Ethiopian farms lure Bangalore-based Karuturi Global Ltd. as Workers Live in Poverty

Posted by Radical Notes January 2, 2010 at 12:43 pm in Economy, Imperialism, India, Labour, Poverty, Working Class

Jason Lutes, Bloomberg

Until last year, people in the Ethiopian settlement of Elliah earned a living by farming their land and fishing. Now, they are employees.

Dozens of women and children pack dirt into bags for palm seedlings along the banks of the Baro River, seedlings whose oil will be exported to India and China. They work for Bangalore-based Karuturi Global Ltd., which is leasing 300,000 hectares (741,000 acres) of local land, an area larger than Luxembourg.

The jobs pay less than the World Bank’s $1.25-per-day poverty threshold, even as the project has the potential to enrich international investors with annual earnings that the company expects to exceed $100 million by 2013.

“My business is the third wave of outsourcing,” Sai Ramakrishna Karuturi, the 44-year-old managing director of Karuturi Global, said at the company’s dusty office in the western town of Gambella. “Everyone is investing in China for manufacturing; everyone is investing in India for services. Everybody needs to invest in Africa for food.”

Companies and governments are buying or leasing African land after cereals prices almost tripled in the three years ended April 2008. Ghana, Madagascar, Mali and Ethiopia alone have approved 1.4 million hectares of land allocations to foreign investors since 2004, according to the International Institute for Environment and Development in London.

Emergent Asset Management Ltd.’s African Agricultural Land Fund opened last year. On Nov. 23, Moscow-based Pharos Financial Advisors Ltd. and Dubai-based Miro Asset Management Ltd. announced the creation of a $350 million private equity fund to invest in agriculture in developing countries.

‘Last Frontier’

“African agricultural land is cheap relative to similar land elsewhere; it is probably the last frontier,” said Paul Christie, marketing director at Emergent Asset Management in London. The hedge fund manager has farm holdings in South Africa, Mozambique and Zimbabwe.

“I am amazed it has taken this long for people to realize the opportunities of investing in African agriculture,” Christie said.

Monsoon Capital of Bethesda, Maryland, and Boston-based Sandstone Capital are among the shareholders of Karuturi Global, Karuturi said. The company is also the world’s largest producer of roses, with flower farms in India, Kenya and Ethiopia.

One advantage to starting a plantation 50 kilometers (31 miles) from the border with war-torn Southern Sudan and a four-day drive to the nearest port: The land is free. Under the agreement with Ethiopia’s government, Karuturi pays no rent for the land for the first six years. After that, it will pay 15 birr (U.S. $1.18) per hectare per year for the next 84 years.

More Elsewhere

Land of similar quality in Malaysia and Indonesia would cost about $350 per hectare per year, and tracts of that size aren’t available in Karuturi Global’s native India, Karuturi said.

Labor costs of less than $50 a month per worker and duty-free treaties with China and India also attracted Karuturi Global, he said. The $100 million projected annual profit will come from the export of food crops, including corn, rice and palm oil, he said. The company also is plowing land on a 10,900- hectare spread near the central Ethiopian town of Bako.

The project will give the government revenue from corporate income taxes and from future leases, as well as from job creation, said Omod Obang Olom, president of Ethiopia’s Gambella region and an ally of Prime Minister Meles Zenawi’s ruling party.

“This strategy will build up capitalism,” he said in an interview in Gambella. “The message I want to convey is there is room for any investor. We have very fertile land, there is good labor here, we can support them.” The government plans to allot 3 million hectares, or about 4 percent of its arable land, to foreign investors over the next three years.

Surprised Workers

Workers in Elliah say they weren’t consulted on the deal to lease land around the village, and that not much of the money is trickling down.

At a Karuturi site 20 kilometers from Elliah, more than a dozen tractors clear newly burned savannah for a corn crop to be planted in June. Omeud Obank, 50, guards the site 24 hours a day, six days a week. The job helps support his family of 10 on a salary of 600 birr per month, more than the 450 birr he earned monthly as a soldier in the Ethiopian army.

Obank said it isn’t enough to adequately feed and clothe his family.

“These Indians do not have any humanity,” he said, speaking of his employers. “Just because we are poor it doesn’t make us less human.”

One Meal

Obang Moe, a 13-year-old who earns 10 birr per day working part-time in a nursery with 105,000 palm seedlings, calls her work “a tough job.” While the cash income supplements her family’s income from their corn plot, she said that many days they still only have enough food for one meal.

The fact that the project is based on a wage level below the World Bank’s poverty limit is “quite remarkable,” said Lorenzo Cotula, a researcher with the London-based IIED.

Large-scale export-oriented plantations may keep farmers from accessing productive resources in countries such as Ethiopia, where 13.7 million people depend on foreign food aid, according to a June report by Olivier De Schutter, the United Nations special rapporteur on the right to food. It called for ensuring that revenue from land contracts be “sufficient to procure food in volumes equivalent to those which are produced
for exports.”

Karuturi said his company pays its workers at least Ethiopia’s minimum wage of 8 birr, and abides by Ethiopia’s labor and environmental laws.

‘Easily Exploitable’

“We have to be very, very cognizant of the fact that we are dealing with people who are easily exploitable,” he said, adding that the company will create up to 20,000 jobs and has plans to build a hospital, a cinema, a school and a day-care center in the settlement. “We’re going to have a very healthy township that we will build. We are creating jobs where there were none.”

The project may help cover part of the $44 billion a year that the UN Food and Agriculture Organization says must be invested in agriculture in poor nations to halve the number of the world’s hungry people by 2015.

“We keep saying the big problem is, you need investment in African agriculture; well here are a load of guys who for whatever reason want to invest,” David Hallam, deputy director of the FAO’s trade and markets division, said in an interview in Rome. “So the question is, is it possible to sort of steer it toward forms of investment that are going to be beneficial?”

Buntin Buli, a 21-year-old supervisor at the nursery who earns 600 birr a month, said he hopes Karuturi will use some of its earnings to improve working conditions and provide housing and food.

“Otherwise we would have been better off working on our own lands,” he said. “This is a society that has been very primitive. We want development.”

Comments (4)

“The British left India but their colonial mentality remained”

Posted by Radical Notes December 22, 2009 at 11:07 pm in Imperialism, India, International Relations, Nepal

Nepal’s Maoist party Tuesday ended a countrywide three-day general strike and threw an open challenge to India to begin direct talks with it instead of ‘remote-controlling’ the Nepali ruling parties. It also threatened to launch an indefinite general strike from Jan 24.

After paralyzing the country for two days and a half with a general strike that shut down transport, industries, markets and educational institutions, Maoist protesters Tuesday brought out ‘victory rallies’ in many parts of the capital that converged in a meeting in front of the interim parliament.

Watched by hundreds of riot police guarding the parliament building, Maoist chief and former prime minister Pushpa Kamal Dahal Prachanda said talks with the ruling parties were breaking down regularly since the ruling alliance was a ‘robot’ taking its orders from the Indian government.

‘In the past, (after King Gyanendra dissolved the elected government and imposed a handpicked cabinet), the then ruling parties asked us to hold talks with them,’ Prachanda told a mass meeting of hundreds of people in the capital. ‘But we refused, saying we will not hold talks with servants but only with the master (the king).’

Nearly seven years later, after an anti-monarchy movement that deposed the king, Prachanda said that time had come to say the same thing. Only this time, he said, the master was New Delhi.

‘We are ready to go to Delhi and start talks,’ he said.

Prachanda added that civilian supremacy in Nepal ‘had been assassinated by India’.

He referred to the Indian Army chief Deepak Kapoor’s reported statement at a banquet in New Delhi recently that Maoists combatants should not be incorporated into the Nepali army.

‘Is he the governor of Nepal,’ Prachanda asked. ‘Can he order the Nepali people?’ Isn’t the integration a decision to be taken by Nepal’s government and parties?’

Nepal, he said, became semi-colonized by the British rulers of India in the 19th century after being forced to sign an unequal treaty that made the country cede almost a third of its territory.

‘The British left India but their colonial mentality remained,’ he said.

Prachanda is calling for a five-point negotiation with India that will scrap all unequal treaties and make public ‘secret treaties’ detrimental to Nepal’s national interests. He is calling for the resolution of all boundary disputes and the withdrawal of Indian troops from Nepal’s Kalapani region. The Maoist chief is also calling for an end to the ballooning trade deficit between the two neighbours.

He has asked New Delhi to draw a strategy on a war-footing so that Nepal, sandwiched between India and China, can benefit from its proximity to the world’s two fastest growing economies.

The Maoist chief is asking India to treat its smaller northern neighbour as an equal instead of trying to keep it reduced to a ‘puppet’ and ‘robot’.

The Maoists Tuesday also pledged to start a month-long campaign from Christmas Day to ‘awaken the people’.

Prachanda said during the meeting that his party would expose Indian and other foreign agents and the corrupt, including those indicted in a commission that was to have brought deposed king Gyanendra and the other abettors of the royal coup in 2005 to justice but was never made public.

The Maoists have also warned of an indefinite general strike nationwide from Jan 24 if the ruling parties still fail to reach an agreement. (IANS)

Courtesy: Sify

Comments

An interview with Benedict Anderson

Posted by Radical Notes December 20, 2009 at 11:06 am in China, Imperialism, India, International Relations, Self-Determination, South Asia, Sri Lanka, socialism

Benedict Anderson was in Delhi recently to deliver a lecture on his latest work. He “is one of the first and original theorists of nations and nationalisms. His pathbreaking work ‘Imagined Communities’ is an exploration of how various peoples have at a certain juncture in history imagined themselves into nations. An anthropological explorer of various national-liberation movements in East and Southeast Asia, Prof Anderson sees the rise of nationalism as being closely connected with the growth of printed books and with the technical development of print as a whole”. Paramita Ghosh interviewed Anderson for Hindustan Times. FOR THE FULL TEXT

Q: As a man of the Left, what is the future of Marxism in south Asia and in India?

A: Communism has taken a beating in the last 20 years. But it won’t go away if underlying problems in society don’t go away. There has to be new ways to revive it. However, one framework which Marx never anticipated was how the atomic tests would destroy civilisation. The limits of resources are not there in Marxist vocabulary, it comes from Thomas Robert Malthus and it has to be grappled with.

India has three kinds of Communisms. The established left, the CPI M-L and the new Naxalites who are no longer led by college students. They go to the bottom of society.

Q: One of our living realities is the competition between Indian and China amid the babble of economic cooperation. How can Third World solidarity be revived?

A: What solidarity can there be to speak of? There was never a leftist government in India. The Cold War put China on one side and India played a role in between…. Both are rapidly expansionist, they are bound to get in each other’s hair. But it is in everyone’s interest to reduce the power of America.

China wants a ring of friendly countries around it, but it won’t occupy them. It’s not clear what China wants in Africa. I don’t know whether they intend to stay. If the Chinese start moving there, then it might get interesting.

There is, I think, however, a growing acceptance that war will not get you more territory. What threatens nation-states are not external states, but internal collapse. It has happened in Soviet Union, Czechoslovakia. It may happen in India. States can’t get any bigger, but they can get smaller.

Comments

Indian capital: Make money or die trying

Posted by Radical Notes November 26, 2009 at 1:31 pm in Economy, Imperialism, India

Below is a very small glimpse of how agressive Indian capital has become today, and why it needs to enter into a coalition and competition with other centres of imperialism. This explains, at least partially, the changed tenor of India’s foreign policy. But what is required to be studied is how much India and its economic lords contribute in exacerbating the trouble. -Ed.

Pouring Money on Troubled Waters

Forbes

The occasional bloodbath -or 10- hardly dissuades enthusiastic Indian businessmen from setting up shop even in nations where mortality rate is, to put it mildly, comparatively high. Make money or die trying!

Bolivia

The Conflict: Deep-seated poverty, social unrest, racial violence and illegal drug production.

Indian Investment: In 2006, Jindal Steel and Power acquired development rights to 20 billion tonnes of El Mutun iron ore reserves; will invest $1.5 billion initially and $2.5 billion over next eight years–the single largest investment by an Indian firm in Latin America. But, project delayed due to problems in acquiring land rights.

Sudan

The Conflict: Civil wars; refugee influx from neighboring countries.

Indian Investment: ONGC’s overseas investment arm, ONGC Videsh Ltd, invested $720 million for 25% stake in Upper Nile oil field; signed a $194 million contract to construct 741 km-long multi-product pipeline. ONGC faces international pressure to quit Sudan, on grounds that revenues from oil drilling funds continuation of war by government.

Nigeria

The Conflict: Ethnic/religious tensions; organized crime.

Indian Investment: Pramod Mittal’s Global Steel Holdings bought 80% stake in Delta Steel, Nigeria in 2005, for $30 million. Kidnapping of Indian workers is a threat. Following kidnapping reports in 2007, Indian commission asked Indian companies to scale down operations.

Israel

The Conflict: The heart of the world’s bloodiest strife

Indian Investment: Sun Pharmaceuticals invested $100 million in Taro Pharma; holds 36% in the company. However, its $454-million proposal to acquire Taro came unstuck. India-Israel Initiative for industrial R&D, a bilateral framework to provide financial assistance for joint R&D ventures between Indian and Israeli companies, has been created.

Afghanistan

The Conflict: Cold war battlefield; now Taliban’s hunting ground.

Indian Investment: India has pledged around $1.2 billion in several reconstruction projects. Power Grid Corporation is involved with Rs. 500 crore in the Pul-e-Khumri to Kabul power transmission project. India completed construction of 218-km Zaranj-Delaram Highway in South-Western Afghanistan despite attacks by Taliban.

Iran

The Conflict: Nuclear nontouchable. Indian presence in Iran has been under scrutiny due to Balochistan conflict.

Indian Investment: India is to build a 4,000 MW gas based power plant in Iran. State-owned NTPC is likely to build the station and Power Grid Corporation of India may set up the accompanying transmission network to wheel the electricity from Iran to India. The proposed station may cost upwards of Rs. 20,000 crore.

Sri Lanka

The Conflict: A long-standing Tamil ethnic strife that ravaged the economy came to an end this year.

Indian Investment: Indian companies are helping in the reconstruction. Bharti Airtel plans to invest around $200 million there. IndianOil is the largest Indian investor. L&T is to build Sri Lanka’s tallest building costing $150 million. National Thermal Power Corp plans coal power plant at Sampur. Several Indian public sector banks have been in the country for long. ICICI is a new entrant.

This article appears in the December 4 issue of Forbes India, a Forbes Media licensee.

Comments

Sri Lanka: Post-War Internment Hell (V)

Posted by Radical Notes November 20, 2009 at 10:00 pm in Imperialism, International Relations, Self-Determination, South Asia, Sri Lanka, State Repression

Ron Ridenour

First Article
Second Article
Third Article
Fourth Article

“The impunity with which the Sri Lankan government is able to commit these crimes [referring to 2009 war atrocities, including brutal internment of 300,000 Tamils] actually unveils the deeply ingrained racist prejudice that is precisely what led to the marginalization and alienation of the Tamils of Sri Lanka in the first place. That racism has a long history – of social ostracism, economic blockades, pogroms and torture. The nature of the decades-long civil war, which started as a peaceful protest, has its roots in this,” wrote author Arundhati Roy.

“’This is something similar to what occurred in Gaza or worse, because neither observers nor journalists had access to the war zone,’ stated a UN source who asked for anonymity. The army acknowledges that 6,200 soldiers and 22,000 guerrillas died in the last three years of the longest civil war in Asia. The UN affirms that between 80,000 and 100,000 persons died in the conflict,” wrote Elisa Reche of Prensa Marea Socialista.

“During the war,” Reche continued, “the army had 200,000 troops. Now with peace, 100,000 are being incorporated… A strange peace it is that requires more troops than in actual combat.”

More troops are needed because systematic ethnic cleansing is now the order of the day for the Tamil people. Their Homeland will be obliterated by introducing more Sinhalese settlers. The same strategy, as John Pilger pointed out, that Israel uses against Palestinians.

This is what M.K. Bhadrakumar, an ambassador for India who served in Sri Lanka and other countries, wrote about the day after Sri Lanka declared victory.

See, they have already solved the Tamil problem in the eastern provinces… The Tamils are no more the majority community in these provinces. Similarly, from tomorrow, they will commence a concerted, steady colonization program of the Northern provinces where Prabhakaran reigned supreme for two decades. They will ensure incrementally that the northern regions no more remain as Tamil provinces… Give them a decade at the most. The Tamil problem will become a relic of the bloody history of the Indian sub-continent.

Ethnic cleansing goes hand-in-hand with the policy of imprisoning and mistreating hundreds of thousands of Tamils. For more than a year before its military victory, the Sri Lanka government enticed Tamils, wishing to flee the war zone, into so-called “welfare” centers or villages. Tens of thousands became “Internally Displaced Persons” (IDP), and are thus subject to United Nations regulations concerning decent living conditions, food and water, freedom of movement and the right to leave and rejoin families. All these rights and necessities have been denied them.

“Really if I starve the Tamils out, the Sinhala people will be happy,” President J.R. told the Daily Telegraph, (UK) on July 11, 1983.

A quarter-century later, the current president is striving to fulfill his predecessor’s genocidal intentions. Mahinda Rajapakse has claimed that no IDP is held against his/her will and all are treated well. However, the few United Nations visitors—there are no official investigators into abuses since the Human Rights Council majority blocked such a possibility—who come to observe have quite another picture.

