Category Archives: Economic Terrorism

Smashing The Heads of Farmers: A Global Struggle Against Tyranny

According to Reuters, more than 500,000 farmers attended a rally in the city of Muzaffarnagar in the Indian state of Uttar Pradesh on 5 September. Hundreds of thousands more turned out for other rallies in the state.

Rakesh Tikait, a prominent farmers’ leader, said this would breathe fresh life into the Indian farmers’ protest movement.

He added:

We will intensify our protest by going to every single city and town of Uttar Pradesh to convey the message that Modi’s government is anti-farmer.

Tikait is a leader of the protest movement and a spokesperson of the Bharatiya Kisan Union (Indian Farmers’ Union).

Since November 2020, tens of thousands of farmers have been encamped on the outskirts of Delhi in protest against three new farm laws that will effectively hand over the agrifood sector to corporates and place India at the mercy of international commodity and financial markets for its food security.

Aside from the rallies in Uttar Pradesh, thousands more farmers recently gathered in Karnal in the state of Haryana to continue to pressurise the Modi-led government to repeal the laws. This particular protest was also in response to police violence during another demonstration, also in Karnal (200 km north of Delhi), during late August when farmers had been blocking a highway. The police Lathi-charged them and at least 10 people were injured and one person died from a heart attack a day later.

A video that appeared on social media showed Ayush Sinha, a top government official, encouraging officers to “smash the heads of farmers” if they broke through the barricades placed on the highway.

Haryana Chief Minister Manohar Lal Khattar criticised the choice of words but said that “strictness had to be maintained to ensure law and order”.

But that is not quite true. “Strictness” – outright brutality – must be imposed to placate the scavengers abroad who are circling overhead with India’s agrifood sector firmly in their sights. As much as the authorities try to distance themselves from such language – ‘smashing heads’ is precisely what India’s rulers and the billionaire owners of foreign agrifood corporations require.

The government has to demonstrate to global agricapital that it is being tough on farmers in order to maintain ‘market confidence’ and attract foreign direct investment in the sector (aka the takeover of the sector).

The farmers’ protest in India represents a struggle for the heart and soul of the country: a conflict between the local and the global. Large-scale international agribusiness, retailers, traders and e-commerce companies are trying to displace small- and medium-size indigenous producers and enterprises and restructure the entire agrifood sector in their own image.

By capitulating to the needs of foreign agrifood conglomerates – which is what the three agriculture laws represent – India will be compelled to eradicate its buffer food stocks. It would then bid for them with borrowed funds on the open market or with its foreign reserves.

This approach is symptomatic of what has been happening since the 1990s, when India was compelled to embrace neoliberal economics. The country has become increasingly dependent on inflows of foreign capital. Policies are being governed by the drive to attract and retain foreign investment and maintain ‘market confidence’ by ceding to the demands of international capital which rides roughshod over democratic principles and the needs of hundreds of millions of ordinary people.

The authorities know they must be seen to be acting tough on farmers, thereby demonstrating a steely resolve to foreign agribusiness and investors in general.

The Indian government’s willingness to cede control of its agrifood sector would appear to represent a victory for US foreign policy.

Economist Prof Michael Hudson stated in 2014:

American foreign policy has almost always been based on agricultural exports… 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.

On the back of India’s foreign exchange crisis in the 1990s, the IMF and World Bank wanted India to shift hundreds of millions out of agriculture. In return for up to more than $120 billion in loans at the time, 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 drive is to drastically dilute the role of the public sector in agriculture, reducing it to a facilitator of private capital and leading to the entrenchment of industrial farming and the replacement of small-scale farms.

Smashing protesters’ heads

A December 2020 photograph published by the Press Trust of India defines the Indian government’s approach to protesting farmers. It shows a security official in paramilitary garb raising a lathi. An elder from the Sikh farming community was about to feel its full force.

But “smashing the heads of farmers” is symbolic of how near-totalitarian ‘liberal democracies’ the world over now regard many within their own populations.

