Showing posts with label shock doctrine. Show all posts
Showing posts with label shock doctrine. 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


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

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?
...............................................

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

.
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.

.

Wednesday, November 24, 2010

Layer 385 . . . Ireland, Tax Piracy, IMF, Shock Doctrine, Terrible Neighbours, the PFI Racket, Nick Clegg, Social Mobility and New Fangled Progressives

.
Royal wedding date set for 29 April

Prince William and Kate Middleton's wedding will take place on Friday 29 April at Westminster Abbey

Exciting. Not.

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

Things are hotting up again on the economics and financial front. Shit hitting the fan big time in Ireland. Polly Toynbee's column gives an excellent overview:


 Ireland shouldn't get a penny until it gives up its tax piracy

Cameron says he is being 'good neighbours' with the Irish. Why, when they have been such terrible neighbours to us?

http://www.guardian.co.uk/commentisfree/2010/nov/22/no-bailout-for-ireland

Yet again the western world teeters on the edge of calamity caused by the bank-lending extravaganza that fuelled the great property bubble. Europe holds its breath. Will the market predators be halted at Ireland, or might the rating agencies knock down all the dominoes one by one, first the weak countries, then the strong? Meanwhile a Europe-wide fiscal tightening panic may yet bring about the very thing it seeks to prevent, as democracy once again falls under the wheels of finance.

What lesson has George Osborne learned since he penned a paean of praise in the Times in 2006, "Look and Learn Across the Irish Sea"? He wrote: "Ireland stands as a shining example of the art of the possible in long-term economic policymaking ... Capital will go wherever investment is most attractive. Ireland's business tax rates are only 12.5%, while Britain's are becoming among the highest in the world." Low taxes are the answer, he said.

He claims he is being "good neighbours" with our cousins across the Irish sea. What he does not say – perhaps embarrassed by all that previous praise – is that the Irish have been exceptionally bad neighbours to everyone else.

Ireland's corporation tax is 12.5%, the UK's is 28%, dropping to 24% in 2013, and the US rate is 35%. Ireland has played the beggar my neighbour, race-to-the-bottom tax game for many years. Quite why the EU tolerated this is a mystery when a fortune was poured from Brussels to Dublin to pay for a spectacular modernising infrastructure over the years. A few other large companies recently decamped to Dublin from London, advertising giant WPP for one: these are mainly virtual moves for tax purposes only, since virtually no staff go over – and certainly not the board.

But, in the view of Richard Murphy of Tax Research UK, the corporation tax rate is only a fraction of the true story, a flag to signal to global companies that they will get a phenomenal deal with an Irish relocation. Ireland's real shame is not that, like the UK, it mistook its property boom for a never-ending cash machine. What is unforgivable is its shameless status as Europe's greatest tax haven, helping to cheat tax from the world's treasuries for decades.

Ireland allows Google, Facebook, Microsoft Corp and many others to shunt profits around subsidiaries so that they escape even Ireland's own low tax rate.

Ireland allows them, quite legally, to pass the profits on to other tax havens that levy no corporation tax at all, paying only tiny sums in passing: Google put 92% of its billions of worldwide non-US profits through Dublin, and it paid Ireland just £18m.

This is a pure tax haven, with the laxest tax regime in the EU, with no controlled foreign companies rules (to limit deferral of tax).

So why is Ireland not required to put its tax affairs in order and stop cheating all those neighbours now coming to its rescue? IMF doctrine demands countries squeeze the breath out of their people with punitive cuts – and they like low or, even better, no taxes.

The IMF's purgative is an ideological brew; it learns no lessons. When its patients get worse and near death, as Ireland has done after its first terrible dose of cuts, the fund calls for more leeches, mercury and arsenic. That is, of course, the same pre-Keynesian medicine Cameron and Osborne prescribe for us. There is a week before a final settlement: will the rest of Europe really hand over their money without demanding Ireland abandons tax piracy and joins the civilised world?

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

Yes - classic IMF 'Shock Doctrine' prescriptions and demands. For more on the IMF and the shock doctrine outrage, just type 'shock doctrine', IMF, Naomi Klein, disaster capitalism, etc into the Oxzen search box at the top of this page.

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

The bill for PFI contracts is an outrage. Let us refuse to pay this odious debt

The great racket that was private finance now robs the taxpayer of billions that should be spent on nurses and teachers

by George Monbiot

http://www.guardian.co.uk/commentisfree/2010/nov/22/pfi-private-finance-refuse-debt

You've been told that nothing is sacred; that no state spending is safe from being cut or eroded through inflation. You've been misled. As the new public spending data released by the government shows, a £267bn bill has been both ringfenced and index-linked. This sum, spread over the next 50 years or so, guarantees the welfare not of state pensioners or children or the unemployed, but of a different class of customer. To make way, everything else must be cut, further and faster than it would otherwise have been.

This is the money the state owes to private corporations: the banks, construction and service companies that built infrastructure under the private finance initiative. In September 1997 the Labour government gave companies a legal guarantee that their payments would never be cut. Whenever there was a conflict between the needs of patients or pupils and private finance initiative (PFI) payments, it would thenceforth be resolved in favour of the consortia. The NHS owes private companies £50bn for infrastructure that cost only £11bn to build, plus £15bn for maintenance charges.

In 1997 the British Medical Association warned: "The NHS could find itself with a facility which is obsolete in 10 or 20 years' time, but for which it will still have to pay for 30 years or more." No one's celebrating being proved right.

If a hospital no longer requires the services it contracted to buy, tough.

The cost and inflexibility of PFI is an outrage, a racket, the legacy of 13 years of New Labour appeasement, triangulation and false accounting. At first sight, it looks as if nothing can be done: contracts are contracts. What I'm about to propose is a wild shot, but I hope it deserves, at least, to be discussed. I contend the money we owe to the PFI consortia should be considered odious debt.