When UN’s political chief, Lynn Pascoe, visited camps in September he said people were not free or well treated… “this kind of closed regime goes directly against the principles under which we work in assisting IDPs all around the world.”

Rajapakse told Pascoe another tale about “free movement”. He said that detention was necessary because the army was clearing the area for mines, and it was still looking for guerrillas hiding among civilians. However, as the UN resident coordinator reported, and Amnesty Internationalquoted: “Under international humanitarian law, captured combatants…may be held pending the cessation of hostilities. Once active hostilities have ceased, prisoners of war must be released ‘without delay.’”

At of July, there were 9,400 individuals with purported links to the LTTE held separately from the rest of the population. They have not been released nearly half-a-year after internment.

Amnesty International also reported that the camps are clearly militarized. The 19-member Presidential Task Force established in mid-May “to plan and coordinate resettlement, rehabilitation and development of the Northern Province” is headed Major General CA Chandrasiri, who was also appointed governor of the province. All inmates are enclosed by barbed-wire fences, guarded and brutalized by well-armed soldiers.

“Arrests have been reported from the camps and Sri Lankan human rights defenders have alleged that enforced disappearances have also occurred,” wrote Amnesty.

“Sri Lanka’s history of large-scale enforced disappearances dating back to the 1980s, and the lack of independent monitoring… raises grave concerns that enforced disappearances and other violations of human rights may be occurring… Previous research [shows] that [persons] suspected by the government of being members or supporters of LTTE are at grave risk of extrajudicial executions, enforced disappearance, and torture, cruel, inhumane and degrading treatment.”

“Although the government calls these facilities ‘welfare villages,’ they are effectively detention camps…” Amnesty International also reported that not only are people not free to move as they wish, women and girls are raped by soldiers, and people live in sewage, disease-infested conditions, with little food and water and medical attention. They die in droves because of these imposed conditions.

Women and children are especially mistreated, which was the subject that James Elder, spokesperson for UNICEF, complained about to Sri Lankan authorities, who then expelled him from the country. Elder described the “unimaginable suffering” of children caught in the fighting, including babies he had seen with shrapnel wounds.

United Nations Secretary General Ban Ki-moon had refrained from criticizing Sri Lanka’s government, leveling his critique only at LTTE for carrying out atrocities. But when he briefly visited one camp less than a week after the end of the war, he said:

“I have traveled around the world and visited similar places, but this is by far the most appalling scenes I have seen…I sympathize fully with all of the displaced persons,” UN Secretary-General Ban Ki-Moon told CNN after visiting Manik Farm, the most presentable of Sri Lanka’s squalid and dangerous internment camps for Tamils civilians. The UN Chief has also promised international action regarding the heavy shelling of civilian populations during the recent fighting.

Out of the 280,000 IDPs after the end of the war (there were nearly one-half million over a year’s period), only between 15,000 and 40,000 had been released by November 1. Half of them, perhaps, have been ransomed. The Sunday Times wrote about “human trafficking at the internment camps.” Relatives were made to pay camp authorities in order to secure their release.

Future

A week after the end of the war, the LTTE communicated that several of its leaders were killed, but the organization would continue struggling for an independent Tamil Eelam in peaceful ways. July 22, the LTTE announced that its chief of international relations, Selvarsa Pathmanathan—known as KP—was made the new leader, and that a new strategy for a “free Tamil Eelam” would occur. On August 8, England’s The Independent wrote that Pathmanathan was under arrest by Sri Lanka and held incommunicado.

For us solidarity activists, left-wing organizations, and governments considered to be progressive-socialist-communist-revolutionary, I believe that our task must be to press for the lives and rights of the Tamil people. Australia’s Democratic Socialist Perspective and Socialist Alliance said it well in its October 2009 international situation report:

Now the Tamil struggle has entered a new phase. The immediate campaign must focus on defence of basic human rights, release and resettlement of the Internally Displaced Persons currently held in SL government concentration camps, an end to murders, torture, rapes, and provision of basic housing, food and drinking water to the Tamil people under brutal occupation.

As a solidarity activist, who advocates the right to resist and the necessity to conduct armed struggle once peaceful means fail to induce oppressive and terrorist governments to engage in a process aimed at peace with justice, I condemn all perpetrators of terrorism and demand they change tactics to ones that are morally in accordance with our ideology for socialism, for justice with equality.

I find that most, if not all, armed movements commit acts of atrocities, even acts of terror in the long course of warfare. This has sometimes been the case with FARC and PFLP, for instance. But I support them in their righteous struggle. They are up against, as was the more brutal LTTE, much greater military and economic forces that practice state terror endemically. Remember the ANC in South Africa’s war for liberation. They committed much the same.

The main reason why I am on their side, why I have been a leftist solidarity activist and writer for nearly half-a-century is a matter of basic ethics. I define ethics in this way: Life shall not be abused or destroyed by our conscious hand—without being attacked, invaded, oppressed beyond bare. A moral person, organization, political party, government acts in daily life and in the struggle for justice with that ethic in mind. These are my thoughts on morality.

1. We act to so that no one person, race or ethnic group is either over or under another.

2. In combat against oppressors and invaders, we do not kill non-combatant civilians nor forcefully recruit them, or use them as hostages.

3. We struggle to create equality for all.

4. We abolish all profit-making based upon the exploitation of labor or the oppression of any person, group of people or class. Instead, we build an economy based upon principles of justice and equality, one in which no one goes hungry, sharing equitably our resources and production.

5. We struggle to create a political system based upon participation where all have a voice in decision-making of vital matters, in local, national and international policies.

6. We struggle to eliminate alienation in each of us.

After following liberated Cuba for half-a-century, having lived and worked there for eight years, I find that during its guerrilla struggle, which fortunately only lasted two years, it acted in a moral manner. Cuba’s revolutionary armed struggle was exceptional in this way. The Vietnamese struggle against the invaders of France and the USA was so conducted as well. There are a few other examples: the original Sandinistas is, perhaps, one.

I think that the key reason why so many millions of people the world love and respect Che Guevara is because of his moral stance, of his example as a just revolutionary leader. I conclude this all-too-long essay with these oft-quoted words from Che’s Socialism and Man.

At the risk of seeming ridiculous, let me say that the true revolutionary is guided by a great feeling of love… Our vanguard revolutionaries must idealize this love of the people, the most sacred cause, and make it one and indivisible… one must have a great deal of humanity and a strong sense of justice and truth in order not to fall into extreme dogmatism and cold scholasticism, into an isolation from the masses. We must strive every day so that this love of living humanity will be transformed into actual deeds, into acts that serve as examples, as a moving force.

Comments (2)

The Sri Lankan National Question and the People’s Right to Self-Determination

Posted by Radical Notes November 20, 2009 at 8:25 am in Imperialism, Self-Determination, South Asia, Sri Lanka, State Repression

Asvaththaamaa

Introduction

Post-war Sri Lanka has taken new directions in its political form with the LTTE militarily defeated and the liberation struggle of the Tamils facing a major setback. Against this backdrop, triumphalism of the Sinhala majoritarian chauvinism in its different forms is placing new constraints on the resolution of the Sri Lankan national question. Its impact has been almost instant.

The latest line of the NGOs and ‘civil society spokespersons’ is the idea of “non-devolutionary constitutional reform”. Newly coined terms are used to persuade the government that it could introduce constitutional reforms with little consideration for the rights and aspirations of the people. On the other hand the Tamil nationalists among the diaspora remain stuck to the mythical notion of Vaddukoddai resolution and claiming that separate state Tamil Eelam is the solution for the Tamils in Sri Lanka. Both approaches contain their fair share of vested interests.

Although the thirty-year civil war is over, the causes of the conflict still remain to be addressed. The national question, remains the main contradiction in Sri Lanka, and unresolved. Chauvinistic oppression and denial of the basic rights of the minorities remain strong, the oppression being two-fold, political and military. The reluctance of the government to propose a political solution has serous long-term implications.

While a just solution to the national question should be based on ensuring the right to self determination of all the nationalities in Sri Lanka, the term ‘right to self determination’ itself is being interpreted by different political actors, each in a way to suit its own agenda. Thus there is a need to understand the concept of the right to self determination and examine its role in finding a solution to the Sri Lankan national question.

Right to self determination

The concept of the right to self-determination has its origins in the Russian revolution. The founding of the Union of Soviet Socialist Republics in 1922 brought together more than 120 distinct peoples, each with its own language and culture, who had been oppressed by the fallen Russian Czarist Empire. This great achievement was made possible by the 1917 October Revolution. Elimination of national oppression and arriving at a correct position on what was then known as “the national question” would not have been possible without a profound struggle.

Marx’s analysis of the Irish question was a pioneering contribution to the understanding of self-determination for oppressed nations. Marx, who initially doubted the ability of the Irish nation to achieve independence on its own or even the need for it, expected that the Irish nation and workers would be liberated when the English working class overthrew the English bourgeoisie. His view was based on the idea that the English workers living in an advanced capitalist country were best placed to overthrow capitalism in the colonizing country of Britain. By the late 1860s, on recognising the virulent racism and chauvinism among the English workers themselves against the Irish people, he supported the right to independence of the Irish nation as the best means for the Irish workers to fight capitalism. He urged the English workers to stand up for Irish independence.

Marx further argued that an English workers’ party, representing workers of an oppressor nation, was duty bound to support an oppressed nation’s independence. This attitude became a central aspect of Lenin’s stand on the national question in relation to oppressed nations. Lenin was later to write: “The policy of Marx and Engels on the Irish question serves as a splendid example of the attitude the proletariat of the oppressor nations should adopt towards national movements, an example which has lost none of its immense practical importance”. Lenin, in upholding the Marxist approach, had to struggle repeatedly against other socialists who were opposed in principle to the right to national self-determination.

Lenin explained the right to self determination thus: “The right of nations to self-determination means only the right to independence in a political sense, the right to free, political secession from the oppressing nation. Concretely, this political, democratic demand implies complete freedom to carry on agitation in favour of secession, and freedom to settle the question of secession by means of a referendum of the nation that desires to secede. Consequently, this demand is by no means identical with the demand for secession, for partition, for the formation of small states. It is merely the logical expression of the struggle against national oppression in every form. The more closely the democratic system of state approximates to complete freedom of secession, the rarer and weaker will the striving for secession be in practice; for the advantages of large states, both from the point of view of economic progress and from the point of view of the interests of the masses, are beyond doubt, and these advantages increase with the growth of capitalism. The recognition of self-determination is not the same as making federation a principle. One may be a determined opponent of this principle and a partisan of democratic centralism and yet prefer federation to national inequality as the only path towards complete democratic centralism”.

It was after Lenin explained and defined the right to self determination that others, notably Woodrow Wilson, defined the right to self determination as the right of peoples to govern themselves. Right to self determination implies that no one can legitimately govern a people without their consent. Wilson promulgated the right to self-determination in his “Fourteen Points” speech. The fundamental difference between Wilson and Lenin was that the latter accepted the right to secede, if it becomes impossible to stay together so that self determination meant the right to secede but not necessarily the act of secession. Lenin illustrated this with the example of the right to divorce, which does not mean that every marriage should be dissolved but ensures that every person gets into the contract of marriage while reserving one’s right to divorce. Without the right to divorce, marriage does not guarantee the survival of marriage. The right to separate makes the relationship more equal and stable than without. Lenin thus argued that by giving the right to secession the nations or nationalities in a union explore possibilities to coexist.

In the later years, the right to self determination acquired political as well as legal meanings, with the political principle having a wider scope than the legal. Article 1 (2) of the United Nations Charter, drawn up in 1945, stipulates that the UN is to “develop a friendly relationship among nations based on respect of the principles of equal rights and self-determination of peoples and to take other measures to strengthen universal peace”. Further, the principles of self-determination were embedded in the International Covenant on Civil and Political Rights (ICCPR); and in the International Covenant on Economic, Social and Cultural Rights (ICESCR) of the 1966. These covenants affirmed self-determination as a “right of peoples” and guaranteed it by treaty laws. The impact of these UN ratifications of the right to self determination were more political than legal; and for political reasons the right to self determination is being interpreted and explained in different ways.

Right to self determination in Sri Lanka

The Marxist Leninist position on the national question in Sri Lanka, as elsewhere, has been unambiguous. It has historically identified the development of chauvinism and its development into national oppression, and recognised the development of the national contradiction into the main contradiction in Sri Lanka. Marxist Leninists have always maintained that ensuring the right to self determination of all nationalities in Sri Lanka should be the basis for the solution to the national question. Any proposal for a solution undermining the right to self determination of the nationalities in Sri Lanka is of dubious value.

The class and class interests that constitute the essence of the national question in Sri Lanka are not readily visible. Thus, limiting one’s search for solutions to the existing political framework, the executive powers of parliament within it, and to legislation will not permit one to appreciate the national and class aspects of the national question or the need to recognise the right of the nationalities in Sri Lanka to self determination. Hence claims of finding a solution within the existing framework will fail to address the root causes of the conflict and the issues involved. It has to be recognised that during the last thirty years, the contradictions among nationalities which constitute the main contradiction have grown and need to be addressed in a way that satisfies all the communities. Thus, when the government or the spokespersons for the “civil society” talk of non-devolutionary reforms, they implicitly declare that they are unwilling to accept the people’s rights as the cornerstone of the solution.

The Marxist Leninist position, to be valid, should look closely at the development of the national question, which has entered a phase where national oppression involves local and foreign elements. When a nation, a nationality or a community is oppressed as a social group, inevitably its struggle against oppression will be based on its identity. Marxist Leninists hold that to deny the right to such struggle is to support social oppression. It is on this basis that they have supported anti-colonial liberation struggles as well as liberation struggles of oppressed nationalities and social groups.

Tamil nationalism in all its forms and identities is a product of history. The evolution of Tamil identity into a Tamil national identity was due to various social, economic and historical factors. Tamil national identity itself has kept changing, and its form today is markedly different from the one that preceded it. In the 1970s Tamil nationalist leaders propagated the notion of a “separate state of Tamil Eelam” and passed the Vaddukoddai resolution in 1976 for opportunistic parliamentary political reasons. The solution for the problems faced by the Tamils cannot be based on that resolution. To be fair, any solution put forwarded on behalf of the Tamils should duly recognise the rights of the other minorities, especially the Muslims and Hill Country Tamils. But the Vaddukoddai Resolution calling for a separate state of Tamil Eelam failed to address the issues of the Muslims and Hill Country Tamils. Notably, until recently, Tamil nationalist parties have been reluctant to seek solutions based on ensuring the right to self determination for all the nationalities.

The concept of the right to self determination is not a product of bourgeois democracy but of the revolutionary ideology of the working class. The national question in the post-colonial era qualitatively differs from that in the colonial era; and self determination needs to be seen in a broader perspective than at the dawn of the 20th Century when the question mainly concerned an oppressor nation and an oppressed nation. One should also take a historical view of how imperialism has used session to advance its hegemonic interests. Tamil nationalists calling for secession, based merely on the right to self-determination, have their interests tied up with the imperialist agenda. While Marxist Leninists accept the right to secede, they do not see secession as a panacea for national conflicts. They have, in particular, warned against the prospect of imperialists using secession to serve their interests, the recent example being Kosovo. Thus seeking secession as solution for the Sri Lankan national question is not likely to be in the interest of any nationality.

The need of the moment is to ensure the right of all the nationalities in Sri Lanka to self determination. Sections of the Tamil Diaspora and Tamil media propagate the view that the right to self determination is merely a right to secession. This is misleading and harmful. The right to self determination is much more than the right to secession. Tamil nationalists as well as Sinhala chauvinists continue to mislead the masses on the principle of right to self determination. Meanwhile, some Tamil parliamentary politicians talk about “internal self determination” as a solution to the national question. This once again is an effort to dismantle the concept of self determination and in the process reject the right of the nationalities in Sri Lanka to self determination.

At this point it is important to reiterate the stand of the Marxist Leninists on secession. The use of secession as an imperialist tool does not make it right to oppose the right to secession. The right to secession is an integral part of the right to self determination and not a licence to secede at will. If at all, it is a proven way to avert secession and conflicts between nationalities. The vested interests of Sinhala chauvinism and Tamil narrow nationalism ensured that they always undermined people’s struggles for social justice. Their conduct in the past and present merely confirms their aim to retain their political power by dividing people and denying the rights of the nationalists.

Conclusion

The right to self-determination cannot be applied blindly or be imposed on a nationality or an ethnic group. A nationality struggles for its right to self-determination or for secession when its identity or its very survival is threatened. Struggles of oppressed nationalities are complex and continuously evolving, with no two struggles alike. In several instances, including Sri Lanka, issues have been made more complex by foreign intervention driven by hegemonic intentions. The situation in Sri Lanka is worrying, with rights of the nationalities under great threat, and upholding the rights of the minorities has become a momentous task. It is time for the progressive forces to unite and fight for the right to self determination of all nationalities, to ensure a just solution to the Sri Lankan national question.

Courtesy: New Democracy 35 – Theoretical Organ of New Democratic Party (Sri Lanka)

Comments

The Terrorists: International Support for Sri Lanka’s Racist Discrimination (IV)

Posted by Radical Notes November 19, 2009 at 10:40 pm in Imperialism, International Relations, Self-Determination, South Asia, Sri Lanka, State Repression

Ron Ridenour

First Article
Second Article
Third Article

The Geneva Declaration on Terrorism, passed May 29, 1987 by the UN general assembly, points out that the main perpetrators of terrorism are governments striving to keep down parts of their populations or other peoples. In this document, at that time, the main culprits are the United States, Israel, South Africa and the many dictatorships in Latin America at that time.

