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    Monday, February 15, 2010

     

    Security and Order Not the Issue in Haiti (Alternet)

    by Dollars and Sense

    Excellent piece on Haiti by Arun Gupta at Alternet.

    More Pain for Devastated Haiti: Under the Pretense of Disaster Relief, U.S. Running a Military Occupation

    The rapid mobilization of U.S troops in Haiti was not primarily done for humanitarian reasons; we're likely to see a neoliberal economic plan imposed, at gunpoint if necessary.

    By Arun Gupta | February 12, 2010

    Official denials aside, the United States has embarked on a new military occupation of Haiti thinly cloaked as disaster relief. While both the Pentagon and the United Nations claimed more troops were needed to provide "security and stability" to bring in aid, according to nearly all independent observers in the field, violence was never an issue. in

    Instead, there appears to be cruder motives for the military response. With Haiti's government "all but invisible" and its repressive security forces collapsed, popular organizations were starting to fill the void. But the Western powers rushing in envision sweatshops and tourism as the foundation of a rebuilt Haiti. This is opposed by the popular organizations, which draw their strength from Haiti's overwhelmingly poor majority. Thus, if a neoliberal plan is going to be imposed on a devastated Haiti it will be done at gunpoint.

    The rapid mobilization of thousands of U.S troops was not for humanitarian reasons; in fact it crowded out much of the arriving aid into the Port-au-Prince airport, forcing lengthy delays. Doctors Without Borders said five of its cargo flights carrying 85 tons of medical and relief supplies were turned away during the first week while flights from the World Food Program were delayed up to two days. One WFP official said of the 200 flights going in and out of Haiti daily "most...are for the U.S. military." Nineteen days into the crisis, only 32 percent of Haitians in need had received any food (even if just a single meal), three-quarters were without clean water, the government had received only two percent of the tents it had requested and hospitals in the capital reported they were running "dangerously low" on basic medical supplies like antibiotics and painkillers. On Feb. 9, the Washington Post reported that food aid was little more than rice, and "Every day, tens of thousands of Haitians face a grueling quest to find food, any food. A nutritious diet is out of the question."

    At the same time, the United States had assumed control of Haiti's airspace, landed 6,500 soldiers on the ground, with another 15,000 troops offshore at one point, dispatched an armada of naval vessels and nine coast guard cutters to patrol the waters, and the U.S. embassy was issuing orders on behalf of the Haitian government. In a telling account, the New York Times described a press conference in Haiti at which "the American ambassador and the American general in charge of the United States troops deployed here" were "seated at center stage," while Haitian President René Préval stood in the back "half-listening" and eventually "wandered away without a word."

    Read the rest of the article.

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    2/15/2010 09:55:00 AM 0 comments

    Friday, January 15, 2010

     

    Haiti Suffering: Partly 'Made in the USA'

    by Dollars and Sense

    Here is something from Bill Quigley at HuffPo. I like his take on U.S. involvement in Haiti (for a more economics-focused, and satirical, version of some of these same points in connection with the last crisis in Haiti--the 2008 food shortages--see Maurice Dufour's How to Make Mud Cookies from D&S, July/August 2008). But the anarchist in me wants to resist his claim that although the people of Haiti are pulling together to address the crisis, "They are courageous and generous and innovative, but volunteers cannot replace government."

    For less statist solutions to crises like this, consider donating to the Cooperative Development Fund. Here's info from Melissa Hoover, director of the U.S. Federation of Worker Cooperatives (of which D&S is a member):
    Dear USFWC Members,

    A message from the Cooperative Development Fund regarding relief for Haiti: (USFWC has added a link to our front page to donate directly to the Cooperative Emergency Fund.)

    As most of you now know, earlier this week a 7.0 magnitude earthquake shook the island of Haiti. Most of Haiti's capital, Port-au-Prince, has been destroyed and millions of people have lost their homes, workplaces, and family members. The extent of the devastation is severe; many of Haiti’s coops have been severely damaged and many of those they serve are in severe need.