Odious debt is a legal term usually applied to the endowments of dictators in the developing world. It means debt incurred without the consent of the people and against the national interest.

PFI was a Tory invention but became a Labour doctrine.

There was no democratic mandate for this policy, which appears to have arisen from secret talks with companies.

Secrecy surrounded the whole scheme. To this day, PFI contracts remain commercially confidential. You can't read them; MPs can't read them. We don't know what we are being stung for or whether the costs are justified. But there are some powerful clues.

In Coventry, for example, NHS bosses originally sought £30m of public money to refurbish the city's two hospitals. When the government told them it was "PFI or bust", the refurbishment plan was dropped in favour of a scheme to knock down both hospitals and build a new one – with fewer beds and doctors and nurses – at an eventual, corporate-friendly cost of £410m. A report commissioned by the local health authority found that the scheme had been "progressively tailored to fit the needs of private investors".

To get their new buildings or services, public bodies had to show that PFI was cheaper than public procurement. The system was rigged to make this easy.

Desperate public bodies were gulled and outmanoeuvred with the blessing of central government, which sought only to keep the corporations off its back and the liabilities off its balance sheets. Was this a legitimate means of loading our schools and hospitals with debt? I don't think so.

But where else do we go with this? I've been warning about inflexible PFI contracts since 1998. I've wasted months on this mission, trying to understand and explain the most complex issue in public life. For all the good it's done, I might as well have gone fishing.

Now I see corporations squatting like great cuckoos on our public services, while officials pour the money that should have been spent on nurses and teachers into their widening bills. Yes, I'm bitter. Yes, I'm clutching at straws. Have you got a better idea?

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

If anyone's interested in reading more evidence that Nick Clegg's just a Tony Blair clone, then just read this column he wrote for the Guardian yesterday:

For old-fashioned progressives, achieving income equality was the ultimate goal. For us, it is increasing social mobility

http://www.guardian.co.uk/commentisfree/2010/nov/22/inequality-injustice-nick-clegg

Nick thinks he's a new-fangled 'progressive', when in reality all this guff about social mobility and equality of opportunity is the same old New Labour bollocks.
.

Wednesday, October 20, 2010

Layer 364 . . . Zen, Enlightenment, Sralick, Rooney, Philosophers, Meditation, Shock Doctrine, Spending Cuts and French Uprising

.
Taking a Break

The prodigal has returned, seemingly fortified by tropical sunshine, wonderful food, large amounts of human intercourse, time to reflect, mental stimulation, spiritual refreshment, soul satisfaction, cheap whisky, good (live) music, the Buddha's blessing, and freedom from everyday chores and worries. We'll see how he gets on with the chopping wood and carrying water from now on.

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

Time to turn our attention to Wayne Rooney. This boy's in deep trouble. Letting go of adolescence is seemingly even harder when you have shitloads of money, a cosseted existence, and happen to kick a ball by way of making a living.

Not that he really needs to make a living, as such, any longer. He's already got more money stashed away than several developing countries have in their central reserves.

It seems his 'advisers' are encouraging him to break away from Sralick - Big Daddy Ferguson, His Ferginess - and decamp to somewhere even more delightful and profitable, like . . . Manchester (City). Or possibly Chelsea. Fair enough, you might think. You can't really imagine Wayne's world transferring itself to more exotic places where they don't parliamo Laddish Northern English, let alone Scouse.

Oxzen is going to do the decent thing and contact Wayne in order to advise him to break away from his current advisers. These are the people - his agents and hangers-on - who have their own personal and financial reasons to get Wayne to further feather his already over-feathered nest, to the detriment of all else.

Oxzen is prepared to take Wayne on a sabbatical to Kyoto, and walk in silent meditation with him down the Walk of the Philosophers. Wayne is possibly a decent kid who just needs a decent break, and a chance to reflect on his fucked-up life. He needs to soak in the atmosphere of the autumn and let it work directly on his spirit. He needs to open his eyes to the reds, yellows and oranges of the Japanese maples, gaze at the koi carp swimming lazily in their pools of fresh, clear water, consider the harmony and beauty of the gardens and the temple architecture, completely cleanse his mind, his soul and his spirit - and meditate on what the fuck's it all about anyway.

Does his ego really need all that money, that adoration, that fame, that pressure, that adrenaline, that 'excitement'? Does he really need his enormous ego?

Has his spirit ever touched base with reality, other than the pseudo-reality of football and lad-culture? Does his actually have a spirit?

Has his soul ever found self-expression, apart from kicking balls and scoring goals? One day it will need to. Maybe that day could be now - particularly since he's currently playing like a turkey.

Yes - Wayne needs a break. He needs to get away - and not just from Man U.

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

Zen
.                               

I had an interesting conversation recently about the 'mysteries' of Zen, and about the apparent difficulties of reaching Zen enlightenment. Do you need to spend years studying Buddhist texts and participating in temple rituals, or being tutored by spiritual masters, as well as meditating and reflecting on koans, etc?

The answer is - of course not.

Or - maybe. It all depends - on the person, their attitude, their history, their minds sets and their approaches to life and to learning.

In fact we're all born as Zen beings. We immediately do things spontaneously and instinctively; we live in the Now. We don't worry about & preoccupy ourselves with the past, or obsess about the future. We don't have rampant egos and we're not mentally, socially and spiritually fucked up. Our spirits are free, pure and untainted. We spend large amounts of our time-rich days in states of relaxation, reflection and meditation. We wake, we look around, we observe, we listen, we eat, we drink, we smile, we laugh, we find the world is full of awesome and wonderful things, and we sleep. All we need is love. Plus nurturing and protection.