State terrorism manifests itself in: 1) police state practices against its own people to dominate through fear by surveillance, disruption of group meetings, control of the news media, beatings, torture, false and mass arrests, false charges and rumors, show trials, killings, summary executions and capital punishments;

The terrorism of modern state power and its high technology weaponry exceeds qualitatively by many orders of magnitude the political violence relied upon by groups aspiring to undo oppression and achieve liberation.

…peoples who are fighting against colonial domination and alien occupation and against racist regimes in the exercise of their right of self-determination have the right to use force to accomplish their objectives within the framework of international humanitarian law.

This document applies to the situation of the Sri Lankan governments since 1983 as well as to the LTTE, and the proportions of the use of violence are as written by the general assembly. The LTTE did, however, after time, go beyond the framework of international humanitarian law.

One voice regarding terrorism and what lies behind these atrocities appears so credible to me, and so tragic in itself, that I quote him extensively to show that all warring parties in Sri Lanka acted as terrorists. Here are some of the last words of Sri Lankan journalist Manilal Wickrematunge Lasantha, a Sinhalese, who predicted his assassination shortly before it occurred, on January 8, 2009. His newspaper, The Sunday Leader, published his own “obituary” three days later.

Terror, whether perpetrated by terrorists or the state, has become the order of the day. Indeed, murder has become the primary tool whereby the state seeks to control the organs of liberty…

Our commitment is to see Sri Lanka as a transparent, secular, liberal democracy… Secular because in a multi-ethnic and multi-cultural society such as ours, secularism offers the only common ground by which we might all be united…

…we have consistently espoused the view that while separatist terrorism must be eradicated, it is more important to address the root causes of terrorism, and urged government to view Sri Lanka’s ethnic strife in the context of history and not through the telescope of terrorism. We have also agitated against state terrorism in the so-called war against terror, and made no secret of our horror that Sri Lanka is the only country in the world routinely to bomb its own citizens…

The LTTE are among the most ruthless and bloodthirsty organisations ever to have infested the planet. There is no gainsaying that it must be eradicated. But to do so by violating the rights of Tamil citizens, bombing and shooting them mercilessly, is not only wrong but shames the Sinhalese, whose claim to be custodians of the dhamma [the teachings of Buddha, which lead to enlightenment] is forever called into question by this savagery, much of which is unknown to the public because of censorship…

What is more, a military occupation of the country’s north and east will require the Tamil people of those regions to live eternally as second-class citizens, deprived of all self respect…

It is well known that I was on two occasions brutally assaulted, while on another my house was sprayed with machine-gun fire. Despite the government’s sanctimonious assurances, there was never a serious police inquiry into the perpetrators of these attacks, and the attackers were never apprehended. In all these cases, I have reason to believe the attacks were inspired by the government. When finally I am killed, it will be the government that kills me.

The irony in this is that, unknown to most of the public, Mahinda [Rajapakse, the president] and I have been friends for more than a quarter century… “Sadly, for all the dreams you had for our country in your younger days, in just three years you have reduced it to rubble. In the name of patriotism you have trampled on human rights, nurtured unbridled corruption and squandered public money like no other President before you…”

When Lasantha’s dramatic editorial appeared, he had already been murdered on his way to work by four men on motorcycles. The probable conspirator behind the execution was Lasantha’s “friend’s” brother, war secretary Gotabhaya Rajapakse, a naturalized citizen of the USA. In December 2008, he had censored the Sunday Leader from publishing any criticism of his actions. He had earlier threatened the careers and lives of other journalists.

A week before Lasanth’s murder, G. Rajapakse’s army captured the capital of the de facto Eelam state, Kilinochchi. LTTE guerrilla army fled but not all the civilians had evacuated before the government’s troops entered and butchered scores or hundreds. On August 25, 2009, England’s Channel 4 News broadcast footage showing Sri Lankan forces executing nine Tamils stripped naked. One of the military’s soldiers had filmed this atrocity on his mobile telephone. Journalists for Democracy in Sri Lanka (Sinhalese and Tamils) obtained the film and presented it to Channel 4, which showed it after verifying its authenticity.

The United States government praised Sri Lanka for its military offensive. The US embassy in Colombo issued this statement: “The United States does not advocate that the Government of Sri Lanka negotiate with the LTTE…”

Following this crushing defeat, the LTTE was reduced to an area of a few square kilometers. Many thousands of civilians had left their homes to reach so-called No Fire Zones, which the S.L. army began setting up on January 20th. Conditions were sub-human (and they continue to be so for over two-hundred and fifty thousand interned civilians in various camps as of this writing), and they were (are) forced to remain. Amnesty International—more often than not a reliable observer of international conflicts, one of the few NGO’s that does not take money from any government or political party—recently published a report about these camps. Sri Lanka is violating rules established by the United Nations, including the International Covenant on Civil and Political Rights, applying to displaced persons.

Here is an excerpt from a civilian inmate.

“Knowing that many civilians were not able to move, the government restarted shelling. They even hit the No Fire Zone so even that small area was not protected…When we heard the supersonic Kfirs [Israel jets] overhead we used to rush to the bunker and hide…That was our life for months just squatting in bunkers.”

Amnesty stated: “The Government of Sri Lanka exacerbated this isolation by restricting access by outsiders to the conflict area. In September 2008, Defense Secretary Gotabhaya Rajapaska issued a directive ordering all humanitarian and UN agencies to leave the Vanni and remove all equipment and vehicles.” This order also applied to journalists, opposition politicians and humanitarian organizations.

John Pilger described Sri Lanka’s isolation strategy this way:

The Sri Lankan government has learned an old lesson from, I suspect, a modern master: Israel. In order to conduct a slaughter, you ensure the pornography is unseen, illicit at best. You ban foreigners and their cameras from Tamil towns like Mulliavaikal, which was bombarded recently by the Sri Lankan army, and you lie that the 75 people killed in the hospital were blown up quite willfully by a Tamil suicide bomber.(John Pilger, “Distant Voices, Desperate Lives,” New Statesman, May 13, 2009.)

From 2006-7 onward President Rajapakse was spending nearly one-quarter ($1.5 billion) of Sri Lanka’s national budget of $7.5 billion (2008 figures) on war. By January 2009, the Sri Lankan military, refortified especially by Israel, Pakistan and China, had recaptured much of the Tamil Homeland. From the end of 2008 to Sri Lanka’s military victory over LTTE, it had indiscriminately bombed Tamil civilians even in the “safe zones” where the government had told them to flee. Many thousands were killed.

After the fall of Tamil Eelam’s de facto capital, it still took the far superiorly armed and manned army four and one-half months to defeat the guerrilla army. There were few close contact battles. The LTTE fighters and civilians in the remaining Homeland area were subject to shelling from the air and by long-distance artillery. Amnesty International reported:

Eyewitness accounts of the final months of the war painted a grim picture of deprivation of food, water and medical care; fear, injury and loss of life suffered by civilians trapped by the conflict… both the LTTE and Sri Lankan government forces committed violations of international humanitarian law… The LTTE forcibly recruited children as soldiers, used civilians as human shields against the Sri Lankan army’s offensive, and attacked civilians who tried to flee. The Sri Lankan armed forces launched indiscriminate attacks with artillery on areas densely populated by civilians. Hospitals were shelled, resulting in death and injuries among patients and staff.

Sri Lanka’s military achieved victory by murdering any Tamil “in its way”, and because of the extensive military force provided to it by many capitalist and so-called socialist states. Here are the major players:

1. India has provided weaponry, radar and training to Sri Lanka’s military since 1987. It often hides what aid it gives or sells since so many of its citizens are against S.L.’s brutality against Tamils. After a period of providing little military assistance, it increased its aid at the end of 2008 when the government launched its all-out offensive. As late as April 2009, India sent three fast attack boats and a missile corvette (INS Vinash), part of $500 million in total aid. It has also turned over LTTE fugitives to S.L. India sees its traditional role as the dominant nation in South Asia being replaced by China’s fast-growing presence, which is another reason for its support to Sri Lanka’s Buddhist government despite the fact that 80% of India’s 1.2 billion people practice Hinduism with less than 1% Buddhists. On the world plan, India hip hops from one antagonist force to another. There is no clear direction.

2. The United States of America has been arming and financing Sri Lanka for most of the civil war period. The Indian Ocean is a vital waterway in which half of the world’s containerized cargo passes through. Its waters carry heavy traffic of petroleum products. The US signed a ten year Acquisition and Cross-Servicing Agreement (ACSA) with Sri Lanka on 5 March 2007 which provides, along with other things, logistics supplies and refueling facilities. The US already has Voice of America installation at Tricomalee, which can be used for surveillance. From at least the 1990s, the US has provided military training, financing and weapons sales averaging $1.5 million annually. During the cease fire, in 2002, this sum went down to $259,999 for military training only. Bush was especially glad for Sri Lanka’s terrorism, and encouraged Colombo to resume the civil war, in 2006, which his government financed with $2.9 million. The Pentagon provided counter-insurgency training, maritime radar, patrols of US warships and aircraft. At the end of Bush’s second term, the US was forced to cut back on aid given that it was bogged down in Afghanistan and Iraq. That, coupled with critical public opinion, organized by the Diaspora, of state terrorism and systematic discrimination of Tamils, prompted congress to make noises about abuses of human rights by not only LTTE but also about the use of children in “paramilitary forces of the Sri Lankan government.” Nevertheless, in 2008, $1.45 million in military financing and training was granted the government out of a total of $7.4 million in total aid. The US made noises about killing a ‘humanitarian crisis’ when the Sri Lankan army was about to finish the war but it never took affirmative action to bring the war to an end. It’s howling about human rights is only a veiled threat to the Sri Lankan government, that it should not do anything prejudicial to its interests, that is, keep China at bay.

3. Israel was officially re-awarded diplomatic relations, in May 2000, after Sri Lanka had severed them, in 1970, in protest at Israel’s continued illegal expansion into Palestinian territory. Nevertheless, Israel continued to operate inside S.L. out of a special interests office set up in the US embassy. Under the table, however, Sri Lanka’s successive regimes embraced Israel’s military advisors, a special commando unit in the police, and Mossad counter-intelligence agents—who sought to drive a wedge between Muslims and Tamils. After S.L. military defeat at Elephant Pass, it appealed to Israel for military aid. Israel sent 16 of its supersonic Kfir fighter jets, some Dvora fast naval attack craft, and electronic and imagery surveillance equipment, plus advisors and technicians. Israel personnel took part in military attacks on Tamil units, and its pilots flew attack aircraft. Tigers shot down one Kfir. Just before the end of the war, Prime Minister Wickremanayake was in Israel to make bigger deals with Israeli arms supplies.

4. U.K./EU In 2005, British arms export rose by 60%, according to John Pilger (12). In 2008, £1.4 million in arms export was approved. France sent patrol boats, and other EU countries continued but reduced military aid. The EU had never been required to offer much aid given that its major allies were so much engaged.

5. Japan has long been Sri Lanka’s greatest economic donor until China overtook that position in 2008-9. Japan has sold technology and offered generous loans, but it has also outright donated millions more every year. In 1997, for instance, it granted $52 million outright but $26 in technical cooperation. In 2001, aid was at $310 million. It also paid for the government television station, Rupavahini. While Japan’s aid, sales and loans are not directed at defense, these huge sums allow the Sri Lanka governments to use more of its budget for war. This is the case as well with several other Asian countries.

6. Iran “We don’t need your money (with all those strings)”, a Sri Lanka treasury functionary purportedly told World Bank officials last year. “The international community” (US-EU governments) had begun to cut back on aid and even to ask questions about treatment of Tamil civilians, whose cries were being heard from the Diaspora. So, Sri Lanka played one power against another: India-Pakistan/China, US-China, Israel-Iran/Libya—the West-NAM. In 2008-9, Iran provided $1.9 billion in credit to build an oil refinery, in order to process S.L.’s crude oil, and it donated $450 million for a hydropower project. Iran is US’s most important inside ally with the Quisling Iraq government. And Libya has most recently been approached for a $500 million loan by Sri Lanka. Libya is with and against Iran.

7. Pakistan came into the Sri Lanka debacle, in 2008, at the encouragement of China. At the beginning of 2009, it provided $100 million in military assistance loans; it gave Chinese-origin small arms, and offered pilot training for S.L.’s new Chinese aircraft. Pakistan is also an ally of the US in its terror war “against” terror. Its governments are part of the war against Afghanistan, which has spread throughout most of Pakistan and split the population. Here have we a country allied with Cuba and ALBA et al. in NAM at the same time a partner with the world’s greatest terrorist state.

8. China entered the picture in 2005.China is the world’s no 2 oil consumer after the United States. China has stepped up efforts to secure sea lanes and transport routes that are vital for its oil supplies. In April 2007, just one month after the US’s ACSA deal with SL, China’s Poly Technologies supplied $36.5 million arms to Sri Lanka. A $150 million contract was given to China’s Huawei, which has close links with the Chinese intelligence wing MSS, to build a country-wide infrastructure for communications. In 2008, China invested five times over what it did in 2007. Its biggest investment is a vast construction project at Hambantota on the southern coast, which it will use as a re-fuelling and docking station for its navy. “Ever since Sri Lanka agreed to the plan, in March 2007, China has given it all the aid, arms and diplomatic support it needs to defeat the Tigers, without worrying about the West,” wrote The Times (London). China acts without asking questions about the treatment and conditions of workers and minorities. In April 2007, S.L. made a deal to buy Chinese ammunition and ordnance for is military. China gave it six F7 jet fighters after a Sky Tiger raid that destroyed ten military aircraft, in 2007. One Chinese fighter was soon shot down by Tigers. China has also given or sold on credit: an anti-submarine warfare vessel, gunboats and landing craft, battle tanks, anti-aircraft guns, and air surveillance radars. In June 2009, after the conclusion of the civil war, it signed an $891 million agreement for the Norochcholai Coal Power project. Chinese companies were granted an Economic Zone for 33 years. Huichen Investments Holdings Limited is to invest $28 million in next three years in the Mirigama Zone. For the first time a specific area was given to a foreign country. China is making major inroads into Sri Lanka, causing concern in the US-India Axis.

In the last few months of the war, Sri Lanka’s military used China’s weapons to systematically bombard what was left of the Tamil Eelam homeland. British media reported that 20,000 Tamil civilians were killed just in the last five days. Yet President Rajapakse claimed that “not one Tamil civilian was killed by military shelling.”

According to the pro-imperialist The Times (London), “aerial photographs, official documents, witness accounts and expert testimony” tell a story of the Sri Lankan’s “fierce barrage” of three weeks constant shelling in a five-kilometer area where 300,000 Tamil civilians were. The Times’ estimated that about 1,000 civilians were killed each day for three weeks until May 19. With most of the leadership dead, and tens of thousands civilians slaughtered, the LTTE surrendered.

One of The Times’ sources for these figures, and that responsibility lay with SL military, is the Catholic priest Amalraj, who was there until May 16. At the time of article, May 29, 2009, he was interned in the militarized Manik Farm camp along with 200,000 others.

Even the editor of the pro-imperialist Armed Forces of the UK magazine contended that it was not the Tigers who fired upon their own people but that is was the Sri Lankan government, which used imprecise air-burst and ground-impact mortars to annihilate anything alive.

The Times piece ended on this sad note: S.L “was cleared of any wrongdoing by the UN Human Rights Council after winning the backing of countries including China, Egypt, India and Cuba.”

For other articles by the author visit his website.

Comments (2)

The New Farm Owners

Posted by Radical Notes November 18, 2009 at 8:35 am in Agrarian Question, Economy, Finance, Imperialism

Corporate investors lead the rush for control over overseas farmland

GRAIN, October 2009

Click here for the table accompanying this article

With all the talk about "food security," and distorted media statements like "South Korea leases half of Madagascar’s land,"1 it may not be evident to a lot of people that the lead actors in today’s global land grab for overseas food production are not countries or governments but corporations. So much attention has been focused on the involvement of states, like Saudi Arabia, China or South Korea. But the reality is that while governments are facilitating the deals, private companies are the ones getting control of the land. And their interests are simply not the same as those of governments.

Take one example. In August 2009, the government of Mauritius, through the Ministry of Foreign Affairs, got a long-term lease for 20,000 ha of good farmland in Mozambique to produce rice for the Mauritian market. This is outsourced food production, no question. But it is not the government of Mauritius, on behalf of the Mauritian people, that is going to farm that land and ship the rice back home. Instead, the Mauritian Minister of Agro Industry immediately sub-leased the land to two corporations, one from Singapore (which is anxious to develop the market for its proprietary hybrid rice seeds in Africa) and one from Swaziland (which specialises in cattle production, but is also involved in biofuels in southern Africa).2 This is typical. And it means that we should not be blinded by the involvement of states. Because at the end of the day, what the corporations want will be decisive. And they have a war chest of legal, financial and political tools to assist them.

Moreover, there’s a tendency to assume that private-sector involvement in the global land grab amounts to traditional agribusiness or plantation companies, like Unilever or Dole, simply expanding the contract farming model of yesterday. In fact, the high-power finance industry, with little to no experience in farming, has emerged as a crucial corporate player. So much so that the very phrase "investing in agriculture", today’s mantra of development bureaucrats, should not be understood as automatically meaning public funds. It is more and more becoming the business of … big business.

