Category Archives: IMF

IMF, WB, and WTO: Scaremongering Threats on De-Globalization and Tariffs

As key representatives of the three chief villains of international finance and trade, the IMF, World Bank (WB) and the World Trade Organization (WTO) met on the lush resort island of Bali, Indonesia, they warned the world of dire consequences in terms of reduced international investments and decline of economic growth as a result of the ever-widening trade wars initiated and instigated by the Trump Administration. They criticized protectionism that might draw countries into decline of prosperity. The IMF cuts its global economic growth forecast for the current year and for 2019.

This is pure scaremongering based on nothing. In fact, economic growth of the past that claimed of having emanated from increased trade and investments has served a small minority and driven a widening wedge between rich and poor of both developing and industrialized countries. It’s interesting how nobody ever talks about the internal distribution of GDP growth that these handlers and instruments of empire and liars for the elite are boasting about; nobody ever seems to question the way these growth rates are calculated or perhaps just drawn out of hot air? Take the case of Peru, a resource-rich country that boasted in the past often an economic growth of 5% to 7%. On average, the distribution of this growth was such that 80% went to 5% of the population and 20% was to be distributed among 95% of the people. This doesn’t even address the fragmentation of the lower and higher tiers of the percentage breakdowns, but it surely creates more poverty, more inequality, more unemployment and more delinquency.

Or just look at the insane and totally unfounded IMF prediction of 1 million percent inflation of the Venezuelan new currency in 2018 and 2019?  What are they talking about? No substantiation whatsoever. The same with the prediction of dire consequences from reduced trade, when trade as we know it, has and is serving almost exclusively the corporate world of rich industrialized countries, leaving poorer developing countries behind with a burden of unfair deals and often a resulting debt trap.

Such manipulations of truth coming out of international financial and trade organizations, especially the IMF and the WB, are so flagrantly and scrupulously wrong that they cannot be backed with a shred of professionalism, yet they get away with it because of their apparent unfailable reputation, scaremongering government into doing what is against their and their peoples’ best interest, namely, caring for their own local, sovereign economy, without any foreign interference.

Time and again it has been proven that countries that need and want to recover from economic fallouts do best by concentrating on and promoting their own internal socioeconomic capacities, with as little as possible outside interference. One of the most prominent cases in point is China. After China emerged on 1 October 1949 from centuries of western colonization and oppression by Chairman Mao’s creation of the People’s Republic of China (PRC), Mao and the Chinese Communist party first had to put a devastated ‘house in order’, a country ruined by disease, lack of education, suffering from hopeless famine as a result of shameless exploitation by western colons. In order to do that China remained practically closed to the outside world until about the mid- 1980’s. Only then, when China had overcome the rampant diseases and famine, built a countrywide education system and became a net exporter of grains and other agricultural products, China, by now totally self-sufficient, gradually opened its borders for international investments and trade.  And look where China is today. Only 30 years later, China has not only become the world’s number one economy, but also a world super power that can no longer be overrun by western imperialism.

But you don’t need to look that far. North Dakota saved herself from the 2008 “crisis”, by using public banking addressing the ND State’s economic needs – not the shareholder’s greed – and planning production and service activities that guaranteed basically full employment, while the rest of the country’s unemployment skyrocketed. The State’s economy grew by close to 3% in 2008 and 2009, and is still today the State with the fastest growth rate in the country and with the lowest unemployment rate. This is mostly due to a state economic development policy that concentrates on local capacities and that banks on public banking. Today, North Dakota has still the only public bank in the country; but other States, like New Jersey, New Mexico, Arizona and others, as well as the city of Los Angeles are at the brink of creating pubic banking. The mainstream media, however, doesn’t propagate such examples, as they are not in the interest of the banking and corporate oligarchs.

Local economy with local investments for the benefit of the local population, is, of course, not what the ultra-capitalist system wants. It doesn’t fit the neoliberal economic doctrine – driving globalization forward, pushing its bitter medicine of austerity down poor governments throats, so to further exploit their people, creating more poverty, milking their social systems and steeling their natural resources.

Enough! Wake up! Whatever you may think of President Trump – and he is certainly no panacea for world peace and his abject policy of interference in foreign lands and fueling conflicts and wars in the Middle East and around the globe must be condemned – but his protectionist policies, the “tariff wars” are a welcome sword into the belly of globalization, of the very neoliberal doctrine that has for the last thirty years brought more misery to 99.99% of the planet’s population than any other economic doctrine since Adam Smith. Trump may or may not know what he is doing, but certainly his handlers and advisers, hidden or overt, know the purpose of their newly professed turn of international policy.

Its intention is to cut the political cohesion created by globalization, to divide again for the empire to conquer. Yes. The intention is not to promote local economies, per se, but rather to get countries ready for unguarded bilateral negotiations and agreements between Washington and the developing world, under which the latter have no protection, and with their mostly corrupt leaders, they buckle under facing the harsh conditions of the empire. So, the purpose is not to help, say, the Latin American US backyard to become sovereign again, to the contrary, with imposed bilateral deals – see Brazil, Argentina, Chile, Ecuador, Peru, Colombia – they are slated to become increasingly vulnerable to and dependent on the US and US-dollar hegemony.

The point is for self-conscious and alert governments with the desire to return to their sovereign national politics, this is a crucial moment of truth to take advantage of. The ship is turning. It is the moment to jump off the globalized bandwagon, the globalized trade, the open borders for indiscriminate foreign investments; it is time to sit down and reflect and return to autonomous local policies: local economies, for local markets, with local money and local public banking for the benefit of the local economy. Trade, of course, is part of a local economy; but trade should best be kept within the realm of friendly neighbors and nations that have similar interests and similar political convictions. Trade under de-globalized circumstances should and will return equal benefits for partners, a win-win situation for all trading partners – as it should be according to the original interpretation of trade. By contrast, modern trade as we know it has almost consistently benefited the rich countries to the detriment of the poorer ones.

A good example for fair and equal trade may be ALBA (Alianza Bolivariana para los Pueblos de Nuestra América) – an association of 11 Latin American and Caribbean countries (Antigua and Barbuda Bolivia, Cuba, Dominica, Grenada, Nicaragua, Saint Kitts and Nevis, Saint Lucia, Saint Vincent, Surinam, the Grenadines and Venezuela), initiated and created by Venezuela and Cuba. ALBA may be an excellent illustration on how trade should work between countries or groups of countries. Most people have never heard of ALBA, for the simple reason the international media are typically silent about it, because the neoliberal elite doesn’t want a case of equality to become an example for others to follow. There exist currently other similar, even lesser known cases of fair and equal trade throughout the world, that are equally silenced by the media.

Promoting fair and equal trade is not an agenda item of WTO, nor of the IMF or the World Bank. Their role is just the contrary, being facilitators for the west to further exploit the people of the South and to further deplete the workers’ accumulated funds of their social safety-net that are still available in many western industrialized countries, especially in the western EU. It’s the bedrock of social safety that can be privatized and sucked empty by the international corporate banking system, along with privatization of social infrastructure, such as water supply and sanitation, electricity, hospitals, airports, railways – and much more. All what has the air of profitability can and must be privatized under neoliberal economic doctrines.

Countries, nations and societies, beware from listening and adhering to and working with these nefarious globalizing organizations – IMF, WTO and WB. They are mere servants of western corporatism and debt enslaving financial systems driven by the US Federal Reserves (FED), as well as Wall Street and their European banking partners.

This is an appeal to all countries that are proud of regaining their political sovereignty and economic autonomy, to ignore scaremongering and fear imposing threats by the IMF, the World Bank and WTO. They are not representing the truth, but their nasty role is to belie reality in favor of manipulative invented statistics that are expected to being believed because they stem from these so-called well-reputed institutions. Again, the best example of the IMF’s nonsensical statements is their repeated denigration of Venezuela, accusing the country of fostering an economy that creates a one million percent inflation in 2018 and even higher, they say, in 2019. Can you imagine? That says it all. Be aware – their words, whether spoken in Bali, Washington or Geneva, are nothing more than fear- and threat mongering hot air.

A Global People’s Bailout for the Coming Crash

When the global financial crisis resurfaces, we the people will have to fill the vacuum in political leadership. It will call for a monumental mobilisation of citizens from below, focused on a single and unifying demand for a people’s bailout across the world.

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A full decade since the great crash of 2008, many progressive thinkers have recently reflected on the consequences of that fateful day when the investment bank Lehman Brothers collapsed, foreshadowing the worst international financial crisis of the post-war period. What seems obvious to everyone is that lessons have not been learnt, the financial sector is now larger and more dominant than ever, and an even greater crisis is set to happen anytime soon. But the real question is when it strikes, what are the chances of achieving a bailout for ordinary people and the planet this time?

In the aftermath of the last global financial meltdown, there was a constant stream of analysis about its proximate causes. This centred on the bursting of the US housing bubble, fuelled in large part by reckless sub-prime lending and an under-regulated shadow banking system. Media commentaries fixated on the implosion of collateralised debt obligations, credit default swaps and other financial innovations—all evidence of the speculative greed and lax government oversight which led to the housing and credit booms.

The term ‘financialisation’ has become a buzzword to explain the factors which precipitated these events, referring to the vastly expanded role of financial markets in the operation of domestic and global economies. It is not only about the growth of big banks and hedge funds, but the radical transformation of our entire society that has taken place as a result of the increasing dominance of the financial sector with its short-termist, profitmaking logic.

The origins of the problem are rooted in the early 1970s, when the US government decided to end the fixed convertibility of dollars into gold, formally ending the Bretton Woods monetary system. It marked the beginning of a new regime of floating exchange rates, free trade in goods and the free movement of capital across borders. The sweeping reforms brought in under the Thatcher and Reagan governments accelerated a wave of deregulation and privatisation, with minimum protective barriers against the ‘self-regulating market’.

The agenda was pushed aggressively by most national governments in the Global North, while being imposed on many Southern countries through the International Monetary Fund and World Bank’s infamous ‘structural adjustment programmes’. A legion of books have examined the disastrous consequences of this market-led approach to monetary and fiscal policy, derisorily labelled the neoliberal Washington Consensus. As governments increasingly focused on maintaining low inflation and removing regulations on capital and corporations, the world of finance boomed—and the foundations were laid for a dramatic dénouement in 2008.

Missed opportunities

What’s extraordinary to recall about the immediate aftermath of the great crash is the temporary reversal of those policies that had dominated the previous two decades. At the G20 summit in April 2009 hosted by British Prime Minister Gordon Brown, heads of state envisaged a return to Keynesian macroeconomic prescriptions, including a large-scale fiscal stimulus in both developed and developing countries. It appeared that the Washington Consensus had suddenly lost all legitimacy. The liberalised global financial system had clearly failed to provide for a net transfer of resources to the developing world, or prevent instability and recurrent crisis without effective state regulation and democratic public oversight.

Many civil society organisations saw the moment to call for fundamental reform of the Bretton Woods institutions, as well as a complete rethink of the role of the state in the economy. There was even talk of negotiating a new Bretton Woods agreement that re-regulates international capital flows, and supports policy diversity and multilateralism as a core principle (in direct contrast to the IMF’s discredited approach).

The United Nations played a staunch role in upholding such demands, particularly through a commission set up by the then-President of the UN General Assembly, Miguel d’Escoto Brockmann. Led by Nobel laureate Joseph Stiglitz, the ‘UN Conference on the World Financial and Economic Crisis and its Impact on Development’ proposed a number of sensible measures to protect the least privileged citizens from the effects of the crisis, while giving developing countries greater influence in reforming the global economy.

Around the same time, the UN Secretary-General endorsed a Global Green New Deal that could stimulate an economic recovery, combat poverty and avert dangerous climate change simultaneously. It envisioned a massive programme of direct public investments and other internationally-coordinated interventions, arguing that the time had come to transform the global economy for the greater benefit of people everywhere, including the millions living in poverty in developing and emerging industrial economies.

This wasn’t the first time that nations were called upon to enact a full-scale reordering of global priorities in response to financial turmoil. At the onset of the ‘third world’ debt crisis in 1980, an Independent Commission on International Development Issues convened by the former West German Chancellor, Willy Brandt, also proposed far-reaching emergency measures to reform the global economic system and effectively bail out the world’s poor.

Yet the Brandt Commission proposals were widely ignored by Western governments at the time, which marked the rise of the neoliberal counterrevolution in macroeconomic policy—and all the conditions that led to financial breakdown three decades later. Then once again, governments responded in precisely the opposite direction for bringing about a sustainable economic recovery based on principles of equity, justice, sharing and human rights.

A world falling apart

We are all familiar with the course of action taken from 2008-9: colossal bank bailouts enacted (without public consultation) that favoured creditors, not debtors, despite using taxpayer money. Quantitative easing (QE) programmes that have pumped trillions of dollars into the global financial system, unleashing a fresh wave of speculative investment and further widening income and wealth gaps. And the perceived blame for the crisis deflected towards excessive public spending, leading to fiscal austerity measures being rolled out across most countries—a ‘decade of adjustment’ that is projected to affect nearly 80 percent of the global population by 2020.

To be sure, the ensuing policy responses across Europe were often compared to structural adjustment programmes imposed on developing countries in the 1980s and 1990s, when repayments to creditors of commercial banks similarly took precedence over measures to ensure social and economic recovery. The same pattern has repeated in every crisis-hit region, where the poorest in society pay the price through extreme austerity and the privatisation of public assets and services, despite being the least to blame for causing the crisis in the first place.

After ten years of these policies a new billionaire is created every second day, banks are still paying out billions of dollars in bonuses each year, and the top 1% of the world population are far wealthier than before the crisis happened. At the same time, global income inequality has returned to 1820 levels, and indicators suggest progress is now reversing on the prevention of extreme poverty and multiple forms of malnutrition.

Indeed the United Nations continues to face the worst humanitarian situation since the second world war, in large part due to conflict-driven crises that are rooted in the economic fallout of the 2008 crash—most dramatically in Syria, Libya, and Yemen. Countries of both the Global North and South remain in the grip of a record upsurge of forced human displacement, to which governments are predictably failing to respond to in the direction of cooperative burden sharing through agreements and institutions at the international level.

Not to mention the rise of fascism and divisive populism that is escalating in almost every society, often as a misguided response to pervasive inequality and a widespread sense of unfairness among ordinary workers. It is surely reasonable to suggest that all these trends would not be deteriorating if the community of nations had seized the opportunity a decade ago, and acted in accordance with calls for a just transition to a more equitable world order.

The worst is yet to come

We now live in a strange era of political limbo. Neoclassical economics may have failed to predict the great crash or provide answers for a sustained recovery, yet it still retains its hold on conventional academic thought. Neoliberalism may also be discredited as the dominant political and economic paradigm, yet mainstream institutions like the IMF and OECD still embrace the fundamentals of free market orthodoxy and countenance no meaningful alternative. Consequently, the new regulatory initiatives agreed at the global level are largely voluntary and inadequate, and governments have done little to counter the power of oligopolistic banks or prevent reckless speculative behaviour.

Banks may be relatively safer and possess a bigger crisis toolkit, but the risk has moved to the largely unregulated shadow banking system which has massively increased in size, growing from $28 trillion in 2010 to $45 trillion in 2018. Even major banks like JP Morgan are forewarning an imminent crisis, which may be caused by a digital ‘flash crash’ in which high frequency investments (measuring trades in millionths of a second) lead to a sudden downfall of global stock markets.

Another probable cause is the precipitous rise in global debt, which has soared from $142 to $250 trillion since 2008, three times the combined income of every nation. Global markets are running on easy money and credit, leading to a debt build-up which economists from across the political spectrum agree cannot last indefinitely without catastrophic results. The problem is most acute in emerging and developing economies, where short-term capital flowed in response to low interest rates and QE policies in the West. As the US and other rich countries begin to steadily raise interest rates again, there is a risk of a mass exodus of capital from emerging markets that could trigger a renewed debt crisis in the world’s poorest countries.

Of most concern is China, however, whose credit-fuelled expansion in the post-crash years has led to massive over-investment and national debt. With an overheating real-estate sector, volatile stock market and uncontrolled shadow banking system, it is a prime candidate to be the site for the next financial implosion.

However it originates, all the evidence suggests that an economic collapse could be far worse this time around. The ‘too-big-to-fail’ problem remains critical, with the biggest US banks owning more deposits, assets and cash than ever before. And with interest rates at historic lows for many G-10 central banks while the QE taps are still turned on, both developed and developing countries have less policy and fiscal space to respond to another shock.

Above all, China and the US are not in a position to take the same decisive central bank action that helped avert a world depression in 2008. And then there are all the contemporary political factors that mitigate against a coordinated international response—the retreat from multilateralism, the disintegration of established geopolitical structures and relationships, the fragmentation and polarisation of political systems throughout the world.

After two years of a US presidency that recklessly scraps global agreements and instigates trade wars, it is hard to imagine a repeat of the G20 gathering in 2009 when assembled leaders pledged never to go down the road of protectionist tariff policies again, fearing a return to the dire economic conditions that led to a world war in the 1930s. The domestic policies of the Trump administration are also especially perturbing, considering its current push for greater deregulation of the financial sector—rolling back the Dodd-Frank and consumer protection acts, increasing the speed of the revolving door between Wall Street and Washington, D.C., and more.

Mobilising from below

None of this is a reason to despair or lose hope. The great crash has opened up a new awareness and energy for a better society that brings finance under popular control, as a servant to the public and no longer its master. Many different movements and campaigns have sprung up in the post-crash years that focus on addressing the problems wrought by financialisation, which more and more people realise is the underlying source of most of the world’s interlinking crises. All of these developments are hugely important, although the true test of this rising political consciousness will come when the next crash happens.