Somewhere along the line we lose it. There's plenty of reasons why. There are failures to love, nurture and protect us. We become brainwashed, and we often need to struggle for survival in so-called realities created by those who are powerful, greedy and selfish. Sometimes our own parents are all of those things. In the past our lives were governed by the whims, violence and greed of feudal kings and warlords. Gradually our societies transformed into governance by royal families, elective dictatorships and political parties run by professional politicians who are too lazy, too stupid and too self-interested to change anything for the benefit of the masses instead of the elites. We become frustrated, and bent out of shape.

How, in the face of all of these things, do we return to states of grace, and cultivate the many virtues? How do we shed so much mental and emotional baggage and find Zen enlightenment?

As I say - it all depends on the person. Reading books on Eastern thought and wisdom might help - but then again it might not. Some might find the Tao Te Ching helpful, whilst others won't. Some will enjoy the many books of Alan Watts and D.T. Suzuki, whereas others might not.

http://en.wikipedia.org/wiki/D._T._Suzuki
http://en.wikipedia.org/wiki/Alan_Watts
http://en.wikipedia.org/wiki/Tao_Te_Ching

Some people undoubtedly benefit from joining a community of people who are seeking greater enlightenment. Others prefer to walk the pathway alone.

Some people have a mind that is intuitive and instinctual, and grasp immediately the essentials of Zen and the Tao. Some people find it easy to meditate, and others don't. Some people find it harder to deal with destructive emotions than others. Some try to intellectualise their way towards enlightenment - which is never going to work.

The only certainty is that there's no avoiding the need to develop spiritual intelligence if we aim to become three-dimensional people and live meaningful and purposeful lives.

    Knowing others is wisdom;
    Knowing the self is enlightenment.
    Mastering others requires force;
    Mastering the self requires strength;
    He who knows he has enough is rich.
    Perseverance is a sign of will power.
    He who stays where he is endures.
    To die but not to perish is to be eternally present.

(Tao Te Ching chap. 33, tr. Feng and English)

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

Today's The Day


Today we find out what Osborne, Cameron and the coalition have in mind for us in the way of austerity and cutbacks. We've had the bonfire of the quangos. Now it's the rest of our public services.

For the Conservatives, this is not a financial crisis but a long-awaited opportunity

In a classic example of 'disaster capitalism', the cuts are being used to reshape the economy in the interests of business – and to trash the public sector

by George Monbiot

http://www.guardian.co.uk/commentisfree/2010/oct/18/conservative-financial-crisis-opportunity

Public bodies whose purpose is to hold corporations to account are being swept away. Public bodies whose purpose is to help boost corporate profits, regardless of the consequences for people and the environment, have sailed through unharmed. What the two lists suggest is that the economic crisis is the disaster the Conservatives have been praying for. The government's programme of cuts looks like a classic example of disaster capitalism: using a crisis to re-shape the economy in the interests of business.

In her book The Shock Doctrine, Naomi Klein shows how disaster capitalism was conceived by the extreme neoliberals at the University of Chicago. These people believed that the public sphere should be eliminated, that business should be free to do as it wants, and almost all tax and social spending should be stopped. They believed that total personal freedom in a completely free market produces a perfect economy and perfect relationships. It was a utopian system as fanatical as any developed by a religious cult. And it was profoundly unpopular. For a long time its only supporters were the heads of multinational corporations and a few wackos in the US government.

In a democracy under normal conditions, those who were harmed by abandoning public provision would outvote those who gained from it. So the Chicago programme couldn't be imposed in these circumstances. As the Chicago School's guru, Milton Friedman, explained, "only a crisis – actual or perceived – produces real change". After a crisis has struck, he added later, "a new administration has some six to nine months in which to achieve major changes; if it does not act decisively during that period, it will not have another such opportunity."

The first such opportunity was provided by General Pinochet's coup in Chile. The coup was plotted by two factions: the generals and a group of economists trained at the University of Chicago and funded by the CIA.

Pinochet used the crisis he had created to imprison, torture or kill anyone who dissented. The Chicago School policies – privatisation, deregulation, massive tax and spending cuts – were catastrophic.

The result was a massive increase in unemployment and the near-eradication of the middle class. But the very rich became much richer, and the corporations, scarcely taxed, deregulated and fattened on privatised assets, became much more powerful.

By 1982, Friedman's prescriptions had caused a spectacular economic crash. Unemployment hit 30%; debt exploded. Pinochet sacked the Chicago economists and started re-nationalising stricken companies, whereupon the economy began to recover. Chile's so-called economic miracle began only after Friedman's doctrines were abandoned. The Chicago School's catastrophic programme pushed almost half the population below the poverty line and left Chile with one of the world's highest rates of inequality.

But all this was spun by the corporate media as a great success. With the help of successive US governments, similar programmes were imposed on dozens of countries in which crises ensured that the population was unable to resist. Other Latin American dictators copied Pinochet's economic policies, with the help of mass disappearances, torture and killings. The poor world's debt crisis was used by the IMF and the World Bank to impose Chicago School programmes on countries that had no option but to accept their help. The US hit Iraq with economic shock and awe – privatisation, a flat tax, massive deregulation – even as the bombs were still falling. After Hurricane Katrina wrecked New Orleans, Friedman described it as "an opportunity to radically reform the educational system". His disciples immediately moved in, sweeping away public schools while the residents were picking up the pieces of their lives, replacing them with private charter schools.

Our crisis is less extreme, so, in the UK, the shock doctrine cannot be so widely applied. But, as David Blanchflower warned yesterday, there's a strong possibility that the cuts programme will precipitate a bigger crisis: "it's a terrible, terrible mistake. The sensible thing to do is to spread [the cuts] over a long time." That's another feature of disaster capitalism: it exacerbates the crises on which it thrives, creating its own opportunities.