The role of finance capital

GRAIN has tried to look more closely at who the private sector investors currently taking over farmlands around the world for offshore food production really are. From what we have gathered, the role of finance capital — investment funds and companies — is truly significant. We have therefore constructed a table to share this picture. The table outlines over 120 investment structures, most of them newly created, which are busy acquiring farmland overseas in the aftermath of the financial crisis.3 Their engagement, whether materialised or targeted, rises into the tens of billions of dollars. The table is not exhaustive, however. It provides only a sample of the kinds of firms or instruments involved, and the levels of investment they are aiming for.

Private investors are not turning to agriculture to solve world hunger or eliminate rural poverty. They want profit, pure and simple. And the world has changed in ways that now make it possible to make big money from farmland. From the investors’ perspective, global food needs are guaranteed to grow, keeping food prices up and providing a solid basis for returns on investment for those who control the necessary resource base. And that resource base, particularly land and water, is under stress as never before. In the aftermath of the financial crisis, so-called alternative investments, such as infrastructure or farmland, are all the rage. Farmland itself is touted as providing a hedge against inflation. And because its value doesn’t go up and down in sync with other assets like gold or currencies, it allows investors to successfully diversify their portfolios.

But it’s not just about land, it’s about production. Investors are convinced that they can go into Africa, Asia, Latin America and the former Soviet bloc to consolidate holdings, inject a mix of technology, capital and management skills, lay down the infrastructures and transform below-potential farms into large-scale agribusiness operations. In many cases, the goal is to generate revenue streams both from the harvests and from the land itself, whose value they expect to go up. It is a totally corporate version of the Green Revolution, and their ambitions are big. "My boss wants to create the first Exxon Mobil of the farming sector," said Joseph Carvin of Altima Partners’ One World Agriculture Fund to a gathering of global farmland investors in New York in June 2009. No wonder, then, that governments, the World Bank and the UN want to be associated with this. But it is not their show.

From rich to richer

Today’s emerging new farm owners are private equity fund managers, specialised farmland fund operators, hedge funds, pension funds, big banks and the like. The pace and extent of their appetite is remarkable – but unsurprising, given the scramble to recover from the financial crisis. Consolidated data are lacking, but we can see that billions of dollars are going into farmland acquisitions for a growing number of "get rich quick" schemes. And some of those dollars are hard-earned retirement savings of teachers, civil servants and factory workers from countries such as the US or the UK. This means that a lot of ordinary citizens have a financial stake in this trend, too, whether they are aware of it or not.

It also means that a new, powerful lobby of corporate interests is coming together, which wants favourable conditions to facilitate and protect their farmland investments. They want to tear down burdensome land laws that prevent foreign ownership, remove host-country restrictions on food exports and get around any regulations on genetically modified organisms. For this, we can be sure that they will be working with their home governments, and various development banks, to push their agendas around the globe through free trade agreements, bilateral investment treaties and donor conditionalities.

Indeed, the global land grab is happening within the larger context of governments, both in the North and the South, anxiously supporting the expansion of their own transnational food and agribusiness corporations as the primary answer to the food crisis. The deals and programmes being promoted today all point to a restructuring and expansion of the industrial food system, based on capital-intensive large-scale monocultures for export markets. While that may sound "old hat", several things are new and different. For one, the infrastructure needs for this model will be dealt with. (The Green Revolution never did that.) New forms of financing, as our table makes plain, are also at the base of it. Thirdly, the growing protagonism of corporations and tycoons from the South is also becoming more important. US and European transnationals like Cargill, Tyson, Danone and Nestlé, which once ruled the roost, are now being flanked by emerging conglomerates such as COFCO, Olam, Savola, Almarai and JBS.4 A recent report from the UN Conference on Trade and Development pointed out that a solid 40% of all mergers and acquisitions in the field of agricultural production last year were South–South.5 To put it bluntly, tomorrow’s food industry in Africa will be largely driven by Brazilian, ethnic Chinese and Arab Gulf capital.

Exporting food insecurity

Given the heavy role of the private sector in today’s land grabs, it is clear that these firms are not interested in the kind of agriculture that will bring us food sovereignty. And with hunger rising faster than population growth, it will not likely do much for food security, either. One farmers’ leader from Synérgie Paysanne in Benin sees these land grabs as fundamentally "exporting food insecurity". For they are about answering some people’s needs – for maize or money – by taking food production resources away from others. He is right, of course. In most cases, these investors are themselves not very experienced in running farms. And they are bound, as the Coordinator of MASIPAG in the Philippines sees it, to come in, deplete the soils of biological life and nutrients through intensive farming, pull out after a number of years and leave the local communities with "a desert".

The talk about channelling this sudden surge of dollars and dirhams into an agenda for resolving the global food crisis could be seen as quirky if it were not downright dangerous. From the United Nations headquarters in New York to the corridors of European capitals, everyone is talking about making these deals "win–win". All we need to do, the thinking goes, is agree on a few parameters to moralise and discipline these land grab deals, so that they actually serve local communities, without scaring investors off. The World Bank even wants to create a global certification scheme and audit bureau for what could become "sustainable land grabbing", along the lines of what’s been tried with oil palm, forestry or other extractive industries.

Before jumping on the bandwagon of "win–win", it would be wise to ask "With whom? Who are the investors? What are their interests?" It is hard to believe that, with so much money on the line, with so much accumulated social experience in dealing with mass land concessions and conversions in the past, whether from mining or plantations, and given the central role of the finance and agribusiness industries here, these investors would suddenly play fair. Just as hard to believe is that governments or international agencies would suddenly be able to hold them to account.

Making these investments work is simply not the right starting point. Supporting small farmers efforts for real food sovereignty is. Those are two highly polarised agendas and it would be mistaken to pass off one for the other. It is crucial to look more closely at who the investors are and what they really want. But it is even more important to put the search for solutions to the food crisis on its proper footing.

References

1 – It was not South Korea, but Daewoo Logistics.

2 – See GRAIN, "Mauritius leads land grabs for rice in Mozambique", Oryza hibrida, 1 September 2009. http://www.grain.org/hybridrice/?lid=221 (Available in English, French and Portuguese.)

3 – The table covers three types of entities: specialised funds, most of them farmland funds; asset and investment managers; and participating investors. We are aware that this is a broad mixture, but it was important for us to keep the table simple: http://www.grain.org/m/?id=266

4 – COFCO is based in China, Olam is based in Singapore, Savola is based in Saudi Arabia, Almarai is based in Saudi Arabia, and JBS is based in Brazil.

5 – World Investment Report 2009, UNCTAD, Geneva, September 2009, p. xxvii. Most foreign direct investment takes place through mergers and acquisitions.

Comments

Campaign against War on People

Posted by Campaign against War on People November 8, 2009 at 7:25 am in Chhattisgarh, Displacement, Imperialism, Politics, Poverty, Press Release

The Indian government intends to deploy 100,000 troops – ostensibly against Maoist insurgents – in 7 states in central and eastern India, including Maharashtra, Chhattisgarh, Orissa, Jharkhand and Andhra Pradesh, a vast area inhabited by tribal groups. Forces withdrawn from Jammu and Kashmir (e.g. Rashtriya Rifles) and the Northeast are joining battalions of CRPF commandos, the ITBP, the CoBRA and the BSF, equipped with bomb trucks, bomb blankets, bomb baskets, and sophisticated new weaponry. Six IAF Mi-17 helicopters will provide air support to these ground forces, in which the IAF’s own special force, the Garuds, will participate. The actual strength of the intended targets of this massive action – the Maoist cadre – is believed to be no more than 20,000. Besides the dangers of any state offensive against any section of the people, the scale of the offensive suggests that the state is unable to distinguish the millions of tribals in this area from the Maoists, and has chosen the quick solution of war on the entire region. Several groups which are not Maoist – like the Vanvasi Chetna Ashram in Dantewada – have been clubbed with them and are being targeted. The basic question is, why is the state planning war against its most deprived, oppressed and impoverished populations?

Central India is rich in mineral wealth that is already being auctioned: Till September 2009, Rs 6,69,388 crore of investment had been pledged toward industry in the troubled areas—14 per cent of the total pledged investments in the country. All that stands between politicians/ big money bags and this wealth is the tribal people and their refusal to consent to their designs. Even constituent bodies of Indian state machinery acknowledge the gross failure of state in the tribal areas of the country in no uncertain terms. The Planning Commission Report on Social Discontent and Extremism, has clearly identified equity and justice issues relating to land, forced displacement and evictions, extreme poverty and social oppression, livelihood, malgovernance and police brutality as widespread in the region. The Approach Paper for the 11th Plan states:

Our practices regarding rehabilitation of those displaced from their land because of development projects are seriously deficient and are responsible for a growing perception of exclusion and marginalisation. The costs of displacement borne by our tribal population have been unduly high, and compensation has been tardy and inadequate, leading to serious unrest in many tribal regions. This discontent is likely to grow exponentially if the benefits from enforced land acquisition are seen accruing to private interests, or even to the state, at the cost of those displaced.

The Fifth Schedule of the Constitution grants tribals complete rights over their traditional land and forests and prohibits private companies from mining on their land. In spite of all this, in the name of fighting the Maoists the state – in blatant violation of Constitutional rights and against the recommendations of its own committees – is all set to evacuate the entire area of the tribals and ghettoise them by forcing them into ‘relief camps’, to allow free rein to big business. Instead of addressing the basic rights and needs of the tribals, the impatience of the state/big business in the face of the stiff resistance from them, is leading it to a full-scale war on people who are already fighting an everyday battle for livelihood and survival.

In the past as well the state has tried to crush all popular resistance, armed or not. It has repeatedly ignored and/or suppressed non-violent resistance, be it in Bhopal gas-victims or the ‘Narmada Bachao’ Andolan. Various human rights activists who have spoken out against its policies have also been targeted through draconian instruments like the Chhatisgarh Special Public Safety Act, 2005. It has also brutally assaulted protesters in Singur, Nandigram, Lalgarh and Khammam and conducted military offensives in Chhattisgarh, Jharkhand, Orissa, West Bengal and Andhra Pradesh that have been seriously questioned. Now, along with an increasingly uncritical, elitist and complicit media, it is set on drumming up war hysteria to legitimise its own extra-Constitutional programs. The fact that it has either rejected or dismissed offers of talks and mediations – while hypocritically calling for them – indicates the extent to which it is invested in this war. The Central Government’s military offensive further dilutes the federal character of Indian democracy as it covertly shifts the maintenance of law and order off the state onto the centre list.

This war on the people also entails a further shrinking of already limited spaces for democratic dissent and articulation of pro people development paradigms. It opens the way for the state to act with force against any form of dissent or struggle. Any individual or organization protesting against the policies of the state can be labelled as a threat to ‘internal security’. To understand the politics and economics of the current state offensive, we urge people to look beyond the current hype being built by the government and pliable sections of the media. This indicates the emergence of a dangerous consensus towards a police state that will render the people and resources pliable to the demands of global capitalism and authoritarianism.

We call upon all progressive forces – students, teachers and workers – to resist the latest plan of the Indian government. Stop state violence against people.

Join our demand for a peaceful, egalitarian and secular society.

Contact:opposethehunters@gmail.com, stopwaroncitizens@gmail.com
Ph: 9899523722, 9910455993, 9718259201, 9818728298

Comments

Indian Central Government and Sri Lankan Tamils

Posted by Radical Notes February 28, 2009 at 1:55 pm in Imperialism, India, International Relations, Self-Determination, Sri Lanka, State Repression

Vehujanan

Indian central government policy on the national question of Sri Lanka has always given priority to India’s regional interests. Policy making has been aimed at not just exercising hegemony over the whole of South Asia but beyond it to cover the whole of Asia. In particular, it has been compelling every South Asian country to accept its role as ‘big brother’. Refusal has been met with threats or attacks under some pretext. Sri Lanka, for example, has experienced this in the past.

Sri Lanka has strategic importance due to its geographic location in the Indian Ocean. The US, the West and India need the island of Sri Lanka in their respective bids for global or regional dominance. It was when JR Jayawardane, out of loyalty to the US, sought to surrender the country to the US, that Indira Gandhi and India took a keen interest in Sri Lanka. The opportunity came when ethnic violence was unleashed on the Tamils in 1983. India used it as pretext to get involved in Sri Lanka and used the issue as a device to serve its own purposes.

The conservative Tamil nationalist leadership, which was incapable of analysing why India showed an interest or assess it from a long term perspective, trusted India in full faith, from its standpoint of narrow nationalism. It was believed that Tamil Eelam will be carved out for the Tamils like Bangladesh was carved out of Pakistan in 1971 by the Indian armed forces under the leadership of Indira Gandhi. Sadly, a vast majority of the Tamil people were convinced to that effect by the Tamil United Liberation Front. The Tamil nationalists also ridiculed the logical arguments put forward by Marxist Leninists who placed before the people the facts and the objective reality to firmly declare that Tamil Eelam was not feasible in this fashion. They even denounced Marxist and socialist positions and expressed to the hilt their loyalty to India. Another group was immersed in its faith in the US and the West which were instrumental in the creation of Israel.

It was amid such developments that India began to strengthen its position to tighten its grip on the whole of Sri Lanka. The present Mahinda Chinthana government suits that purpose very well. Indian economic infiltration has gushed with speed into Sri Lanka, and has developed to the extent that Sri Lanka could soon be considered a strong colonial possession of India. India will not tolerate anything that stands in the way of this development. The chauvinistic government of Sri Lanka and the hegemonic state of India concur on this. The manifestation of this is evident from the activities of the Mahinda Chinthana government during the past three years.

India has resented the influence and interference of the US, the West and Japan in the Sri Lankan national question. There lies the essence of the inherent rivalry for regional hegemony. Having realised that the international allies of the LTTE had a foothold in the US and the West and knowing the implications of Norwegian facilitation and the role of Ranil Wickramasinghe in it, India began to make its moves; and the Mahinda Chinthanaya government made way for it. Indian hegemonic diplomacy started to act on the economic, political and military fronts. Norway was eased out of its role as facilitator. That was followed by closer ties on the military and political fronts with Sri Lanka, through which there were attacks on the LTTE in the Vanni, military success and a ban on the LTTE.

The US and the West, caught in a dilemma in the context of their strengthening ties with India, found themselves unable to do anything in Sri Lanka and maintain an embarrassed silence. The US and the West are on a low key in the face of the bellowing by the Sri Lankan government about its war against terrorism, since they had already banned the LTTE and Sri Lanka followed suit. Under the conditions, it is only the support from Tamilnadu that is a voice of consolation to the Tamils. But anyone who knows anything of the acrobatics of Tamilnadu politics will also know that it is not a sincere and unanimous voice. The political parties of Tamilnadu can only plead with the central government of India but cannot compel it to do anything. It has not happened in the past and it will not happen in the future either.

The central government of India will not come forward to bring an end to the war in Sri Lanka, since the war in Vanni was commenced on its signal. It has provided military assistance in many ways including the supply of arms. After all this, for the Tamil side to plead with the central government and the Tamilnadu state government is a show of weakness arising from the lack of a policy of self-reliance in struggle.

The Tamil parties conduct themselves in a manner where they seem to plead that, irrespectively of whether they are struck, kicked or spat on by India, India remains their master. Is this not an insult to “the self respecting Tamil race”? It is, however, not possible to change this attitude of expectations on the part of the Tamil leadership. Their reactionary politics is marinated with it.

Members of the Tamil National Alliance made several trips to meet the Indian premier Manmohan Singh, but failed to have even five minutes of hearing. It was said that Sonia Gandhi had pledged to Karunanidhi that Pranab Mukherjee will be sent to Sri Lanka. But the one who turned up was Shivashankar Menon who discussed matters of mutual interest. The unending pleas of the TNA which fail to appreciate the implications of these developments only further humiliate the Tamil people. Rival Tamil leaders will not free themselves of this. One after the other they will seek to define themselves as devotees of India. Indian hegemony thus seems to have penetrated at various levels.

In contrast to this, there is a need for the emergence of honest and far-sighted political forces from among the Tamils. Past experiences need to be studied; and decisions should be based on a long-term view of how the right to self-determination within a united Sri Lanka can be won, and about the policies and principles appropriate to the decisions. There should be clear decisions about who their friends and who the enemies are. The ordinary Sinhalese in the South should be persuaded that it will be possible to build a united, strong and prosperous Sri Lanka by the establishment of autonomies and autonomous units for the nationalities as a political solution to the national question.

No struggle could be won merely with brave fighters and modern weapons alone. The struggle should be a people’s struggle where the people decide their own fate and become the heroes of the struggle. On the other hand, a handful of fighters, however brave they may be, cannot fight on their behalf and win. This is the lesson that history has taught us. That “people and the people alone are the motive force of history” should be an unforgettable lesson of history. In a true struggle of the people, the people have never been defeated. The final victory is always theirs. That requires taking a clear and correct line of struggle. To seek the bases for it is what is essential today for the Tamil people.

Translation of article in Tamil, Puthiyapoomi, Jan-Feb 2009
Courtesy: New Democracy – Theoretical Organ of the New Democratic Party (Sri Lanka), February 2009

Comments

50 YEARS ON… And the same challenge of making a Revolution

Posted by Radical Notes January 1, 2009 at 9:39 pm in Cuba, Fidel Castro, History, Imperialism, Latin America, Self-Determination, USA

Lázaro Barredo Medina, GRANMA

“THE dictatorship has been defeated. The joy is immense. And yet, there still remains much to do. We won’t deceive ourselves by believing that everything will be much easier from now on; perhaps it will be much more difficult.”

This is what Commander in Chief Fidel Castro told the people on January 8, 1959, the day of his entry into Havana. Many people could never imagine the immense challenge that they would live to experience.

