, the country stands as a living testament to what happens when economic reform is severed from political transformation. Politically, its people have the right to vote, civil liberties and majority rule. Yet economically, South Africa has surpassed Brazil as the most unequal society in the world.
The talks that hashed out the terms of apartheid's end took place on two parallel tracks that often intersected: one was political, the other economic. Most of the attention, naturally, focused on the high-profile political summits between Nelson Mandela and F.W. de Klerk, leader of the National Party.
The much lower profile economic negotiations were primarily managed on the ANC side by Thabo Mbeki, then a rising star in the party. 
[Later on he would become South Africa's president, and a man who refused to accept that HIV causes AIDS. "A group of Harvard scientists led by Zimbabwean physician Pride Chigwedere each independently estimated that Thabo Mbeki's denialist policies led to the early deaths of more than 330,000 South Africans. Barbara Hogan, the health minister appointed by Mbeki's successor, voiced shame over the studies' findings and stated: "The era of denialism is over completely in South Africa." - Wikipedia]
In these talks the de Klerk government had a twofold strategy. First, drawing on the ascendant Washington Consensus that there was now only one way to run an economy, it portrayed key sectors of economic decision making . . . as [merely] "technical" and "administrative". [i.e. set in stone and unalterable.]
Then it [set out] to hand control of power centres to supposedly impartial experts - economists and officials of the International Monetary Fund, the World Bank, the General Agreement on Tariffs and Trade, and the National Party - anyone except the liberation fighters of the African National Council. [Each of these 'world' bodies was essentially run by right-wing economists, many of whom had been tutored by Milton Freedman and his associates in Chicago.]
This plan was successfully executed under the noses of the ANC leaders, who were naturally preoccupied with winning the battle to control Parliament. In the process, the ANC failed to protect itself against a far more insidious strategy - in essence, an elaborate insurance plan against the economic clauses in the Freedom Charter ever becoming law in South Africa. "The people shall govern!" would soon become a reality, but the sphere over which they would govern was shrinking fast.
"We were caught completely off guard," recalled economist Vishnu Padayachee. When he learned that the central bank and the treasury would be run by their old apartheid bosses, it meant that "everything would be lost in terms of economic transformation". 
From Padayachee's point of view, none of this happened because of some grand betrayal on the part of ANC leaders, but simply because they were out-maneuvered [tricked!] on a series of issues that seemed less than crucial at the time. 
What happened in these negotiations is that the ANC found itself to be caught in a new kind of web, one made of arcane rules and regulations, [how many of us actually have a clue about GATT and IMF rules, regulations and stipulations?] all designed to confine and constrain the powers of elected leaders. As the web descended on the country, only a few people even noticed it was there. As the new government attempted to make tangible the dreams of the Freedom Charter, it discovered that the power was elsewhere. 
Want to redistribute land? Impossible - at the last minute the negotiators had agreed to add a  clause to the new constitution that made land reform virtually impossible.
Want to create jobs for millions of unemployed workers? Can't - the ANC had signed on to the GATT (the precursor of the World Trade Organisation) which made it illegal to subsidise the auto plants and textile factories.
Want to get free AIDS drugs to the townships, where the disease is spreading with terrifying speed? That violates an intellectual property rights commitment under the WTO, which the ANC joined with no public debate.
Need money to build more and larger houses for the poor and to bring free electricity to the townships? Sorry - the budget is being eaten up servicing the massive debt, passed on quietly by the apartheid government. 
Print more money? Tell that to the apartheid-era head of the central bank. 
Free water for all? Not likely. The World Bank, with its large contingent of South Africa based economists, researchers and trainers, is making private-sector partnerships the service norm.