    The Cooperative Development Fund (CDF) has a fund strictly for the purpose of assisting people in times like these—The Cooperative Emergency Fund. Over the last 20 years, CDF has raised over $275,000 for cooperative relief and rebuilding efforts for ten different disasters. The CEF was founded to give stability and constancy to CDF’s emergency relief efforts, many of which are of a longer-term rebuilding nature. The Cooperative Emergency Fund will be donating all monies received from here until July 2010 to help the rebuilding efforts in Haiti. CDF will be collaborating with international cooperative relief efforts in this endeavor to rebuild those coops afflicted by this disaster.

    Please assist us with our cause. Donating through the front page of CDF’s website is quick and easy. We ask that you visit the homepage of http://www.cdf.coop and make a donation through our GOOGLE CHECKOUT function on the right hand side of our website. Your support is extremely appreciated.

    Thank you,

    The Cooperative Development Foundation

    Melissa Hoover, Executive Director

    US Federation of Worker Cooperatives

    Now here's that Bill Quigley article:
    What the Mainstream Media Will Not Tell You About Haiti: Part of the Suffering of Haiti is "Made in the USA"

    By Bill Quigley | Posted: January 14, 2010 08:45 PM

    Part of the suffering of Haiti is indeed "Made in the USA." While the earthquake would harm any country, actions by the United States have absolutely magnified the harm from the earthquake in Haiti.

    How? In the last decade alone, the U.S. slashed humanitarian assistance to Haiti, blocked international loans, forced the government of Haiti to downsize, ruined tens of thousands of small farmers, and replaced the government with private non-governmental organizations.

    The result? Small farmers are starved out of the countryside and migrate by the tens of thousands to the cities where they built cheap shelters on hills. International funds for roads and education and healthcare are halted by the U.S. The money that does come into the country goes not to the government but to private corporations. Thus the government of Haiti is nearly powerless to provide assistance to its own people on regular days - much less in the face of a real disaster like this one.

    Some specifics from recent years.

    In 2004, the U.S. assisted in a coup against the democratically elected President of Haiti, Jean Bertrand Aristide. This continues a long tradition of the U.S. deciding who will rule the poorest country in the hemisphere. No government lasts in Haiti without U.S. approval.

    In 2001, when the U.S. was mad at the President of Haiti, the U.S. successfully led an effort to freeze $148 million in already-approved loans and many hundreds of millions more of potential loans from the Inter-American Development Bank to Haiti. Funds which were dedicated to improve education, public health and roads.

    For much of 2001-2004, the U.S. insisted that any international funds sent to Haiti had to go through non-governmental organizations. Funds that would have provided government services were re-routed thus shrinking the ability of the government to provide aid.

    For years the U.S. has helped ruin small farmers in Haiti by dumping heavily subsidized U.S. rice on their market making it extremely difficult for small farmers to survive. This was done to help U.S. farmers. Haitian farmers? They don't vote in the U.S.

    Those who visit Haiti will confirm that the biggest SUVs in Port au Prince are plastered with decals of non-governmental organizations. The biggest offices are for private groups doing the basic work of government - healthcare, education, disaster response. And all are guarded not by police but by private heavily-militarized security.

    The government was systematically starved of funds. The public sector shrank away. Poor people streamed to the cities.

    Thus there are no rescue units. Little public healthcare is available.

    So when disaster struck, the people of Haiti were on their own. We can see them pitching in. We can see them trying. They are courageous and generous and innovative, but volunteers cannot replace government. So people suffer and die in greater numbers than necessary.

    The results are on display for all to see. Tragically, much of the suffering after the earthquake is "Made in the USA."

    Read the original article.

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    1/15/2010 10:47:00 AM 0 comments

    Monday, June 08, 2009

     

    Analysis of Indian Election Results

    by Dollars and Sense

    From D&S collective member Smriti Rao; I am posting this belatedly:

    India-watchers across the world celebrated the unexpectedly strong victory of the Congress-party–led coalition in Indian elections, interpreting it as a victory for centrism over extremism of both the religious and (left) economic kind. Journalists for the mainstream press in the west seemed as relieved about the poor performance of the left parties in India as they were about the defeat of the right-wing nationalist party, the BJP. Every report on the Indian elections seems to end by predicting that the Prime Minister, Manmohan Singh, can now push forward with reforms—the codeword for economic liberalization—now that his hands are no longer 'tied' by a strong Left party presence in the government.