Suffice it to say that just a few days later, Fidel proclaimed the right to self-determination in terms of relations with the United States and immediately, the aggressions, attempts on his life and anger on the part of U.S. politicians began, evidence of which can be seen in speeches and articles of the time, as in an editorial of Time magazine, the mouthpiece of the most conservative sectors, entitled: “Fidel Castro’s neutralism is a challenge for the United States.”

But the Cuban people could not be neutral in the face of the United States. The triumph of the Revolution that January 1959 signified for the Cuban nation, for the first time in its history, the real possibility of exercising the right to self-determination. From that moment on, neither the U.S. president, Congress nor its ambassadors could continue making decisions on what could or could not be done in Cuba. The bitter dependence had been brought to an end; a dependence that saw U.S. governors and ambassadors enjoying a degree of power in Cuba that was far greater than the actual power that they had – with respect to decision-making – within the U.S. federal government or in relation to any of the 50 states that make up the U.S.A.

When full national independence was achieved, the Revolution began to exercise that right by immediately applying the program that Fidel had announced during the Moncada trial of 1953 and which is contained in his historic self-defense speech History Will Absolve Me.

Cuba established the economic and social regime that it believed was most just and established a socialist state with participatory democracy, equality and social justice.

The country’s economy was characterized by limited industrial development, essentially depending on sugar production and a latifundia agricultural economy, where landowners controlled 75% of the total arable land.

Most of the country’s economic activity and its mineral resources were managed by U.S. capital, which controlled 1.2 million hectares of land (a quarter of the productive territory) and most of the sugar industry, nickel production, oil refineries, the electricity and telephone services and the majority of bank credits. Likewise, the U.S. market controlled approximately 70% of Cuban imports and exports, within a system of highly dependent volumes of exchange: in 1958, Cuba exported products worth 733 million pesos and imported 777 million pesos worth of goods.

The prevailing social picture was characterized by a high unemployment and illiteracy, a precarious healthcare, social assistance and housing system for the vast majority of the population, as well as abysmal differences in living conditions between urban and rural populations. There was a high degree of polarization and unequal distribution of income; in 1958, 50% of the population earned just 11% of total income, while a 5% minority controlled 26%. Racial and gender discrimination, begging, prostitution and social and administrative corruption were widespread.

Addressing the social and economic problems in Cuban society could no longer be put off and could only be resolved if the Cuban people had control of their own wealth and natural resources. Thus, using the 1940 Constitution and in line with international law, Cuba exercised its right to take control of these resources and assumed total responsibility for this action. The island paid compensation to all nationals from third countries (Canada, Spain, Britain, etc.) with the exception of U.S. nationals, given that that government rejected the provisions outright and transformed the Cuban government’s decision into a pretext for unleashing a war unprecedented in the history of bilateral relations between the two nations.

Not only did the Revolution hand over land to campesinos who, up until then, had been subjected to semi-feudal conditions of production and forced to live in extreme poverty, but it also determined that that all the country’s resources should be allocated to national economic development and improving the material and living conditions of the population. To give just one example, in the 1980s alone, approximately 60 billion pesos were allocated to the construction of productive and social facilities.

The process of industrialization underway paved the way for economic and productive diversification. Under the Revolution and up until the economic crisis which began with the disintegration of the Soviet Union and the East European socialist bloc between 1989 and 1991 – what we in Cuba call the Special Period – the country’s capacity for producing steel grew 14-fold, fertilizer increased six-fold, the oil refining industry quadrupled (not counting the new refinery in Cienfuegos), the textile industry grew seven-fold, tourism three-fold, to mention but a few. The state also created complete ranges and new industries such as machinery, mechanics, electronics, the production of medical equipment, a pharmaceutical industry, construction materials, a glass industry and ceramics, as well as making investments to increase and upgrade the sugar, food and light industries. In addition to these endeavors, we have the development of biotechnology, genetic engineering and other branches of science.

The country has also made great efforts in terms of improving its infrastructure. Electricity generation has risen eight-fold and water storage capacity has increased 310 times, from 29 million cubic meters in 1958 to nine billion-plus cubic meters today. There has been diversification with respect to roads and freeways and modernization of ports and other areas. Social needs have been covered fairly well, except for housing, which has been Cuba’s biggest problem.

The progressive growth and diversification of productive potential and the application of a widespread social program has allowed the nation to confront the problem of unemployment. In 1958, with a population of six million inhabitants, approximately one third of the economically active population was unemployed. Of this figure, 45% of the unemployed lived in rural areas while, out of 200,000 women in work, 70% were employed as domestic servants. Today, with 11 million inhabitants, the number of people in work is in excess of 4.5 million. Over 40% of workers are women and today they represent more than 60% of the nation’s technical and professional sectors.

In 1958, the number of illiterate and semi-illiterate people in Cuba stood at two million. The average academic level of 15-plus year-olds was third grade, more than 600,000 children did not attend school and 58% of teachers were unemployed. Just 45.9% of school-age children were enrolled and half of them did not attend classes. Only 6% of those enrolled finished elementary education. Universities were available to just 20,000 students.

The education sector received immediate attention from the revolutionary government. Its first task was to develop a masse literacy campaign with the participation of the population. An extensive network of schools was constructed throughout the country and more than 300,000 teachers and professors were in fulltime employment in this sector. The average academic level for those aged 15-plus year-olds rose to ninth grade. One hundred per cent of school age children are enrolled in schools, some 98% complete elementary education and 91% complete junior high. One in every 11 citizens is a university graduate and one in eight has technical-professional qualifications. There are 650,000 students in the country’s universities today and all education is free of charge. Education and vocational skills are also guaranteed for 100% of children with physical or mental disabilities, who attend special schools.

The precarious situation in 1958 with respect to public health was characterized by an infant mortality rate of 60 per 1,000 live births and a maternal mortality rate of 118 per 10,000. The mortality rate for those suffering from gastroenteritis was 41.2 per 100,000, and from tuberculosis, 15.9 per 100,000. In rural areas, 36% of the population suffered from intestinal parasites, 31% from malaria, 14% from tuberculosis and 13% from typhoid. Life expectancy at birth was estimated at 58.8 years.

Around 61% of hospital beds and 65% of the nation’s 6,500 doctors were concentrated in the capital. In the other provinces, medical coverage was one doctor for every 2,378 inhabitants and there was just one hospital for all the country’s rural areas.

Today, healthcare is free of charge and Cuba has more than 70,000 doctors, providing coverage of one for every 194 inhabitants. Almost 30,000 of them are providing services in over 60 different countries. A national network of more than 700 hospitals and polyclinics has been created. Thanks to a widespread vaccination campaign (every child currently receives vaccines against 13 different illnesses) diseases such as polio, diphtheria, measles, whooping cough, tetanus, rubella, mumps and hepatitis B have been almost entirely eradicated. The infant mortality rate is 5.3 for every 1,000 live births and life expectancy exceeds 77 years.

There is also a series of advanced medical services that are not considered as “basic” in the international arena, and are provided completely free of charge, such as intensive care units in pediatric and general hospitals, cardiovascular surgery, transplant services, special perinatal care, treatment for chronic renal failure, and special services for occupational and physical rehabilitation.

The revolutionary state did not focus its attention solely on economic and social measures. It also embarked on efforts to establish an internal legal system to facilitate the right to self-determination via the population’s direct participation in discussions, analyses and the passing of the country’s principal laws. The most notable of these was the 1976 Constitution, supported by 97% of Cubans aged 16 and over through a referendum, as well as other momentous laws like the Penal Code, the Civil Code, the Family Code, the Children and Young People’s Code, the Labor and Social Security Code and many others.

Likewise, the self-determination of the Cuban people is expressed through the right to defend the nation against foreign aggression. Today, more than four million Cubans – workers, campesinos, and university students – are organized in militia groups have access to weapons in their campuses, factories and in rural areas.

However, since 1959, Cuba has had to confront the hostility of 10 U.S. administrations that have attempted to limit its right to self-determination through the use of aggression and the unilateral imposition of a criminal economic, commercial and financial blockade.

One of the universally accepted principles of international law is that state cannot be allowed to coerce another in order to deny it the right to exercise its sovereign rights. Article 24 of the UN Charter states that, in the context of international relations, nations must refrain from using threats or force against the territorial integrity or political independence of any state.

Over the past 45 years, the United States has prohibited any trade with Cuba, including foodstuffs and medicines; it cancelled the Cuban sugar quota; prohibited its citizens from traveling to Cuba via the imposition of heavy sanctions; prohibited the re-export of U.S. products or items containing U.S. components or technology to Cuba from third countries; prescribed that banks in third countries should maintain Cuban bank accounts in dollars or use that currency in their transactions with the Cuban nation; has systematically intervened to prevent or hinder trade with or financial assistance to Cuba on the part of governments, institutions and citizens from other countries and international organizations.

In the 1960s these reprisals forced Cuba to structurally reconstitute its economic relations when and establish its essential markets in countries in the former East European bloc – specifically in the Soviet Union – which meant that the country had to embark on an almost total re-conversion of its industrial technology, means of transport, and provisions, etc.

When Cuba lost its natural markets in Eastern Europe, the U.S. government intensified its blockade via the 1992 Torricelli Act, which used the pretext of “democracy and human rights” to prohibit U.S. subsidiaries located in third countries and subject to the laws of those nations from engaging in commercial or financial operations with Cuba (particularly in respect to food and medicines), and punishing these by prohibiting the entry into U.S. ports for 180 days of vessels transporting goods to or from Cuba or on behalf of Cuba, measures that – given their extraterritorial nature – do not just prejudice Cuba but also harm the sovereignty of other nations and the international freedom of transportation.

On March 12, 1996, the U.S. government passed the Helms-Burton Ac, further aggravating relations between the two countries and assuming the right to sanction citizens of third countries in U.S. courts, as well as determining their expulsion or denying them and their families entry visas into the United States, with the aim of hindering Cuba’s efforts to recover its economy and hampering its possibilities of securing a greater insertion in the international market. That was also a way of attempting to pressure the Cuban people into relinquishing their efforts of self-determination.

More recently, it has adopted the Bush Plan, an attempt to transform Cuba into a colony through an annexationist program and the sibylline intention to intervene via a pretext of “transition,” a scenario in which the State Department would entrust one of its leaders as “governor,” when the Cuban revolutionary state disappears. This plan, with which George W. Bush decided “to precipitate the day when Cuba becomes a free country,” has intensified the blockade and pressure on the Cuban people by repressing family relations between Cubans resident in the United States and their families on the island; grants million-dollar resources to terrorist groups in Miami, as well as to mercenary subordinates in the U.S. Interests Sections in Havana; and promotes formulas to destabilize the country and redouble international pressure on the island.

That hostility on the part of the U.S. has included other notorious manifestations of aggression, ranging from the military aggression through the Bay of Pigs in 1961, the dirty war carried out by counterrevolutionary gangs heavily supplied by the U.S. CIA, bacteriological warfare on agricultural crops (sugar, tobacco, and citric fruits), animals (swine fever), and humans (hemorrhagic dengue), to sabotage plans, bombings using pirate planes, and assassination attempts on the country’s principal leaders.

The actions of terrorist organizations executing military attacks on Cuba from U.S. territory are notorious, and are publicized and fomented by the Miami media. Groups are constantly recruiting adventurers who are willing to head off to Cuba as agents and saboteurs, who openly declare that they have no fear whatsoever of being brought to justice in U.S. courts.

That is why Cuban patriots have had to leave aside their personal interests to serve those of the nation, even sacrificing their family relationships, in order to infiltrate the ranks of those terrorist groups in order to discover their activities and, with this information, prevent the bloodshed of Cuban and U.S. people. They are willing to pay the price of the political irrationality of the U.S. government, as is the case of the five Cuban heroes unjustly incarcerated in U.S. jails for combating terrorism.

The above is compounded by the heavy military mechanism created by the United States around Cuba and its constant tension-generating activities, as well as the illegal occupation of the Guantánamo Naval Base on Cuban territory (today converted into a horrific prison camp), a part of Cuba rented out by force to the United States in the early 20th century and which the U.S. government refuses to return.

In the early 90’s, with the disappearance of the Soviet Union, isolated and reviled by the international reaction, Cuba absorbed the terrible blow of losing the bulk of its markets in a matter of months and an abrupt descent in its gross domestic product. But the island confirmed that it shone with its own light and that it had never been a satellite of anyone, given that it was able to face that juncture on account of the extraordinary resistance of the majority of Cubans, who have acted on the basis of authentic motivations, values and ethical principles.

The Cuban people have made a conscious decision to support the country’s leadership, not only because they identify the system with their own interests, but also because of the responsible manner in which the state took on the crisis, reorganized its forces and designed a recovery strategy, despite the U.S. blockade and conditions imposed by its European allies.

The sacrifices provoked by that situation have been hard, but it has been possible to endure them because of the undisputed social advances attained, because of the confidence deposited in the country’s leading institutions and because of people’s appreciation that their government is not a decadent one or one that is in management crisis or lacking in strategies, but has confirmed that the population has remained at the center of all its work, even in the most difficult circumstances.

Fifty years have gone by and the liberation process has reached this point following the same direction indicated that night, 50 years ago, when Fidel, speaking to the huge crowd awaiting him in what was the dictatorship’s headquarters, affirmed that everything could be more difficult in the future, because we would have to fight to make the Revolution.

That is the challenge of the struggle currently underway to eradicate vices and exalt virtues, with Fidel as a soldier of ideas serving as a compass in the fight for freedom and independence.

Cuba’s enemies are backing their all on the opposite of that. In this world, where politics is a caricature, they cannot comprehend that, in its thinking and action, this Revolution is a process of continuity, and that Fidel will continue to be the leader of the Revolution of today and tomorrow, because, beyond responsibilities and titles, he will continue to be the counselor of ideas to which we will always have recourse, because he has transcended political life to insert himself in an intimate way in the family life of the vast majority of Cubans.

Courtesy: GRANMA

Comments

Global Economic Crisis-II

Posted by Deepankar Basu November 5, 2008 at 12:38 am in Economic Notes, Economy, Imperialism, USA

Link to “Global Economic Crisis-I”

Short-term: The Sequence of Events

Even though the credit crisis attained dangerous proportions only in mid-September, it had already announced itself in the early part of the year with the collapse of Bear Stearns, one of the five famed investment banks that defined Wall Street; today none of those five investment banks – Bear Stearns, Goldman Sachs, Lehmann Brothers, Merril Lynch and Morgan Stanley – exist, an indication of the depth of the crisis. Faced with a fierce run on it’s dwindling reserves and it’s stock plummeting, Bears Stearns was forced to sell itself off to J P Morgan Chase (one of the largest commercial banks in the US) on March 16, 2008. The next three months could be best described in terms that the police often use in India: tense but under control. On July 01, the next piece of bad news emerged and shattered the uneasy calm: Country Wide Financials, the largest mortgage seller in the US, collapsed and was acquired by Bank of America (one of the largest commercial banks in the US). Following closely on the heels of this event, IndyMac bank failed – the second largest bank failure in US history – and was taken over by the Federal Deposit Insurance Corporation (FDIC), one of the institutions responsible for monitoring the health of the banking system in the US. IndyMac was, unsurprisingly perhaps, part of the Country Wide financial family.

Things started speeding up in September. On September 08, Freddie Mac and Fannie Mae, the two government supported enterprises (GSE) operating in the mortgage market was nationalized, with assets of the two entities totalling to more than $ 5 trillion. On September 15 another of the five famed investment banks, Lehmann Brothers, filed for bankruptcy; Lehmann’s assets were a little over $ 600 billion and this made it’s bankruptcy filing the largest in US history. Next day, the Fed stepped in with a $ 85 billion loan to prevent American International Group (AIG), the largest insurance firm in the US from going under. These two events, Lehmann’s bankruptcy filing and AIG’s rescue, sent shock waves through the world financial system. The result was a rapid erosion of faith in the financial system leading to a veritable credit freeze: financial institutions stopped lending, to other financial institutions, to businesses and to consumers.

The next thirty six hours, from the morning of September 17 to the evening of September 18, accelerated the credit crisis to extremely dangerous proportions and convinced the US Treasury and the Federal Reserve that government intervention of unheard magnitudes (at least since the Great Depression) would be necessary to prevent total financial collapse. Ben Bernanke, the chairman of the Federal Reserve (the US Central Bank), was famously reported as saying, at one point during this 36 hours, that if the government did not save the (financial) markets now there might not be any financial markets in the future. So, what happened during those crucial 36 hours?

The crucial 36 hours

The first indication of a severe stress in the financial system was a shooting up of credit default swap (CDS) rates, especially on Morgan Stanley and Goldman Sachs (two of the famed five Wall Street investment banks) debt, during the early hours of September 17. Credit default swaps are insurance contracts that can protect bondholders against the possibility of default. For example if an investor has bought bonds worth $ 1 million issued by firm A, then the investor can also buy CDS – typically issued by financial institutions like large commercial banks, investment banks or insurance companies – to protect herself against a possible loss resulting from firm A defaulting on it’s bonds; the premium that the investor pays for the CDS is called the “rate” or “spread” and it is typically around 2% of the amount insured (the “notional value”). So, in the case of this example, the investor would pay $ 20,000 to buy CDS and if firm A were to go under, then the “counterparty” to the CDS contract (i.e., the financial institution that issued the CDS to the investor) would step in to pay the investor $ 1 million and the interest on that amount.