So we shouldn't wonder that 35 corporate executives wrote to the Telegraph yesterday, arguing, just as Milton Friedman used to do, for a short, sharp shock, before the window of opportunity closes. The policy might hit their profits for a while, but when we stagger out of our shelters to assess the damage, we'll discover that we have emerged into a different world, run for their benefit, not ours.

See also Oxzen Layers 299, 285, 280, 202, 197, 188, 187, 169, 168, 167, 165, 137, 130, 129, 112, 109, etc.

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

Vive La France - Liberte, Egalite & Fraternite

Thank goodness there's at least one country in the world where there's a tradition of chopping the heads off arrogant fat cats and would-be rulers who tell the people to eat cake if there's no bread available.

France's future is fighting back

Teenagers' involvement in the strikes may prove to be a tipping point for Sarkozy, and for France

by Philippe Marliere (and see also his other articles in the Guardian for reality checks.)

http://www.guardian.co.uk/commentisfree/2010/oct/19/france-future-fighting-back

Nicolas Sarkozy dreamed of a glorious destiny. His Gallic brand of neoliberal policies would sell the "American dream" to a mistrustful population. Things have not gone according to plan. Sarkozy wanted to be the French JFK; today he looks more like Louis XVI awaiting trial in 1793. He may escape the guillotine, but his presidency is now under siege.

The French are deeply unhappy with the way they have been governed, but their main grievance is about pension reform, which is seen as a cynical ploy to make ordinary people work more for inferior entitlements, while bailed-out bankers and the rich get tax rebates and continue to enjoy the high life. Over the past month, five national demonstrations have gathered together an estimated average of 3.5 million people per action day. The latest, on Saturday, was a big success and another is scheduled for today.

The movement is popular: 69% of the nation back the strikes and demonstrations; 73% want the government to withdraw the reform. And high school pupils have now joined the fray. Over 1,000 high schools are on strike as the youngsters take to the streets to protest against mass unemployment and the raising of the retirement age. The government has patronisingly labelled them as "manipulated kids", but these comments have backfired and served only to galvanise the young, who have hardened their resistance and taken further interest in the reform. When interviewed by the media, pupils come across as articulate and knowledgable. Parents worry about their children's future, so they will not stop them from striking.

In France, strikes and demonstrations are seen as a civilised and effective way to enact one's citizenship. Students are expected to join marches from an early age, receiving by the same token a "political education". France's youth have always scared governments because of their radical potential. Student demonstrations of late have been invariably popular because people know that the young have been badly hit by unemployment over the past 30 years.

University students are preparing to strike as well. Sarkozy, like Louis XVI in 1789, does not seem to have grasped how volatile the situation has become. He should know better. Since May 1968, all governments have been forced on the ropes every time youngsters have entered a social movement. This time it could prove crucial in helping to reach a tipping point; a stage in the conflict where the balance of power switches from the government toward those opposing the pension reform.

Lorry and train drivers are also starting strike actions.

How can the current situation be interpreted? Undoubtedly, the rebellion seems durable and runs deeper than the question of pensions. The reform has triggered a web of collective actions that are now spreading fast. Discontent is fuelled by low incomes and unemployment, but also by the impact of the crisis on people's daily life, the arrogance of the Sarkozy presidency, corruption cases and police brutality.

There is a sense of moral outrage at the imposition of a neoliberal medicine to cure an illness caused by the same neoliberal policies. The French are not hostile to reforms: they just demand those that redistribute wealth and allocate resources to those who need it the most. Any comparison with May '68, however, may be hasty. Then, France was experiencing a period of economic prosperity. Today, events occur in the context of a deep economic depression. This is why the political situation is potentially explosive. Radicalised workers and youngsters are forcing the unions to up their game. The normally toothless Socialist party has pledged to return the retirement age to 60, should it come back to power in 2012.

One can envisage two possible scenarios. Opposition to the reform hardens, in which case Sarkozy may have to water it down or even withdraw it. This would mark the first major popular victory in Europe against the post-2008 neoliberal order. Alternatively, Sarkozy stays put and imposes a deeply unpopular reform, in which case the political price to pay for the incumbent president would be very high, should he decide to run again in 2012.

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

Spending review: Ya-boo won't work.

Alan Johnson has laid out the basics of an alternative to cuts. It's a solid enough start – but now the real fight begins

by Polly Toynbee

http://www.guardian.co.uk/commentisfree/2010/oct/19/yaboo-wont-work-labour-response-forensic

. . . here begins a lost decade of low growth and high unemployment, bequeathing the next generation public squalor and irreparable social problems.

His plan expects exports to grow twice as fast as imports fall. So far, as these 35 captains of industry know well, despite a 25% devaluation in the pound, exports stubbornly flatline as every country cuts its own consumer demand while dreaming that beggar-my-neighbour exports will help them escape.

If this famous 35 sincerely expect that brilliant outcome, these chief executives from M&S to Carphone Warehouse, from Asda to BT, could prove their faith by pledging between them to arrange the employment of a million people about to be thrown out of work in both public and private sectors next year. That could be their contribution to saving a fortune from the rising Department for Work and Pensions budget. They could also sign a promise to invest in growth, starting tomorrow, all the considerable sums they have hoarded – to the despair of economists. Why are they hoarding so much instead of investing? Because they fear the coming cuts, along with the VAT rise, are about to send consumer demand, jobs and house prices plummeting further in a downward spiral, causing the deficit to rise, not fall.
.