Want to impose currency controls to guard against wild speculation? That would violate the $850 million IMF deal, signed, conveniently enough, right before the elections.
Raise the minimum wage to close the apartheid income gap? Nope. The IMF deal promised "wage restraint".
And don't even think about ignoring these commitments - any change will be regarded as evidence of dangerous national untrustworthiness, a lack of commitment to "reform", an absence of a "rules-based system". All of which will lead to currency crashes, aid cuts and capital flight. 
The bottom line was that South Africa was free but simultaneously captured: each one of these arcane acronyms represented a different thread in the web that pinned down the limbs of the new government. 
[Just as they are now pinning down Greece, and elsewhere.]
A longtime antiapartheid activist, Rassool Snyman, described the trap in stark terms. "They never freed us. They only took the chain from around our neck and put it on our ankles." 
Part of what I want to understand is how, after such an epic struggle for freedom, any of this could have been allowed to happen . . . Why didn't the grassroots movement demand that the ANC keep the promises of the Freedom Charter and rebel against the concessions as they were being made?
I put this question to William Gumede, a leader of the student movement during the transition. "Everyone was watching the political negotiations. When the economic negotiators would report back, people thought that it was technical; no-one was interested." This perception, he said, was encouraged by Mbeki, who portrayed the talks as "administrative" and of no popular concern. As a result, he told me, "We missed it! We missed the real story! And I am so disappointed in myself for being so naive."
If Padayachee is right and the ANC's own negotiators failed to grasp the enormity of what they were bargaining away, what chance was there for the movement's street fighters?
Gumede points out that most people simply assumed that no matter what compromises had to be made to get into power, they could be unmade once the ANC was firmly in charge. "We were going to be the government - we could fix it later."
What ANC activists didn't understand at the time was that it was the nature of democracy itself that was being altered in those negotiations, changed so that - once the web of constraints had descended on their country - there would effectively be no later.
After a decade of ANC rule, millions of people had been cut off from the newly connected water and electricity because they couldn't pay the bills. 
As for the "banks, mines and monopoly industry" that Mandela had pledged to nationalise, they remained firmly in the hands of the same four white-owned megaconglomerates that also control 80% of the Johannesburg Stock Exchange. In 2005, only 4% of the companies listed on the exchange were owned or controlled by blacks. 70% of South Africa's land, in 2006, was still monopolised by whites, who are just 10% of the population.
The ANC, once it became the government, accepted the dominant logic that its only hope was to pursue new foreign investors who would create new wealth, the benefits of which would trickle down to the poor. Once countries have opened themselves up to global market's temperamental moods, any departure from Chicago School orthodoxy is instantly punished by traders in New York and London who bet against the offending country's currency, [we're talking casino capitalism here], causing a deeper crisis and the need for more loans, with more conditions attached [and which, needless to say, are loans only offered at very much higher rates of interest].
Thabo Mbeki had spent many of his years of exile studying at the University of Sussex, and while the townships of his country were filled with tear gas, he was breathing in the fumes of Thatcherism. 
According to Gumede, Mbeki took on the role of free-market tutor within the ANC. The beast of the market had been unleashed, Mbeki would explain; there was no taming it, just feeding it what it craved: growth and more growth. [i.e. profits]
So, rather than calling for the nationalisation of the mines, Mandela and Mbeki began meeting regularly with Harry Oppenheimer, former chairman of the mining giants Anglo-American and De Beers, the economic symbols of apartheid rule. 
The financial press offered steady encouragement for this conversion: "Though the ANC still has a powerful leftist wing," the Wall Street Journal observed, "Mr Mandela has in recent days sounded more like Margaret Thatcher than the socialist revolutionary he was once thought to be." 