    And yet, as these same journalists attempt to explain why the Congress won, they usually point to India’s relative insulation from the current economic crash—a result of its moderation in the pursuit of economic liberalization (staying away from further financial sector liberalization, for example)—and its institution of some social safety net programs—particularly a national employment guarantee scheme in rural India. As left commentator Vijay Prashad points out, both 'achievements' were at least partly the result of pressure from the very same Left parties these journalists seem to criticize as holding India back and neither would suggest that this government should interpret its victory as a mandate for further liberalization. (See this Counterpunch article.)

    The recent appointment of Congress Party veteran Pranab Mukherjee as Finance minister suggests that while the Prime Minister is planning to push the liberalization process forward, he may be willing to proceed cautiously. While Mukherjee cut his political teeth in the Congress' socialist days, he is best known for being a political survivor, able to reinvent himself as the environment around him changes. He was instrumental in pushing forward the recent nuclear deal with the US—a far cry from the days when political upheavals in India were routinely attributed by the Congress Party to the foreign hand' of the US. And he is clearly on board with the broad idea of economic reforms—the government yesterday announced it was considering removing its decades-long program of subsidizing gas prices (see this Reuters report). However, unlike one of the other possible candidates for the Finance Ministry post, he is not considered a free-market ideologue. Let us hope he, and the Prime Minister, vindicate the faith the Indian voter has placed in them.

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    6/08/2009 07:24:00 PM 0 comments

    Tuesday, March 10, 2009

     

    Ha-Joon Chang on Democracy Now

    by Dollars and Sense

    Cambridge University economist Ha-Joon Chang was on Democracy Now! today. (Hat-tip to Taki M.) We ran an online review of his book Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism by Mark Engler a couple of months ago. Here are some excerpts from the DN! interview:

    AMY GOODMAN: The US government has poured hundreds of billions of dollars into the US economy in the wake of the financial crisis. But what steps are being taken to address the crisis on a global scale? On Sunday, the World Bank warned of the first global recession since World War II, with the world economy set to shrink for the first time since the 1940s. The bank also cautioned that the cost of helping poorer nations in crisis would exceed the current financial resources of multilateral lenders. The economic crisis is projected to push around 46 million people into poverty this year.

    The financial crisis is forcing some to rethink the neoliberal policies widely blamed for the financial collapse. On Monday, British Prime Minister Gordon Brown called for a new international fund to support poorer countries during the global recession. He also acknowledged richer Western nations have often imposed economic policies on poorer countries that they haven't followed themselves.
    PRIME MINISTER GORDON BROWN: We will work with the World Bank and our G20 partners to build support for a new fund specifically to help the world's poorest through the downturn. Too often, our responses to past crises have been inadequate or misdirected, promoting economic orthodoxies that we ourselves have not followed and that have condemned the world's poorest to a deepening crisis of poverty.

    AMY GOODMAN: Brown says he'll raise the issue of a global fund at the next G20 meeting in July.

    Well, my first guest has been among the leading economists to criticize the neoliberal policies imposed on poor nations but not followed by the West. Ha-Joon Chang is an economist at the University of Cambridge specializing in developmental economics. In 2005, he was awarded the Leontief Prize for Advancing the Frontiers of Economic Thought. He is author of the books Kicking Away the Ladder: Development Strategy in Historical Perspective, and his latest is called Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism.

    Welcome to Democracy Now!, as you come from, well, Gordon Brown's country to this one. First, what is your assessment of the situation right now? Warren Buffett has just said that the economy has gone off a cliff.

    HA-JOON CHANG: Well, I think we are facing the biggest economic crisis since the Great Depression. Now, it probably wouldn't get as bad as the Great Depression, because, unlike in the Great Depression, governments are more willing to intervene with deficit spending and nationalizing financial institutions and giving subsidies to industry and so on, whereas in the 1930s they more kind of adamantly held onto free market doctrines, which they subsequently abandoned, but, I mean, there was a period of time when they just held onto it and lost the opportunity. So I don't think the impact would not be as severe as what it was in the 1930s, but yes, I mean, there's no question that this is as big or possibly even bigger a crisis than what we saw in 1929.

    Read the rest of the transcript, or watch the video.