After the worldwide bank bailouts of 2008-9—estimated in excess of $29 trillion by the US Federal Reserve alone—it is no longer possible to argue that governments cannot afford to provide for the basic necessities of everyone. Just a fraction of that sum would be enough to end income poverty for the 10% of the global population who live on less than $1.90 a day. Not to mention the trillions of dollars, euros, pounds and yen that have been directly pumped into financial markets by central banks of the major developed economies, constituting a regressive form of distribution in favour of the already wealthy that could have been converted into some form of ‘quantitative easing for the people’.

A reversal of government priorities on this scale is clearly not going to be led by the political class. They have already missed the opportunity, and are largely beholden to vested interests that are unduly concerned with short-term profit maximisation, not the rebuilding of the public realm or the universal provision of essential goods and services. The great crash and its aftermath was a global phenomenon that called for a cooperative global response, yet the necessary vision from within the ranks of our governments was woefully lacking. If the financial crisis resurfaces in a different and severer manifestation, we the people will have to fill the vacuum in political leadership. It will call for a monumental mobilisation of citizens from below, focused on a single and unifying demand for a people’s bailout across the world.

Much inspiration can be drawn from the popular uprisings throughout 2011 and 2012, although the Arab Spring and Occupy movements were unable to sustain the momentum for change without a clear agenda that is truly international in scope, and attentive to the needs of the world’s majority poor. That is why we should coalesce our voices around Article 25 of the Universal Declaration of Human Rights, which proclaims the right of everyone to the minimal requirements for a dignified life—adequate food, housing, medical care, access to social services and financial security.

Through ceaseless demonstrations in all countries that continue day and night, a united call for implementing Article 25 worldwide may finally impel governments to cooperate at the highest level, and rewrite the rules of the international economic system on the basis of shared mutual interests. In the wake of a breakdown of the entire international financial and economic order, such a grassroots mobilisation of numberless people may be the last chance we have of resurrecting long-forgotten proposals in the UN archives, as notably embodied in the aforementioned Brandt Report or Stiglitz Commission.

The case of Iceland is widely remembered as an example of how a people’s bailout can be achieved, following the ‘Pots and Pans Revolution’ that swept the country in 2009—the largest protests in the country’s history to date. As a result of the public’s demands, a new coalition government was able to buck all trends by avoiding austerity measures, actively intervening in capital markets and strengthening social programs for the less privileged. The results were remarkable for Iceland’s economic recovery, which was achieved without forcing society as a whole to pay for the blunders of corrupt banks. But it still wasn’t enough to prevent the old establishment political parties from eventually returning to power, and resuming their support for the same neoliberal policies that generated the crisis.

So what must happen if another systemic banking collapse occurs of even greater magnitude, not only in Iceland but in every country of the world? That is the moment when we’ll need a global Pots and Pans Revolution that is replicated by citizens of all nationalities and political persuasions, on and on until the entire planet is engulfed in a wave of peaceful demonstrations with a common cause. It will require a huge resurgence of the goodwill and staying power that once animated Occupy encampments, although this time focused on a more inclusive and universal demand for implementing Article 25 and sharing the world’s resources.

It may seem far-fetched to presume such an unprecedented awakening of a disillusioned populace, as if we can expect a visionary leader of Christ-like stature to point out the path towards resurrecting the UN’s founding ideals of “better standards of life for everyone in the world”. Unfortunately, nothing less may suffice in this age of economic chaos and confusion, so let us all be prepared for the climactic events about to take place.

“Living above our means”: Macri, the IMF, and Other Victims of Austerity

Argentinian president Mauricio Macri speaking on September 3rd, 2018 (Youtube screenshot).

After a hectic weekend with speculation aplenty, Argentina woke up on September 3rd waiting for the announcements of president Mauricio Macri. After accomplishing the feat of being late in delivering a recorded video, the message of more than 20 minutes was finally broadcast, with Macri announcing new austerity measures to try and get an earlier disbursement of the funds contemplated in the agreement with the IMF that was signed in May.

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Argentina’s current context is one of economic contraction, inflation, an increase in interest rates and a strong devaluation of the currency, which has lost 50% of its value with respect to the US dollar so far in 2018. For all these woes the Argentinian president found the solution in resorting to the IMF. But he did manage to find a multitude of parties responsible for the current situation: the rise of oil prices, drought, the commercial “war” between the United States and China, troubles in Turkey and Brazil, and above all the corruption and bad policies of previous governments.

But while the Argentinian president did his best to assign blame to his enemies, near and far, the explanation for the crisis – the failure of neoliberalism – was right in the middle of the screen, since nobody embodies noeliberalism better than Mauricio Macri himself.

Finance minister Nicolás Dujovne later presented more details of the measures that the government wishes to implement, before departing to meet the IMF in order to secure an early release of funds. These measures include a tax on exports and a promise to reduce the 2019 deficit to 0. In the agreement with the IMF the goal was 1.3%, so this reduction will hinge on bigger cuts to public spending and hikes in energy and transportation prices.

It should be stressed that these measures do not represent a shift, but rather a doubling-down on the policies that have been implemented since the Cambiemos coalition took power. The past two years have seen brutal increases in electricity and gas prices, a pension reform, massive layoffs in the public sector, major cuts in areas such as science, education or healthcare, attacks against labour rights, etc., with disastrous consequences for the population.

The Argentinian government, who was represented by Dujovne in the US, hopes that this latest round of sacrifices to the almighty markets will slow down the currency devaluation and secure the blessing of the high priests of the IMF and Wall Street. Nevertheless, prophecies about market uncertainties do have a tendency to self-fulfil. Not only that, the Argentinian executive, now slashed in less than half, is a team of businessmen that will know which interests to protect when push comes to shove.1

Macri and Dujovne meeting with IMF Managing Director Christine Lagarde on March 16, 2018 (Photo: Casa Rosada)

Discursive platitudes

Macri’s speech was littered with elements that would have sounded extremely familiar to anyone who followed the austerity programmes that were implemented since 2010 in countries like Portugal or Greece. When the Argentinian president said that “we have been living above our means”, any Portuguese person could have recalled listening to their own president in 2011 – Cavaco Silva – say exactly the same thing.

Along the same lines, this was also the verdict reached by the Greek prime minister – Georgios Papandreou – who signed the first bailout agreement, and the all-powerful German finance minister – Wolfgang Schäuble – has always harped on this string to justify the austerity imposed on Greece. In truth the sanctimonious discourse of “living within our means” is no modern invention, but rather something that has always closely followed the neoliberal doctrine, even going back to Thatcher.

Another common element was the admission, with dishonest concern, that these measures will result in increased poverty. In 2011, the Portuguese prime minister went even further, saying that only by getting poorer would the crisis be overcome. In exchange, there is always a pledge that “the most vulnerable will be looked after”, and that those with more resources will be called upon to make bigger sacrifices, when it is well known that, almost by definition, the purpose is quite the opposite.

The cases of Greece and Portugal

Keeping in mind the distances between the examples we discuss, the similarities in the official discourse demand that we at least examine what took place in Greece and Portugal. In these cases the IMF was not the only creditor institution: it was joined by the European Central Bank and the European Union to form the fearsome “troika”. These were perhaps the most extreme cases of the austerity that was imposed throughout the continent in response to the crisis that broke out in 2008.

Greek GDP contracted by more than 40% since 2008. After the implementation of the memoranda of agreement with the troika, unemployment has consistently topped 20%, and youth unemployment has been around 40%. More than that, 4 out of 10 children are at risk of poverty. These are but a few indicators, among many others, that showcase the devastation that was unleashed upon the Greek people, while billions of euros of bailout money ended up directly in the hands of foreign banks.

As for the stated goal of the austerity packages, Greek public debt grew from 146% of GDP at the time of the first “structural reform” programme (2010) to 180% of GDP in 2018. Although officially Greece has exited the bailout programmes, the debt remains absolutely unpayable, and the idea that Greece can go on for decades balancing budgets under this weight is an illusion.

The Portuguese case is slightly less tragic. The 2015 elections resulted in a defeat for the right-wing coalition – which had implemented the deal signed with the troika in 2011 – and the emergence of a new government solution, which from afar might seem like it is on the left. The new government put an end to austerity and managed to revert the economic tendency and register economic growth once more.

The mere action of putting an end to austerity, while slowly reverting salaries and pensions to their 2011 levels, was a demonstration that the path of harsh budget cuts and tax increases was not the only choice. However, Portuguese public debt remains unpayable and an obstacle, among others, which will have to be confronted sooner or later.

Carlos Latuff depicts austerity in Greece

Where austerity leads to

This small transatlantic detour is useful to illustrate that, despite some declaring them as successful, the bailout plans did not manage to bring debt under control in Europe’s peripheral countries. But that goal, as well as the sacred budgetary targets, are simply argumentative artefacts.

Austerity packages, which are often more eloquently branded as “structural reforms”, are nothing but mechanisms to transfer wealth from labour to capital, with an underlying logic that profits are private and losses are socialised. When salaries and pensions are cut, when healthcare and education budgets are shrunk, when public services are dismantled, when thousands of workers are laid off, in order to pay back creditors, the people are being sacrificed to safeguard the interests of a handful of shareholders, be they national or foreign.

This transfer of wealth also occurs under the form of privatisations. These can be blatant or hidden under the pretext of the inefficiency of public management, but bailouts and structural adjustment plans have always been tremendous opportunities for capitalists. In the Greek case, important state assets, such as airports or the port of Piraeus, one of the biggest in the Mediterranean, ended up in private hands.

In truth, the Macri government has already made its position quite clear on the issue of privatizations; for example, in the energy sector, where the state is looking to sell its stake in several projects. In addition, the Argentinian company that produced satellites, ARSAT, was sold to an American company. The agreement with the IMF, and especially the version on steroids that will allow for an early release of funds, is sure to bring a new wave of privatisations, much to the delight of investors, and reviving ghosts of a not-so-distant past in Argentina.2

But it is not just through privatisation that room is opened up for private companies, especially multinational corporations, to flourish. The mere reduction of the reach of the state and public services leaves an open space to be filled by the whims of the market. In this context, the suppression of the health ministry, now reduced to a secretariat in the new ministry for health and social development, is quite symbolic. That this happened at a time when the implementation of the Universal Healthcare Coverage (CUS), a programme with a mercantile view of healthcare, is being discussed, is not a good omen for public healthcare in Argentina.

At this point we should go back to the issue of “living within our means”. The evolution of capitalism, even in times of crisis, has seen an ever growing concentration of wealth. It is estimated that 8 men own about as much wealth as the poorest half of the planet’s population. Therefore there are people living above what should be their means. But these are not pensioners, or public workers, or trade unionists, etc., as some would have us believe.

Resistance and repression

The Cambiemos government offensive, which will be intensified in the coming months, has been met with resistance from the Argentinian people in the streets. For example, a faculty strike in the university system, in protest against cutbacks in higher education and reforms in the pension system, was joined in August by a strong student mobilization in support, with several universities throughout the country temporarily occupied.

Trade unions, contradictions notwithstanding, also look to resist, and have called a general strike which is taking place on September 24-25. And perhaps there has been nothing more surprising and inspiring than the mobilisation of several hundred thousand people to defend the legalisation of abortion. Despite the goal not having been achieved for now, the awakening of consciences and the scale of the street mobilisations are building blocks for the upcoming struggles. The challenge is to turn all these struggles into attractor poles of a single, unified battle front.

Demonstration in Buenos Aires during a National Day of Protest, September 12 (Photo: Resumen Latinoamericano)

While it is fair to say that the rapid development of the crisis has caught the Argentinian government by surprise, the fact is that preparations to contain and repress any resistance to austerity had long been on the march. The decree which allows the armed forces to intervene in internal security matters, something which had not happened since end of the dictatorship, is particularly significant, not to mention the installation of US military bases in Argentinian territory.

The government and its talking heads have put forward a fallacious argument; namely, that with a tremendous sense of duty, those in charge are doing what needs to be done with no concern for upcoming elections. In reality what they are doing is ensuring that the interests of capitalists are shielded for decades, way beyond next year’s elections. It is the purest defence of class interests. Because at the end of the day power is not confined to the presidential palace or to legislative chambers.

An important difference with respect to cases such as Portugal or Greece is that in Argentina, thanks to the hegemony of media conglomerates such as the Clarín group, a scapegoat to which attention can be diverted has been put in place. This is the (alleged) corruption of Cristina Fernández de Kirchner and members of her government, which is presented as the root of all evils that befall Argentina. Similarly to what has happened in cases such as Lula’s in Brazil, the goal is to have the trial in the media for short-term political gain.3

The cases of Portugal and Greece, alongside many other recent examples of “rescue plans”, give an idea of what is to come. Under the excuse of “having lived above our means”, different mechanisms to transfer wealth to capital, brazen or hidden, will be implemented. And faced with the difficulty of meeting unrealistic budgetary targets that are imposed from the outside there will be no solution other than imposing more and more sacrifices on the majority of the people.

After its failure and exhaustion as a political project, neoliberalism resurfaced in Latin America essentially leaning on the media and on the (politicisation of the) judicial system. It now looks to contain any alternative, in the case of Argentina, by mortgaging the country’s future and reactivating repression mechanisms. All of this places Argentina in the front line of a battle that is not just about next year’s presidential elections. The task ahead is to resist, every day and in every way, against this renewed offensive, and at the same time to construct a true, and radical, alternative.

• Thanks to Luciana Daffra for her comments and corrections.

• First published in Investig’Action

  1. On September 17 Dujovne presented the 2019 budget before the Argentinian Congress. It is, in his words, an “austere budget”, with a 7% cut on public spending, a prediction of economic contraction of 2.4%, and a zero deficit goal.
  2. It is worth recalling that this is no pure ideological matter for Macri, since the Macri Group is one of the largest business conglomerates in Argentina, with activities over a range of sectors, and having directly benefited from privatisation of state assets in the past.
  3. Our goal is not to vouch for anyone’s innocence, rather to point out the clear manipulation of justice for political ends and the double standards (or lack of standards) of the media. In Argentina, for example, a large circus has been set up surrounding the famous “notebooks” which detail the corruption of a former official during the Kirchner governments. The notebooks came from a remorseful driver, but up until now only photocopies of the smoking gun have been presented. In exchange, Macri featuring in the Panama Papers did not seem to merit the same level of scrutiny from the media, and the same can be said about the “fake contributions” and money laundering in the campaign of Maria Eugenia Vidal, governor of the province of Buenos Aires and one of the main figures of Cambiemos.

Our Broken System has no “Moderate” Devotees

Western politics is tearing itself apart, polarising into two camps – or at least, it is in the official narrative we are being fed by our corporate media. The warring camps are presented as “moderate centrists”, on one side, and the “extreme right”, on the other. The question is framed as a choice about where one stands in relation to this fundamental political divide. But what if none of this is true? What if this isn’t a feud between two opposed ideological camps but rather two differing – and irrational – reactions to the breakdown of late-stage capitalism as an economic model, a system that can no longer offer plausible solutions to the problems of our age?

Neighbouring news headlines this week offered a neat illustration of the media’s framing of the current situation. Representing the “moderates”, German chancellor Angela Merkel made a “passionate address” in which she denounced the outbreak of far-right protests in east Germany and reports of the “hunting down” of “foreigners” – asylum seekers and immigrants.

She observed:

There is no excuse or explanation for rabble-rousing, in some cases the use of violence, Nazi slogans, hostility towards people who look different, to the owner of a Jewish restaurant, attacking police.

Ostensibly pitted against Merkel is Viktor Orban, Hungary’s “extreme right” prime minister. Hungary risks being stripped of its voting rights in the European Union because of Orban’s “rabble-rousing” policies and his anti-migrant agenda.

Shortly before the European parliament voted against Hungary, accusing its government of posing a “systematic threat” to democracy and the rule of law, Orban argued that his country was being targeted for preferring not to be “a country of migrants”.

He is far from an outlier. Several other EU states, from Italy to Poland, are close behind Orban in pursuing populist, anti-immigrant agendas.

Family feud

But does this civil war in Europe really reflect a divide between good and bad politics, between moderates and extremists? Are we not witnessing something else: the internal contradictions brought to the fore by a turbo-charged neoliberalism that is now so ideologically entrenched that no one dares question its suitability, let alone its morality?

In truth, the row between Merkel and Orban is a family feud, between sister and brother wedded to the same self-destructive ideology but in profound disagreement about which placebo should be administered to make them feel better.

What do I mean?

Merkel and the mainstream neoliberal elite are committed to an ever-more deregulated world because that is imperative for a globalised economic elite searching to accrue ever more wealth and power. That elite needs open borders and a lack of significant regulation so that it can plunder unrestricted the Earth’s resources – human and material – while dumping the toxic waste byproducts wherever is most profitable and convenient.

In practice, that means creating maximum damage in places and against life-forms that have the least capacity to defend themselves: the poorest countries, the animal kingdom, the forests and oceans, the weather system – and, of course, against future generations that have no voice. There is a reason why the deepest seabeds are now awash with our plastic debris, poisoning and killing marine life for decades, maybe centuries, to come.

Interestingly, this global elite makes a few exceptions to its policy of entirely open borders and sweeping deregulation. Through its pawns in the world’s leading capitals – the people we mistakenly think of as our political representatives – it has created small islands of opacity in which it can stash away its wealth. These “offshore tax havens” are highly regulated so we cannot see what goes on inside them. While the elite wants borders erased and the free movement of workers to set one against the other, the borders of these offshore “safe deposit boxes” are stringently preserved to protect the elite’s wealth.