CDS rates (i.e., the premiums that are paid on the insurance contracts) are, thus, an indication of the market’s belief about the possibility of default of some institutions; CDS rates on bonds issued by firms are typically low when the market thinks the probability of default of those firms are low and high when the market thinks the probability of default are high. Thus, on the morning of September 17, when CDS rates went through the roof, this provided evidence of severe loss of faith in the financial system.

When investors lose faith in the financial instruments issued by private parties, they turn back to those issued by the government and that is what happened when CDS rates multiplied by close to a factor of five. Investors let go of private financial instruments like hot bricks and rushed into US government securities, a phenomenon often described as “flight to safety”. The US government, i.e., the US Treasury department, issues three primary kinds of securities: T-bills, T-notes and T-bonds (where the “T” stands for Treasury), where bills mature in less than a year, notes mature between one and ten years and bonds are of longer maturities than a decade. When investors lost faith in the private financial system, they rushed in to US T-bills, the short-run heavily-traded ultra-safe US government securities. This huge rush into T-bills pushed up the price of T-bills and drove the yield (i.e., interest rate) on T-bills down. At one point in time, during this 36 hour period, the yield on T-bills was pushed down all the way to zero (the lowest it can ever go to) implying that investors were willing to hold T-bills even though the nominal return was zero and real returns were negative (because the inflation rate was positive).

As private investors were madly rushing into the safety of US T-bills, another important event was unfolding in the mutual funds market. Money market mutual funds (MMMF) are financial institutions that have become popular over the last three decades, especially in the US. They typically work as follows: investors put their money in MMMF’s by purchasing shares in the MMMF’s stock; thus the MMMF becomes a mechanism for pooling huge amounts of money and then using those large sums for investing in a very diversified portfolio of financial assets, thereby making the investments extremely safe. Thus MMMF’s were, till September 17, thought to be as safe as a deposit account in a commercial bank, and the added advantage was that the money invested in MMMF shares would give a positive rate of return as opposed to a deposit account which is usually non-interest bearing. On September 17, one of the oldest and largest MMMF’s, Reserve Primary Fund, “broke the buck”, i.e., it made losses on it’s investments such that it could not guarantee a positive return to it’s shareholders. Every dollar invested in Reserve Primary was now, by it’s own admission, worth less than a dollar. This was an unheard of event and as news of Reserve Primary Fund’s losses spread, investors started pulling money out of MMMFs.

This had a very negative consequence for the real economy because of the serious involvement of MMMFs in the commercial paper (CP) market. Businesses typically need to constantly borrow short-term funds to keep their operations going; these borrowed funds go towards funding payroll, paying suppliers, maintaining inventory, etc. Firms, at least the big ones, usually borrow short-term funds in the US by issuing commercial paper (which is essentially a bond with a short maturity of about a week or a month). Who buys commercial papers? The most active institutional investors in the CP market are the MMMFs; some of the largest chunks of commercial papers are bought by the MMMFs. So when the MMMFs faced an increasing spate of withdrawal, in the wake of Reserve Primary Fund’s breaking the buck, they stopped buying commercial paper. This, essentially, meant that the CP market ground to a halt. Thus businesses were no longer able to borrow the short-term funds that they need to keep operating. The economy, by all means, shut down.

Adding to and going hand-in-hand with these processes were the growing problems in the interbank (lending) market. Commercial banks typically lend and borrow banking system reserves (roughly the sum of currency in the banks’ vaults and the amount they hold in their account with the Central Bank) among themselves for very short periods, usually overnight periods. The interbank lending market that is most closely watched is the London interbank market and the rate at which loans are made in this market is the London Inter Bank Offered Rate (LIBOR). The most important characteristic of loans in the interbank market is that they are unsecured, i.e., they are not backed by collateral. Thus, a bank can get a loan in the interbank market only if other banks consider it financially sound; thus when the LIBOR jumps up suddenly it provides evidence that the largest and the best banks in the world have lost faith on each other. On September 17, the LIBOR shot up giving indication of increasing strain in the interbank market.

It was these sets of events – CDS rates shooting up, closing down of the CP market, increasing strain in the interbank market – that spooked the US administration and convinced them of the necessity of the most extensive government intervention in the financial markets since the Great Depression. These crucial sets of events were precipitated by the string of big financial failures that the US economy had witnessed over the first two weeks of September: the failure of Fannie and Freddie, the bankruptcy of Lehmann and the near-collapse of AIG. It was these failures that led to a rapid loss of faith in the financial system and heralded a full-blown credit crisis. And why did Fannie and Freddie and Lehmann and AIG fail? All these financial institutions failed because at crucial points in time they could no longer raise money from the market to finance their assets, i.e., they could not borrow money or roll over their short-term debt; financing, for these institutions, had dried up. And why did financing dry up for these big and reputed financial institutions? Because each of these, in their own ways, were exposed to the subprime mortgage market and took huge losses when the subprime mortgage market started unravelling. As news of these failures spread, investors, fearing losses, became increasingly unwilling to lend money to these institutions.

(To be continued.)

Comments (1)

Krugman’s “great illusion”

Posted by Pratyush Chandra August 17, 2008 at 4:56 am in Economic Notes, Economy, Imperialism, International Relations

Economist Paul Krugman in his latest column in NY Times (Aug 15, 2008) entitled “The Great Illusion” expresses his concern at the possibility that “the second great age of globalization may share the fate of the first”. And it is the recent Russia-Georgia conflict that makes him say so. To be more explicit he goes on to explain that “our grandfathers lived in a world of largely self-sufficient, inward-looking national economies — but our great-great grandfathers lived, as we do, in a world of large-scale international trade and investment, a world destroyed by nationalism.”

Krugman’s above statement clearly shows his lack of any historical sense. When was that “world of large-scale international trade and investment” free of (militarist) nationalism – a mechanism to protect that “large-scaleness”? And much of the “nationalism” which destroyed that world was in fact a revolt against that “large-scale” militarism. Yes, it destroyed the Pax Britannica – it was a war against the war monopoly.

On the one hand, Krugman seems to tell that national self-sufficiency at least with regard to “the current food crisis” is at last clearly shown to be not “an outmoded concept”. But he is in fact accusing nationalism of “many governments” for “leaving food-importing countries in dire straits”. He further finds that there is a rise of “militarism and imperialism” as “it does mark the end of the Pax Americana — the era in which the United States more or less maintained a monopoly on the use of military force. And that raises some real questions about the future of globalization”. Obviously, for him, “Russian energy” and Chinese big economy are the real threats as they have the capacity to manipulate world polities and economies to submission.

Then what is the Pax Americana? Is it not militarism, imperialism and manipulation, that we witnessed throughout the 1990s and afterwards? When did war-mongering and militarist build-up end during the “Pax Americana”? Increasing manipulative capacities of other countries and their political economy at the most demonstrate a globalization of “militarism and imperialism”.

Krugman rightly questions those analysts who “tell us not to worry: global economic integration itself protects us against war, they argue, because successful trading economies won’t risk their prosperity by engaging in military adventurism”. He thinks “the foundations of the second global economy” are solid than those of the first only “in some ways”, “[f]or example, war among the nations of Western Europe really does seem inconceivable now, not so much because of economic ties as because of shared democratic values”. So euro-centric Krugman, like Stiglitz, ultimately thinks the West not to be adventurist because of its democracy, but ah! “much of the world, however, including nations that play a key role in the global economy, doesn’t share those values”. So does he think the Pax Americana to which the West has submitted is about peace and democracy, which is now being threatened by the despotic Orient?

Krugman rightly concludes that “the belief that economic rationality always prevents war is an equally great illusion”. But like any other ordinary bourgeois he thinks economic rationality can prevent war when coupled with “democratic” values of the West. Obviously he can’t see the fact that economic rationality is about competition, representative democracy is about competition, and a war is competition par excellence. They are all ultimately the same – diverse moments in the life of “social capital”(1). Krugman refuses to recognize that capital whether protected by democratic regimes or not is at constant war against labour – which needs to be divided and controlled if it is to be exploited – and Western xenophobic megalomaniac nationalisms have always been nurtured for this reason. Where is the country in the West free from state-sponsored Ku-klux-klanesque policies and activism against migrants and “the other”? The neo-capitalist regimes have learned their lessons properly – obviously at the cost of threatening the established monopolies. It is not an end of globalization, as Krugman prognosticates, but a new stage – and a more barbaric stage – of capitalist globalization.

Note:

(1) “Here social capital is not just the total capital of society: it is not the simple sum of individual capitals. It is the whole process of socialization of capitalist production: it is capital itself that becomes uncovered, at a certain level of its development, as social power”. (Mario Tronti (1971), “Social Capital“)

Comments

Perspectives on the US Financial Crisis

Posted by Radical Notes July 11, 2008 at 11:21 am in Economic Notes, Economy, Finance, Imperialism, USA

Sam Gindin and Leo Panitch

It is time to take stock. The centrality of the American economy to the capitalist world – which now literally does encompass the whole world – has spread the financial crisis that began in the U.S. housing market around the globe. And the emerging economic recession triggered in the U.S. by that financial crisis now threatens to spread globally as well.

Capitalism has had an incredible run – politically and culturally as well as economically – since the stagflation crisis of the 1970s. The resolution of that crisis required, as economists put it at the time, ‘reducing expectations’ of the kind nurtured by the trade union militancy and welfare state gains of the 1960s. This was accomplished via the defeats suffered by trade unionism and the welfare state since the 1980s at the hands of what might properly be called capitalist militancy. This was accompanied by dramatic technological change, massive industrial restructuring alongside labour market flexibility and the over – all discipline provided by ‘competitiveness.’

That discipline brought with it an enormous increase in economic inequality, the spread of permanent working class insecurity and the subsumption of democratic possibilities to profitable accumulation. But this did not mean capitalism was no longer able to integrate the bulk of the population. On the contrary, this was now achieved through the private pension funds that mobilized workers savings, on the one hand, and through the mortgage and credit markets that loaned them the money to sustain high levels of consumer spending on the other. At the centre of this were the private banking institutions that, after their collapse in the Great Depression, had been nurtured back to health in the postwar decades and then unleashed the explosion of global financial innovation that has defined our era.

The question begged by the current crisis is whether capitalism’s capacity to integrate the mass of people through their incorporation in financial markets has run out of steam. That the fault line should have appeared in ‘sub-prime’ mortgage loans to African-Americans is hardly surprising – this has always been the Achilles’ heel of working class incorporation into the American capitalist dream. But an economic earthquake will actually only result if there is a devaluation of working class assets in general through a collapse of housing prices and the stock and bonds in which their retirement savings are invested.

The state and financial crises

We are by no means there yet. The role being played to prevent just this by the Federal Reserve, very much acting as the world central bank in light of the global implications of a U.S. recession, should once and for all dispel the illusion that capitalist markets thrive without state intervention. It was through the types of policies that promoted free capital movements, international property rights and labour market flexibility that the era of free trade and globalization was unleashed. And this era has been kept going as long as it has by the repeated coordinated interventions undertaken by central banks and finance ministries to contain the periodic crises to which such a volatile system of global finance inevitably gives rise.

The Fed has repeatedly poured liquidity into its financial system at the first sign of trouble. The question is whether the capacity of the system to go on integrating ordinary Americans though the expansion of investor and credit markets in this way has reached its limit. This was indeed suggested by the Bush administration’s sudden (non-military) Keynesian turn with a $150 billion fiscal stimulus. However, that fiscal stimulus at the federal level may be undone at the state level, especially with municipal government cutbacks, given their massive dependence on property taxes. The way financial institutions that specialized in selling risk insurance on municipal bonds were enveloped in the credit crisis has further compounded the problem. This indeed brings to mind the extent to which it was municipal governments that were on the front lines of the Great Depression.

But while the U.S. may very well move into a recession, which even when it ends may mark the beginning of a new era of slower growth, this is very different from a Depression. While there is no doubt that mortgages in black communities and for the working poor more generally will be tightened, it seems most likely that banks, competing for markets, will continue to extend credit to working families more generally. we need to remember that the top twenty per cent and their families are extravagant consumers. While growing inequalities are grotesque, the left has consistently underestimated the extent to which the rich can sustain overall spending. The ‘correction’ in the dollar (alongside the strength of U.S. manufacturing in the higher-tech sectors) has already led to offsetting growth in markets abroad; U.S. exports have been growing at double-digit rates over the past few years.

Finally, the U.S. state may revive its capacities for substantive infrastructural spending, if only to stimulate the construction industry now that the housing boom is over. Indeed, even from the perspective of competitiveness and accumulation there is a long-neglected need to rebuild U.S. infrastructure – as the collapsed levies of New Orleans and the collapsed bridges of Minneapolis dramatically showed. The type of state intervention that brought us financial globalization is not well suited to this, but this crisis may finally force some renewal of state capacities in this respect, even within the overall framework of neoliberalism.

Finance and Neoliberalism

There is an understandable tendency on the left to take hope in capitalism’s current dilemmas. The extreme liberalization of finance (and along with it the era of neoliberalism) seems discredited. Finance today appears as no more than high-flying speculation – absurdly wasteful and ultimately not sustainable. U.S. corporations remain profitable, but with the credit crunch, who will buy the goods? Discredited as well, it therefore appears, is the U.S. capacity to keep its own house in order, never mind lead the process of globalization. Yet before we assume that the openings created by this crisis place us on the verge of a matching new oppositional politics, we need a more careful reading of our times. While the new openings provide the space for a new politics, we need to soberly appreciate the problematic link between such openings and a radical response.

To begin with, as immoral and irrational as finance might seem, financialization has been absolutely essential to the making and reproduction of global capitalism. Second, the growing consensus that finance must be re-regulated is hardly an attack on finance or neoliberalism more generally. Rather, it is about the engineering of finance so it can continue to be ‘innovative’ in the service of both itself and non-financial capital. Third, whatever problems the U.S. currently faces, its dominance will not fade because of a crisis in housing or a lower exchange rate; it does us no good to underestimate the staying power of the American capitalist empire.

It is not only finance but capitalism in general that rests on speculation. Behind a new firm or a new product rests the ‘speculation’ that it can be sold at a cost and price that generates profit. Behind the distinction between finance and the ‘productive sector’ is therefore something else: the notion that finance speculates in pieces of paper, not in providing goods or real services; it is a parasitic drain on the economy, not a constructive addition to it.

The problem with this line of thinking is that it mistakes what is rational from the perspective of certain moral criteria with what is rational within capitalism. The financial system is necessary to capitalism’s functioning. The discipline finance has imposed in the neoliberal era on particular capitalists and workers has forced an increase in U.S. productivity rates by way of increased exploitation, the more efficient use of each unit of capital, and the reallocation of capital to sectors that are most promising – all from the standpoint of profits, of course.

The penetration by American finance of foreign countries and the inflow of foreign capital into the U.S. has given the U.S. access to global savings, shored up its role as the greatest global consumer and reinforced the U.S. state’s power and options. Especially important, financial markets have come to provide non-financial corporations with mechanisms for managing their risks, and comparing and evaluating diverse investment opportunities in a highly complex global economy. Absent this role, globalization – at least to the extent we have experienced it – would not have been possible. Finally, as emphasized earlier, the ‘democratization’ of American finance has given workers access to finance as savers and debtors, thereby contributing to their integration into, and dependence on, each of capitalism and finance.

This does not mean that the explosion of finance is not a highly contradictory process. Highly volatile financial markets inevitably generate financial crises. Rather, it shifts the question from whether financialization is irrational to whether its contradictions can be managed insofar as the crises can be contained. What working classes do in this context will be crucial to answering this question.

The Dialectics of Regulation

Finance cannot exist without regulation and the U.S. financial sector, even before the latest crisis, was the most heavily regulated of any section of the U.S. economy. In fact, the dynamics of finance cannot be understood apart from how regulation shapes financial competition, how banks and other financial institutions try to escape or reshape that regulation, and the state’s subsequent counter-responses. The current dilemma for American regulatory institutions lies in how to re-regulate finance so as to overcome its costly and dangerous volatility without undermining finance’s needed innovative capacity.

We need to be clear that this is about re-engineering finance to strengthen capital accumulation, not control it in the name of a larger public interest. To place democratic regulation of finance on the agenda would require asking: ‘regulation for what purpose?’ and so would mean going far beyond finance itself. It would mean raising the fundamental question of social control over investment and therefore get to the heart of power in a capitalist society.

In the context of the failed promises of the past quarter century and the current crisis, to see the above issue go completely unmentioned in the Democratic primary debate may not be surprising given the absence of even a trade union campaign around this, but it bespeaks an impoverishment of American politics that in fact goes all the way back to the New Deal. The issue of economic democracy that had been placed on the political agenda alongside the New Deal’s public infrastructure projects was set aside for the remainder of the century after the FDR administration’s self-described ‘grand truce with capital’ in the late 1930s.

It will, therefore, not do to resort to the abstractions and obfuscations of calling for ‘re-regulation’ or a ‘new, new deal.’ It is the undemocratic power of private control over investment that needs to be put on the agenda.

American Empire in Crisis

Four particular aspects of the limited fall-out from the present crisis demand more serious reflection on the left. First, the fact that this crisis surfaced in the context of strong profits and low debt loads in the non-financial sector is important, and this accounts for the limited damage thus far.

Second, it is notable that despite the IMF calling this the most serious banking crisis since the Great Depression, we have not seen a series of banks failures. This is certainly linked to the interventions of the U.S. Fed, but it also speaks to the strength of private U.S. financial institutions. In no other country could such a crisis have unfolded without massive financial bankruptcies.