Wednesday, August 4, 2010

Layer 340 . . . Woods, Work, Drugs, Shock, NHS, Iraq and Folly

.
Why walking in the woods is good for you

It's one of the most enjoyable activities imaginable - and it might also be one of the most beneficial

http://www.guardian.co.uk/lifeandstyle/2010/jul/27/walking-in-the-woods-health

According to the Finnish Forest Research Institute, one of the most enjoyable activities around can reduce stress and depression, ease muscle tension, counter attention deficit disorder, even calm an erratic heart. What is this wonder therapy? A walk in the woods. As Karjalainen puts it, "Many people feel relaxed and good when they are out in nature. But not many of us know there is also scientific evidence about the healing effects of nature."

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

All Work and No Play

Given the levels of debt and the low wages in our society, flat-out full time working seems like the only option for most people trying to stay alive and make a decent life for themselves and their families.

The ants march on, but we'd be happier as grasshoppers

The idea that work is the meaning of existence has little basis in biology. Let us guiltlessly enjoy the sweet idleness of summer

http://www.guardian.co.uk/commentisfree/2010/aug/01/ants-march-grasshoppers-happier

Of course, work is a good and necessary thing in its place. It stops you from starving, directs your energies and can even offer friendship and community. But nature writers like Mabey have pointed out that seeing work as the meaning of life is a human, metaphysical invention; it has little basis in biology. Play, not work, seems to be the defining essence of life on earth.

While the new austerity requires us to put a price on everything, play remains priceless precisely because it is pointless: a way of simply enjoying and celebrating life when life is all we have. Play is also free, egalitarian and equilibrium-loving: it costs nothing and asks for nothing in return and is therefore an excellent model for sustainable living with scarce resources.

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


Angus Macqueen is the guy who made the four-part series on drugs policy, which I commented on yesterday. This is an article he wrote about drugs in last Sunday's Observer:

Why do we so wilfully cover up the failure of the war on drugs?

The vulnerable are left unprotected by our attitudes to substance abuse, argues a leading documentary maker


http://www.guardian.co.uk/commentisfree/2010/aug/01/angus-macqueen-drugs-trade-policy

Drugs policies have little to do with science, health risk or harm. They have been hijacked by the emotive rhetoric of moralists.

This fear of the Daily Mail is a dishonest excuse – the truth is that there is a collective lack of will to address one of our major social problems. We bury our heads and pretend that banning drugs equals regulation. Quite the reverse; driving drugs underground leaves them unregulated and consumers unprotected.

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

The Shock Doctrine
Coalition is more radical than Thatcher government, says senior Tory minister

Francis Maude defends scope and speed of reforms with claim earlier governments have not pushed ahead vigorously enough

http://www.guardian.co.uk/politics/2010/jul/30/coalition-government-reforms-francis-maude

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

Former MI5 chief delivers damning verdict on Iraq invasion

Lady Eliza Manningham-Buller tells Chilcot that invasion increased terrorist threat and radicalised young British Muslims

http://www.guardian.co.uk/uk/2010/jul/20/chilcot-mi5-boss-iraq-war

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

Polly Toymbee was on form with this piece on the government's intentions for the NHS:

http://www.guardian.co.uk/commentisfree/2010/jul/17/tories-are-demolishing-the-nhs

This is no careful plan: the NHS is being wired for demolition at breakneck speed

Analysts are aghast at the sheer recklessness of the proposals. Yet the Tories proceed with no answers to the basic questions
............................................

Simon Jenkins has been keeping up his relentless attacks on our follies in the Middle East:

A history of folly, from the Trojan horse to Afghanistan

By recording failure in meticulous detail, the leaked war logs bear devastating witness to our incompetence

 http://www.guardian.co.uk/commentisfree/cifamerica/2010/jul/27/folly-war-wikileaks-afghanistan

I cannot avoid the conclusion that, just as the Pashtun are said to be "hardwired to fight", so now are certain western regimes. War is about sating the military-security-industrial complex, a lobby so potent that, long after the cold war ended, it can induce democratic leaders to expend quantities of blood and money on such specious pretexts as suppressing dictators in one country and terror in another.

Like puppets dancing to manufactured fears and dreams of glory, these leaders have lost their grip on Plato's "sacred golden cord of reason". Until that grip is restored, the folly revealed by the war logs will continue.
..................................


Clegg told the truth on Iraq. It's for Cameron to end a decade of pretence

The coalition inherited a mendacious foreign policy, leading to two disastrous wars. Time now for an honourable peace

http://www.guardian.co.uk/commentisfree/2010/jul/22/clegg-truth-iraq

Commentators are often asked to predict history's verdict on a particular era, and are well advised to decline. But it is hard not to see western policy in the first decade of the 21st century as sunk in a morass of folly. It was subcontracted to a defence lobby desperate for a role, which it found in exploiting weak leaders by playing on the ideology of fear.

It has led the US and Britain into contentious relations with the entire Muslim world, fuelling anti-western sentiment not only across Asia but, as Manningham-Buller pointed out, among Muslim populations within the west. The last decade has seen an entire foreign policy elite lose the art of friendship. Bred under the communist threat, the west's leaders craved a mighty enemy and found it by exaggerating the threat from militant Islam and elevating terrorist gangs to the status of state enemies.

As a result, British policy has relied on one outdated premise after another.

Foreign policy lurched into paranoid mode. Guantánamo filled with victims and ludicrous sums were spent on security. The world responded in kind. Airports became nests of xenophobia.

This was nowhere better demonstrated than in Blair's dreadful January appearance before the Chilcot inquiry, which now meekly claims to be unconcerned with the legality of the Iraq war (so what is it concerned with?). All evidence has testified that the war was a mistake and undermined Britain's security. Blair's contradictory display of pro-war self-delusion, arrogance and folly should be a textbook video for any school of 21st-century statesmanship.