International order

Meanwhile, the global elite has created international or trans-national structures and institutions precisely to remove the power of nation-states to regulate and dominate the business environment. The political class in the United States, France, Britain, Germany, Mexico or Brazil do not control the corporations. These corporations control even the biggest states. The banks are too big to fail, the arms manufacturers too committed to permanent war to rein in, the largely uniform narratives of the corporate media too powerful to dissent from.

Instead, global or trans-national institutions, such as the World Bank, the International Monetary, the European Union, NATO, BRICS and many others, remake our world to promote the globalised profits of the corporations.

The United Nations – a rival international project – is more problematic. It was created immediately after the Second World War with the aim of imposing a law-based international order, premised on respect for human rights, to prevent future large-scale wars and genocide. In practice, however, it chiefly serves the interests of the dominant western states through their capture of the Security Council, effectively the UN’s executive.

A few UN institutions – those in charge of human rights and prosecuting war crimes – that have the potential to restrain the power of the global elite find themselves ever more marginalised and undermined. Both the UN Human Rights Council and the International Criminal Court have been under sustained assault from US officials, both before and after Donald Trump became president.

Towards the abyss

The internal contradictions of this globalised system – between the unfettered enrichment of the elite and the endless resource depletion of the Earth and its weakest inhabitants – are becoming ever more apparent. Historically, the toxic waste from this system was inflicted on the poorest regions first, like puddles forming in depressions in the ground during a rainstorm.

As the planet has warmed, crops have failed, the poor have gone hungry, wars have broken out. All of this has been an entirely predictable outcome of the current economics of endless, carbon-based growth, coupled with resource theft. But unlike puddles, the human collateral damage of this economic system can get up and move elsewhere. We have seen massive population displacements caused by famines and wars, especially in the Middle East and North Africa. These migrations are not about to stop. They are going to intensify as neoliberalism hurtles us towards the economic and climate abyss.

The political class in the west are now experiencing profound cognitive dissonance. Merkel and the “moderates” want endless growth and a world without borders that is bringing gradual ruination on their economies and their privileges. They have no answers for the “extremists” on the right, who acknowledge this ruination and say something needs to be done urgently about it.

Orban and the far-right want to fiercely resurrect the borders that globalisation erased, to build barriers that will stop the puddles merging and inundating their higher ground. This is why the right is resurgent. They, far more than the moderates, can describe our current predicament – even if they offer solutions that are positively harmful. They want solid walls, national sovereignty, blocks on immigrants, as well as racism and violence against the “foreigners” already inside their borders.

The system is broken

We have to stop thinking of these political debates as between the good “moderates” and the nasty “extreme right”. This is a fundamental misconception.

The deluded “moderates” want to continue with a highly unsustainable form of capitalism premised on an impossible endless growth. It should be obvious that a planet with finite resources cannot sustain infinite growth, and that the toxic waste of our ever-greater consumption will poison the well we all depend on.

The west’s deluded far-right, on the other hand, believe that they can stand guard and protect their small pile of privilege against the rising tide of migrants and warming oceans caused by western policies of resource theft, labour exploitation and climate destruction. The far-right’s views are no more grounded in reality than King Canute’s.

Both sides are failing to grasp the central problem: that the western-imposed global economic system is broken. It is gradually being destroyed from within by its own contradictions. The “moderates” are doubly blind: they refuse to acknowledge either the symptoms or the cause of the disease. The “extremists” are as oblivious to the causes of the illness besetting their societies as the “moderates”, but they do at least recognise the symptoms as a sign of malaise, even if their solutions are entirely self-serving.

Squaring the circle

This can be seen in stark fashion in the deep divide over Britain’s decision to leave the European Union, so-called Brexit, which has cut across the usual left-right agendas.

The Remain crowd, who want to stay in Europe, believe Britain’s future lies in upholding the failed status quo: of a turbo-charged neoliberalism, of diminishing borders and the free movement of labour, of distant, faceless technocrats making decisions in their name.

Like a child pulling up the blanket to her chin in the hope it will protect her from the monsters lurking in the darkness of the bedroom, the “moderates” assume European bureaucrats will protect them from economic collapse and climate breakdown. The reality, however, is that the EU is one of the trans-national institutions whose chief rationale is accelerating our rush to the abyss.

Meanwhile, the Brexit crowd think that, once out of the EU, a small island adrift in a globalised world will be able to reclaim its sovereignty and greatness. They too are going to find reality a terrifying disappointment. Alone, Britain will not be stronger. It will simply be easier prey for the US-headquartered global elite. Britain will be jumping out of the EU frying pan into the flames of the Atlanticists’ stove.

What is needed is not the “moderates” or the “extreme right”, not Brexit or Remain, but an entirely new kind of politics, which is prepared to shift the paradigm.

The new paradigm must accept that we live in a world that requires global solutions and regulations to prevent climate breakdown. But it must also understand that people are rightly distrustful of distant, unaccountable institutions that are easily captured by the most powerful and the most pitiless. People want to feel part of communities they know, to have a degree of control over their lives and decisions, to find common bonds and to work collaboratively from the bottom-up.

The challenge ahead is to discard our current self-destructive illusions and urgently find a way to solve this conundrum – to square the circle.

Ethiopia: A Case Study in Take-Over by Western Interests

Ethiopia is a landlocked country, bordering on Somalia which is dominating the Horn of Africa. Due to several border conflicts during the past decades with Somalia, many of them supportive of Ethiopia by the US military, the border between the two countries has become porous and ill-defined. Ethiopia is also bordering on Djibouti, where the United States has a Naval Base, Camp Lemonnier, next to Djibouti’s international airport. The base is under AFRICOM, the Pentagon’s African Command. AFRICOM has its boots in Ethiopia, as it does in many other African countries.

Ethiopia’s new Prime Minister, Abiy Ahmed, has already demonstrated that he is poised to hand over his country to western interests, vultures, such as the World Bank, IMF and eventually the globalized Wall Street banking clan. In fact, it looks like these institutions were instrumental in manipulating parliamentary maneuvers, with arm-twisting of the ruling Ethiopian People’s Revolutionary Democratic Front (EPRDF) to make Mr. Abyi the new Prime Minister, succeeding Mr. Hailemariam Desalegn, who rather suddenly was forced to resign in February 2018, amidst endless foreign induced protests and violent street demonstrations. With EPRDF Ethiopia is a de facto one-party state. EPRDF is a coalition of different regional representations.

Read also Ethiopia – Breaking the Dam for Western Debt Slavery

Proud Ethiopia has never been colonized by western powers, per se, except for a brief Italian military occupation (1935 – 1939) by Mussolini. And now, in the space of a few months, since Mr. Abiy’s ascent to power, the country is being enslaved by the new western colonial instruments, the so-called international development institutions, the World Bank, IMF – and others will follow.

Mr. Abiy is an Oromo leader; Oromia being a disputed area between Ethiopia and Somalia. The latter is effectively controlling the Horn of Africa, overseeing the Gulf of Aden (Yemen) and the entire Iran-controlled Persian Gulf area. Control over the Horn of Africa is on Washington’s strategic wish list and may have become an attainable target, with the Oromo leader and new PM, Abiy Ahmed.

Think about it. Yemen, another ultra-strategic location, being bombed to ashes by the Saudis on behalf of the western powers, primarily the US and the UK, being subdued for domination by the west wanting to control the Gulf area, foremost Iran and her riches. On the other hand, Ethiopia, a prime location as an assault basis for drones, war planes and ships.

Curiously, Prime Minister Meles Zenawi, a former rebel leader, elected in 1991 and in power for 21 years, died suddenly at age 57 in August 2012, while actually recovering from an undisclosed illness in a hospital abroad, allegedly from an infection – according to official Ethiopian state television. He was succeeded by Mr. Hailemariam, who last February had to resign.

In the same vein of strange events – events to reflect on – PM Zenawi, about 18 months before he died, signed on 31 March 2011 a no-bid contract for US$ 4.8 billion with ‘Salini Costruttori’, alias Salini Impregilo. The Italian company, well established in Ethiopia since 1957, is responsible for the construction of the controversial “Grand Ethiopian Renaissance Dam”, formerly the Millennium Dam on the Nile. When finished, it will be African’s largest artificial water reservoir with a capacity of 74 billion m3.

Under construction since 2011, this gravity dam on the Blue Nile River in Ethiopia’s Benishangul-Gumuz Region, about 15 km from the Sudanese border, is expected to produce 6.45 gigawatts which will make it the largest hydroelectric power plant in Africa and the 7th largest in the world. The works are about two thirds completed, and the dam will take from 5 to 15 years to fill up.

The project was fiercely contested by Egypt which claimed that the dam would reduce the agreed amount of Nile water flowing into Egypt. However, Prime Minister Zenawi argued that the dam would not reduce the downstream flow, and – in addition to generating hydropower and making Ethiopia Africa’s largest electricity exporter, would help regulate irrigation, thus, helping to avert Ethiopia’s notorious droughts and famines that kill regularly tens of thousands of people. Indications are that this dam project could become an economic “power house” for Ethiopia, a country otherwise known as impoverished and destitute.

This water flow conflict between Ethiopia and Egypt was discussed in numerous meetings and conferences of the World Bank sponsored Nile Basin Initiative (NBI), encompassing ten riparian countries (Burundi, D.R. Congo, Egypt, Eritrea, Ethiopia, Kenya, Rwanda, Sudan, Tanzania, Uganda); and about 350 – 400 million people. It is not clear whether the dispute was ever satisfactorily settled.

Mr. Zenawi’s successor, PM Hailemariam Desalegn, continued with the project unchallenged and unchanged until his sudden resignation earlier this year. At the end of August 2018, in a surprise move, the new PM, Abiy Ahmed, ousted the dam project’s subcontractor, METEC, under the pretext of numerous work delays. METEC is a state enterprise run by the Ethiopian military. According to several insider accounts, there were never any complaints about project delays caused by METEC. The new sub-contract was to be awarded to a foreign private company.

Simultaneously, in another alarming occurrence, on 26 August 2018, Mr. Simegnew Bekele, the chief engineer and project manager of the controversial dam, was found murdered, shot to death, in his Landcruiser in an Addis Ababa parking lot.

The series of events, starting from the signing of the dam project in 2011, to the sudden death of then PM Zenawi a year later, the resignation of his successor, Mr. Hailemariam, earlier this year, the hasty appointment of the neoliberal PM Abiy Ahmed in February 2018, the assassination of the dam’s project manager in August 2018 – all this looks like well-orchestrated, with a few hiccups in between that were rapidly ironed out – to pave the way for a neoliberal, corporate and maybe foreign military take-over of this once proudly independent country, an African nation with a potentially prosperous future.

This leads to the other side of the same coin, the west is interested in.

With a population of about 104 million (2018 est.), Ethiopia is the second most populous country in Sub-Saharan Africa and one of the most densely populated ones, with an annual population growth rate of about 2.5%. Ethiopia is known for endemic poverty and her periodic droughts. Ethiopia is also the world’s second fastest growing non-oil economy (after Bhutan), having increased her GDP more than ten-fold since 2000, from US$ 8 billion to US$ 80.6 billion in 2017, however, with a nominal GDP of only US$850, or US$2,100 PPP (Purchasing Power Parity).

Agriculture contributes about 36% to GDP, indicating a considerable growth potential with regulated irrigation expected to emanate from the Renaissance Dam project. Economic expansion amounted to more than 10% in 2017 and is projected at close to 9% per year through 2019.

This economic profile, plus the potential increase in output from the Grand Renaissance Dam, offer more than fertile grounds for corporate exploitation through debt enslavement and privatization of public, civil and social services. This has already started. Ethiopia’s current debt is a modest 33.5% of GDP but is predicted to grow to at least 70% by 2022. Why?

In November 2017 the World Bank has committed US$ 4.7 billion over the coming 5 years, roughly a billion per year  which may be called blank checks. These funds are destined for structural adjustment type activities, for loosely defined and little controlled budget support measures, much of which, as worldwide experience shows, is likely to ‘disappear’ unproductively, leaving behind public debt, and what’s much worse, a plethora of austerity conditions, from cutting public employment, to privatization of water, electricity and other public services, as well as ‘land-grabbing’ type agricultural concessions to foreign agricultural enterprises.

The latter will be especially attractive, thanks to the new regulated irrigation potential, making Ethiopia’s desert fertile – but leaving hardly any additional food at affordable prices for the impoverished population in the country. Frequently such land concessions come with long-term GMO contracts attached. Bayer-Monsanto may already be a player in Ethiopia’s future agricultural sector. If so, the country may not only be enslaved by debt, but also by endless, oppressive, land-destructive GMO contracts that bear high risks for human health.

Such a WB commitment will usually be followed by an IMF intervention, both of which will serve as leverage for further debt from private banking and corporate investors. The modest 2017 debt ratio of about one third to GDP may explode and skyrocket in the near future, making Ethiopia the Greece of Africa, shamelessly exploited and “milked” to the bones by western corporate and financial interests.

Fortunately, there are other economic interests alive in Africa and especially in Ethiopia. There is, for example, China, for whom Ethiopia is a key partner and a linchpin for President Xi’s Belt and Road Initiative (BRI), a massive China-initiated infrastructure development plan, spanning the globe from east to west, via different routes, one of them via Africa. Although China has become cautious over the past years with direct investments in Ethiopia, mainly due to the lasting unrest, said to be over ‘territorial issues’, Ethiopia remains an important partner, because of its strategic location next to the tiny port of Djibouti, where China has a naval base. Ethiopia is also attractive for manufacturing with low-cost labor and because of her transport links to other African countries and a potentially large consumer market.

Chinese, Russian and other eastern investments are usually based on mutual benefits, in contrast to the western one-sided exploitation method. Hopefully, Chinese, Russian and other eastern investments may continue as a strong counter-balance to the west, and help bringing a more equitable development model not only to Ethiopia, but to the African Continent in general. In fact, recent statements by the leaders of South Africa, Ghana and Rwanda have praised Chinese investments over the western abusive ‘carrot and stick approach’. With the help of China, Russia and other eastern investors, Ethiopia might prevent western vultures from devouring the poverty struck nation and from falling into the trap of neoliberal, everything-goes “free market ideology” to the detriment of the Ethiopian population.

•  First published in New Eastern Outlook (NEO)

India: The State of Independence

India celebrates its independence from Britain on 15 August. However, the system of British colonial dominance has been replaced by a new hegemony based on the systemic rule of transnational capital, enforced by global institutions like the World Bank and WTO. At the same time, global agribusiness corporations are stepping into the boots of the former East India Company.

The long-term goal of US capitalism has been to restructure indigenous agriculture across the world and tie it to an international system of trade underpinned by export-oriented mono-cropping, commodity production for the global market and debtThe result has been food surplus and food deficit areas, of which the latter have become dependent on agricultural imports and strings-attached aid.

Whether through IMF-World Bank structural adjustment programmes, as occurred in Africa, trade agreements like NAFTA and its impact on Mexico or, more generally, deregulated global trade rules, the outcome has been similar: the displacement of traditional, indigenous agriculture by a corporatized model centred on transnational agribusiness and the undermining of both regional and world food security. The global food regime is in effect increasingly beholden to unregulated global markets, financial speculators and global monopolies.

India, of course, has not been immune to this. It is on course to be subjugated by US state-corporate interests  and is heading towards environmental catastrophe much faster than many might think. As I outlined in this previous piece, the IMF and World Bank wants India to shift hundreds of millions out of agriculture and has been directed to dismantle its state-owned seed supply system, reduce subsidies and run down public agriculture institutions.

The plan for India involves the mass displacement of people to restructure agriculture for the benefit of western agricapital. This involves shifting at least 400 million from the countryside into cities. A 2016 UN report said that by 2030, Delhi’s population will be 37 million.

One of the report’s principal authors, Felix Creutzig, says:

The emerging mega-cities will rely increasingly on industrial-scale agricultural and supermarket chains, crowding out local food chains.

The drive is to entrench industrial agriculture, commercialise the countryside and to replace small-scale farming, the backbone of food production in India. It could mean hundreds of millions of former rural dwellers without any work (India is heading for ‘jobless growth’). Given the trajectory the country seems to be on, it does not take much to imagine a countryside with vast swathes of chemically-drenched monocrop fields containing genetically modified plants or soils rapidly degrading to become a mere repository for a chemical cocktail of proprietary biocides.

The plan is to displace the existing system of livelihood-sustaining smallholder agriculture with one dominated from seed to plate by transnational agribusiness and retail concerns. To facilitate this, independent cultivators are being bankrupted, land is to be amalgamated to facilitate large-scale industrial cultivation and those farmers that are left will be absorbed into corporate supply chains and squeezed as they work on contracts, the terms of which will be dictated by large agribusiness and chain retailers.

Some like to call this adopting a market-based approach: a system in the ‘market-driven’ US that receives a taxpayer farm bill subsidy of around $100 million annually.

The WTO and the US-India Knowledge Initiative on Agriculture are facilitating the process. To push the plan along, there is a strategy to make agriculture financially non-viable for India’s small farms. The result is that hundreds of thousands of farmers in India have taken their lives since 1997 and many more are experiencing economic distress or have left farming as a result of debt, a shift to cash crops and economic liberalisation.