Mbeki convinced Mandela that what was needed was a definative break with the past. The ANC needed a completely new economic plan - something bold, something shocking, something that would communicate that the ANC was ready to embrace the Washington Consensus.
Only a handful of Mbeki's closest colleagues even knew that a new economic program was in the works. "All were sworn to secrecy and the entire process was shrouded in deepest confidentiality lest the left wing get wind of Mbeki's plan." 
In June 1996 Mbeki unveiled the results: it was a neoliberal shock therapy program for South Africa, calling for more privatisation, cutbacks to government spending, labour "flexibility", freer trade and even looser controls on money flows. According to economist Stephen Gelb, its overriding aim "was to signal to potential investors the government's (and specifically the ANC's) commitment to the prevailing orthodoxy." To make sure the message was loud and clear to traders in New York and London, at the public launch of the plan, Mbeki quipped, "Just call me a Thatcherite."
[As things turned out] Mbeki's plan failed to attract long-term investment; it resulted only in speculative betting that ended up devaluing the currency even further. [These markets and currency traders are not complete fools: they're smart enough to understand that Chicago School economics are pure right-wing fantasy and bullshit, which will only send their adherents and the policy makers up shit creek.]
Nelson Mandela has cited the [apartheid] debt burden as the single greatest obstacle to keeping the promises of the Freedom Charter. "That is 30 billion rand we did not have to build houses as we planned, to make sure that our children go to the best schools, that unemployment is properly addressed and that everybody has the dignity of having a job, a decent income, of being able to provide food and shelter . . . We are limited by the debt that we inherited."
Despite Mandela's acknowledgement that paying the apartheid bills has become a disfiguring burden, the party has opposed all suggestions that it default.
What makes the ANC's decision to keep paying the debt so infuriating to activists is the tangible sacrifice made to meet each payment. For instance, between 1997 and 2004 the government sold 18 state-owned firms, raising $4 billion, but almost half the money went to servicing the debt. In other words . . . instead of nationalising the "mines, banks and monopoly industry" . . . it was doing the opposite - selling off national assets to make good the debts of its oppressors.
In the end, South Africa has wound up with a twisted case of reparations in reverse, with the white businesses and industries that reaped enormous profits from black labour during the apartheid years paying not a cent in reparations, but the victims of apartheid continuing to send large paychecks [and white pension-fund payouts] to their former victimisers. And how do they raise money for this generosity? By stripping the state of its assets through privatisation. The dismantling of the state and the pillaging of its coffers continue to this day.
More than a decade since South Africa made its decisive turn towards Thatcherism, the results of its experiment in trickle-down justice are scandalous:
* Since 1994 the number of people living on less than $1 a day has more than doubled, from 2 million to 4 million plus.
* Between 1991 and 2002 the unemployment rate for black South Africans more than doubled, from 23% to 48%.
As leaders like Mandela traveled the globalisation circuit it was pounded into them that even the most left-wing governments were embracing the Washington Consensus: the communists in Vietnam and China were doing it. Even Russians had seen the neoliberal light - at the time the ANC was in its heaviest negotiations Moscow was in the midst of a corporatist feeding frenzy, selling off its state assets to apparatchiks-turned-entrepreneurs as fast as it could. If Moscow had given in, how could a raggedy band of freedom fighters in South Africa resist such a forceful global tide?
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And those, ladies and gentlemen, are the real reasons why a great many of South Africa's schools have broken windows, rotten termite-ridden floorboards, leaking roofs and a shortage of teachers. Nothing fundamentally to do with truculent teachers' trade unions or even bad management and local authority corruption. Not really. It goes much deeper than that. It's the economy, stupid. Plus stupidity, cupidity, naivety, rapacity and inequality. Thatcherite indeed! Trickle down!