Third, it is especially worthy of note that no major state saw an opportunity in the crisis to challenge or undermine the American state. Rather, their integration into global capitalism meant that they identified this crisis as their crisis as well. They effectively recognized the U.S. central bank as the world’s central bank and cooperated with it in coordinating internationally repeated provision of liquidity to the banks. As in the previous instances of financial crises during the 1980s and 1990s, this reproduced and extended the American state’s leading role in managing global capitalism.

The fourth, and most important factor is the remarkable ‘imperial flexibility’ the U.S. has by virtue of the weakness of its working class. Had, for example, U.S. workers insisted on higher wages to compensate for rising food and oil prices and the devaluation of their homes and taken advantage of the competitive space offered by a falling dollar, the Fed would have had to cope with the fear of inflation and this might have meant higher rather than lower interest rates. And that could very well have aggravated the crisis and risked a financial meltdown. But rather than the working class demanding more, it in fact showed restraint or, in the case of the autoworkers, accepted the greatest concessions the union has ever made.

The more important question is, therefore, not the economics of crisis but its politics. How will the working class respond to the crisis? If credit continues but becomes more costly; if the loss of private pensions, negotiated health care, and the devaluation of homes force people into having to reduce consumption to shore up their savings; if food and oil prices leave less discretionary spending – if this is the near-term future, will workers rebel? Or will workers once again tighten their belts to preserve what is left from their past gains? And if frustrations are expressed politically, will the politics be limited to a longing for the good-old days before the crisis or before Bush?

Absent what Alan Sears, at the recent Great Lakes Graduate Students Conference at York, called ‘an infrastructure of resistance’, any opposition that does surface is most likely to be localized and contained rather than built on. A coherent alternative is no just a set of economic policy proposals but a political movement that can develop the popular appreciation and capacities for radical democratic control over investment. There should be no illusion that a recession, or even a depression, will necessarily bring the issue of economic democracy back onto the U.S. political agenda. It would require a transformation of American politics to do so – and that, like the current economic crisis, would as well have global implications.

Sam Gindin teaches political economy at York University.
Leo Panitch teaches political economy at York University and is editor of The Socialist Register.

Courtesy: The Bullet

Comments (2)

Fidel reflects: They will never have Cuba

Posted by Radical Notes June 18, 2007 at 3:58 pm in Fidel Castro, Imperialism

I hope that no-one say that I am gratuitously attacking Bush. Surely they will understand my reasons for strongly criticizing his policies.

Robert Woodward is an American journalist and writer who became famous for the series of articles published by The Washington Post, written by him and Carl Bernstein, and which eventually led to the investigation and resignation of Nixon. He is author and co-author of ten best-sellers. With his fearsome style he manages to wrench confessions from his interviewees. In his book, State of Denial, he says that on June 18, 2003, three months after the Iraq war had begun, as he was on the way out of his White House office following an important meeting, Bush slapped Jay Garner on the back and said to him:

“Hey, Jay, you want to do Iran?”

“Sir, the boys and I talked about that and we want to hold out for Cuba. We think the rum and the cigars are a little better…The women are prettier.”

Bush laughed. “You got it. You got Cuba.”

Bush was betrayed by his subconscious. It was in his mind when he declared what scores of dark corners should be expecting to happen and Cuba occupies a special place among those dark corners.

Garner, a recently retired three-star general who had been appointed Head of the Post-War Planning Office for Iraq, created by secret National Security Presidential Directive, was considered by Bush an exceptional man to carry out his war strategy. Appointed for the post on January 20, 2003, he was replaced on May 11 of that same year at the urging of Rumsfeld. He didn’t have the nerve to explain to Bush his strong disagreements on the matter of the strategy to be pursued in Iraq. He was thinking of another one with identical purpose. In the past few weeks, thousands of marines and a number of US aircraft carriers, with their naval supporting forces, have been maneuvering in the Persian Gulf, a few miles off the Iranian territory.

It will very soon be 50 years since our people started suffering a cruel blockade; thousands of our sons and daughters have died or have been mutilated as a result of the dirty war against Cuba, the only country in the world to which an Adjustment Act has been applied inciting illegal emigration, yet another cause of death for Cuban citizens, including women and children; more than 15 years ago Cuba lost her principal markets and sources of supply for foods, energy, machinery, raw materials and long-term low-interest financing.

First the socialist bloc collapsed followed almost immediately by the USSR, dismantled piece by piece. The empire tightened and internationalized the blockade; the proteins and calories which were quite well distributed despite our deficiencies were reduced approximately by 40 percent; diseases such as optical neuritis and others appeared; the shortage of medicines, also a result of the blockade, became an everyday reality. Medicines were allowed to enter only as a charitable act, to demoralize us; these, in their turn, became a source of illegal business and black-market dealings.

Inevitably, the “special period” struck. This was the sum total of all the consequences of the aggression and it forced us to take desperate measures whose harmful effects were bolstered by the colossal media machine of the empire. Everyone was awaiting, some with sadness and others with oligarchic glee, the crumbling of the Cuban Revolution.

The access to convertible currency greatly harmed our social consciousness, to a greater or a lesser degree, due to the inequalities and ideological weaknesses it created.

Throughout its lifetime, the Revolution has taught the people, training hundreds of thousands of teachers, doctors, scientists, intellectuals, artists, computer engineers and other professionals with university and post-graduate degrees in dozens of professions. This storehouse of wealth has allowed us to reduce infant mortality to low levels, unthinkable in any Third World country, and to raise life expectancy as well as the average educational level of the population up to the ninth grade.

By offering Cuba oil under favorable terms of payment at a time when oil prices were escalating dramatically, the Venezuelan Bolivarian Revolution brought a significant relief and opened up new possibilities, since our country was already beginning to produce her own energy in ever-growing amounts.

Concerned over its interests in that country, the empire had for years been planning to destroy that Revolution, and so it attempted to do it in April 2002, as it will attempt to do again as many times as it can. This is why the Bolivarian revolutionaries are preparing to resist.

Meanwhile, Bush has intensified his plans for an occupation of Cuba, to the point of proclaiming laws and an interventionist government in order to install a direct imperial administration.

Based on the privileges granted to the United States in Bretton Woods and Nixon’s swindle when he removed the gold standard which placed a limit on the issuing of paper money, the empire bought and paid with paper tens of trillions of dollars, more than twelve digit figures. This is how it preserved an unsustainable economy. A large part of the world currency reserves are in US Treasury bonds and bills. For this reason, many would rather not have a dollar crisis like the one in 1929 that would turn those paper bills into thin air. Today, the value of one dollar in gold is at least eighteen times less than what it was in the Nixon years. The same happens with the value of the reserves in that currency.

Those paper bills have kept their low current value because fabulous amounts of increasingly expensive and modern weapons can be purchased with them; weapons that produce nothing. The United States exports more weapons than anyone else in the world. With those same paper bills, the empire has developed a most sophisticated and deadly system of weapons of mass destruction with which it sustains its world tyranny.

Such power allows it to impose the idea of transforming foods into fuels and to shatter any initiative and commitment to avoid global warming, which is visibly accelerating.

Hunger and thirst, more violent hurricanes and the surge of the sea is what Tyranians and Trojans stand to suffer as a result of imperial policies. It is only through drastic energy savings that humanity will have a respite and hopes of survival for the species; but the consumer societies of the wealthy nations are absolutely heedless of that.

Cuba will continue to develop and improve the combative capacities of her people, including our modest but active and efficient defensive weapons industry which multiplies our capacity to face the invaders no matter where they may be, and the weapons they possess. We shall continue acquiring the necessary materials and the pertinent fire power, even though the notorious Gross Domestic Product as measured by capitalism may not be growing, for their GDP includes such things as the value of privatizations, drugs, sexual services and advertising, while it excludes many others like free educational and health services for all citizens.

From one year to the next the standard of living can be improved by raising knowledge, self-esteem and the dignity of people. It will be enough to reduce wastage and the economy will grow. In spite of everything, we will keep on growing as necessary and as possible.

“Freedom costs dearly, and it is necessary to either resign ourselves to live without it or to decide to buy it for its price”, said Martí.

“Whoever attempts to conquer Cuba will only gather the dust of her soil soaked in blood, if he does not perish in the fight”, exclaimed Maceo.

We are not the first revolutionaries to think that way! And we shall not be the last!

One man may be bought, but never a people.

Fate decreed that I could survive the empire’s murderous machine. Shortly, it will be a year since I became ill and, while I hovered between life and death, I stated in the Proclamation of July 31, 2006: “I do not harbor the slightest doubt that our people and our Revolution will fight until the last drop of blood.”

Mr. Bush, don’t you doubt that either!

I assure you that you will never have Cuba!

Fidel Castro Ruz
June 17, 2007
2:03 p.m.

Comments

Bangladesh now: a showpiece of pax americana

Posted by Radical Notes June 13, 2007 at 1:17 pm in Agrarian Question, Bangladesh, Imperialism

Soumitra Bose

If things come the BUSH-BLAIR or rather EMPIRE way, we would have all over the earth what we now see in Bangladesh. The country is run now by what is eulogized as a “caretaker government”! Yes, care is what they are taking, of what, however is the question?

Political activities are banned. It is still an “ideal democracy”. No one is allowed to spell ill about the government, no one can and will criticize those handfuls that are running the show, or rather are seen as running the show. Show, however is actually run by the army, and everyone in the street knows it. There are “wise” men – a handful, who decide or decree whatever will be next step and there would not be anyone who can question.

The middle class, who has lived and thrived in Bangladesh for more than 35 years now is happy and even conceited as ever, because they feel and “see” that corruption is not there, political Mafiosi are all behind bars and yet the middle class as it is always throughout the world do not see what they do not want to! Just today, news came out that the Chief of the caretaker government is willy-nilly [as no one is allowed to directly mention even the name of the person for any allegation processing] involved in a huge financial scam. Social laws never go wrong… one has to give some time to prove them! When supreme power is bestowed on some one and the person is not answerable especially in the perspective of the most corrupt economy then obviously power would corrupt and absolute power would corrupt absolutely.

Democracy, of whatever sham form brings out the news some time down the line and makes powerful ones accountable in whatever inadequate way it can, but when democracy is shelved and withheld, it becomes the golf-lawn for political oligarchy.

Every one in the streets knew what happened in Bangladesh was a coup masterminded by US consulate. It all started like the following. The US under the aegis of their war against terrorism found out that Bangladesh housing all different hues of fundamentalists and Islamist terrorist and even some other terrorist whom the US considers dangerous. The US intelligence found additionally that the Bangladesh army is the most corrupt institution and Taliban literature and demagogy and pornography. Bangladesh army and the embedded pro-Taliban functionaries were looking up to a hypothetical situation of attacking India with the help of Pakistan and other Middle Eastern Muslim countries. Things did not turn up as they planned. Musharraf fell to US game plan and turned his guns against Taliban and fundamentalists. So the Bangladesh army functionaries who were polishing their armaments toward an imaginary India-attack lost the steam.

Meanwhile the US sprang into action. The US consulate increased the efforts of negotiating and coaxing and cajoling the political leaders, but could not get very favourable responses despite their bribing and threats. This was because of the incendiary situation created on one hand by the growing labour unrest and other political movements of the people against globalisation and the growing dismay of the people against the anti-Muslim US policies. Faced with this situation, the US slashed the final threat to Bangladesh army. They said all foreign stints for Bangladesh army personnel in peacekeeping missions abroad will be terminated if Bangladesh army does not clear the fundamentalists from within its ranks. Money became more critical factor than baseless dreams of creating Muslim Umma in South Asia. Almost overnight the army decided to take on the chaotic political turmoil. They moved straight to the capital, made the then caretaker government sign on a draft that is now the writ. This draft was written allegedly [as you would get the information from the streets] by Md. Yunus and Justice Debopriyo Bhattacharya. Yunus the Nobel Prize winner always nurtured the dream of becoming the supreme man and yet could not cope with political criticism. Bhattacharya, a Hindu fundamentalist, would champion the cause of the Hindu minority. A new government was formed whose members were nominated by the US consulate. The new government arrested the main political leaders on account of some or the other corruption and criminal charges. The way Bangladesh was running all these charges are actually true. But the ulterior motive was to stop all political activities, which they promulgated and did and every kind of manifestation or organization was banned. People found overnight the local political Mafiosi quelled and they hailed the military. The bite was realized later. The prices soared up, economy dwindled, and administration anarchy shot up and the producing forces found their voices gagged. All came very soon on the heels of the famous and heroic people’s upsurge of Phulbari and Kansat. People took up arms against the imperialist marauders and trans-nationals. TATA’s project was shelved and very interestingly and very co-incidentally those upsurges took place when across the border the other Bengal took up arms with iconic presentation of Singur and Nandigram. The South Asian intellectuals and the conscious people equated Phulbari, Kansat, Singur and Nandigram in the same line against imperialism and globalisation. This was too much. Messages need to be sent and liberalism was inadequate. US sent a message across the border within India and very concomitantly they pressurized Musharraf. When Leftists in Pakistan are jailed the ploy of “war against fundamentalism” fell flat. Peasants’ upsurge in the North West Frontier Province and Punjab in Pakistan, the Anti-SEZ movement in India, the rise of the Maoists in Nepal and the recent setbacks of the Lankan Army sent a counter message to PAX AMERICANA that people are now ready to take up arms at the drop of a hat. Bangladesh is the message of US imperialism. Phulbari, Kansat, Singur and Nandigram is the message of the people. Battle lines are drawn, the struggle will go on!. People of this vivisected sub-continent have lost all hopes on neo-liberal governance of repeated changes in form and essentially the same imperialist extraction. They are taking the path of massive militant upsurge. The future is going to be a totally unforeseen chapter of human history. What started in 1857 may spread like wild fire once again toward a second Freedom struggle.

Comments (1)

Fidel reflects: Nobody wants to take the bull by the horns

Posted by Radical Notes May 23, 2007 at 11:25 am in Fidel Castro, Imperialism

REFLECTIONS BY THE COMMANDER IN CHIEF FIDEL CASTRO
May 22, 2007

On March 28, less than two months ago, when Bush proclaimed his diabolical idea of producing fuel from food, after a meeting with the most important U.S. automobile manufacturers, I wrote my first reflection.

The head of the empire was bragging that the United States was now the first world producer of ethanol, using corn as raw material. Hundreds of factories were being built or enlarged in the United States just for that purpose.

During those days, the industrialized and rich nations were already toying with the same idea of using all kinds of cereals and oil seeds, including sunflower and soy which are excellent sources of proteins and oils. That’s why I chose to title that reflection: “More than 3 billion people in the world are being condemned to a premature death from hunger and thirst.”

The dangers for the environment and for the human species were a topic that I had been meditating on for years. What I never imagined was the imminence of the danger. We as yet were not aware of the new scientific information about the celerity of climatic changes and their immediate consequences.

On April 3, after Bush’s visit to Brazil, I wrote my reflections about “The internationalization of genocide.”

At the same time, I warned that the deadly and sophisticated weapons that were being produced in the United States and in other countries could annihilate the life of the human species in a matter of days.

To give humanity a respite and an opportunity to science and to the dubious good sense of the decision-makers, it is not necessary to take food away from two-thirds of the inhabitants of the planet.

We have supplied information about the savings that could be made simply by replacing incandescent light bulbs with fluorescent ones, using approximate calculations. They are numbers followed by 11 and 12 zeros. The first corresponds to hundreds of billions of dollars saved in fuel each year, and the second to trillions of dollars in necessary investments to produce that electricity by merely changing light bulbs, meaning less than 10 percent of the total expenses and a considerable saving of time.

With complete clarity, we have expressed that CO2 emissions, besides other pollutant gases, have been leading us quickly towards a rapid and inexorable climatic change.

It was not easy to deal with these topics because of their dramatic and almost fatal content.

The fourth reflection was titled: “It is imperative to immediately have an energy revolution.” Proof of the waste of energy in the United States and of the inequality of its distribution in the world is that in the year 2005, there were less than 15 automobiles for each thousand people in China; there were 514 in Europe and 940 in the United States.

The last of these countries, one of the richest territories in hydrocarbons, today suffers from a large deficit of oil and gas. According to Bush, these fuels must be extracted from foods, which are needed for the more and more hungry bellies of the poor of this Earth.

On May Day 2006, I ended my speech to the people with the following words:

“If the efforts being made by Cuba today were imitated by all the other countries in the world, the following would happen:

“1st The proved and potential hydrocarbon reserves would last twice as long.

“2nd The pollution unleashed on the environment by these hydrocarbons would be halved.

“3rd The world economy would have a break, since the enormous volume of transportation means and electrical appliances should be recycled.

“4th A fifteen-year moratorium on the construction of new nuclear power plants could be declared.”

Changing light bulbs was the first thing we did in Cuba, and we have cooperated with various Caribbean nations to do the same. In Venezuela, the government has replaced 53 million incandescent light bulbs with fluorescent in more than 95% of the homes receiving electrical power. All the other measures to save energy are being resolutely carried out.

Everything I am saying has been proven.

Why is it that we just hear rumors without the leadership of industrialized countries openly committing to an energy revolution, which implies changes in concepts and hopes about growth and consumerism that have contaminated quite a few poor nations?

Could it be that there is some other way of confronting the extremely serious dangers threatening us all?

Nobody wants to take the bull by the horns.