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    3/10/2009 01:08:00 PM 0 comments

    Tuesday, November 25, 2008

     

    Neoliberalism, the IMF, Summers, & Geithner

    by Dollars and Sense

    Interesting post by Ken Hanly on lbo-talk, about Obama's new economics appointees: Timothy Geithner (to be Treasury Secretary) and Larry Summers (to be head of the National Economics Council, which coordinates economic policy throughout the executive branch):

    Both Summers and Geithner worked at the IMF and favored the deregulation that caused the financial crisis and Geithner of course has worked with Paulson and Bernanke and also used taxpayer money to help JP Morgan purchase Bear Stearns.

    http://www.tnr.com/politics/story.html?id=c85b418b-5237-4f54-891f-8385243162bd

    Geithner also won solid reviews for his handling of the Bear Stearns meltdown in March, when he greased JP Morgan's purchase of the failed investment bank by insuring it against up to $29 billion in losses on Bear's dowry of toxic assets. As the economist Brad DeLong has written, Geithner seemed to strike the right balance between preventing a crisis (by effectively saving Bear's bondholders and counterparties) and discouraging irresponsible risk-taking (JP Morgan's bargain-basement purchase-price saddled Bear's stockholders with huge losses). Though some complain that JP Morgan itself made out too well, few disagree with the deal's basic contours.

    The IMF is continuing neoliberal policies of the sort that prevailed during the time when Summers was there. The neoliberals are not dead they are just changing tack because they need to socialise losses for a while and government intervention is a means of doing this. There is a need to spread a few crumbs as well since not enough have trickled down to stimulate demand. The public also needs to pay for the worn down infrastructure of advanced capitalist countries. Here is what is happening due to the IMF in Hungary and Iceland:

    http://www.socialistproject.ca/bullet/bullet155.html

    This unfolding social crisis has returned the IMF to center stage. Typically, the IMF lends to those countries facing potential collapse and, in return, demands the fulfillment of stringent economic conditions. The scale of borrowing is already immense: Iceland ($2.4-billion), Ukraine ($16.5-billion), and Hungary ($15.7-billion) have been extended loans with Pakistan, Serbia, Belarus, and Turkey likely candidates in the near future.

    The conditions that come with this latest round of IMF lending have been particularly opaque. The policies that Ukraine is expected to pass, for example, are not yet known despite the fact the country has essentially agreed to take a $16.5-billion loan from the IMF. Hungary has agreed to cuts in welfare spending, a freeze in salaries and canceling bonuses for public sector workers yet the final details have not been made public. Iceland was required to raise interest rates to 18% with the economy predicted to contract by 10% and inflation reaching 20%.

    We can certainly expect that the conditions attached to loans in the poorer countries in the Global South will be much more stringent than those imposed on these European countries. There is little doubt that these countries will face massive job losses, intense pressure to privatize public resources, and slashing of state spending on welfare, education and health in the name of 'balanced budgets.' Whether these attacks on the social fabric are successful, however, will ultimately depend on the level of resistance they face.

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    11/25/2008 11:46:00 AM 0 comments

    Thursday, July 10, 2008

     

    G-8 Crisis: Failing to Fight Food Prices

    by Dollars and Sense

    This weeks meeting of the G-8 Industrial nation’s leaders concluded with a statement pledging action on, in part, the issue of rising global food prices; "We agreed on the need to address in particular, issues of elevated oil and food prices and global inflationary pressure, stability of the financial markets and fight against protectionism.”

    It is obvious that the food crisis needs to be addressed, and millions of people saved from the brink of starvation, but it seems as though the G-8 leaders are committed more to maintaining the status quo or further cementing the structural problems that lead to the crisis in the first place. The leaders called for more aid to countries particularly stricken from higher food prices but as Robert Weissman points out, this aid is usually administered by the IMF which requires certain neoliberal pro-market measures to be implemented in order for that aid to be delivered. These measures have had a pathetic history of failing in poverty stricken countries around the world and have been blamed for causing all sorts of crises, including the current one with food prices.

    While the attention is, and should be, placed primarily on impoverished countries—whose residents literally survive off stable food prices—even here in the United States food prices are having a noticeable effect on everyday life. Aside from simply higher prices in grocery stores, such signs as people flooding food banks and overbudget and undersubsidized school lunch programs indicate the wide reaching negative influence of high food prices.

    Be sure to check out the upcoming issue of Dollars & Sense for several insightful articles on the world food crisis and its causes.

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    7/10/2008 11:56:00 AM 0 comments