Tuesday, May 17, 2011

Layer 468 . . . The IMF, Strauss-Kahn, Hattie Carroll, Naomi Klein and Bob Dylan

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IMF chief Dominique Strauss-Kahn refused bail on sex assault charges


Dominique Strauss-Kahn, who denies the charges, remanded in custody in New York over fears he might flee the US

http://www.guardian.co.uk/world/2011/may/16/dominique-strauss-kahn-medical-examination-court-hearing

As far as Oxzen can see the IMF is still a New York-based ultra-powerful right-wing institution controlled by individuals who have aligned it with the doctrines of the notorious Chicago School of Friedmanite economics. For several decades it has forced governments throughout the world to privatise public assets and impose austerity on their citizens (a la New Labour and New Tories who did it without any external encouragement or direction - simply for fun and profit) in return for receiving emergency loans, etc. Read what Naomi Klein has to say about the IMF:

IMF Go to Hell


The IMF had its chance to run Argentina [ETC!]. Now it's the people's turn. 

http://www.naomiklein.org/articles/2002/03/imf-go-hell

Naomi also has plenty to say about the IMF in her book, The Shock Doctrine, which, of course, everyone should have read by now.

"The IMF has three trademark demands - privatisation, government deregulation, and deep cuts to social spending . . . " [P9]


"The colonisation of the World Bank and the IMF by the Chicago School [graduates] was a largely unspoken process, but it became official in 1989 when John Williamson unveiled what he called "the Washington Consensus".  It was a list of policies that he said both institutions now considered the bare minimum for economic health - "the common core of wisdom embraced by all serious economists". These policies, masquerading as technical and uncontentious, included such bold ideological claims as "all state enterprises should be privatised", and "barriers impeding the entry of foreign firms should be abolished". When the list was complete it made up nothing less than Friedman's neoliberal triumverate of privatisation, deregulation/free trade and drastic cuts to government spending. Joseph Stiglitz, former chief economist of the World Bank and one of the last holdouts against the new orthodoxy, wrote that "Keynes would be rolling over in his grave were he to see what has happened to his child [the IMF]". [P.163]


"The IMF's official mandate was still crisis prevention - not social engineering or ideological transformation - so economic stabilisation needed to be the official rationale. The reality was that in country after country the international debt crisis was being methodically leveraged to advance the Chicago School agenda, based on a ruthless application of Friedman's shock doctrine." [P164]

Sounds familiar?

Wikipedia says -
The IMF sometimes advocates “austerity programmes,” increasing taxes even when the economy is weak, in order to generate government revenue and bring budgets closer to a balance, thus reducing budget deficits. Countries are often advised to lower their corporate tax rate. These policies were criticized by Joseph E. Stiglitz, former chief economist and senior vice president at the World Bank, in his book Globalization and Its Discontents. He argued that by converting to a more Monetarist [ie Friedmanite] approach, the fund no longer had a valid purpose, as it was designed to provide funds for countries to carry out Keynesian reflations, and that the IMF “was not participating in a conspiracy, but it was reflecting the interests and ideology of the Western financial community.”

Now, Mr Strauss-Kahn is a member of the French Socialist Party (!) and has apparently made a pretty good fist of managing the financial current crisis, insofar as he's advocated the expenditure of reserves [ie OUR money] on propping up the financial institutions, banks and indeed whole countries, such as Greece. What's not clear [to me at least] is whether he's also been calling for re-regulation of financial institutions, and indeed the nationalisation of banks and finance houses. And if not, why not?

Something happens to people who rise to positions of enormous power - people like Thatcher, Reagan, Clinton, Bush, Blair, and, possibly, Strauss-Kahn. Either they start to feel omnipotent and godlike, in which case they assume the right to think and to do whatever they like, or else their latent psychopathic tendencies completely take over and they feel no limits on their desires, impulses and need for personal gratification.

This story instantly brings to mind the lyrics of Bob Dylan's song,

http://www.youtube.com/watch?v=vYM4WYFAiLg&feature=related

Play the video and listen to the words -




The Lonesome Death Of Hattie Carroll


William Zanzinger killed poor Hattie Carroll
With a cane that he twirled around his diamond ring finger
At a Baltimore hotel society gath’rin’
And the cops were called in and his weapon took from him
As they rode him in custody down to the station
And booked William Zanzinger for first-degree murder
But you who philosophize disgrace and criticize all fears
Take the rag away from your face
Now ain’t the time for your tears


William Zanzinger, who at twenty-four years
Owns a tobacco farm of six hundred acres
With rich wealthy parents who provide and protect him
And high office relations in the politics of Maryland
Reacted to his deed with a shrug of his shoulders
And swear words and sneering, and his tongue it was snarling
In a matter of minutes on bail was out walking
But you who philosophize disgrace and criticize all fears
Take the rag away from your face
Now ain’t the time for your tears


Hattie Carroll was a maid of the kitchen
She was fifty-one years old and gave birth to ten children
Who carried the dishes and took out the garbage
And never sat once at the head of the table
And didn’t even talk to the people at the table
Who just cleaned up all the food from the table
And emptied the ashtrays on a whole other level
Got killed by a blow, lay slain by a cane
That sailed through the air and came down through the room
Doomed and determined to destroy all the gentle
And she never done nothing to William Zanzinger
But you who philosophize disgrace and criticize all fears
Take the rag away from your face
Now ain’t the time for your tears