The number of cultivators in India declined from 166 million to 146 million between 2004 and 2011. Some 6,700 left farming each day. Between 2015 and 2022 the number of cultivators is likely to decrease to around 127 million.

For all the discussion in India about loan waivers for farmers and raising their income levels, this does not address the core of the problem affecting agriculture: the running down of the sector for decades, spiralling input costs, lack of government assistance and the impacts of cheap, subsidised imports which depress farmers’ incomes.

Take the cultivation of pulses, for instance. According to a report in the Indian Express (September 2017), pulses production increased by 40% during the previous 12 months (a year of record production). At the same time, however, imports also rose resulting in black gram selling at 4,000 rupees per quintal (much less than during the previous 12 months). This has effectively driven down prices thereby reducing farmers’ already meagre incomes. We have already witnessed a running down of the indigenous edible oils sector thanks to Indonesian palm oil imports on the back of World Bank pressure to reduce tariffs (India was virtually self-sufficient in edible oils in the 1990s but now faces increasing import costs).

On the one hand, there is talk of India becoming food secure and self-sufficient; on the other, there is pressure from the richer nations for the Indian government to further reduce support given to farmers and open up to imports and ‘free’ trade. But this is based on hypocrisy.

Writing on the ‘Down to Earth’ website in late 2017, Sachin Kumar Jain states some 3.2 million people were engaged in agriculture in the US in 2015. The US govt provided them each with a subsidy of $7,860 on average. Japan provides a subsidy of $14,136 and New Zealand $2,623 to its farmers. In 2015, a British farmer earned $2,800 and $37,000 was added through subsidies. The Indian government provides on average a subsidy of $873 to farmers. However, between 2012 and 2014, India reduced the subsidy on agriculture by $3 billion.

According to policy analyst Devinder Sharma, subsidies provided to US wheat and rice farmers are more than the market worth of these two crops. He also notes that, per day, each cow in Europe receives subsidy worth more than an Indian farmer’s daily income.

How can the Indian farmer compete with an influx of artificially cheap imports? The simple answer is that s/he cannot and is not meant to.

In the book The Invention of Capitalism, Michael Perelmen lays bare the iron fist which whipped the English peasantry into a workforce willing to accept factory wage labour. A series of laws and measures served to force peasants off the land and deprive them of their productive means. In India, we are currently witnessing a headlong rush to facilitate (foreign) capital and turn farmers into a reserve army of cheap industrial/service sector labour. By moving people into cities, it seems India wants to emulate China: a US colonial outpost for manufacturing that has boosted corporate profits at the expense of US jobs. In India, migrants – stripped of their livelihoods in the countryside – are to become the new ‘serfs’ of the informal services and construction sectors or to be trained for low-level industrial jobs.

Even here, however, India might have missed the boat as it is not creating anything like the number of jobs required and the effects of automation and artificial intelligence are eradicating the need for human labour across many sectors.

India’s high GDP growth has been fuelled on the back of debt, environmental degradation, cheap food and the subsequent impoverishment of farmers. The gap between their income and the rest of the population, including public sector workers, has widened enormously to the point where rural India consumes less calories per head than it did 40 years ago.

Amartya Sen and former World Bank Chief Economist Kaushik Basu have argued that the bulk of India’s aggregate growth occurred through a disproportionate rise in the incomes at the upper end of the income ladder. Furthermore, Global Finance Integrity has shown that the outflow of illicit funds into foreign bank accounts has accelerated since opening up the economy to neoliberalism in the early nineties. ‘High net worth individuals’ (i.e. the very rich) are the biggest culprits here.

While corporations receive massive handouts and interest-free loans, they have failed to spur job creation; yet any proposed financial injections (or loan waivers) for agriculture (which would pale into insignificance compared to corporate subsidies/written off loans) are depicted as a drain on the economy.

Making India ‘business friendly’

PM Modi is on record as saying that India is now one of the most business-friendly countries in the world. The code for being ‘business friendly’ translates into a willingness by the government to facilitate much of the above, while reducing taxes and tariffs and allowing the acquisition of public assets via privatisation as well as instituting policy frameworks that work to the advantage of foreign corporations.

When the World Bank rates countries on their level of ‘ease of doing business’, it means national states facilitating policies that force working people to take part in a race to the bottom based on free market fundamentalism. The more ‘compliant’ national governments make their populations and regulations, the more ‘business friendly’ a country is.

The World Bank’s ‘Enabling the Business of Agriculture’ entails opening up markets to Western agribusiness and their fertilisers, pesticides, weedicides and patented seeds with farmers working to supply transnational corporations’ global supply chains. Rather than working towards food security based on food sovereignty and eradicating corruption, building storage facilities and dealing with inept bureaucracies and deficiencies in food logistics, the mantra is to let ‘the market’ intervene: a euphemism for letting powerful corporations take control; the very transnational corporations that receive massive taxpayer subsidies, manipulate markets, write trade agreements and institute a regime of intellectual property rights thereby indicating that the ‘free’ market only exists in the warped delusions of those who churn out clichés about letting the market decide.

Foreign direct investment is said to be good for jobs and good for business. But just how many get created is another matter – as is the amount of jobs destroyed in the first place to pave the way for the entry of foreign corporations. For example, Cargill sets up a food or seed processing plant that employs a few hundred people; but what about the agricultural jobs that were deliberately eradicated in the first place to import seeds or the village-level processors who were cynically put out of business via bogus health and safety measures so that Cargill could gain a financially lucrative foothold?

The process resembles what Michel Chossudovsky notes in his 1997 book about the ‘structural adjustment’ of African countries. In The Globalization of Poverty, he says that economies are:

opened up through the concurrent displacement of a pre-existing productive system. Small and medium-sized enterprises are pushed into bankruptcy or obliged to produce for a global distributor, state enterprises are privatised or closed down, independent agricultural producers are impoverished. (p.16)

The opening up of India to foreign capital is supported by rhetoric about increasing agricultural productivity, creating jobs and boosting GDP growth. But India is already self-sufficient in key staples and even where productivity is among the best in the world (as in Punjab) farmers still face massive financial distress. Clearly, productivity is not the problem: even with bumper harvests, the agrarian crisis persists.

India is looking to US corporations to ‘develop’ its food, retail and agriculture sectors. What could this mean for India? We only have to look at the business model that keeps these companies in profit in the US: an industrialised system that relies on massive taxpayer subsidies and has destroyed many small-scale farmers’ livelihoods.

The fact that US agriculture now employs a tiny fraction of the population serves as a stark reminder for what is in store for Indian farmers. Agribusiness companies’ taxpayer-subsidised business models are based on overproduction and dumping on the world market to depress prices and rob farmers elsewhere of the ability to cover the costs of production. They rake in huge returns, while depressed farmer incomes and massive profits for food retailers is the norm.

The long-term plan is for an overwhelmingly urbanised India with a fraction of the population left in farming working on contracts for large suppliers and Walmart-type supermarkets that offer a largely monoculture diet of highly processed, denutrified, genetically altered food based on crops soaked with chemicals and grown in increasingly degraded soils according to an unsustainable model of agriculture that is less climate/drought resistant, less diverse and unable to achieve food security.

Various high-level reports have concluded that policies need to support more resilient, diverse, sustainable (smallholder) agroecological methods of farming and develop decentralised, locally-based food economies. There is also a need to protect indigenous agriculture from rigged global trade and trade deals. However, the trend continues to move in the opposite direction towards industrial-scale agriculture and centralised chains for the benefit of Monsanto, Cargill, Bayer and other transnational players.

Devinder Sharma has highlighted where Indian policy makers’ priorities lie when he says that agriculture has been systematically killed over the last few decades. Some 60% of the population live in rural areas and are involved in agriculture but less than 2% of the annual budget goes to agriculture. Sharma says that when you are not investing in agriculture, you are not wanting it to perform.

It is worth considering that the loans provided to just five large corporations in India are equal to the entire farm debt. Where have those loans gone? Have they increased ‘value’ in the economy. No, loans to corporate houses left the banks without liquidity.

‘Demonetisation’ was in part a bail-out for the banks and the corporates, which farmers and other ordinary folk paid the price for. It was a symptom of a country whose GDP growth was based on a debt-inflated economy. While farmers commit suicide and are heavily indebted, a handful of billionaires get access to cheap money with no pressure to pay it back and with little ‘added value’ for society as a whole.

Corporate-industrial India has failed to deliver in terms of boosting exports or creating jobs, despite the hand outs and tax exemptions given to it. The number of jobs created in India between 2005 and 2010 was 2.7 million (the years of high GDP growth). According to International Business Times, 15 million enter the workforce every year. And data released by the Labour Bureau shows that in 2015, jobless ‘growth’ had finally arrived in India.

So where are the jobs going to come from to cater for hundreds of millions of agricultural workers who are to be displaced from the land or those whose livelihoods will be destroyed as transnational corporations move in and seek to capitalise small-scale village-level industries that currently employ tens of millions?

Development used to be about breaking with colonial exploitation and radically redefining power structures. Now we have dogma masquerading as economic theory that compels developing countries to adopt neoliberal policies. The notion of ‘development’ has become hijacked by rich corporations and the concept of poverty depoliticised and separated from structurally embedded power relations, not least US-driven globalisation policies resulting in the deregulation of international capital that ensures giant transnational conglomerates are able to ride roughshod over national sovereignty.

Across the world we are seeing treaties and agreements over breeders’ rights and intellectual property being enacted to prevent peasant farmers from freely improving, sharing or replanting their traditional seeds. Large corporations with their proprietary seeds and synthetic chemical inputs are trying to eradicate traditional systems of seed exchange. They have effectively hijacked seeds, pirated germ plasm that farmers developed over millennia and have ‘rented’ the seeds back to farmers

Corporate-dominated agriculture is not only an attack on the integrity of ‘the commons’ (soil, water, land, food, forests, diets and health) but is also an attack on the integrity of international institutions, governments and officials which have too often been corrupted by powerful transnational entities.

Whereas some want to bring about a fairer, more equitable system of production and distribution to improve people’s quality of lives (particularly pertinent in India with its unimaginable inequalities, which have spiralled since India adopted neoliberal policies), US capitalism regards ‘development’ as a geopolitical tool.

As economics professor Michael Hudson said during a 2014 interview (published on prosper.org under the title ‘Think Tank Times’):

American foreign policy has almost always been based on agricultural exports, not on industrial exports as people might think. It’s by agriculture and control of the food supply that American diplomacy has been able to control most of the Third World. The World Bank’s geopolitical lending strategy has been to turn countries into food deficit areas by convincing them to grow cash crops – plantation export crops – not to feed themselves with their own food crops.

The Regional Comprehensive Economic Partnership (RCEP) could further accelerate the corporatisation of Indian agriculture. A trade deal now being negotiated by 16 countries across Asia-Pacific, the RCEP would cover half the world’s population, including 420 million small family farms that produce 80% of the region’s food.

RCEP is expected to create powerful rights and lucrative business opportunities for food and agriculture corporations under the guise of boosting trade and investment. It could allow foreign corporations to buy up land, thereby driving up land prices, fuelling speculation and pushing small farmers out. If RCEP is adopted, it could intensify the great land grab that has been taking place in India. It could also lead to further corporate control over seeds.

Capitalism and environmental catastrophe joined at the hip

In India, an industrialised chemical-intensive model of agriculture is being facilitated. This model brings with it the numerous now well-documented externalised social, environmental and health costs. We need look no further than the current situation in South India and the drying up of the Cauvery river in places to see the impact that this model has contributed to: an ecological crisis fuelled by environmental devastation due to mining, deforestation and unsustainable agriculture based on big dams, water-intensive crops and Green Revolution ideology imported from the West.

But we have known for a long time now that India faces major environmental problems, many of which are rooted in agriculture. For example, in an open letter written to officials in 2006, the late campaigner and farmer Bhaskar Save noted that India, next to South America, receives the highest rainfall in the world. Where thick vegetation covers the ground, and the soil is alive and porous, at least half of this rain is soaked and stored in the soil and sub-soil strata. A good amount then percolates deeper to recharge aquifers, or ‘groundwater tables’. Save argued that the living soil and its underlying aquifers thus serve as gigantic, ready-made reservoirs gifted free by nature.

Half a century ago, most parts of India had enough fresh water all year round, long after the rains had stopped and gone. But clear the forests, and the capacity of the earth to soak the rain, drops drastically. Streams and wells run dry.

Save went on to note that while the recharge of groundwater has greatly reduced, its extraction has been mounting. India is presently mining over 20 times more groundwater each day than it did in 1950. Much of this is mindless wastage by a minority. But most of India’s people – living on hand-drawn or hand-pumped water in villages and practising only rain-fed farming – continue to use the same amount of ground water per person, as they did generations ago.

According to Save, more than 80% of India’s water consumption is for irrigation, with the largest share hogged by chemically cultivated cash crops. Maharashtra, for example, has the maximum number of big and medium dams in the country. But sugarcane alone, grown on barely 3-4% of its cultivable land, guzzles about 70% of its irrigation waters.

One acre of chemically grown sugarcane requires as much water as would suffice 25 acres of jowar, bajra or maize. The sugar factories too consume huge quantities. From cultivation to processing, each kilo of refined sugar needs two to three tonnes of water. This could be used to grow, by the traditional, organic way, about 150 to 200 kg of nutritious jowar or bajra (native millets).

While rice is suitable for rain-fed farming, its extensive multiple cropping with irrigation in winter and summer as well is similarly hogging water resources and depleting aquifers. As with sugarcane, it is also irreversibly ruining the land through salinization.

Save argued that soil salinization is the greatest scourge of irrigation-intensive agriculture, as a progressively thicker crust of salts is formed on the land. Many million hectares of cropland have been ruined by it. The most serious problems are caused where water-guzzling crops like sugarcane or basmati rice are grown round the year, abandoning the traditional mixed-cropping and rotation systems of the past, which required minimal or no watering.

Unfortunately, policy makers continue to look towards the likes of Monsanto-Bayer for ‘solutions’. Such companies merely seek to break farmers’ environmental learning ‘pathways’ based on centuries of indigenous knowledge, learning and practices with the aim of getting farmers hooked on chemical treadmills for corporate profit (see Glenn Stone and Andrew Flach’s paper on path-breaking and technology treadmills in Indian cotton agriculture).

Wrong-headed policies in agriculture have already resulted in drought, expensive dam-building projects, population displacement and degraded soils. The rivers are drying, farmers are dying and the cities are creaking as a result of the unbridled push towards urbanisation.

In terms of maintaining and creating jobs, managing water resources, regenerating soils and cultivating climate resilient crops, agroecology as a solution is there for all to see. Andhra Pradesh and Karnataka are now making a concerted effort to roll out and scale up zero budget agroecological agriculture.

Solutions to India’s agrarian crisis (and indeed the world’s) are available, not least the scaling up of agroecological approaches which could be the lynchpin of rural development. However, successive administrations have bowed to and continue to acquiesce to the grip of global capitalism and have demonstrated their allegiance to corporate power. The danger is that without changing the capitalist relations of production, agroecology would simply be co-opted by corporations and incorporated into their global production and distribution chains.

In the meantime, India faces huge problems in terms of securing access to water. As Bhaskar Save noted, the shift to Green Revolution thinking and practices has placed enormous strain on water resources. From glacial melt in the Himalayas that will contribute to the drying up of important rivers to the effects of temperature rises across the Indo Gangetic plain, which will adversely impact wheat productivity, India has more than its fair share of problems. But despite this, high-level policy makers are pushing for a certain model of ‘development’ that will only exacerbate the problems.

This model is being driven by some of the world’s largest corporate players: a model that by its very nature leads to environment catastrophe:

… our economic system demands ever-increasing levels of extraction, production and consumption. Our politicians tell us that we need to keep the global economy growing at more than 3% each year – the minimum necessary for large firms to make aggregate profits. That means every 20 years we need to double the size of the global economy – double the cars, double the fishing, double the mining, double the McFlurries and double the iPads. And then double them again over the next 20 years from their already doubled state.

— Jason Hickel

While politicians and bureaucrats in Delhi might be facilitating this economic model and all it entails for agriculture, it is ultimately stamped with the logo ‘made in Washington’. Surrendering the nation’s food sovereignty and the incorporation of India into US financial and geopolitical structures is the current state of independence.

Final thoughts

Neoliberalism and the drive for urbanisation in India have been underpinned by unconstitutional land takeovers and the trampling of democratic rights. For supporters of cronyism and manipulated markets, which to all extents and purposes is what economic ‘neoliberalism’ across the world has entailed (see thisthis and this), there have been untold opportunities for well-placed individuals to make an under-the-table fast buck from various infrastructure projects and privatisation sell-offs.

According to the Organisation for Co-operation and Economic Development, the doubling of income inequality has made India one of the worst performers in the category of emerging economies.

Unsurprisingly, therefore, struggles (violent and non-violent) are taking place in India. The Naxalites/Maoists are referred to by the dominant class as left-wing extremists who are exploiting the situation of the poor. But how easy it is to ignore the true nature of the poor’s exploitation and too often lump all protesters together and create an ‘enemy within’. How easy it is to ignore the state-corporate extremism across the world that results in the central state abdicating its redistributive responsibilities by submitting to the tenets of Wall Street-backed ‘structural adjustment’ pro-privatisation policies, free capital flows and largely unaccountable corporations.

Powerful (mining) corporations are shaping the ‘development’ agenda in India and have signed secretive Memorandums of Understanding with the government. The full backing of the state is on hand to forcibly evict peoples from their land in order to hand it over to mineral-hungry industries to fuel a wholly unsustainable model of development. Around the world, this oil-dependent, urban-centric, high-energy model of endless consumption is stripping the environment bare and negatively impacting the climate and ecology.