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

Seamus Milne pitched in with this:

Now Afghanistan too shows the limits of American power

http://www.guardian.co.uk/commentisfree/cifamerica/2010/jul/21/now-afghanistan-shows-limit-american-power

The catastrophic illusions and acts of official betrayal at the heart of the wars in Afghanistan and Iraq are being progressively exposed, one after another. In London, the former head of MI5 Eliza Manningham-Buller confirmed to the Iraq inquiry this week  that the security service had indeed warned Tony Blair's government that aggression against Iraq, "on top of our involvement in Afghanistan", would violently radicalise a generation of young Muslims and "substantially" increase the threat of terror attacks in Britain.

And so it came to pass. A few days earlier, Carne Ross, Britain's former representative at the UN responsible for Iraq before the invasion, told the inquiry that the British government's statements about its assessment of the threat from Saddam Hussein "were, in their totality, lies". In due course, those lies were brutally exposed.

It's easy to be inured to the power of such indictments after nine years of the war on terror and its litany of torture, kidnapping, atrocities and mass killing. But together with a string of earlier revelations they do combine to highlight the utter disgrace of the British political and security establishment, which deceived the public about a war it was well aware in advance would expose them to great danger.

The reason for such official dissembling and recklessness is also now clear enough. The British commitment to join the attack on Iraq was transparently never driven by the supposed menace of Saddam or the legal casuistry advanced at the time, but by an overriding commitment to put Britain at the service of US power, under whoever's leadership and wherever that might take it at any particular time. The "blood price", as Blair called it, for this – David Cameron made explicit last week – subservient relationship had to be paid.

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

It's good to see Susie Orbach writing again in the Guardian:

Ad men today are wrong on body size

Why Lynne Featherstone was right to celebrate curvaceous Christina Hendricks as a role model

http://www.guardian.co.uk/commentisfree/2010/jul/31/susie-orbach-ad-men-wrong-on-body-size

http://anybody.squarespace.com/anybody_vent/2009/2/8/susie-orbach-on-bodies.html

http://entertainment.timesonline.co.uk/tol/arts_and_entertainment/books/non-fiction/article5661153.ece
.

Sunday, June 20, 2010

Layer 326 . . . A Gathering Storm, Voodoo Economics, the Budget, the Banks and Will Hutton

.
It feels like the lull before the storm. Summer's here; people are gearing up for their holidays, shopping as usual, having barbeques, watching endless dull matches broadcast in glorious HD live from the World Cup . . . and endless edited 'highlights' of these low-scoring, tedious, defence-dominated affairs. England are crap. Scotland, Wales and the Irelands aren't even there. Wimbledon fortnight starts tomorrow. The weather forecast is good.

Except on the economic front, which most people recognise and experience as the financial and personal wellbeing front. We're talking here about people struggling to stay in jobs and striving to keep up with household expenses. People with no savings; people with large debts. The cold front is approaching, with gale force winds likely throughout Britain, and much of Europe.

The economic storm is going to begin on Tuesday, with the coalition's first 'emergency' budget. You weren't aware there's an emergency? Do try to keep up.

It's an emergency conjured into existence by right wing politicians and their media friends who seem to be winning the battle to convince gullible people that governments can no longer maintain spending on public services at current levels, even though the loss of thousands of public sector jobs will deflate demand in the economy and throw even more people out of jobs in the service sector and what's left of the manufacturing sector. And so on, in a downward spiral. It's the Shock Doctrine, which thrives on 'emergencies'. It's Disaster Capitalism.

It's the same old Thatcherite/Chicago School remedy of slashing public spending on decent public services - all dressed up as "necessity" because of what the "financial markets" might do to us. Voodoo economics still rule, OK?

There was a time, when the financial crash first happened, that Keynesian economics looked likely to regain predominance, but that was before the European Right (including those in Germany now) began to see a way to keep on keeping on, with the banking sector permanently bailed out, guaranteed and subsidised by we, the people, and no-one even demonstrating against it.

In this we begin to look like post-Soviet Russia, with the people only too happy to keep schtum provided there's 'stability' in the country under a recognisable and somewhat 'legitimate' political elite who seem to know what they're talking about. It's a kind of heads in the sand politics, under a Westminster coalition of public schoolboys and Oxbridge graduates doing all the things they've been taught to do by their Chicago School trained professors in their PPE lectures, seminars and tutorials.

Will Hutton continues to shed light on all of this in his Observer columns. Here are some extracts from last week's column, which focuses on banking, posted here in the hope that the reader will hyperlink to Will's column and read it in its entirety:

http://www.guardian.co.uk/commentisfree/2010/jun/13/will-hutton-banks-crash-refuse-reform

The banks have refused to mend their ways. Beware the next crash

After the crisis there were cries of 'never again'. But the glacial pace of reform leaves us all in imminent danger

It was the biggest bank bail out in British history, and it came with scarcely believable costs. A trillion pounds of tax-payer support; a trillion pounds of lost output. After a disaster of this magnitude you might have expected some collective soul-searching by both banks and government. There has been far too little. Instead we risk a repeat – our banking system is as disconnected from real wealth generation as ever.

The return to business as usual – bonuses, trading in derivatives, the organising of banking as an exercise in which money is made from money – is breathtaking and depressing. And so, given the recent buoyant profit figures reported by our banks, is the easy money.

Labour delivered the minimum reform it could get away with, subcontracting responsibility to the Financial Services Authority. As the crisis broke in May 2008 it commissioned an inquiry populated entirely by industry insiders, chaired by the now chair of Lloyds, Sir Win Bischoff, to examine how the City could become more internationally competitive. When it reported a year later, it recommended little or no change. The conclusions were tamely accepted by the most risk-averse group of senior politicians in the Labour party's history.

The poverty of action is inexcusable.

Without substantial and far-reaching reform a second crisis is almost inevitable within 10-25 years. And next time we would be overwhelmed as a country.