In the courtroom of honor, the judge pounded his gavel
To show that all’s equal and that the courts are on the level
And that the strings in the books ain’t pulled and persuaded
And that even the nobles get properly handled
Once that the cops have chased after and caught ’em
And that the ladder of law has no top and no bottom
Stared at the person who killed for no reason
Who just happened to be feelin’ that way without warnin’
And he spoke through his cloak, most deep and distinguished
And handed out strongly, for penalty and repentance
William Zanzinger with a six-month sentence . . .
Oh, but you who philosophize disgrace and criticize all fears
Bury the rag deep in your face
For now’s the time for your tears.



...................................................

Dominique Strauss-Kahn allegedly raped a maid
In his New York hotel bedroom that she was a'cleaning
He came out of his bathroom and stood there stark naked
He grabbed her and hit her, and he raped her
And the cops were called in and his name took from him
As they rode him in custody down to the station
And booked Dominique Strauss-Kahn for all of his sex crimes -
But you who philosophize disgrace and criticize all fears
Take the rag away from your face
Now ain’t the time for your tears

..................................................................

Bob's written an interesting piece on his website, on his China gigs -

http://www.bobdylan.com/news/my-fans-and-followers

Allow me to clarify a couple of things about this so-called China controversy which has been going on for over a year. First of all, we were never denied permission to play in China . . . 

So much for the right-wing press - who have, let's say. . .  issues - with Bob, and with China.

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Wednesday, September 2, 2009

Layer 188 The Shock Doctrine, Michael Moore, Friedman, Capitalism, Enron, and the Smartest Guys in the Room

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The Shock Doctrine 
 
The Guardian's teenage previewer of last night's The Shock Doctrine (on More Four), which was every bit as good as anticipated, also wrote some gratuitous, supercilious and snide comments about Michael Moore, a man who's been incredibly original, funny and brave as a film maker in his attempts to expose the shit that happens in America thanks to corporate and individual irresponsibility, greed and stupidity, guns, drugs, politicians, the power of money, etc. 
 
Moore has a new film that's soon to be released – check it on http://www.capitalismalovestory.com/ 
That's right folks – Capitalism. A Love Story. Michael's angry about ordinary people being forced to hand over billions of dollars to the fat cats and the minions that caused the world financial crash of 2008 - and he wants the money back!
 
For the first time in living memory capitalism is under serious scrutiny in the USA, and possibly in the UK as well. Back in the 90's there was a common assumption that the fall of communism had ushered in “the end of history”, as some bozo called it. It was meant to be the final and irrevocable triumph of the unfettered free market, 'small government', globalisation, etc. Well it looks like history might just be back. 
 
The genius of Naomi Klein has been to piece together a grand narrative that shows with enormous clarity and great insight the political and economic history of the world in the latter part of the 20th Century and the beginning of the 21st. Beginning with the secret American experiments with 'brainwashing' and torture techniques in the 1950s, and ending with Iraq, and the great financial implosion of 2008. 
 
The story takes in Milton Friedman's insidious and highly successful efforts to make war on Keynesian economics and social democratic government with his development of 'monetarism' at the University of Chicago, and the way in which he aided and abetted the CIA and Nixon in the plot to overthrow Allende's socialist government in Chile. 
 
Klein's narrative moves on to show how Friedman then set out to promote his Disaster Capitalism in other countries in South America, often by 'training' their young economists in Chicago – countries where fascist military dictatorships overthrew left-leaning democratic governments. For all of that, and for his 'advice' and support for undemocratic 'shock doctrine' political upheavals in Russia, South Africa, and yes – the UK - the man eventually received a Nobel Prize for economics. Fucking amazing.
 
Most staggering of all Klein exposes the way in which Bush and Rumsfeld used the 'shock' of the Twin Towers to inflict military conquest on Iraq, in spite of there being no demonstrable links with the perpetrators of 9/11. The scale of the 'outsourcing' of the combat and the so-called reconstruction has been truly unbelievable, with untold and unaccounted for billions of dollars handed over to American corporations with virtually no oversight and definitely no tendering process. 
 