In addition to displacing people to facilitate the needs of resource extraction industries, unconstitutional land grabs for Special Economic Zones, nuclear plants and other projects have additionally forced many others from the land.

Farmers (and others) represent a ‘problem’: a problem while on the land and a problem to be somehow dealt with once displaced. But food producers, the genuine wealth creators of a nation, only became a problem when western agribusiness was given the green light to take power away from farmers and uproot traditional agriculture in India and recast it in its own corporate-controlled image.

This is a country where the majority sanctifies certain animals, places, rivers and mountains. It’s also a country run by Wall Street sanctioned politicians who convince people to accept or be oblivious to the destruction of the same.

Many are working strenuously to challenge the selling of the heart and soul of India. Yet how easy will it be for them to be swept aside by officialdom which seeks to cast them as ‘subversive’. How easy it will be for the corrosive impacts of a rapacious capitalism to take hold and for hugely powerful corporations to colonise almost every area of social, cultural and economic life and encourage greed, selfishness, apathy, irretrievable materialism and acquisitive individualism.

The corporations behind it all achieve hegemony by altering mindsets via advertising, clever PR or by sponsoring (hijacking) major events, by funding research in public institutes and thus slanting findings and the knowledge paradigm in their favour or by securing key positions in international trade negotiations in an attempt to structurally readjust retail, food production and agriculture. They do it by many methods and means.

Before you realise it, culture, politics and the economy have become colonised by powerful private interests and the world is cast in their image. The prevailing economic system soon becomes cloaked with an aura of matter of factuality, an air of naturalness, which is never to be viewed for the controlling hegemonic culture or power play that it really is.

Seeds, mountains, water, forests and biodiversity are being sold off. The farmers and tribals are being sold out. And the more that gets sold off, the more who get sold out, the greater the amount of cash that changes hands and the easier it is for the misinformed to swallow the lie of Wall Street’s bogus notion of ‘growth’ – GDP.

If anyone perceives the type of ‘development’ being sold to the masses is actually possible in the first instance, they should note that ‘developing’ nations account for more than 80% of world population but consume only about a third of the world’s energy. US citizens constitute 5% of the world’s population but consume 24% of the world’s energy. On average, one American consumes as much energy as two Japanese, six Mexicans, 13 Chinese, 31 Indians, 128 Bangladeshis, 307 Tanzanians and 370 Ethiopians.

Consider that the Earth is 4.6 billion years old and if you scale this to 46 years then humans have been here for just four hours. The Industrial Revolution began just one minute ago, and in that time, 50% of the Earth’s forests have been destroyed.

We are using up oil, water and other resources much faster than they can ever be regenerated. We have also poisoned the rivers, destroyed natural habitats, driven species to extinction and altered the chemical composition of the atmosphere – among many other things.

Levels of consumption were unsustainable long before India and other countries began striving to emulate a bogus notion of ‘development’. The West continues to live way beyond its (environmental) limits.

This wasteful, high-energy model is tied to what ultimately constitutes the plundering of peoples and the planet by powerful transnational corporations. And, as we see all around us, from Libya and Syria to Afghanistan and Iraq, the outcome is endless conflicts over fewer and fewer resources.

The type of ‘progress and development’ and consumerism being sold makes beneficiaries of it blind to the misery and plight of the hundreds of millions who are deprived of their lands and livelihoods. In Congo, rich corporations profit from war and conflict. And in India, tens of thousands of militias (including in 2005, Salwa Judum) were put into tribal areas to forcibly displace 300,000 people and place 50,000 in camps. In the process, rapes and human rights abuses have been common.

If what is set out above tells us anything, it is that India and other regions of the world are suffering from internal haemorrhaging. They are being bled dry from both within and without:

There are sectors of the global population trying to impede the global catastrophe. There are other sectors trying to accelerate it. Take a look at whom they are. Those who are trying to impede it are the ones we call backward, indigenous populations – the First Nations in Canada, the aboriginals in Australia, the tribal people in India. Who is accelerating it? The most privileged, so-called advanced, educated populations of the world.

— Noam Chomsky.

Underpinning the arrogance of such a mindset is what Vandana Shiva calls a view of the world which encourages humans to regard man as conqueror and owner of the Earth. This has led to the technological hubris of geo-engineering, genetic engineering and nuclear energy. Shiva argues that it has led to the ethical outrage of owning life forms through patents, water through privatization, the air through carbon trading. It is leading to appropriation of the biodiversity that serves the poor.

And therein lies the true enemy of genuine development: a system that facilitates such plunder, which is presided over by well-funded and influential foreign foundations and powerful financial-corporate entities and their handmaidens in the IMF, World Bank and WTO.

If we look at the various western powers, to whom many of India’s top politicians look to for inspiration, their paths to economic prosperity occurred on the back of colonialism and imperialist intent. Do India’s politicians think this mindset has disappeared? The same mentality now lurks behind the neoliberal globalisation agenda hidden behind terms and policies like ‘foreign direct investment’, ‘ease of doing business’, making India ‘business friendly’ or ‘enabling the business of agriculture’.

Is India willing to see Monsanto-Bayer, Cargill and other transnational corporations deciding on what is to be eaten and how it is to be produced and processed. A corporate takeover spearheaded by companies whose character is clear for all to see:

The Indo-US Knowledge Initiative in Agriculture with agribusinesses like Monsanto, WalMart, Archer Daniels Midland, Cargill and ITC in its Board made efforts to turn the direction of agricultural research and policy in such a manner as to cater their demands for profit maximisation. Companies like Monsanto during the Vietnam War produced tonnes and tonnes of ‘Agent Orange’ unmindful of its consequences for Vietnamese people as it raked in super profits and that character remains.

— Communist Party of India (Marxist)

Behind the World Bank/corporate-inspired rhetoric that is driving the overhaul of Indian agriculture is a brand of corporate imperialism which is turning out to be no less brutal for Indian farmers than early industrial capitalism was in England for its peasantry. The East India company might have gone, but today the bidding of elite interests (private capital) is being carried out by compliant politicians, the World Bank, the WTO and lop-sided, egregious back-room trade deals.

Violent Coup Fails In Nicaragua, US Continues Regime Change Efforts

Nicaraguans celebrate 39th Anniversary of the 1979 Nicaraguan Revolution in Managua, July 2018 (Source Redvolution)

Note: Before the update on Nicaragua, I am providing two recent interviews that provide a context for what is happening in Nicaragua.

First, is an interview I did with Lee Camp, the lead writer, and host of Redacted Tonight, “US Pushing for Regime Change in Nicaragua,” where we discuss the economic and political situation in Nicaragua as well as who is behind the coup and the government response. This interview discusses the issues raised in an article by me and Nils McCune.

On Clearing The FOG radio and podcast, Margaret Flowers and I interviewed Stephen Sefton, who lives in Nicaragua and is a founder of Tortilla con Sal. He names the names behind the violence and describes what is happening in Nicaragua.

Nicaraguan president Daniel Ortega arrives at the celebration of the Sandinista Revolution (Photo by Alfred Zeniga for AP)

Lessons Learned from the Failed Violent Coup in Nicaragua and Next Steps

The violent coup in Nicaragua has failed. This does not mean the United States and oligarchs are giving up, but this phase of their effort to remove the government did not succeed.  The coup exposed the alliances who are working with the United States to put in place a neoliberal government that is controlled by the United States and serves the interests of the wealthy. People celebrated the failure of the coup but realize work needs to be done to protect the gains of the Sandinista revolution.

People Celebrate Revolution, Call For Peace, Show Support for Government

The people of Nicaragua showed their support for the democratically-elected government of Daniel Ortega with a massive outpouring in Managua in a celebration of the 39th anniversary of the Sandinista Revolution. In addition to the mass protest in Managua, various cities had their own, in some cases very sizeable ones.

People have wanted peace to return to Nicaragua. They have also wanted the roadblocks removed, which have resulted in closed businesses, job loss and loss of mobility. Roadblocks have been removed, even in the opposition stronghold of Masaya. There were two opposition deaths and one police officer killed in the removal. There was also an earlier death of a policeman in Masaya, captured when he was off-duty, tortured and burnt to death. This brings the total of police killed since April up to at least 21 with hundreds injured. With the opening of the main road on the east side of Masaya, all Nicaragua’s main routes are open to traffic and buses, etc., are operating normally.

At the rally, President Ortega called on the people of Nicaragua to defend peace and reinstate the unity that existed in the nation before the violent opposition protests. He described how the violent coup attempted to destabilize the country and ended the peace that has existed through the eleven years of his time in office. He said, “Peace must be defended every day to avoid situations like these being repeated.”

He also criticized the Catholic Bishops for their role in the failed violent coup. Ortega described the Episcopal Conference of Nicaragua as “coup leaders” for collaborating with the opposition during the protests. Not only did the Catholic leadership side with the opposition during the national dialogue, but priests were involved in kidnapping and torture. Pope Francis has a lot of work to do to reign in the Catholic Church in Nicaragua. If their role in these violent protests and opposition to an economy for the people is not stopped, this will become a scandal for the Catholic Church.

Other Latin American leaders spoke out against involvement in the coup. Bolivian President Evo Morales condemned US “interference” in Nicaragua, denouncing the “criminal strategies” used against the government of Daniel Ortega. Morales accused the United States Agency for International Development (USAID), and the National Endowment for Democracy (NED) of “openly supporting violence” in Nicaragua. Also at the celebration were the foreign ministers of Cuba and Venezuela, Bruno Rodríguez Parrilla, and Jorge Arreza, all supporting Nicaragua over the violent coup of the United States and oligarchs.

The United States is Escalating Economic War and Support for Opposition

The United States is not giving up. Also on the anniversary of the revolution, the NICA Act, designed to escalate the economic war against Nicaragua, was introduced in the Senate. It has already been passed by the US House of Representatives. The Senate bill, called the Nicaragua Human Rights and Anti-corruption Act of 2018, imposes sanctions, calls for early elections and escalates US intelligence involvement in Nicaragua. It is a law that ensures continued US efforts to remove the democratically-elected government.

At the same time, USAID announced an additional $1.5 million for Nicaragua to build opposition to the government. This will fund the NGOs that participated in the protests, human rights groups that falsely reported the situation, media to produce the regime change narrative and other support for the opposition.

The coordination between Nicaraguan opposition and the United States was shown by Max Blumenthal‘s attempted visit to an organization that funnels USAID and NED money to the opposition. He visited the Managua offices of the Institute of Strategic Studies and Public Policies (IEEPP in Spanish), but it was closed because its director, Felix Maradiaga, who was at the heart of the violent unrest, was in Washington, DC seeking more funding from USAID.

On July 18, the US-dominated OAS passed a resolution concerning “The Situation in Nicaragua.” An earlier effort to endorse a report of the Inter-American Commission on Human Rights (IACHR) was so biased that it failed. The report ignored the opposition’s widespread violence and only reported on the defensive violence of the government. The resolution approving the IACHR report was supported by only ten out of 34 countries.

The resolution, which was finally passed by the OAS, condemned violence on all sides and urged Nicaragua to pursue all options including the national dialogue to seek peace begun by Ortega. On the issue of elections, the resolution urged Nicaragua “to support an electoral calendar jointly agreed to in the context of the National Dialogue process.” Only this mainly symbolic resolution could pass muster in the OAS, despite US domination.

What Happened and What Was Learned

In our article “Correcting the Record: What Is Really Happening In Nicaragua,” Nils McCune and I describe what was behind the violent coup attempt. We reported that there was a lot of misinformation on what was occurring in Nicaragua, indeed the false narrative of regime change was part of the tactics of the failed coup. Perhaps most importantly we described the alignment of forces behind the coup.

The coup was a class war turned upside down. The Ortega government includes none of the oligarchic families, a first in the history of Nicaragua. He has put in place a bottom-up economy that has lifted people out of poverty, provided access to health care and education, given micro-loans to entrepreneurs and small businesses and created an economy energized by public spending. Ortega expanded coverage of the social security system; as a result, a new formula was required to ensure fiscal stability.

Ortega made a counter-proposal to the IMF/business proposal, which would cut social security and raise the retirement age. He proposed no cuts to social security and increasing employer contributions by 3.5% to pension and health funds, while only slightly increasing worker contributions by 0.75% and shifting 5% of pensioners’ cash transfer into their healthcare fund.  These reforms were the trigger as it was the business lobby who called for the protests.

The forces aligned with the violent coup included the oligarchs, big business interests, foreign investors (e.g. Colombian financiers), the US-funded NGO’s and the Catholic Church, a long-term ally of the wealthy. Also involved was the Movement for Renovation of Sandinismo (MRS), a tiny Sandinista offshoot party, of former Sandanistas who left the party when Ortega lost an election in 1990 who are aligned with the US State Department.

Regarding students, there were already student protests around university elections, and these were redirected by the violent coup effort and supported by a small minority of students from private universities, the April 19th Movement. Some of these students had been brought to the US by the Freedom House, which has long ties to the CIA and met with far-right interventionist members of the US Congress, including Rep. Ileana Ros-Lehtinen, Sen. Marco Rubio, and Sen. Ted Cruz.

These groups acted in opposition to the bulk of Nicaraguan society and showed their true colors. This includes:

  • Being tied to and subservient to the US government.
  • Being led by oligarchs and big business interests that are out of power and cannot win elections.
  • Using violence as a strategy of creating chaos and trapping the government into responding with violence to restore order.
  • Spreading false propaganda through oligarch-controlled media, often funded by NED, as well as highly-manipulated social media echoed by western media, especially The New York Times, The Guardian, Washington Post and cable TV news outlets.

No doubt more will come out about this in the future as the coup is researched and analyzed. As the facts become clear, the opposition will lose more political power and be even less likely to win elections. The blockades of roads with violence undermined the economy and had a negative impact on the poor and working class. If it becomes evident that this was a strategy of the opposition, they will lose power. NGO’s that are funded by the US and run by members of the MRS will be noted for their dishonest narrative and will be seen as an arm of the United States and not trusted by the people of Nicaragua. Media outside of Nicaragua will come to understand that human rights groups and NGOs are not reliable sources of information but need to be questioned. They need to be pushed to break their ties with the United States.

This does not mean all is well on the Sandinista side of the alliance of forces. The coup is an opportunity for self-reflection and self-criticism that is already happening, as seen in this list of 20 results from the coup, which begins with “A more consolidated and United FSLN.” In addition, the Action Group of the Solidarity with Nicaragua Campaign put forward seven propositions to unify around. The protest took advantage of challenges the Nicaraguan government faces in continuing to lift up the poor and economically insecure. It shows their need to build their capacity to quickly let the public know their side of the story. And, it shows the need for planning for a post-Ortega Sandinista government, as the president is in his third term.

The anniversary of the revolution was a good beginning at strengthening the unity of the Sandinista movement and celebration of the defeat of the coup, but there will be challenges ahead. Nicaragua is a poor country that needs foreign investment. If the United States escalates the economic war, which seems to be the intent, it will make it challenging to continue the social and economic programs that are lifting up the poor. Nicaragua had relied on investment from Venezuela, but it is also in the midst of an economic war, which along with the low oil prices has created economic challenges for them. Nicaragua has begun to build economic relationships with China, Russia, Iran and other countries; these will likely need to expand.

The misinformation was deep and widespread. Inside Nicaragua, there were stories of students being killed that never happened but that escalated the protests. The opposition claimed to be nonviolent when their strategy was to use violence to force regime change while the government quartered the National Police. False news and videos of attacks on neighborhoods and universities never stopped being manufactured.  One example, students calling for help and claiming they were under attack, was later exposed in a video showing the students practicing the false social media narrative.

Peace and justice activists in the United States and western nations have learned they need to be much more careful believing reports on what is occurring in Nicaragua. The US-funding of NGOs involved in women’s issues, environmental protection and human rights in Nicaragua make them questionable sources of information for justice advocates. In addition, US-funded regime change efforts are getting more sophisticated at social media; and thus, care must be taken as social media has it is abused by regime change advocates. We must look to other sources that have shown the ability to report accurately; e.g., Tortilla con Sal, Telesur, Redvolucion.  Peace and justice advocates must be grounded in anti-imperialism and nonintervention by the United States.

Correcting The Record: What Is Really Happening In Nicaragua?

There is a great deal of false and inaccurate information about Nicaragua in the media. Even on the left, some have simply repeated the dubious claims of CNN and Nicaragua’s oligarchic media to support the removal of President Ortega. The narrative of nonviolent protesters versus anti-riot squads and pro-government paramilitaries has not been questioned by international media.

This article seeks to correct the record, describe what is happening in Nicaragua and why. As we write this, the coup seems to be failing, people have rallied for peace (as this massive march for peace held Saturday, July 7 showed) and the truth is coming out (e.g., the weapons cache discovered in a Catholic Church on July 9th). It is important to understand what is occurring because Nicaragua is an example of the types of violent coups the US and the wealthy use to put in place business dominated, neoliberal governments. If people understand these tactics, they will become less effective.

Sandinistas and followers of President Daniel Ortega wave their Sandinista flags in a march for peace, in Managua, Nicaragua, Saturday (The UK Morning Sun)

Mixing up the Class Interests

In part, US pundits are getting their information from media outlets, such as Jaime Chamorro-Cardenal’s La Prensa, and the same oligarchical family’s Confidencial, that are the most active elements of the pro-coup media. Repeating and amplifying their narrative delegitimizes the Sandinista government and presents unconditional surrender by Daniel Ortega as the only acceptable option. These pundits provide cover for nefarious internal and external interests who have set their sights on controlling Central America’s poorest and yet resource-rich country.