The right to protest and gather in public as well as the right of free speech has been suspended in Australia, which currently resembles a giant penal colony as officials pursue a nonsensical ‘zero-COVID’ policy. Across Europe and in the US and Israel, unnecessary and discriminatory ‘COVID passports’ are being rolled out to restrict freedom of movement and access to services. And those who protest against any of this are often confronted by a massive, intimidating police presence (or actual police violence) and media smear campaigns.

Again, governments must demonstrate resolve to their billionaire masters in Big Finance, the Gates and Rockefeller Foundations, the World Economic Forum and the entire gamut of forces in the military-financial industrial complex behind the ‘Great Reset’, ‘4th Industrial Revolution, ‘New Normal’ or whichever other benign-sounding term its political and media lackeys use to disguise the restructuring of capitalism and the brutal impacts on ordinary people.

This too, like the restructuring of Indian agriculture – which will affect India’s entire 1.3-billion-plus population – is also part of a US foreign policy agenda that serves the interests of the Anglo-US elite.

COVID has ensured that trillions of dollars have been handed over to elite interests, while lockdowns and restrictions have been imposed on ordinary people and small businesses. The winners have been the likes of Amazon, Big Pharma and the tech giants. The losers have been small enterprises and the bulk of the population, deprived of their right to work and the entire panoply of civil rights their ancestors struggled and often died for. If a masterplan is required to deliver a knockout blow to small enterprises for the benefit of global players, then this is it.

Professor Michel Cossudovsky of the Centre for Research on Globalization says:

The Global Money financial institutions are the ‘creditors’ of the real economy which is in crisis. The closure of the global economy has triggered a process of global indebtedness. Unprecedented in World history, a multi-trillion bonanza of dollar denominated debts is hitting simultaneously the national economies of 193 countries.

In August 2020, a report by the International Labour Organization (ILO) stated:

The COVID-19 crisis has severely disrupted economies and labour markets in all world regions, with estimated losses of working hours equivalent to nearly 400 million full-time jobs in the second quarter of 2020, most of which are in emerging and developing countries.

Among the most vulnerable are the 1.6 billion informal economy workers, representing half of the global workforce, who are working in sectors experiencing major job losses or have seen their incomes seriously affected by lockdowns. Most of the workers affected (1.25 billion) are in retail, accommodation and food services and manufacturing. And most of these are self-employed and in low-income jobs in the informal sector.

India was especially affected in this respect when the government imposed a lockdown. The policy ended up pushing 230 million into poverty and wrecked the lives and livelihoods of many. A May 2021 report prepared by the Centre for Sustainable Employment at Azim Premji University (APU) has highlighted how employment and income had not recovered to pre-pandemic levels even by late 2020.

The report, ‘State of Working India 2021 – One year of Covid-19’ highlights how almost half of formal salaried workers moved into the informal sector and that 230 million people fell below the national minimum wage poverty line.

Even before COVID, India was experiencing its longest economic slowdown since 1991 with weak employment generation, uneven development and a largely informal economy. A recent article by the Research Unit for Political Economy highlights the structural weaknesses of the economy and the often desperate plight of ordinary people.

To survive Modi’s lockdown, the poorest 25% of households borrowed 3.8 times their median income, as against 1.4 times for the top 25%. The study noted the implications for debt traps.

Six months later, it was also noted that food intake was still at lockdown levels for 20% of vulnerable households.

Meanwhile, the rich were well taken care of. According to Left Voice:

The Modi government has handled the pandemic by prioritising the profits of big business and protecting the fortunes of billionaires over protecting the lives and livelihoods of workers.

Michel Chossudovsky says that governments are now under the control of global creditors and that the post-Covid era will see massive austerity measures, including the cancellation of workers’ benefits and social safety nets. An unpayable multi-trillion dollar public debt is unfolding: the creditors of the state are Big Money, which calls the shots in a process that will lead to the privatisation of the state.