The film shows Klein speaking to a variety of audiences, and hits home her main point which is the need to expose the myth that capitalism and globalisation is a benign doctrine that conquered the entire planet because of its beauty, truth, logic and inherent justice. The truth is that the entire planet has been ravaged and raped by over-mighty corporations driven by crazed megalomaniacs and oligarchs that busted into countries around the world after the doors had been beaten down by armies that battered, tortured and killed on the direct orders of mad politicians and supine parliaments. 
 
In some countries, of course, like the UK, there was no need to do any battering – Thatch willingly embraced these ideas – directly from Hayek (Friedman's guru), as it happens – and set about dismantling social democracy: selling off state assets for peanuts, cutting social spending and public services, passing anti-union legislation, deregulating capitalism and the banks, etc, etc. If anyone tried to get in their way – well Mags had no hesitation in sending in the cops to batter the miners into submission and bust their strikes. A lady with a mandate, you see.
 
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The Smartest Guys In The Room

Immediately after The Shock Doctrine last night More Four screened a documentary called The Smartest Guys In The Room, which is a brilliant expose of the Enron Corporation and the scandal of its methods, its phenomenal growth, and ultimately its spectacular bust. Quite possibly the greatest capitalist disaster of all time – millions of investors were scammed out of their life savings and financial wellbeing by a bunch of lying, greedy bastards that were the biggest contributors to the Bush election campaign. But then came 2008, and the collapse of the entire bubble created by Wall Street and the City of London through the use of massive amounts of unsecured credit, over-priced property, Ponzi schemes, etc. 
 
The insane thing is that most people are still unaware of what went on, who was responsible and how they're still getting away with it. In fact it's just about business as usual in the latter half of 2009, except for the fact that very few poor people can now get any credit, and hundreds of small businesses have already gone bust as a result of credit facilities being withdrawn. Hence the massive rise in unemployment. The City Boys are even back on their fat bonuses and huge salaries.
 
Hopefully Moore's film deals with many of these issues. The film about the Shock Doctrine ended with Klein pointing out that in spite of all they'd done to the world's financial system the City Boys paid themselves 18.4 billions dollars in bonuses in 2008. She also mentioned that September 15th is the first anniversary of the collapse of Lehman Brothers, which arguably triggered the near-collapse of the entire system. This was a worldwide crisis directly attributable to the ideology of deregulation and privatisation. This ideology has caused a massive transfer of wealth from the poor to the rich. And yet they carry on getting richer and richer, whilst the jobless become more and more destitute, in every country on earth. 
 
Naomi Klein's final message is that the only way in which things will change is if we, the people, go out there and make them do it. 
 

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Murdoch and the BBC

Jonathan Friedland wrote an excellent piece in the Guardian this week about James Murdoch's recent speech:

Don't let Murdoch smash this jewel. The BBC must act to save itself


Rupert's son is bent on continuing the war his father started. But he'll find Auntie matches the NHS in public affections

"Credit where it's due: the free-market right is nothing if not brave. Fainter-hearted souls would have spotted the imminent first anniversary of the collapse of Lehman brothers that started the global financial crisis and decided that now was not the moment to trumpet the case for unfettered private enterprise, free of meddling regulation. But the evangelists for turbo-charged capitalism are made of sterner stuff. With the American conservative assault on Britain's "Nazi" and "Orwellian" National Health Service still fresh in the memory, a leading US free marketeer has trained his sights on another British institution: the BBC.

He is James Murdoch whose weekend MacTaggart lecture was a 39-minute plea for comprehensive deregulation, warning of the dangers of state interference in the "natural diversity" of the media industry. Of the recent history of deregulation, with its catastrophic consequences for the world's economy, there was not a mention.

Nor did he detain his audience at the Edinburgh television festival, sponsored by the Guardian, with a declaration of his own interest in the subject. He spoke as if he were a mere policy wonk, rather than the heir to a broadcasting empire that would make billions if he had his way and the BBC were cut down to size. This was like a fox arguing that the henhouse doors be thrown wide open – not for his own sake, you understand, but for the good of society."

http://www.guardian.co.uk/commentisfree/2009/sep/01/bbc-james-murdoch-new-media..