The coup attempt brought the class divisions in Nicaragua into the open. Piero Coen, the richest man in Nicaragua, owner of all national Western Union operations and an agrochemical company, personally arrived on the first day of protests at the Polytechnical University in Managua, to encourage students to keep protesting, promising his continued support.

The traditional landed oligarchy of Nicaragua, politically led by the Chamorro family, publishes constant ultimatums to the government through its media outlets and finances the roadblocks that have paralyzed the country for the last eight weeks.

The Catholic Church, long allied with the oligarchs, has put its full weight behind creating and sustaining anti-government actions, including its universities, high schools, churches, bank accounts, vehicles, tweets, Sunday sermons, and a one-sided effort to mediate the National Dialogue. Bishops have made death threats against the President and his family, and a priest has been filmed supervising the torture of Sandinistas. Pope Francis has called for a peace dialogue, and even called Cardinal Leonaldo Brenes and Bishop Rolando Alvarez to a private meeting in the Vatican, setting off rumors that the Nicaraguan monseñores were being scolded for their obvious involvement in the conflict they are officially mediating.  The church remains one of the few pillars keeping the coup alive.

A common claim is Ortega has cozied up to the traditional oligarchy, but the opposite is true. This is the first government since Nicaraguan independence that does not include the oligarchy. Since the 1830s through the 1990s, all Nicaraguan governments– even during the Sandinista Revolution– included people from the elite “last names,” of Chamorro, Cardenal, Belli, Pellas, Lacayo, Montealegre, Gurdián. The government since 2007 does not, which is why these families are supporting the coup.

Ortega detractors claim his three-part dialogue including labor unions, capitalists, and the State is an alliance with big business. In fact, that process has yielded the highest growth rate in Central America and annual minimum wage increases 5-7% above inflation, improving workers’ living conditions and lifting people out of poverty. The anti-poverty Borgen project reports poverty fell by 30 percent between 2005 and 2014.

The FSLN-led government has put into place an economic model based on public investment and strengthening the safety net for the poor. The government invests in infrastructure, transit, maintains water and electricity within the public sector and moved privatized services; e.g., health care and primary education into the public sector. This has ensured a stable economic structure that favors the real economy over the speculative economy. The lion’s share of infrastructure in Nicaragua has been built in the last 11 years, something comparable to the New Deal-era in the US, including renewable electricity plants across the country.

What liberal and even leftists commentators overlook is that unlike the Lula government in Brazil, which reduced poverty through cash payouts to poor families, Nicaragua has redistributed productive capital in order to develop a self-sufficient popular economy. The FSLN model is better understood as an emphasis on the popular economy over the State or capitalist spheres.

While the private sector employs about 15% of Nicaraguan workers, the informal sector employs over 60%. The informal sector has benefited from $400 million in public investments, much of it coming from the ALBA alliance funds to finance micro loans for small and medium-sized agricultural enterprises. Policies to facilitate credit, equipment, training, animals, seeds and subsidized fuel further support these enterprises. The small and medium producers of Nicaragua have led the country to produce 80-90% of its food and end its dependence on IMF loans.

As such, workers and peasants– many of whom are self-employed and who accessed productive capital through the Sandinista Revolution and ensuing struggles– represent an important political subject of the stable, postwar social development of the last decade, including the hundreds of thousands of peasant farmers who have received land title and the nearly one-quarter of the national territory that has been given collective title as territory of indigenous nations. The social movements of workers, peasants, and indigenous groups were the base of popular support that brought the FSLN back into power.

Land titling and assistance to small businesses have also emphasized equality for women, resulting in Nicaragua having the lowest level of gender inequality in Latin America and ranked 12 out of 145 countries in the world, just behind Germany.

Over time, the FSLN government has incorporated this massive self-employed sector, as well as maquiladora workers (i.e. textile workers in foreign-owned plants located in free trade zones created by previous neoliberal governments), into the health care and pension system, causing the financial commitments to grow which required a new formula to ensure fiscal stability. The proposed reforms to Social Security were the trigger for the private sector and student protests on April 18th. The business lobby called for the protests when Ortega proposed increasing employer contributions by 3.5% to pension and health funds, while only slightly increasing worker contributions by 0.75% and shifting 5% of pensioners’ cash transfer into their health care fund. The reform also ended a loophole which allowed high-income individuals to claim a low income in order to access health benefits.

This was a counter-proposal to the IMF proposal to raise the retirement age and more than double the number of weeks that workers would need to pay into the pension fund in order to access benefits. The fact the government felt strong enough to deny the IMF and business lobby’s austerity demands was a sign that the bargaining strength of private capital has declined, as Nicaragua’s impressive economic growth, a 38% increase in GDP from 2006-2017, has been led by small-scale producers and public spending. However, the opposition used manipulative Facebook ads presenting the reform as an austerity measure, plus fake news of a student death on April 18th, to generate protests across the country on April 19th. Immediately, the regime change machine lurched into motion.

The National Dialogue shows the class interests in conflict. The opposition’s Civic Alliance for Justice and Democracy has as its key figures: José Adan Aguirre, leader of the private business lobby; Maria Nelly Rivas, director of Cargill in Nicaragua and head of the US-Nicaragua Chamber of Commerce; the private university students of the April 19th Movement; Michael Healy, manager of a Colombian sugar corporation and head of the agribusiness lobby; Juan Sebastian Chamorro, who represents the oligarchy dressed as civil society; Carlos Tunnermann, 85-year-old ex-Sandinista minister and ex-chancellor of the National University; Azalea Solis, head of a US government-funded feminist organization; and Medardo Mairena, a “peasant leader” funded by the US government, who lived 17 years in Costa Rica before being deported in 2017 for human trafficking. Tunnermann, Solis and the April 19th students are all associated with the Movement for Renovation of Sandinismo (MRS), a tiny Sandinista offshoot party that nonetheless merits special attention.

In the 1980s, many of the Sandinista Front’s top-level cadre were, in fact, the children of some of the famous oligarchic families, such as the Cardenal brothers and part of the Chamorro family, in charge of the revolutionary government’s ministries of Culture and Education and its media, respectively. After FSLN’s election loss in 1990, the children of the oligarchy staged an exodus from the party. Along with them, some of the most notable intellectual, military and intelligence cadre left and formed, over time, the MRS. The new party renounced socialism, blamed all of the mistakes of the Revolution on Daniel Ortega and over time took over the sphere of non-governmental organizations (NGOs) in Nicaragua, including feminist, environmentalist, youth, media and human rights organizations.

Since 2007, the MRS has become increasingly close with the extreme right-wing of the US Republican Party. Since the outbreak of violence in April, many if not most of the sources cited by Western media (including, disturbingly, Amy Goodman’s Democracy Now!), come from this party, which has the support of less than 2% of the Nicaraguan electorate. This allows the oligarchs to couch their violent attempt to reinstall neoliberalism in a leftist-sounding discourse of former Sandinistas critical of the Ortega government.

It is a farce to claim that workers and peasants are behind the unrest. La Vía Campesina, the National Union of Farmers and Ranchers, the Association of Rural Workers, the National Workers’ Front, the indigenous Mayangna Nation and other movements and organizations have been unequivocal in their demands for an end to the violence and their support for the Ortega government. This unrest is a full-scale regime change operation carried out by media oligarchs, a network of NGOs funded by the US government, armed elements of elite landholding families and the Catholic Church, and has opened the window for drug cartels and organized crime to gain a foothold in Nicaragua.

Nicargua meeting of the National Dialogue for Peace (Óscar Sánchez)

The Elephant in the Room

Which brings us to US government involvement in the violent coup.

As Tom Ricker reported early in this political crisis, several years ago the US government decided that rather than finance opposition political parties, which have lost enormous legitimacy in Nicaragua, it would finance the NGO civil society sector. National Endowment for Democracy (NED) gave more than $700,000 to build the opposition to the government in 2017, and has granted more than $4.4 million since 2014. The overarching purpose of this funding was to “provide a coordinated strategy and media voice for opposition groups in Nicaragua.” Ricker continues:

The result of this consistent building and funding of opposition resources has been to create an echo chamber that is amplified by commentators in the international media – most of whom have no presence in Nicaragua and rely on these secondary sources.

NED founding father, Allen Weinstein, described NED as the overt CIA saying, “A lot of what we do today was done covertly 25 years ago by the CIA.” In Nicaragua, rather than the traditional right-wing, NED funds the MRS-affiliated organizations which pose left-sounding critiques of the Sandinista government. The regime change activists use Sandinista slogans, songs, and symbols even as they burn historic monuments, paint over the red-and-black markers of fallen martyrs, and physically attack members of the Sandinista party.

Of the opposition groups in the National Dialogue, the feminist organization of Azalea Solis and the peasant organization of Medardo Mairena are financed through NED grants, while the April 19th students stay in hotels and make trips paid for by Freedom House, another regime change organ funded by NED and USAID. NED also finances Confidencial, the Chamorro media organization. Grants from NED finance the Institute of Strategic Studies and Public Policy (IEEPP), whose Executive Director, Felix Maradiaga, is another MRS cadre very close to the US Embassy. In June, Maradiaga was accused of leading a criminal network called Viper which, from the occupied UPOLI campus, organized carjackings, arsons and murders in order to create chaos and panic during the months of April and May.

Maradiaga grew up in the United States and became a fellow of the Aspen Leadership Institute, before studying public policy at Harvard. He was a secretary in the Ministry of Defense for the last liberal president, Enrique Bolaños. He is a Young Global Leader at the World Economic Forum and in 2015, the Chicago Council on Global Affairs gave him the Gus Hart Fellowship, past recipients of which include Cuban dissident Yoani Sánchez and Henrique Capriles Radonski, the Venezuelan opposition leader who attacked the Cuban embassy during the coup attempt of 2002.

Remarkably, Maradiaga is not the only leader of the coup attempt who is part of the Aspen World Leadership Network. Maria Nelly Rivas, director in Nicaragua of US corporate giant Cargill, is one of the main spokespersons for the opposition Civic Alliance. Rivas, who currently also heads the US-Nicaragua Chamber of Commerce, is being groomed as a possible presidential candidate in the next elections. Beneath these US-groomed leaders, there is a network of over 2,000 young people who have received training with NED funds on topics such as social media skills for democracy defense. This battalion of social media warriors was able to immediately shape and control public opinion in Facebook in the five days from April 18th to 22nd, leading to spontaneous violent protests across the country.

Protesters yell from behind the roadblock they erected as they face off with security forces near the University Politecnica de Nicaragua in Managua, Nicaragua, April 21, 2018 (Voice of America)

On the Violence

One of the ways in which reporting on Nicaragua has ventured farthest from the truth is calling the opposition “nonviolent.” The violence script, modeled on the 2014 and 2017 guarimba protests in Venezuela, is to organize armed attacks on government buildings, entice the police to send in anti-riot squads, engage in filmed confrontations and publish edited footage online claiming that the government is being violent against nonviolent protesters.

Over 60 government buildings have been burned down, schools, hospitals, health centers attacked, 55 ambulances damaged, at least $112 million in infrastructure damage, small businesses have been closed, and 200,000 jobs lost causing devastating economic impact during the protests. Violence has included, in addition to thousands of injuries, 15 students and 16 police officers killed, as well as over 200 Sandinistas kidnapped, many of them publicly tortured. Violent opposition atrocities were misreported as government repression. While it is important to defend the right of the public to protest, regardless of its political opinions, it is disingenuous to ignore that the opposition’s strategy requires and feeds upon violence and deaths.

National and international news claim deaths and injuries due to “repression” without explaining the context. The Molotov cocktails, mortar-launchers, pistols, and assault rifles used by opposition groups are ignored by the media, and when Sandinista sympathizers, police or passers-by are killed, they are falsely counted as victims of state repression. Explosive opposition claims like massacres of children and murders of women have been shown to be false, and the cases of torture, disappearances and extrajudicial executions by police forces have not been corroborated by evidence or due process.

While there is evidence to support the opposition claim of sniper fire killing protesters, there is no logical explanation for the State using snipers to add to the death toll, and counter-protesters have also been victims of sniper fire, suggesting a “third party” provocateur role in the destabilizing violence. When an entire Sandinista family was burned to death in Managua, the opposition media all cited a witness who claimed that the police had set fire to the home, despite the house being in a neighborhood barricaded off from police access.

The National Police of Nicaragua has been long-recognized for its model of community policing (in contrast to militarized police in most Central American countries), its relative lack of corruption, and its mostly female top brass. The coup strategy has sought to destroy public trust in the police through the egregious use of fake news, such as the many false claims of assassinations, beatings, torture, and disappearances in the week from April 17th to 23rd. Several young people whose photos were carried in opposition rallies as victims of police violence have turned out to be alive and well.

The police have been wholly inadequate and underprepared for armed confrontations. Attacks on several public buildings on the same night and the first major arson attacks led government workers to hold vigils with barrels of water and, often, sticks and stones, to fend off attackers. The opposition, frustrated at not achieving more police conflicts, began to build roadblocks across the country and burning the homes of Sandinistas, even shooting and burning Sandinista families in atrocious hate crimes. In contrast to La Prensa’s version of events, Nicaraguans have felt the distinct lack of police presence, and the loss of safety in their neighborhoods, while many were targeted by violence.

Since May, the strategy of the opposition has been to build armed roadblocks across the country, closing off transport and trapping people. The roadblocks, usually built with large paving stones, are manned by between 5 and 100 armed men with bandannas or masks. While the media reports on idealistic young people running roadblocks, the vast majority of roadblocks are maintained by paid men who come from a background of petty crime. Where large areas of cities and towns are blocked off from government and police forces, drug-related activities intensify, and drug gangs now control many of the roadblocks and pay the salaries.

These roadblocks have been the centers of violence, workers who need to pass through roadblocks are often robbed, punched, insulted, and, if suspected of being Sandinistas, tied up, stripped naked, tortured, painted in blue-and-white, and sometimes killed. There are three cases of people dying in ambulances unable to pass roadblocks, and one case of a 10-year-old girl being kidnapped and raped at the roadblock in Las Maderas. When organized neighbors or the police clear roadblocks, the armed groups run away and regroup to burn buildings, kidnap or injure people in revenge. All of the victims that this violence produces are counted by the mainstream media as victims of repression, a total falsehood.

The Nicaraguan government has confronted this situation by largely keeping police off the streets, to prevent encounters and accusations of repression. At the same time, rather than simply arrest violent protestors, which certainly would have given the opposition the battle deaths it craves, the government called for a National Dialogue, mediated by the Catholic Church, in which the opposition can bring forward any proposal for human rights and political reform. The government created a parliamentary Truth and Peace Commission and launched an independent Public Ministry query.

With the police out of the streets, opposition violence intensified throughout May and June. As a result, a process of neighborhood self-defense developed. Families who have been displaced, young people who have been beaten, robbed or tortured, and veterans of the 1979 insurrection and/or the Contra War, hold vigil round the Sandinista Front headquarters in each town. In many places, they built barricades against opposition attacks and have been falsely labeled paramilitary forces in the media. In the towns that do not have such community-organized barricades, the human toll from opposition violence is much greater. The National Union of Nicaraguan Students has been particularly targeted by opposition violence. A student delegate of the National Dialogue, Leonel Morales, was kidnapped, shot in the abdomen and thrown into a ditch to die in June, to sabotage the dialogue and punish him for challenging the April 19th students’ right to speak on behalf of all Nicaraguan students.

There have been four major opposition rallies since April, directed toward mobilizing the upper-middle class Nicaraguans who live in the suburbs between Managua and Masaya. These rallies featured a whos-who of high society, including beauty queens, business owners, and oligarchs, as well as university students of the April 19th Movement, the moral high-ground for the opposition.

Three months into the conflict, none of the mortal victims have been bourgeois. All have come from the popular classes of Nicaragua. Despite claims of total repression, the bourgeois feels perfectly safe to participate in public protests by day — although the last daytime rally ended in a chaotic attack by protesters against squatters on a property of, curiously enough, Piero Coen, Nicaragua’s richest man. The nighttime armed attacks have generally been carried out by people who come from poor neighborhoods, many of whom are paid two to four times the minimum daily wage for each night of destruction.

Unfortunately, most Nicaraguan human rights organizations are funded by NED and controlled by the Movement for Sandinista Renovation. These organizations have accused the Nicaraguan government of dictatorship and genocide throughout Ortega’s presidency. International human rights organizations, including Amnesty International, have been criticized for their one-sided reports, which include none of the information provided by the government or individuals who identify as Sandinistas.

The government invited the Inter-American Commission on Human Rights (IACHR) of the OAS, a Washington-based entity notoriously unfriendly to leftist governments, to investigate the violent events of April and determine whether repression had occurred. The night of a controversial skirmish in the highway outside the Agrarian University in Managua ended a negotiated 48-hour truce, IACHR Director Paulo Abrao visited the site to declare his support for the opposition. The IACHR ignored the opposition’s widespread violence and only reported on the defensive violence of the government. Not only was it categorically rejected by Nicaraguan chancellor Denis Moncada as an “insult to the dignity of the Nicaraguan people,” a resolution approving the IACHR report was supported by only ten out of 34 countries.