Between April and July 2020, the total wealth held by billionaires around the world has grown from $8 trillion to more than $10 trillion. Chossudovsky says a new generation of billionaire innovators looks set to play a critical role in repairing the damage by using the growing repertoire of emerging technologies. He adds that tomorrow’s innovators will digitise, refresh and revolutionise the economy: but, as he notes, let us be under no illusions these corrupt billionaires are impoverishers.

With this in mind, a recent piece on the US Right To Know website exposes the Gates-led agenda for the future of food based on the programming of biology to produce synthetic and genetically engineered substances. The thinking reflects the programming of computers in the information economy. Of course, Gates and his ilk have patented, or are patenting, the processes and products involved.

For example, Ginkgo Bioworks, a Gates-backed start-up that makes ‘custom organisms’, recently went public in a $17.5 billion deal. It uses ‘cell programming’ technology to genetically engineer flavours and scents into commercial strains of engineered yeast and bacteria to create ‘natural’ ingredients, including vitamins, amino acids, enzymes and flavours for ultra-processed foods.

Ginkgo plans to create up to 20,000 engineered ‘cell programs’ (it now has five) for food products and many other uses. It plans to charge customers to use its ‘biological platform’. Its customers are not consumers or farmers but the world’s largest chemical, food and pharmaceutical companies.

Gates pushes fake food by way of his greenwash agenda. If he really is interested in avoiding ‘climate catastrophe’, helping farmers or producing enough food, instead of cementing the power and the control of corporations over our food, he should be facilitating community-based and lead agroecological approaches.

But he will not because there is no scope for patents, external proprietary inputs, commodification and dependency on global corporations which Gates sees as the answer to all of humanity’s problems in his quest to bypass democratic processes and roll out his agenda.

India should take heed because this is the future of ‘food’. If the farmers fail to get the farm bills repealed, India will again become dependent on food imports or on foreign food manufacturers and lab-made ‘food’. Fake food will displace traditional diets and cultivation methods will be driven by drones, genetically engineered seeds and farms without farmers, devastating the livelihoods (and health) of hundreds of millions.

This is a vision of the future courtesy of Klaus Schwab’s (of the elitist World Economic Forum) dystopic transhumanism and the Rockefellers’ 2010 lockstep scenario: genetically engineered food and genetically engineered people controlled by a technocratic elite whose plans are implemented through tighter top-down government control and more authoritarian leadership.

Since March 2020, we have seen the structural adjustment of the global capitalist system and labour’s relationship to it and an attempted adjustment of people’s thinking via endless government and media propaganda.

Whether it involves India’s farmers or the frequent rallies and marches against restrictions and COVID passports across the world, there is a common enemy. And there is also a common goal: liberty.

The post Smashing The Heads of Farmers: A Global Struggle Against Tyranny first appeared on Dissident Voice.

Amazon: “Economic Terrorism” and the Destruction of Competition and Livelihoods

Global corporations are colonising India’s retail space through e-commerce and destroying small-scale physical retail and millions of livelihoods.

Walmart entered into India in 2016 with a US$3.3 billion take-over of the online retail start-up Jet.com. This was followed in 2018 with a US$16 billion take-over of India’s largest online retail platform, Flipkart. Today, Walmart and Amazon control almost two thirds of India’s digital retail sector.

Amazon and Walmart have a record of using predatory pricing, deep discounts and other unfair business practices to attract customers to their online platforms. A couple of years ago, those two companies generated sales of over US$3 billion in just six days during Diwali. India’s small retailers reacted by calling for a boycott of online shopping.

If you want to know the eventual fate of India’s local markets and small retailers, look no further than what US Treasury Secretary Steven Mnuchin said in 2019. He stated that Amazon had “destroyed the retail industry across the United States.”

Amazon’s corporate practices

In the US, an investigation by the House Judiciary Committee concluded that Amazon exerts monopoly power over many small- and medium-size businesses. It called for breaking up the company and regulating its online marketplace to ensure that sellers are treated fairly.

Amazon has spied on sellers and appropriated data about their sales, costs and suppliers. It has then used this information to create its own competing versions of their products, often giving its versions superior placement in the search results on its platform.