Thursday, March 5, 2009

Layer 131 Brown, Congress, Mando, Witless Crap and Apologies.

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Oxzen’s view that the world is full of twats and self-important tossers has been amply reinforced in the past couple of days.

BBC2 last night screened an hour-long documentary about the cringe-makingly awful British contribution to the closing ceremony of the Beijing Olympics - 8 minutes of tacky, embarrassingly awful rubbish.

I needed to watch it because I’ve been wondering who was responsible for such a pile of complete dross - and now I know. Step forward Martin Green and Stephen Powell - godfathers of garbage, impresarios of shameful bilge that made Britain the laughing-stock of the entire planet.

What made matters worse, of course, was the fact that the Chinese had just mounted what may be regarded as the greatest-ever show on earth, when you consider the opening and closing ceremonies combined.

And in comparison, those 8 minutes of British naffness looked unbelievably horrible, nasty, silly and unworthy. Because this country does have some great artistes and creative geniuses, here and there. So who put these two twats in charge?

And who allowed them to carry through with their insane idea to make a roof-shedding London double-decker bus, a footballer and a bunch of crap choreography the centrepiece of ‘our’ contribution? (See Layer 71 - Goodbye To The Games - August 26th.) Lord Sebastian Coe - that’s who. He listened to the ideas of Green and Powell, looked suitably unimpressed, and nodded his daft little head. Deal done. Idiot.

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One of the worst aspects of Gordon Brown is how much he resembles David Blunkett. OK, he’s only 50% blind, but still he has eyes that don’t see, that don’t focus, that clearly aren’t working, that are never animated or sparkle or engage with whoever he’s supposed to be talking to. Two dead eyes that convey nothing at all - no emotion, no warmth, no reaching out or taking in.

Watching him on TV with Obama in the White House was just embarrassing. Two different species of human being. One who’s alert and alive and vibrant, and one who’s a burnt-out wreck.

Brown also has the Blunk’s thick-set dour unattractiveness, the same machine-politician’s dull and deadly delivery, an air of having carefully prepared everything he’s about to say with his clique of readers, researchers, advisers and consultants. He’s therefore a mouthpiece for a set of professional political policy-makers - a group of people that are forever in the thick of it, so to speak - trudging from briefing to briefing, from committee meeting to focus group to Whitehall office.

Brown’s speech to Congress was also embarrassing. A mixture of the leaden and the wooden, with cogs grinding and gears clanking. Why was he doing it? PR of course - selling himself and his dodgy, worn out ideas, whose very structure could be heard creaking and groaning with every dull, clunking sentence. Not so much a big clunking fist - more a set of big, clunking, obsolete ideas.

Obama’s been telling America that it’s the disastrous ideology of Chicago-school free-trade market economics that has brought the world’s economy to total ruin. And here was Brown - having the utter gall and the complete idiocy to lecture Congress on the need to press ahead with open markets and non-protectionist free trade, regardless of the consequences for the downfall of national strategic industries and unemployment.

He expects the Americans to allow their motor industry, for example, to go the same way as ours - either down the plug hole completely, or sold off to smarter foreign operators who will asset-strip and relocate it. And to whose benefit? Does he really still cling to the Friedmanite doctrine that everyone eventually benefits from greater ‘efficiency’ and lower prices, which are supposedly the outcomes of globalisation?

Will he never admit that it’s always the little people that get screwed and then tossed crumbs of comfort after the mega-deals and mergers have gone through, commissions pocketed, lawyers paid off, shareholders paid out, the bosses and their consultants and bankers showered with booty?

He can’t even see how sick we all are of politicians like him acting as the mouthpieces of the fat cats and the bankers, desperately trying to make a busted and broken-down system function as it did before. Not that it ever really worked in the way it was supposed to. As even George Soros has had the honesty to admit - unregulated globalised capitalism itself is the problem, not the solution to anything.

And Brown just doesn’t get it.

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I don’t want to be unfair on Brown. I’m sure he has good intentions, and was as brainwashed as Blair and the others into honestly believing that Chicago-school economics was/is the only game in town, and that it was/is pointless and/or counterproductive to try to regulate Big Finance.