Most industries that had undergone such a near-death experience – along with such a high probability of a recurrence – would be taking precautions. Not banking. Instead of building up its reserves aggressively, it is carrying on paying salaries at pre-crash levels.

As worrying is the lack of reform to the business model of banking built up over the last 10 or 15 years. Barclays, RBS and HSBC each boasts more than 1,000 subsidiaries – most of which are secret vehicles created to warehouse lending or direct financial flows in artificial ways, whose purpose, as one official told me off the record, is essentially deception – to avoid tax or regulation or whose complexity is designed so that in an emergency all a government can do is write a blank bail-out cheque.
[In other words, the fucking banks have got us over a barrel, and there's nothing we can do about it. The Masters of the Universe have got planet Earth right where they want it.]

The IMF don't say it, but it would just take a market rumour and there would be panic. British banks have £1 trillion wrapped up in derivatives – a business that Nouriel Roubini, the economist who predicted the crash, thinks should be as closely regulated as guns because they are no less dangerous.

But progress on financial reform – nationally and internationally – is glacial. Part of the reason is the fiendish complexity that western governments allowed their banks to create, and part is the jealous defence of alleged national banking interests by governments. But nobody should underestimate the banks' own powerful interest in resisting reform – and their lobbying is powerful and well-financed.

The status quo is bad news not just because of the risk of another crash. British banks shamefully neglect enterprise, entrepreneurship, investment and innovation. Only 3% of cumulative net lending in the decade up to the crash went to manufacturing; three quarters went to commercial real estate and residential mortgages. Lord Adair Turner, chair of the FSA, says that collectively manufacturers borrow no more than they deposit with banks. De facto, it is a sector from which the banks have largely disengaged. The result – devastated industries and sky-high property prices.

Reform has to be multi-pronged. Almost everybody accepts that banks need to carry more capital, except getting international agreement on how much is close to impossible.

Britain needs more banks, transparent banks and safer banks that really contribute to the British economy – and it needs to have the chutzpah to go it alone if necessary. The coalition government, Cable says, is committed to change, and a banking commission to investigate what and how is about to be announced. The question is whether anyone will have the courage to do what needs be done.

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

Will's column in today's paper says:

There is no logic to the brutish cuts that George Osborne is proposing

The chancellor constantly cites Sweden and Canada as models, but at least they tried to energise their economies

http://www.guardian.co.uk/commentisfree/2010/jun/20/budget-cuts-george-osborne

This week's budget brings on an awesome economic and political moment. The former Labour government had already committed to a greater and faster reduction in the budget deficit than any British government in modern times. The coalition government wants to do more; to nearly eliminate a structural budget deficit of 8% of national output – some £116bn – in five years. Moreover, it wants spending cuts to take 80% of the load. No country has ever volunteered such austerity. It is as tough a package of retrenchment as the IMF imposed on Greece, a country on the brink of bankruptcy. It is twice as tough as the famously harsh measures Canada took between 1994 and 1997. It is three times tougher than Sweden's measures between 1993 and 1995. In British terms, it is immeasurably tougher than what we did after the IMF crisis in 1976 or after the ERM crisis in 1992.

If we are going to embark on such a course, there has to be a national consensus that it is right. What is proposed, if we are to believe the pre-budget speeches and leaks, is the closest to an economic scorched earth policy we will ever have lived through. If it is to work, we have to be prepared to accept not just enormous economic sacrifice, but to regard it as legitimate. There has to be complete honesty about why the measures are being taken. The reasons have to be unanswerable. The economics must be unimpeachable. The measures themselves have to be extremely skilfully implemented and seen to be fair.

This is not the case just now. Of course the structural deficit has to be eliminated. But Britain has time to make the change. Sweden took 15 years to lower some departmental spending by 20%, not the five years the government plans. We are not in the position of Greece. Britain has a diversified economy. Our cumulative national debt is not large by international standards. Uniquely, the term structure of our debt is very long – around 14 years. Most of this year's debt will be sold to British domiciled individuals and companies, so the international sovereign debt crisis has much less impact on us. The level of interest on the national debt in five years' time as a share of national output is more than manageable. These are the truths about the situation; to claim otherwise creates distrust.

I don't think either coalition partner is aware of how high the stakes are being raised, the degree to which they are unnecessarily backing themselves into a corner, and how much the ground has to be prepared before launching the country on the unprecedented path they plan. For example, each of the counter-arguments I have raised needs to be carefully argued against, not shouted down by hysterical remarks about the sovereign debt crisis or references to private lectures from the not infallible governor of the Bank of England.

The lack of necessity over what is planned could knock the Lib Dems back to where the Liberal party was in the 1950s – a party of the margins – and irredeemably rebrand the Conservatives as the nasty party. The revival of liberal conservatism and the hopes raised by this unique experiment in coalition government will collapse.

George Osborne's aggression is hard to understand. The forecasts from the Office for Budget Responsibility show that the outgoing Labour government's plans were both credible and more than tough enough to arrive at budgetary sustainability. To go beyond them with between £24bn and £50bn of extra spending cuts and tax rises, as is rumoured for Tuesday, is unconscionable and will rightly be challenged. The ground has not been laid; the economics are dubious even for deficit hawks; the support tiny; the implications dire.

It is not too late for a change of course or, at the very least, to reproduce the best of what the Canadians and Swedes did. In neither country was deficit reduction portrayed as a necessity to keep a triple A credit rating on government debt, nor as a vendetta against a "bloated" public sector, as the coalition has suggested. Rather, the measures were sold as a vital period of pain in order to create a platform for much-needed public spending growth in the future.