Meanwhile, the April 19th Movement, made up of current or former university students in favor of regime change, sent a delegation to Washington and managed to alienate much of Nicaraguan society by grinning into the camera with far-right interventionist members of the US Congress, including Rep. Ileana Ros Lehtinen, Sen. Marco Rubio and Sen. Ted Cruz. M19 leaders also cheered Vice-President Mike Pence’s bellicose warnings that Nicaragua is on the short list of countries that will soon know the Trump Administration’s meaning of freedom, and met with the ARENA party of El Salvador, known for its links to the death squads that murdered liberation theologist Archbishop Oscar Romero. Within Nicaragua, the critical mass of students stopped demonstrating weeks ago, the large civic protests of April and May have dwindled, and the same-old familiar faces of Nicaraguan right-wing politics are left holding the bill for massive material damage and loss of life.

Nicaraguan students meet with right-wing Republicans, Sen. Marco Rubio and Rep. Ileana Ros Lehtinen  in Washington, DC (Twitter Truthdig)

Why Nicaragua?

Ortega won his third term in 2016 with 72.4 percent of the vote with 66 percent turnout, very high compared to US elections. Not only has Nicaragua put in place an economy that treats the poor as producers, with remarkable results raising their standard of living in 10 years, but it also has a government that consistently rejects US imperialism, allying with Cuba, Venezuela, and Palestine, and voices support for Puerto Rican independence and a peaceful solution to Korean crisis. Nicaragua is a member of the Bolivarian Alliance of the Americas and the Community of Latin American and Caribbean States, a Latin American alternative to the OAS, neither include the US or Canada. It has also allied with China for a proposed canal project and Russia for security cooperation. For all of these reasons, the US wants to install a US-friendly Nicaraguan government.

More important is the example Nicaragua has set for a successful social and economic model outside the US sphere of domination. Generating over 75% of its energy from renewable sources, Nicaragua was the only country with the moral authority to oppose the Paris Climate Agreement as being too weak  (it later joined the treaty one day after Trump pulled the US out, stating “we opposed the Paris agreement out of responsibility, the US opposes it out of irresponsibility”). The FMLN government of El Salvador, while less politically dominant than the Sandinista Front, has taken the example of good governance from Nicaragua, recently prohibiting mining and the privatization of water. Even Honduras, the eternal bastion of US power in Central America, showed signs of a leftward shift until the US-supported military coup in 2009. Since then, there has been massive repression of social activists, a clearly stolen 2017 election, and Honduras has permitted the expansion of US military bases near the Nicaraguan border.

In 2017, the US House of Representatives unanimously passed the Nicaraguan Investment Conditionality Act (NICA Act), which if passed by the Senate will force the US government to veto loans from international institutions to the Nicaraguan government. This US imperialism will cripple Nicaragua’s ability to build roads, update hospitals, construct renewable energy plants, and transition from extensive livestock raising to integrated animal-forestry systems, among other consequences. It may also signify the end of many popular social programs, such as subsidized electricity, stable bus fares, and free medical treatment of chronic diseases.

The US Executive Branch has used the Global Magnitsky Act to target the finances of leaders of the Electoral Supreme Court, the National Police, the city government of Managua and the ALBA corporation in Nicaragua. Police officers and public health bureaucrats have been told their US visas have been revoked. The point, of course, is not whether these officials have or have not committed acts that merit their reprimand in Nicaragua, but whether the US government should have the jurisdiction to intimidate and corner public officials of Nicaragua.

While the sadistic violence continues, the strategy of the coup-mongers to force out the government has failed. The resolution of the political crisis will come through elections, and the FSLN is likely to win those elections, barring a dramatic and unlikely new offensive by the right-wing opposition.

Latin American Presidents Zelaya (Honduras), Correa (Ecuador), Chavez (Venezuela), Ortega (Nicaragua), and Morales (Bolivia) celebrate Correa’s inauguration for a second term, in Quito, Ecuador. (Prensa Presidencial)

An Upside Down Class War

It is important to understand the nature of US and oligarch coups in this era and the role of media and NGO deception because it is repeated in multiple Latin American and other countries. We can expect a similar attack on recently elected Andrés Manuel López Obrador in Mexico if he seeks the changes he has promised.

The US has sought to dominate Nicaragua since the mid-1800s. The wealthy in Nicaragua have sought the return of US-allied governance since the Sandinistas rose to power. This failing coup does not mean the end of their efforts or the end of corporate media misinformation. Knowing what is really occurring and sharing that information is the antidote to defeating them in Nicaragua and around the world.

Nicaragua is a class war turned upside down. The government has raised the living standards of the impoverished majority through wealth redistribution. Oligarchs and the United States, unable to install neoliberalism through elections, created a political crisis, highlighted by false media coverage to force Ortega to resign. The coup is failing, the truth is coming out, and should not be forgotten.

• First published at Popular Resistance

Agrarian Crisis and Climate Catastrophe: Forged in India, Made in Washington

India is under siege from international capital. It is on course not only to be permanently beholden to US state-corporate interests but is heading towards environmental catastrophe much faster than many may think.

According to the World Bank’s lending report, based on data compiled up to 2015, India was easily the largest recipient of its loans in the history of the institution. Unsurprisingly, therefore, the World Bank exerts a certain hold over India. In the 1990s, the IMF and World Bank wanted India to shift hundreds of millions out of agriculture. In return for up to £90 billion in loans, India was directed to dismantle its state-owned seed supply system, reduce subsidies, run down public agriculture institutions and offer incentives for the growing of cash crops to earn foreign exchange.

The plan for India involves the mass displacement of people to restructure agriculture for the benefit of powerful corporations. This involves shifting at least 400 million from the countryside into cities. A 2016 UN report said that by 2030, Delhi’s population will be 37 million.

Quoted in The Guardian, one of the report’s principal authors, Felix Creutzig, says:

The emerging mega-cities will rely increasingly on industrial-scale agricultural and supermarket chains, crowding out local food chains.

The drive is to entrench industrial farming, commercialise the countryside and to replace small-scale farming, the backbone of food production in India. It could mean hundreds of millions of former rural dwellers without any work given that India is heading (or has already reached) ‘jobless growth’. Given the trajectory the country seems to be on, it does not take much to imagine a countryside with vast swathes of chemically-drenched monocrop fields containing genetically modified plants or soils rapidly turning into a chemical cocktail of proprietary biocides, dirt and dust.

The WTO and the US-India Knowledge Initiative on Agriculture are facilitating the process. To push the plan along, there is a deliberate strategy to make agriculture financially non-viable for India’s small farms and to get most farmers out of farming. As Felix Creutig suggests, the aim is to replace current structures with a system of industrial (GM) agriculture suited to the needs of Western agribusiness, food processing and retail concerns.

Hundreds of thousands of farmers in India have taken their lives since 1997 and many more are experiencing economic distress or have left farming as a result of debt, a shift to (GM) cash crops and economic liberalisation. The number of cultivators in India declined from 166 million to 146 million between 2004 and 2011. Some 6,700 left farming each day. Between 2015 and 2022 the number of cultivators is likely to decrease to around 127 million.

For all the discussion in India about loan waivers for farmers and raising income levels, this does not address the core of the problem affecting agriculture: the running down of the sector for decades, spiralling input costs, lack of government assistance and the impacts of cheap, subsidised imports which depress farmers’ incomes.

Take the cultivation of pulses, for instance. According to a report in the Indian Express (September 2017), pulses production increased by 40% during the previous 12 months (a year of record production). At the same time, however, imports also rose resulting in black gram selling at 4,000 rupees per quintal (much less than during the previous 12 months). This has effectively driven down prices thereby reducing farmers already meagre incomes. We have already witnessed a running down of the indigenous edible oils sector thanks to Indonesian palm oil imports on the back of World Bank pressure to reduce tariffs (India was virtually self-sufficient in edible oils in the 1990s but now faces increasing import costs).

On the one hand, there is talk of India becoming food secure and self-sufficient; on the other, there is pressure from the richer nations for the Indian government to further reduce support given to farmers and open up to imports and ‘free’ trade. But this is based on hypocrisy.

Writing on the ‘Down to Earth’ website in late 2017, Sachin Kumar Jain states some 3.2 million people were engaged in agriculture in the US in 2015. The US govt provided them each with a subsidy of $7,860 on average. Japan provides a subsidy of $14,136 and New Zealand $2,623 to its farmers. In 2015, a British farmer earned $2,800 and $37,000 was added through subsidies. The Indian government provides on average a subsidy of $873 to farmers. However, between 2012 and 2014, India reduced the subsidy on agriculture and food security by $3 billion.

According to policy analyst Devinder Sharma subsidies provided to US wheat and rice farmers are more than the market worth of these two crops. He also notes that, per day, each cow in Europe receives subsidy worth more than an Indian farmer’s daily income.

How can the Indian farmer compete with an influx of artificially cheap imports? The simple answer is that s/he cannot and is not meant to.

The opening up of India to foreign capital is supported by rhetoric about increasing agricultural productivity, creating jobs and boosting GDP growth. But India is already self-sufficient in key staples and even where productivity is among the best in the world, farmers still face massive financial distress. Given that jobs are being destroyed, relatively few are being created and that as a measure of development GDP growth is unsustainable and has actually come at the expense of deliberately impoverished farmers in India (low food prices), what we are hearing is mere rhetoric to try to convince the public that an increasing concentration of wealth in the hands of a relative few corporations – via deregulations, privatisations and lower labour and environmental protection standards – constitutes progress.

We can already see the outcome of these policies across the world: the increasing power of unaccountable financial institutions, record profits and massive increases in wealth for elite interests and, for the rest, disempowerment, mass surveillance, austerity, job losses, the erosion of rights, weak unions, cuts to public services, environmental degradation, spiraling national debt and opaque, corrupt trade deals, such as TTIP, CETA, RCEP (affecting India) and TPA.

Making India ‘business friendly’

PM Modi is on record as saying that India is now one of the most business-friendly countries in the world. The code for being ‘business friendly’ translates into a willingness by the government to facilitate much of the above, while reducing taxes and tariffs and allowing the acquisition of public assets via privatisation as well as instituting policy frameworks that work to the advantage of foreign corporations.

When the World Bank rates countries on their level of ‘ease of doing business’, it means national states facilitating policies that force working people to take part in a race to the bottom based on free market fundamentalism. The more ‘compliant’ national governments make their populations and regulations, the more ‘business friendly’ a country is.

In the realm of agriculture, the World Bank’s ‘Enabling the Business of Agriculture’ entails opening up markets to Western agribusiness and their fertilisers, pesticides, weedicides and patented seeds. Rather than work to eradicate corruption, improve poor management, build storage facilities and deal with inept bureaucracies and deficiencies in food logistics, the mantra is to let ‘the market’ intervene: a euphemism for letting powerful corporations take control; the very transnational corporations that receive massive taxpayer subsidies, manipulate markets, write trade agreements and institute a regime of intellectual property rights thereby indicating that the ‘free’ market only exists in the warped delusions of those who churn out clichés about letting the market decide.

According to the neoliberal ideologues, foreign investment is good for jobs and good for business. But just how many actually get created is another matter – as is the amount of jobs destroyed in the first place to pave the way for the entry of foreign corporations. For example, Cargill sets up a food or seed processing plant that employs a few hundred people; but what about the agricultural jobs that were deliberately eradicated in the first place or the village-level processors who were cynically put out of business via bogus health and safety measures so Cargill could gain a financially lucrative foothold?

The process resembles what Michel Chossudovsky notes in his 1997 book about the ‘structural adjustment’ of African countries. In The Globalization of Poverty, he says that economies are:

opened up through the concurrent displacement of a pre-existing productive system. Small and medium-sized enterprises are pushed into bankruptcy or obliged to produce for a global distributor, state enterprises are privatised or closed down, independent agricultural producers are impoverished. (p.16)

If people are inclined to think farmers would be better off as foreign firms enter the supply chain, we need only look at the plight of farmers in India who were tied into contracts with Pepsico. Farmers were pushed into debt, reliance on one company and were paid a pittance

India is looking to US corporations to ‘develop’ its food and agriculture sector. With regard to what this could mean for India, we only have to look at how the industrialised US system of food and agriculture relies on massive taxpayer subsidies and has destroyed farmers’ livelihoods. The fact that US agriculture now employs a tiny fraction of the population serves as a stark reminder for what is in store for Indian farmers. Agribusiness companies (whose business model in the US is based on overproduction and dependent on taxpayer subsidies) rake in huge returns, while depressed farmer incomes and massive profits for food retailers is the norm.

The long-term plan is for an overwhelmingly urbanised India with a fraction of the population left in farming working on contracts for large suppliers and Walmart-type supermarkets that offer a largely monoculture diet of highly processed, denutrified, genetically altered food based on crops soaked with chemicals and grown in increasingly degraded soils according to an unsustainable model of agriculture that is less climate/drought resistant, less diverse and unable to achieve food security.

The alternative would be to protect indigenous agriculture from rigged global trade and trade deals and to implement a shift to sustainable, localised agriculture which grows a diverse range of crops and offers a healthy diet to the public.

Instead, we see the push for bogus ‘solutions’ like GMOs and an adherence to neoliberal ideology that ultimately privileges profit and control of the food supply by powerful private interests, which have no concern whatsoever for the health of the public.

Taxpayer-subsidised agriculture in the US ultimately promotes obesity and disease by supporting the health damaging practices of the food industry. Is this what Indians want to see happen in India to their food and health?

Unfortunately, the process is already well on track as ‘Western diseases’ take hold in the country’s urban centres. For instance, there are massive spikes in the rates of obesity and diabetes. Although around 40 per cent of the nation’s under-5s are underweight, the prevalence of underweight children in India is among the highest in the world; at the same time, the country is fast becoming the diabetes and heart disease capital of the world.

Devinder Sharma has highlighted where Indian policy makers’ priorities lie when he says that agriculture has been systematically killed over the last few decades. He adds that 60% of the population lives in the villages or in the rural areas and is involved in agriculture but less than two percent of the annual budget goes to agriculture: when you are not investing in agriculture, you are not wanting it to perform.

Support given to agriculture is portrayed as a drain on the economy and is reduced and farmers suffer yet it still manages to deliver bumper harvests year after year. On the other hand, corporate-industrial India has failed to deliver in terms of boosting exports or creating jobs, despite the hand outs and tax exemptions given to it.

The number of jobs created in India between 2005 and 2010 was 2.7 million (the years of high GDP growth). According to International Business Times, 15 million enter the workforce every year. And data released by the Labour Bureau shows that in 2015, jobless ‘growth’ had finally arrived in India.

So where are the jobs going to come from to cater for hundreds of millions of agricultural workers who are to be displaced from the land or those whose livelihoods will be destroyed as transnational corporations move in and seek to capitalise small-scale village-level industries that currently employ tens of millions?

Development used to be about breaking with colonial exploitation and radically redefining power structures. Now we have dogma masquerading as economic theory that compels developing countries to adopt neo-liberal policies. The notion of ‘development’ has become hijacked by rich corporations and the concept of poverty depoliticised and separated from structurally embedded power relations, not least US-driven neoliberal globalisation policies resulting in the deregulation of international capital that ensures giant transnational conglomerates have too often been able to ride roughshod over national sovereignty.

Across the world we are seeing treaties and agreements over breeders’ rights and intellectual property have been enacted to prevent peasant farmers from freely improving, sharing or replanting their traditional seeds. Large corporations with their proprietary seeds and synthetic chemical inputs have eradicated traditional systems of seed exchange. They have effectively hijacked seeds, pirated germ plasm that farmers developed over millennia and have ‘rented’ the seeds back to farmers. As a result, genetic diversity among food crops has been drastically reduced, and we have bad food and diets, degraded soils, water pollution and scarcity and spiralling rates of poor health.

Corporate-dominated agriculture is not only an attack on the integrity of ‘the commons’, soil, water, food, diets and health but is also an attack on the integrity of international institutions, governments and officials which have too often been corrupted by powerful transnational entities.

Whereas some want to bring about a fairer, more equitable system of production and distribution to improve people’s quality of lives (particularly pertinent in India with its unimaginable inequalities which have spiraled since India adopted neoliberal policies), Washington regards ‘development’ as a way to further US interests globally.

As economics professor Michael Hudson said during a 2014 interview (published on prosper.org under the title ‘Think Tank Times’):

American foreign policy has almost always been based on agricultural exports, not on industrial exports as people might think. It’s by agriculture and control of the food supply that American diplomacy has been able to control most of the Third World. The World Bank’s geopolitical lending strategy has been to turn countries into food deficit areas by convincing them to grow cash crops – plantation export crops – not to feed themselves with their own food crops.

Of course, many others such as Walden Bello, Raj Patel and Eric Holtz-Gimenez have written on how a geopolitical ‘stuffed and starved’ strategy has fuelled this process over the decades.

Capitalism and environmental catastrophe joined at the hip

In India, an industrialised chemical-intensive model of agriculture is being facilitated that brings with it the numerous now well-documented externalised social, environmental and health costs. We need look no further than the current situation in South India and the drying up of the Cauvery river in places to see the impact that this model has contributed to: an ecological crisis fuelled by environmental devastation due to mining, deforestation and unsustainable agriculture based on big dams, water-intensive crops and Green Revolution ideology imported from the West.

But we have known for a long time now that India faces major environmental problems rooted in agriculture. For example, in an open letter written to officials in 2006, the late campaigner and farmer Bhaskar Save noted that India, next to South America, receives the highest rainfall in the world. Where thick vegetation covers the ground, and the soil is alive and porous, at least half of this rain is soaked and stored in the soil and sub-soil strata. A good amount then percolates deeper to recharge aquifers, or ‘groundwater tables’. Save argued that the living soil and its underlying aquifers thus serve as gigantic, ready-made reservoirs gifted free by nature.