My difficulty in feeling any sense of empathy or caring for him is that he patently failed in the empathy and decency stakes when it came to standing up for principle and what is right. Where was his empathy with the hundreds of thousands of Iraqis who were bound to be war victims and bound to suffer homelessness, injury and death? Where was his empathy with the millions of anti-war protestors?

Whereas Obama could see from the outset that the invasion of Iraq and the notion of a war on terr’r was always going to be a ruinous disaster, and had the courage to say so, Brown ranged from staying silent to actively supporting Bush and Blair.

Whereas Will Hutton and other progressive economists & commentators said consistently that NuLabour must re-regulate the City and the money markets, Brown sat in No. 11 Downing Street and paid them no attention - and showed them no respect.

It’s not as if Brown continued to play ball with Bush and the big boys whilst at the same time warning that things had to change, that the party was over, that tax havens had to be closed down, that the bonus culture was no longer acceptable, that the gravy train was about to hit the buffers, as so many predicted it would.

So now he ought to be big enough to deal with the derision and indeed hatred that’s being rained down on him for doing nothing whatsoever to get a grip on the excesses of the City and the bankers, for allowing tax havens and tax avoidance on a huge scale to continue, for allowing industry to flounder, for allowing the bonus culture and naked greed to run rampant, for encouraging oligarchs to prosper and seek refuge in Britain, for allowing the minimum wage to remain so inadequate, for encouraging more and more privatisations and ‘private finance initiatives’. In a word, he ought to apologise, and just say sorry for his pitiful inadequacy as the man in charge of the economy and finance all these years.

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In the Guardian today there’s a piece by one of Blair’s former speechwriters - one Peter Hymen - sorry, Hyman - a callow little twat of the first order if you go by his photograph - whose verdict on the Brown speech was that he “didn’t just give us substance but a little style too”. Substance? Style?!!

Whereas Michael Billington said emphatically that the speech was “low on substance”, and that Brown would do to remember that Mark Anthony’s seemingly triumphant speech was “short-lived and followed by civil commotion, global turmoil, and his own ultimate downfall . . . ”

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Mando

Someone on Radio 4 yesterday described Lord Peter Mandleson as ‘effectively’ the Deputy Prime Minister. As it happened I’d just been thinking about Harriet Harman, the Deputy Prime Minister, and the attempts by the political establishment to marginalise her and disown her recent statements to the effect that government would ensure that the bankers would not get their fat pensions, regardless of what the current law permits, or insists on.

So let’s think about this. Mandleson, a failed politician and a European Commissioner, a professional bureaucrat, is plucked from Brussels by our Prime Minister and installed as a noble Lord in Parliament, with such duties and status as to make him effectively the Deputy Prime Minister. And we think we live in a democracy?

A man who is regarded by the majority of the population as a scumbag and a toff, a nasty piece of work, and the co-architect of NuLabour, who we therefore hold responsible for the betrayal of the electorate after 1997 and All That, is now someone we should regard as a ‘Lord’, and effectively the Deputy Prime Minister, even though he’d never win any election he now entered.

Not only that, he’s made it his business to press ahead with part-privatisation of the Royal Mail completely against the wishes of the electorate, which is coming round to understanding that nationalised industries, especially where they are also monopolistic and potentially able to benefit from economies of scale, are preferable to privatised businesses which owe no responsibility to the electorate, and operate solely in the interests of shareholders.

It’s clear the man is a megalomaniac and egotist of the first order, with no inclination whatsoever to pay attention to what people actually want, such as radical social change that benefits regular people rather than fat cats. He’s therefore a would-be dictator, with contempt for the masses, and a determination to pursue his own political agendas regardless of the consequences for social justice and democracy.

It’s as though Brown has installed in Parliament as his philosopher’s stone, his business guru and his private mentor, someone with the tendencies of a Hitler, someone who uses every opportunity to use dirty tactics, to smear and ignore opponents, to use disinformation, to do business through cliques and cabals, to empower himself at the expense of everyone else. Which is another very good reason for disliking and reviling Brown, and wanting him to just pack it in and push off.
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