The Institute for Local Self-Reliance (ILSR) published a revealing document on Amazon in June 2021 that discussed these issues. It also notes that Amazon has been caught using its venture capital fund to invest in start-ups only to steal their ideas and create rival products and services. Moreover, Amazon’s dominance allows it to function as a gatekeeper: retailers and brands must sell on its site to reach much of the online market and changes to Amazon’s search algorithms or selling terms can cause their sales to evaporate overnight.

Amazon also makes it hard for sellers to reduce their dependence on its platform by making their brand identity almost invisible to shoppers and preventing them from building relationships with their customers. The company strictly limits contact between sellers and customers.

According to the ILSR, Amazon compels sellers to buy its warehousing and shipping services, even though many would get a better deal from other providers, and it blocks independent businesses from offering lower prices on other sites. The company also routinely suspends sellers’ accounts and seizes inventories and cash balances.

The Joint Action Committee against Foreign Retail and E-commerce (JACAFRE) was formed to resist the entry of foreign corporations like Walmart and Amazon into India’s e-commerce market. Its members represent more than 100 national groups, including major trade, workers’ and farmers’ organisations.

JACAFRE issued a statement in 2018 on Walmart’s acquisition of Flipkart, arguing that it undermines India’s economic and digital sovereignty and the livelihoods of millions in India. The committee said the deal would lead to Walmart and Amazon dominating India’s e-retail sector. It would also allow them to own India’s key consumer and other economic data, making them the country’s digital overlords, joining the ranks of Google and Facebook.

In January 2021, JACAFRE published an open letter saying that the three new farm laws, passed by parliament in September 2020, centre on enabling and facilitating the unregulated corporatisation of agriculture value chains. This will effectively make farmers and small traders of agricultural produce become subservient to the interests of a few agrifood and e-commerce giants or will eradicate them completely.

Although there was strong resistance to Walmart entering India with its physical stores, online and offline worlds are now merged: e-commerce companies not only control data about consumption but also control data on production and logistics. Through this control, e-commerce platforms can shape much of the physical economy.

What we are witnessing is the deliberate eradication of markets in favour of monopolistic platforms.

Bezos not welcome

Amazon’s move into India encapsulates the unfair fight for space between local and global markets. There is a relative handful of multi-billionaires who own the corporations and platforms. And there are the interests of hundreds of millions of vendors and various small-scale enterprises who are regarded by these rich individuals as mere collateral damage to be displaced in their quest for ever greater profit.

Thanks to the helping hand of various COVID-related lockdowns which devastated small businesses, the wealth of the world’s billionaires increased by $3.9tn (trillion) between 18 March and 31 December 2020. In September 2020, Jeff Bezos, Amazon’s executive chairman, could have paid all 876,000 Amazon employees a $105,000 bonus and still be as wealthy as he was before COVID. Jeff Bezos – his fortune constructed on unprincipled methods that have been well documented in recent years – increased his net wealth by $78.2bn during this period.

Bezos’s plan is clear: the plunder of India and the eradication of millions of small traders and retailers and neighbourhood mom and pop shops.

This is a man with few scruples. After returning from a brief flight to space in July, in a rocket built by his private space company, Bezos said during a news conference:

I also want to thank every Amazon employee and every Amazon customer because you guys paid for all of this.

In response, US congresswoman Nydia Velazquez wrote on Twitter:

While Jeff Bezos is all over the news for paying to go to space, let’s not forget the reality he has created here on Earth.

She added the hashtag #WealthTaxNow in reference to Amazon’s tax dodging, revealed in numerous reports, not least the May 2021 study ‘The Amazon Method: How to take advantage of the international state system to avoid paying tax’ by Richard Phillips, Senior Research Fellow, Jenaline Pyle, PhD Candidate, and Ronen Palan, Professor of International Political Economy, all based at the University of London.

Little wonder that when Bezos visited India in January 2020, he was hardly welcomed with open arms.