Osborne is said to have studied the Canadian experience, hence his call for a period of national consultation between Tuesday's budget and the autumn's spending review, copying what was done in Ottawa. The trouble is that the terms of the consultation preclude any genuine consultation; the assumption is that spending is bad, the state needs to be smaller, nothing is more important than a triple A credit rating, and the British way of life has to change.

It is folly. Not every penny of public spending is well spent. There has to be restraint and the deficit must be lowered. Wages, pensions and welfare transfers must take a short-term hit, as they did in Canada and Sweden. But the government should also be investing in our future. It should be raising taxes on those best able to contribute. Every department should share in the pain.

I am surprised at the Liberal Democrats. They have an obligation to their party, their tradition and the coalition to argue more fiercely for a better presented, fairer, more legitimate and more balanced approach to deficit reduction than the one that is promised. And what is proposed is no good for the Tories either. Number 10 and the Treasury believe the worst can be offset by aggressively low interest rates and more quantitative easing. They will work to a degree. But what is proposed still risks everything. Politicians pay the price with lost office. Millions of British will pay a higher price – the needless squandering of their lives.

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

Back on the football front, Terry Eagleton wrote this for the Guardian,

http://www.guardian.co.uk/commentisfree/2010/jun/15/football-socialism-crack-cocaine-people

Football: a dear friend to capitalism

The World Cup is another setback to any radical change. The opium of the people is now football

If the Cameron government is bad news for those seeking radical change, the World Cup is even worse.

If every rightwing thinktank came up with a scheme to distract the populace from political injustice and compensate them for lives of hard labour, the solution in each case would be the same: football. No finer way of resolving the problems of capitalism has been dreamed up, bar socialism. And in the tussle between them, football is several light years ahead.

Modern societies deny men and women the experience of solidarity, which football provides to the point of collective delirium. Most car mechanics and shop assistants feel shut out by high culture; but once a week they bear witness to displays of sublime artistry by men for whom the word genius is sometimes no mere hype. Like a jazz band or drama company, football blends dazzling individual talent with selfless teamwork, thus solving a problem over which sociologists have long agonised. Co-operation and competition are cunningly balanced. Blind loyalty and internecine rivalry gratify some of our most powerful evolutionary instincts.

In a social order denuded of ceremony and symbolism, football steps in to enrich the aesthetic lives of people for whom Rimbaud is a cinematic strongman. The sport is a matter of spectacle but, unlike trooping the colour, one that also invites the intense participation of its onlookers. Men and women whose jobs make no intellectual demands can display astonishing erudition when recalling the game's history or dissecting individual skills. Learned disputes worthy of the ancient Greek forum fill the stands and pubs. Like Bertolt Brecht's theatre, the game turns ordinary people into experts.

Like some austere religious faith, the game determines what you wear, whom you associate with, what anthems you sing and what shrine of transcendent truth you worship at. Along with television, it is the supreme solution to that age-old dilemma of our political masters: what should we do with them when they're not working?

Over the centuries, popular carnival throughout Europe, while providing the common people with a safety valve for subversive feelings – defiling religious images and mocking their lords and masters – could be a genuinely anarchic affair, a foretaste of a classless society.

With football, by contrast, there can be outbreaks of angry populism, as supporters revolt against the corporate fat cats who muscle in on their clubs; but for the most part football these days is the opium of the people, not to speak of their crack cocaine. Its icon is the impeccably Tory, slavishly conformist Beckham. The Reds are no longer the Bolsheviks. Nobody serious about political change can shirk the fact that the game has to be abolished. And any political outfit that tried it on would have about as much chance of power as the chief executive of BP has in taking over from Oprah Winfrey.

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

Any diehard readers who have come this far can now enjoy Sabine Rennefanz's column on Merkel's Paralysis:

Germans are awaiting the fate of their hopeless coalition with resignation. The obituaries are in

http://www.guardian.co.uk/commentisfree/2010/jun/15/angela-merkels-coalition-paralysis

All the hopes of the German government now rest on Mesut Özil and Thomas Müller. They aren't members of the cabinet, they're the new stars of the national football team. If anybody could, they might turn the destiny of Chancellor Angela Merkel's hopeless coalition.

If they win the World Cup in South Africa, the whole country will party relentlessly and nobody will worry any more about the disastrous government. At least that's a possibility. It has worked before: poor governments have carried on thanks to a wave of football fever. "Drink beer, watch football," said one Christian Democratic Union member of parliament the other day, when he was asked by a journalist how to survive the following weeks.

Germany has a similar coalition to Britain's: an agreement between the conservative CDU and the liberal Free Democratic party.

There has been constant infighting, disagreement – chaos. Cabinet members refer to each other as "Gurken" (cucumbers) or "Wildsau" (wild boar). Merkel's once ideal partner, the pro-business FDP has turned out to be a nightmare.

While the CDU has become a modern conservative party with a strong interest in social equality, gay rights and environmental protection, the FDP is stuck in the 1980s and is a single-topic party: it wants to cut tax, or at least block tax rises. Under the guidance of its erratic leader, Guido Westerwelle, the foreign secretary, its members happily ignored the pressing problems of the international financial crisis.

And up to now, the coalition has managed to disagree on everything – the budget, health reform, how to help the struggling carmaker Opel.

The most recent low point was last week, when Merkel and Westerwelle presented what they called a "saving package". They want to save E80bn by 2014, mainly by cutting social spending, and support for poor parents and the long-term unemployed. It read like the wish list of the FDP. There was an immediate cry of outrage – and not only from the opposition. CDU members found the package socially imbalanced, they said, claiming that wealthier people do not contribute at all. About 20,000 people demonstrated at the weekend against the proposed cuts in Berlin, and the papers published obituaries of the coalition government. "Aufhören!" ("Stop!") reads the cover headline this week of the German news magazine Der Spiegel, above a picture of a troubled-looking Merkel and Westerwelle.
.