Half a century ago, most parts of India had enough fresh water all year round, long after the rains had stopped and gone. But clear the forests, and the capacity of the earth to soak the rain, drops drastically. Streams and wells run dry.

Save went on to note that while the recharge of groundwater has greatly reduced, its extraction has been mounting. India is presently mining over 20 times more groundwater each day than it did in 1950. Much of this is mindless wastage by a minority. But most of India’s people – living on hand-drawn or hand-pumped water in villages and practising only rain-fed farming – continue to use the same amount of ground water per person, as they did generations ago.

According to Save, more than 80% of India’s water consumption is for irrigation, with the largest share hogged by chemically cultivated cash crops. Maharashtra, for example, has the maximum number of big and medium dams in the country. But sugarcane alone, grown on barely 3-4% of its cultivable land, guzzles about 70% of its irrigation waters.

One acre of chemically grown sugarcane requires as much water as would suffice 25 acres of jowar, bajra or maize. The sugar factories too consume huge quantities. From cultivation to processing, each kilo of refined sugar needs two to three tonnes of water. This could be used to grow, by the traditional, organic way, about 150 to 200 kg of nutritious jowar or bajra (native millets).

While rice is suitable for rain-fed farming, its extensive multiple cropping with irrigation in winter and summer as well is similarly hogging water resources and depleting aquifers. As with sugarcane, it is also irreversibly ruining the land through salinization.

Save argued that soil salinization is the greatest scourge of irrigation-intensive agriculture, as a progressively thicker crust of salts is formed on the land. Many million hectares of cropland have been ruined by it. The most serious problems are caused where water-guzzling crops like sugarcane or basmati rice are grown round the year, abandoning the traditional mixed-cropping and rotation systems of the past, which required minimal or no watering.

Salinization aside, looking at the issue of soil more generally, Stuart Newton, a researcher and botanist living in India, says that India must restore and nurture its depleted, abused soils and not harm them any further with chemical overload. Through his analyses of Indian soils, he has offered detailed insights into their mineral compositions and links their depletion to the Green Revolution. In turn, these depleted soils in the long-term cannot help but lead to mass malnourishment. This is quite revealing given that proponents of the Green Revolution claim it helped reduced malnutrition.

Various high-level official reports, not least the International Assessment of Agricultural Knowledge and Science for Development Report, state that smallholder, traditional farming can deliver food security in low-income countries through sustainable agroecological systems. Moreover, given India’s huge range of biodiversity (India is one of Nikolai Vavilov’s strategically globally important centres of plant diversity) that has been developed over millennia to cope with diverse soil and climate conditions, the country should on its own be more than capable of addressing challenges that lie ahead due to climate change.

Instead, policy makers continue to look towards the likes of Monsanto-Bayer for ‘solutions’. Such companies merely seed to break farmers’ environmental learning ‘pathways’ based on centuries of indigenous knowledge, learning and practices with the aim of getting farmers hooked on chemical treadmills for corporate profit (see Glenn Stone and Andrew Flach’s 2017 paper in the Journal of Peasant Studies, ‘The ox fall down: path-breaking and technology treadmills in Indian cotton agriculture’).

Wrong-headed policies in agriculture have already resulted in drought, expensive dam-building projects, population displacement and degraded soils. The rivers are drying, farmers are dying and the cities are creaking as a result of the unbridled push towards urbanisation.

In terms of managing water resources, regenerating soils, and cultivating climate resilient crops, agroecology as a solution is there for all to see. Andhra Pradesh is now making a concerted effort to roll-out zero budget agroecological agriculture across the state. However, in the absence of this elsewhere across India, agroecological approaches will be marginalised.

India faces huge problems in terms of securing access to water. As Bhaskar Save noted, the shift to Green Revolution thinking and practices (underpinned by geopolitical and commercial interests: World Bank loans; export-oriented monocropping, commodity crop trade and dependency on the US dollar; seed sovereignty issues and costly proprietary inputs, etc) has placed enormous strain on water resources.

From glacial melt in the Himalayas that will contribute to the drying up of important rivers to the effects of temperature rises across the Indo Gangetic plain, which will adversely impact wheat productivity, India has more than its fair share of problems. But despite this, high-level policy makers are pushing for a certain model of ‘development’ that will only exacerbate the problems.

This model is being driven by some of the world’s largest corporate players: a model that by its very nature leads to environment catastrophe:

… our economic system demands ever-increasing levels of extraction, production and consumption. Our politicians tell us that we need to keep the global economy growing at more than 3% each year – the minimum necessary for large firms to make aggregate profits. That means every 20 years we need to double the size of the global economy – double the cars, double the fishing, double the mining, double the McFlurries and double the iPads. And then double them again over the next 20 years from their already doubled state.1

Politicians and bureaucrats in Delhi might be facilitating this model and the system of agriculture it is tied to, but it is ultimately stamped with the logo ‘made in Washington’.

  1. Jason Hickel, writing in The Guardian (July 2016.

The Balkanization of South America and the Role of Fifth Columns Throughout the World

During the recent meeting in Caracas of the Venezuelan Presidential Economic Advisory Commission, in mid-June 2018, President Maduro said something extremely interesting, but also extremely disturbing, nonetheless highly important for the region to be aware of. Mr. Maduro mentioned Yugoslavia, the foreign induced local conflicts, the breakup and dismemberment of Yugoslavia, starting with the “Ten Days War” on Slovenia in 1991, the Croatian War (1991-95); the Bosnia War (1992-95); the Kosovo War (1998-99), culminating with the Clinton induced 69-day NATO bombing of Kosovo, under then European NATO leader Wesley Clark (today the Repentant – in retrospect it’s easy to be sorry), pretending to save the Kosovo Albanians from Serbian Milosevic’s atrocities. How Milosevic served as a patsy for the imperial forces is another story.

All of this would not have been possible without a decade long preparation by several Fifth Columns infiltrated and trained in and outside of Yugoslavia, the only country in Europe that in the 1980s and 90s flourished, with general well being above that of the average Europeans, who were suffering recessions and increasing inequality, the beginning of xenophobia in the age of nascent neoliberalism. There was no extreme poverty in Yugoslavia, but prosperity without excesses for everybody. There was economic growth under a loose Mao-model socialism which could, of course, not be allowed to persist, lest it might serve the world as an example. Besides the breakup of Yugoslavia into chaos was needed to create mini-states that are in conflict with each other, some of them still today, and that could be ‘accommodated’ against a hefty ‘fee’, of course, to accept the installation of NATO bases ever an inch closer to Moscow’s door step.

Well, Mr. Maduro saw and sees it clearly. History repeats itself all too often, especially when it comes in the form of western neoliberal-neofascist atrocities, as people’s memories are dulled with lie-propaganda. In fact, there is hardly any real news, only ‘fake news’ in the western mainstream media. Mr. Maduro envisions that “their” plan for Latin America is similar to what “they” did to Yugoslavia. He is probably right. All signs point into this direction.

A pact between Colombia and NATO, a so-called “Security Cooperation Agreement” was first signed in June 2013 but prepared way before. Records of first communications to this effect, by Juan Manual Santos, then President of Columbia and Peace Laureate in 2016 for his traitorous Peace Agreement between the Colombian Government and FARC (vaya-vaya! Doesn’t this speak volumes by itself?), can be traced back to early 2012.

President Hugo Chavez was the first one to warn his Latin American partners of the imminent clandestine infiltration of NATO into South America. Nobody listened. Today it’s a fact, too late to fight against. NATO troops are occupying gradually all seven American military bases in Colombia. They are just simply converting from US to NATO bases – sounds more palatable than US bases – for sure. In the minds of unfortunately still most uninformed or mal-informed people, NATO stands for security. NATO – the North Atlantic Treaty Organization – in South America. What an oxymoron! Well, it is the same ‘security’ farce as is NATO in Afghanistan and bombing the Middle East.

Venezuela is full with Fifth Columnists. They are the ones that facilitate the highly speculative and inflationary manipulation from Miami of the black-market US dollar rate in the streets of Caracas; they are the ones that emulate the food shortages in Chile 1973, successfully disappearing duly paid-for imported merchandise, mostly food and medical supplies, ending up as smuggle-ware in Colombia, leaving empty supermarket shelves in Venezuela. All meant to instigate people to stand up against their government.

So far, this strategy has failed bitterly. On 20 May 2018, President Maduro has been overwhelmingly re-elected, under the most internationally observed elections the world has ever experienced, and the result was “the cleanest, most democratic elections we have witnessed in our history of worldwide 92 election observations”. So said the US-based Carter Institute.

Yet, the Fifth Columnists are relentless. Worldwide. They are immersed in the government apparatus, institutions, military, police – even Parliament and very important in the financial system, possible in the central bank. They “allow”, or rather promote, the manipulation of the US-dollar black market, causing sky-rocketing inflation and lack of food and medicine on supermarket shelves. They disrupt electricity, internet and water services. The approach is similar in every country that refuses to bend to the empire’s dictate. In Russia, Iran, China, Syria, South Sudan, possibly even in Cuba they are in control of the financial system – that’s also how they are easily being financed, through the dollar-based monetary fraud of the west, to which most countries still have some links – fortunately every day less.

Take Russia, the Central Bank is still largely run by the Fifth Columnists, whose ‘chief’ is Putin’s just recently re-appointed Prime-Minister, Dmitry Medvedev, an arch-Atlantist. The structure of the Russian Central Bank is even today mainly a remnant of the Russian Reserve Bank, designed by the FED after the collapse of the Soviet Union, with the help of the UN-masked Bretton Woods crooks, the IMF, World Bank.

Similarly, part of the masked international promoters of instability, are the Bretton Woods regional associates, the so-called regional development banks, the Inter-American Development Bank (IDB), the Asian Development Bank (ADB), African Development Bank (AfDB) and their sub-regional cohorts. In the nineties, the Gang was joined by WTO (the World Trade Organization). And here they are, the world’s three most hated international UN-backed financial and trade organizations, IMF, World Bank and WTO. All three are promoting fundamentalist “free-marketeering” across the globe, especially throughout the southern hemisphere (though Greece and southern Europe do not escape), indebting and enslaving countries to the western corporate oligarchs. All well-structured to control the world’s financial system – so as to march towards world hegemony of a One World Global Economy. We are almost there, though not quite yet. There is always hope. Man’s last shred to hang on to life is HOPE. And only Man can translate hope into reality. So, as long as we have life, it’s not too late.

Why is it so difficult, say, impossible to get rid of them, the Fifth Columnists, the vermin of any unaligned political system? Why did President Putin re-assign Medvedev as his PM?  Mr. Putin knows that he supports a network of Atlantist oligarchs that seek nothing more than to ‘putsch’ him, Mr. Putin, and ultimately to destroy the rather egalitarian, though capitalist-based, economic system Russia has enjoyed for the last almost 20 years, becoming self-sufficient in agriculture, food, industry, high-tech science, pharmaceuticals. Russia has developed herself into an exemplary “Resistance Economy”, ready to be emulated by any western-named ‘rogue’ state that is sick and tired of the Empires boots and bombs and forced ‘democracies’ through ‘regime change’.

There are many western countries that just wait for a leader, one that moves head-on. Russia, China, Venezuela, Iran, Cuba, are shining examples. They are gradually escaping the yoke of the dollar-dominated western economy.

So, why are countries like Russia, Iran and maybe Venezuela afraid to get rid of their Fifth Columnists? For fear of a civil war, of a blood bath? Yes, we have seen the violent unrest they caused in preparation of the two major democratic elections in Venezuela in the last 12 months, the National Constituent Assembly (30 July 2017) and the Presidential Elections on 20 May 2018, when altogether close to 200 people died. The media immediately blamed the death on police and military oppression and violence but the only armed protesters were those armed and funded by Washington, and responsible for more than 80% of the death. Chavistas cheered for their Government with their bare fists.

The question remains in the room – why does Mr. Putin not get rid of them, the Fifth Columnists?  Would they cause a civil war?   It seems to me they wouldn’t have sufficient supporters in Russia, but they could disrupt the internal economy, as the Russian internal financial systems, especially private banking, is still in the hands of these Atlantists. They are also in China, but it appears that President Xi Jinping has better control of them.

How about Iran? Why are they still able to hold on to and fight for ‘western deals’; i.e., the upholding of the Nuclear Deal that Trump has stepped out from and now is sanctioning Iran ‘with the most severe sanctions the world has ever seen’, sounding similar to what he said to Mr. Kim Jong-un, the ‘Little Rocket Man’, with whom Trump then made peace a few weeks later?  Or something like it. One never knows with the Donald what the meaning of Trump’s trumpeting is, other than screwing up alliances and creating physical and sociopsychological chaos. He is also threatening European corporations, mostly oil companies, with heavy sanctions if they dare maintain their contracts with Iran.

Many cave in. Among them, the French-UK owned Total, Italy’s Eni and Saras, Spain’s Repsol and Greece’s Hellenic Petroleum. In the case of Total, according to the director of the Venezuelan branch, instead of filling their contracts with US-“fracking” oil, as Trump would expect, they are negotiating with Russia, to fulfill their obligations in Europe and elsewhere. “We cannot trust Brussels to fend for us, therefore we have to fend for ourselves”, the Total representative said.

Iran doesn’t really need the Europeans to buy their oil. Europe constitutes only about 20% of the Iranian hydrocarbon market – an amount easily taken up by China. The same with other European corporations that may choose similar ways of self-protection – cutting ties with Iran – like the Peugeot-Citroen automobile giant. Iran doesn’t need them. That these sanctions and EU corporate reactions to the US sanctions, are causing hardship and unemployment in Iran is just western propaganda, a vast exaggeration, at worst a temporary affair. As Mr. Rouhani said, we might go through a short period of difficulties but will recover rapidly by becoming self-sufficient. And that’s true. Iran is well embarked on their “Economy of Resistance”, aiming at self-sufficiency through import-substitution and orienting themselves towards eastern markets.

In fact, Iran is already part of the Eurasian Economic Community and will soon become a full-fledged member of the Shanghai Cooperation Organization (SCO).  So why can Iran not get rid of their Fifth Columnists? This is a question I can only answer with “fear from bloody civil unrest, prompting possibly western military intervention”.

Back to Venezuela, it could be similar fears that prevent the Maduro Government from taking drastic actions, like declaring a temporary state of emergency and drastic measures of de-dollarization to stop inflation and speculation, and strengthen the local currency, the Bolivar, by backing it with their internationally accepted cryptocurrency, the Petro.

On 20 May 2018, six million Venezuelan’s mostly Chavistas, voted overwhelmingly for President Maduro and his Government, a 68% majority, representing a solid block of people supporters. If you have the choice between an artificially made-to-starve population and a crumbling what used to be a solid block of 6 million Chavistas behind you but gradually disappearing because of lacking actions by the government, what do you do? Perhaps the only way is to economically isolate the Fifth Columnists or Atlantists, despite their apparent control of the economic system. What Atlantists are actually controlling is the dollar-based economy. Quitting the dollar-base, they may become rather powerless.

Venezuela faces a dire dilemma: Die or be killed. Venezuela has already started moving out of the dilemma, with the creation of the totally dollar-detached Petro, the government controlled blockchain currency based on hydrocarbons and precious minerals. Today, Venezuela imports about 70% of their food, and guess from where?  You guessed right – from the US of A. Thus, de-dollarization at first sight is a challenge.

Therefore, a massive diversification of imports, and efforts to become food self-sufficient, is in the order. Venezuela has the agricultural potential to become 100% food self-sufficient. In the meantime, Russia, China and other Eurasian countries will substitute. Venezuela may apply for SCO membership. Why not? After all, China has already about 50 billion dollars’ worth of investments in Venezuela, mostly in hydrocarbons, and just declared making another 5-billion-dollar equivalent loan to refurbish the Venezuelan petrol industry. China and Russia have big stakes in Venezuela, an excellent defense strategy. Now, Venezuela’s membership in the SCO would be another big step away from the dollar economy.

The Balkanization of Latin America is already happening. When Mr. Maduro referred to the 7 US bases in neighboring Colombia, aka, now NATO bases, with a porous 1,500 km (out of a total of 2,000 km) uncontrollable jungle border with Venezuela, and even open and welcoming borders with Peru, Ecuador and Brazil, he said it all. It will be easy to suffocate any uprising – NATO will do it, by now the generally accepted world police, as generally accepted as the recently intact, totally unelected and self-appointed world government, the G7. They are now crumbling, thank heaven for Mr. Trump’s egocentric pathology, his “Let’s make America Great Again”; and thanks to Mr. Putin’s non-intervening but strategic sideline observance.

Will Trump continue to provide majority support for NATO? He recently warned the Europeans to contribute their share; i.e., increasing their NATO contribution to 2% of their GDP – or else. Well, what is “else”?  Reducing NATO, an enormous cost to the US?  And counting on the CIA-trained and NED-funded destabilizing insurgents (NED = National Endowment for Democracy, a state department financed “regime change’ and “democratization” NGO) throughout the world? Insurgents in alliance with the local Atlantists? Will this be enough in a rapidly changing international monetary and payment system?

The US scheme for Balkanizing Latin America, and by extension the world, is as porous as the 1,500 km long tropical forest border between Colombia and Venezuela. The hegemony of the dollar-economy hangs in the balance. Only drastic actions by victimized but courageous countries, like Venezuela, Iran and Russia can break the balance and destroy the western monetary hegemony.