Bezos praised India on Twitter by posting:

“Dynamism. Energy. Democracy. #IndianCentury.”

The ruling party’s top man in the BJP foreign affairs department hit back with:

Please tell this to your employees in Washington DC. Otherwise, your charm offensive is likely to be waste of time and money.

A fitting response, albeit perplexing given the current administration’s proposed sanctioning of the foreign takeover of the economy, not least by the unscrupulous interests that will benefit from the recent farm legislation.

Bezos landed in India on the back of the country’s antitrust regulator initiating a formal investigation of Amazon and with small store owners demonstrating in the streets. The Confederation of All India Traders (CAIT) announced that members of its affiliate bodies across the country would stage sit-ins and public rallies in 300 cities in protest.

In a letter to PM Modi, prior to the visit of Bezos, the secretary of the CAIT, General Praveen Khandelwal, claimed that Amazon, like Walmart-owned Flipkart, was an “economic terrorist” due to its predatory pricing that “compelled the closure of thousands of small traders.”

In 2020, Delhi Vyapar Mahasangh (DVM) filed a complaint against Amazon and Flipkart alleging that they favoured certain sellers over others on their platforms by offering them discounted fees and preferential listing. The DVM lobbies to promote the interests of small traders. It also raised concerns about Amazon and Flipkart entering into tie-ups with mobile phone manufacturers to sell phones exclusively on their platforms.

It was argued by DVM that this was anti-competitive behaviour as smaller traders could not purchase and sell these devices. Concerns were also raised over the flash sales and deep discounts offered by e-commerce companies, which could not be matched by small traders.

The CAIT estimates that in 2019 upwards of 50,000 mobile phone retailers were forced out of business by large e-commerce firms.

Amazon’s internal documents, as revealed by Reuters, indicated that Amazon had an indirect ownership stake in a handful of sellers who made up most of the sales on its Indian platform. This is an issue because in India Amazon and Flipkart are legally allowed to function only as neutral platforms that facilitate transactions between third-party sellers and buyers for a fee.

Under investigation

The upshot is that India’s Supreme Court recently ruled that Amazon must face investigation by the Competition Commission of India (CCI) for alleged anti-competitive business practices. The CCI said it would probe the deep discounts, preferential listings and exclusionary tactics that Amazon and Flipkart are alleged to have used to destroy competition.

However, there are powerful forces that have been sitting on their hands as these companies have been running amok.

In August 2021, the CAIT attacked the NITI Aayog (the influential policy commission think tank of the Government of India) for interfering in e-commerce rules proposed by the Consumer Affairs Ministry.

The CAIT said that the think tank clearly seems to be under the pressure and influence of the foreign e-commerce giants.

The president of CAIT, BC Bhartia, stated that it is deeply shocking to see such a callous and indifferent attitude of the NITI Aayog whch have remained a silent spectator for so many years when:

… the foreign e-commerce giants have circumvented every rule of the FDI policy and blatantly violated and destroyed the retail and e-commerce landscape of the country but have suddenly decided to open their mouth at a time when the proposed e-commerce rules will potentially end the malpractices of the e-commerce companies.

Of course, money talks and buys influence. In addition to tens of billions of US dollars invested in India by Walmart and Amazon, Facebook invested US$5.5 billion last year in Mukesh Ambani’s Jio Platforms (e-commerce retail). Google has also invested US$4.5 billion.

Since the early 1990s, when India opened up to neoliberal economics, the country has become increasingly dependent on inflows of foreign capital. Policies are being governed by the drive to attract and retain foreign investment and maintain ‘market confidence’ by ceding to the demands of international capital which ride roughshod over democratic principles and the needs of hundreds of millions of ordinary people. ‘Foreign direct investment’ has thus become the holy grail of the Modi-led administration and the NITI Aayog.

The CAIT has urged the Consumer Affairs Ministry to implement the draft consumer protection e-commerce rules at the earliest as they are in the best interest of the consumers as well as the traders of the country.

Meanwhile, the CCI will probably complete its investigation within two months.

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