Comments

Fidel reflects: The English Submarine

Posted by Radical Notes May 22, 2007 at 6:45 am in Fidel Castro, Imperialism

REFLECTIONS BY THE COMMANDER IN CHIEF FIDEL CASTRO
May 21, 2007

The press dispatches bring the news; it belongs to the Astute Class, the first of its kind to be constructed in Great Britain in more than two decades.

“A nuclear reactor will allow it to navigate without refuelling during its 25 year of service. Since it makes its own oxigen and drinking water, it can circumnavigate the globe without needing to surface,” was the statement to the BBC by Nigel Ward, head of the shipyards.

“It’s a mean looking beast”, says another.

“Looming above us is a construction shed 12 storeys high. Within it are 3 nuclear-powered submarines at different stages of construction,” assures yet another.

Someone says that “it can observe the movements of cruisers in New York Harbor right from the English Channel, drawing close to the coast without being detected and listen to conversations on cell phones”. “In addition, it can transport special troops in mini-subs that, at the same time, will be able to fire lethal Tomahawk missiles for distances of 1,400 miles”, a fourth person declares.

El Mercurio, the Chilean newspaper, emphatically spreads the news.

The UK Royal Navy declares that it will be one of the most advanced in the world. The first of them will be launched on June 8 and will go into service in January of 2009.

It can transport up to 38 Tomahawk cruise missiles and Spearfish torpedoes, capable of destroying a large warship. It will possess a permanent crew of 98 sailors who will even be able to watch movies on giant plasma screens.

The new Astute will carry the latest generation of Block 4 Tomahawk torpedoes which can be reprogrammed in flight. It will be the first one not having a system of conventional periscopes and, instead, will be using fibre optics, infrared waves and thermal imaging.

“BAE Systems, the armaments manufacturer, will build two other submarines of the same class,” AP reported. The total cost of the three submarines, according to calculations that will certainly be below the mark, is 7.5 billion dollars.

What a feat for the British! The intelligent and tenacious people of that nation will surely not feel any sense of pride. What is most amazing is that with such an amount of money, 75 thousand doctors could be trained to care for 150 million people, assuming that the cost of training a doctor would be one-third of what it costs in the United States. You could build 3 thousand polyclinics, outfitted with sophisticated equipment, ten times what our country possesses.

Cuba is currently training thousands of young people from other countries as medical doctors.

In any remote African village, a Cuban doctor can impart medical knowledge to any youth from the village or from the surrounding municipality who has the equivalent of a grade twelve education, using videos and computers energized by a small solar panel; the youth does not even have to leave his hometown, nor does he need to be contaminated with the consumer habits of a large city.

The important thing is the patients who are suffering from malaria or any other of the typical and unmistakable diseases that the student will be seeing together the doctor.

The method has been tested with surprising results. The knowledge and practical experience accumulated for years have no possible comparison.

The non-lucrative practice of medicine is capable of winning over all noble hearts.

Since the beginning of the Revolution, Cuba has been engaged in training doctors, teachers and other professionals; with a population of less than 12 million inhabitants, today we have more Comprehensive General Medicine specialists than all the doctors in sub-Saharan Africa where the population exceeds 700 million people.

We must bow our heads in awe after reading the news about the English submarine. It teaches us, among other things, about the sophisticated weapons that are needed to maintain the untenable order developed by the United States imperial system.

We cannot forget that for centuries, and until recently, England was called the Queen of the Seas. Today, what remains of that privileged position is merely a fraction of the hegemonic power of her ally and leader, the United States.

Churchill said: Sink the Bismarck! Today Blair says: Sink whatever remains of Great Britain’s prestige!

For that purpose, or for the holocaust of the species, is what his “marvellous submarine” will be good for.

Comments

Fidel Reflects: The unanimous opinion

Posted by Radical Notes May 17, 2007 at 8:44 am in Fidel Castro, Imperialism

REFLECTIONS BY THE COMMANDER IN CHIEF FIDEL CASTRO
May 16, 2007

At the 6th Hemispheric Meeting in Havana, when the discussion turned to the subject of production of biofuels from foodstuffs, which are constantly getting more expensive, the huge majority voiced their opposition with indignation. But it was undeniable that some individuals with prestige, authority and good faith had been won over by the idea that the planet’s biomass would suffice for both things in a relatively short time, mindless of the urgency to produce the foods, which are already scarce enough, that would be used as raw material for ethanol and agridiesel.

On the other hand, when the debate on the Free Trade Agreements with the United States began, several dozen people took part and all of them unanimously condemned both the bilateral and multilateral forms of such agreements with the imperialist power.

Taking into account the need for space, I shall return to the method of summarizing in order to present three eloquent speeches made by Latin American personalities who expressed extremely interesting concepts with great clarity and distinctiveness. As in all the summaries in previous reflections, the authors’ exact manner of presentation is respected.

ALBERTO ARROYO (Mexico, Red mexicana de Acción contra el Libre Comercio- Mexican Action Network against Free Trade).

I would like to share with you the new plans of the empire and attempt to alert the rest of the continent about something new which is on the upswing or that is coming forward as a new strategy for a new phase of the United States’ offensive. NAFTA or the FTA of North America was merely the first step of something that it wants for the entire continent.

The new attempt does not seem to take into account the defeat in the implementation of the FTAA, which even in it’s Plan “B” recognizes that it cannot implement what it calls the comprehensive FTAA simultaneously in all the countries of the continent; it will try proceeding, piece by piece, negotiating bilateral Free Trade Agreements.

It succeeded in signing with Central America, but Costa Rica has not ratified it. In the case of the Andean nations, it has not even succeeded in sitting down at the bargaining table with all the countries, but only with two of them; and with these two it has not been able to conclude negotiations.

What is so new about the SPP (Security and Prosperity Partnership of North America)? I see three fundamental issues:

First: To strengthen military and security structures in order to confront the resistance of the peoples is precisely its reaction to the triumph of the movement that is jeopardizing its plans.

It is not a question of simply stationing military bases in danger zones or in areas with a high level of strategic natural resources, but trying to establish a close coordination, with plans concerted with the countries, in order to improve the security structures which are a way of confronting the social movements as if they were criminals.

This is the first novel aspect.

The second element, which also seems new to me: the principal actors in this entire neoliberal scheme were always directly the transnationals. The governments, particularly the United States government, were the spokesmen, the ones who formally carried out the negotiations, but really the interests that they were defending were directly those of the corporations. They were the great actors hidden behind the FTA and the FTAA project.

The novelty of the new SPP scheme is that these actors come out of the blue, take the foreground and the relationship is inverted: the corporate groups directly talking amongst themselves, in the presence of the governments that will then attempt to translate their agreements into policies, rule changes, changes of laws, etc. It was not enough for them now to privatize the public corporations; they are privatizing policy per se. The businessmen had never directly defined economic policy.

The SPP starts in a meeting, let’s say it’s called, “A meeting for the prosperity of North America”; they were tri-national meetings of businessmen.

Among the operative agreements being taken up by the SPP, one is the creation of tri-national committees by sectors, –what they call “captains of industry”– so that these define a strategic development plan of the sector in the North American region. In other words, Ford is multiplied or divided into three parts: that is, the Ford Corporation in the United States, the subsidiary of Ford in Mexico and the subsidiary of Ford in Canada decide the strategy for the auto industry sector in North America. It’s the Ford Motor Company speaking to a mirror, with its own employees, with the directors of auto companies in Canada and in Mexico, to agree on a strategic plan that they will present to their governments which will translate and implement them into concrete economic policies.

There is a scheme to incorporate the security element; second point, to directly privatize the negotiations; and the third new aspect of this structure is perhaps, remembering a saying of our classic grandparents, that phrase of Engels where he was explaining that when the people are ready to take power through the mechanisms of formal democracy, like the zero on a thermometer or the 100, the rules of the game change: water will either freeze or boil, and even though we are speaking about bourgeois democracies, they will be first ones to break the rules.

The Free Trade Agreements have to go through congresses, and the fact is that it is getting more difficult to have them ratified by congresses, including the Congress of the empire, the United States Congress.

They are saying that this is not an international treaty therefore it doesn’t have to get approved by the congresses. But, as it does touch on issues that disrupt the legal framework in our countries, they will present in bit by bit; they will decide on a modification to legislation in a minute, and another one in the next minute; executive decrees to be implemented, changes in operative regulations, rules for standard functioning, but never the whole package.

Even though they were negotiated behind our backs and behind the backs of all peoples in general, sooner or later the Free Trade Agreements will be translated into a written text that will go to the congresses and then we will know what it was that they agreed to. They would like us never to know what was agreed to, they will only let us see fragments of the strategy, because it is never going to get translated into a complete text.

I shall close with a story so that we can realize the degree of sophistication, with regards to security, that these agreements and operative mechanisms of integration of security apparatuses have reached.

A short while ago, a plane took off from Toronto with tourists headed for a vacation in Puerto Vallarta, Mexico. While the plane was on the runway, the passenger list was examined again more carefully, and they discovered that there was someone there from Bush’s list of terrorists.

As soon as the plane entered American air space –when you fly out of Toronto, American air space begins after you pass the Great Lakes and, in a jet, this takes a few minutes– two F-16s showed up flying alongside. They led the plane out of American air space and escorted it to Mexican territory where they forced it to land in the military section of the airport; then, they arrested this man and sent his family back.

You can imagine the impression those 200 poor tourists on the plane had, seeing the two armed F-16s flying alongside and rerouting the plane.

Later, it turned out that he was not the terrorist that they thought, and they said to him: “Sorry, you can carry on with your vacation now, and make sure you call your family to come and join you.”

JORGE CORONADO (Costa Rica, Continental Social Alliance)

The struggle against free trade in the region has various features. One of the most devastating projects that have been proposed for the infrastructure, for the appropriation of our biodiversity, is the Puebla-Panama Plan, a strategy that not only appropriates our resources, but comes out of a military strategy of the empire covering the territory from the south of Mexico right up to Colombia, passing through Central America.

In the struggle against hydroelectric dams which uproot and take by force the indigenous and peasant lands there have been cases where, using military repression, they have uprooted various native and peasant communities in the region.

We have the component of the struggle against the mining industry. Canadian, European and American transnationals have been pursuing this appropriation strategy.

We have been confronting the privatization of public services: electrical energy, water, telecommunications; the struggle in the peasant sector to defend seeds, against the patenting of living beings and against the loss of sovereignty to the transgenics.

We have been struggling against labor flexibility, one of the focuses oriented to the sector and, obviously, against the entire picture of dismantlement of our small scale peasant production.

Also, the struggle against the subject of intellectual property, which removes the use of generic medicines from our security, these being the main distribution focus which our social security institutes have in the region .

A central factor in this struggle against free trade has been against the Free Trade Agreements and, particularly, against the Free Trade Agreements with the United States, passed in Guatemala, Honduras, El Salvador and Nicaragua, through blood, sweat and tears. And this is not just a rhetorical expression.

In Guatemala, comrades in the struggle have been murdered while they have gone head to head against the treaty approvals. This struggle has allowed us to ensure a coordinating and mobilizing force for the greatest unity of the people’s movement in the region.

In the case of the Honduran Parliament, the deputies walked out, breaking the minimum framework of institutional legality.

We have stated that, within the heart of the people’s movement, this has not signified defeat. We have lost a battle, but it has allowed us to take a qualitative leap forward in terms of organization, unity and experience in the struggle against free trade.

The Popular Social Movement and the people of Costa Rica, which have prevented Costa Rica’s approval of the FTA up until the present, forging unity with various academic, political and even business sectors to create a great national front of diverse and heterogeneous struggle, till now have succeeded in stopping the Costa Rican government, the right-wing neoliberals, and so they have not been able to approve the FTA. Today the possibility of a referendum in Costa Rica to decide the fate of the FTA is being proposed.

We are on the threshold of a fundamental stage in Costa Rica in terms of being able to prevent the advance of the neoliberal agenda; a defeat of this treaty would symbolically mean that we keep on adding up victories, like detaining and bringing FTA to a standstill.

Today we need solidarity in the popular movement, and we request it of the social and popular organizations which come to Costa Rica as international observers. The right-wing is preparing to encourage, if possible, a fraud that will guarantee it a win in the fight that is already lost, and having international observers from the popular movement will be an important contribution to active militant solidarity with our struggle.

Today, after a year, the FTA has not brought any more jobs, any more investments, or better conditions for the trade balance to any country in Central America. Today, in the entire region, we proclaim the slogan of agrarian reform, sovereignty and food security, as a central focus for our eminently agricultural nations.

Today, not just the United States but also Europe would like to appropriate one of the richest areas in biodiversity and natural resources. Today, more than ever, the coordinating focus of our different movements in the Central American region is to confront free trade in its multiple manifestations; hopefully this meeting will help give us coordinating elements, focuses for struggle and joint action that will allow us in this entire hemisphere to advance as one popular force.

We shall not rest in our efforts of organization and struggle until we reach the goal of a new world.

JAIME ESTAY (Chile, coordinator of REDEM – network of world economy studies – and, now professor at the University of Puebla in Mexico.

This crisis, in short, has to do with a manifest non-compliance with the promises that accompanied a group of reforms that began to be applied in Latin America in the 1980′s.

Under the banner of free trade, we were told that we were going to achieve growth of our economies, that we were going to achieve diminished levels of inequality in our countries, along with diminished distances between our countries and the advanced world and, in brief, that we were going to achieve a move towards development in leaps and bounds. In some countries there was even talk about making those leaps and bounds into the First World.

In the matter of new integration or this open regionalism which took off more than 15 years ago, what was proposed was Latin American integration, or what we call Integration of Latin America, at the service of an opening-up process. A whole debate was set up about how we had to integrate in order to open up, an integration that would not be the old-style protectionist integration, but an integration that would bring us better conditions to include ourselves in this global economy, in these markets which, supposedly, since they operated in a free manner, would produce the best possible results for our countries.

This relationship between integration and opening-up, that idea whose supreme objective of integration had to be the opening up of our countries, took place in effect; our countries effectively opened up and effectively and unfortunately the central theme of Latin American integration consisted in putting it at the service of this opening up.

Some officials were talking about what was called “the pragmatic phase of integration”. We move forward as we are able; that more or less became the slogan. If what we need is to trade more, let us concentrate on trading more; if what we want is to sign a bunch of little agreements among countries, bilateral agreements or agreements between three or four countries, let us go in that direction, and at some point we shall be able to call this Latin American Integration.

The balance is clearly negative. I think that there is recognition, greater on various levels now, that what we have been calling the Integration of Latin America is not integration, it is trade; and it is not Latin American but a tangle of signed agreements between different countries of the region, none of which has lead to a process possessing an effectively Latin American character. The opening-up, at whose service it is supposed that integration must be placed, has not produced any of the results that were announced in terms of economic growth, lessening of inequalities and achieving the sorely desired development that they said was supposed to be coming to us.

What we should point out is that we are witnessing an extreme deterioration of a style of integration that very clearly knew why, how and for whom integration was taking place.

In short, what I am talking about is an integration which was conceived on the foundations of neoliberalism, which has failed, both in terms of its own objectives and in terms of the objectives that we all have a right to demand and to expect in a genuine integration process.

The new Latin American integration was firmly supported by the policies and proposals coming from Washington. To a great extent, those American proposals have become something that will end up devouring its own offspring. Just the act of signing Free Trade Agreements has brought both the Andean community and the Central American Common Market to a crisis point.

An important part of the current crisis in Latin American integration has to do with the advance of the United States hemispheric project, not via the FTAA which managed to be stopped, but via the signing of different free trade treaties.

We can see the appearance of alternatives more clearly in the current panorama of integration. In many ways, ALBA (the Bolivarian Alternative for the Americas) is based on principles that are radically different from those belonging to that integration process which is in crisis.

There are many functions left to define and many boundaries to be traced: the meaning of such concepts as “free trade”, “national development”, “market freedom”, “food security and sovereignty”, etc. What we are able to state is that we are witnessing, on the hemispheric and Latin American scene, a growing insurgency regarding the predominance of neoliberalism.

This is where the opinions expressed by these three personalities end, summing up the opinions of many of the participants in the debate about Free Trade Treaties. These are very solid points of view derived from a bitter reality and they have enriched my ideas.

I recommend my readers to pay attention to the complexities of human activity. It’s the only way to see much further.

Space has run out. Today I should not add one more single word.

Comments

Fidel Reflects: Lessons we learned from the 6th Hemispheric Meeting in Havana

Posted by Radical Notes May 15, 2007 at 11:38 am in Fidel Castro, Imperialism

REFLECTIONS BY THE COMMANDER IN CHIEF FIDEL CASTRO
May 14, 2007

María Luisa Mendonça brought to the meeting in Havana, a powerful documentary film on the subject of manual sugarcane cutting in Brazil.

As I did in my previous reflection, I have written a summary using María Luisa’s own paragraphs and phrases. It goes as follows:

We are aware that most of the wars in the last few decades have been waged over control of energy sources. Both in central and peripheral nations, energy consumption is guaranteed for the privileged sectors, while the majority of the world’s population does not have access to basic services. The per capita consumption of energy in the United States is 13,000 kilowatts, while the world average is 2,429 and in Latin America the average is 1,601.

The private monopoly of energy sources is ensured by clauses in the bilateral or multilateral Free Trade Agreements.

The role of the peripheral nations is to produce cheap energy for the central wealthy nations, which represents a new phase in the colonization process.

It’s necessary to demystify all the propaganda about the alleged benefits of agrifuels. In the case of ethanol, the growing and processing of sugarcane pollutes the soil and the sources of drinking water because it uses large amounts of chemical products.

Ethanol distillation produces a residue called vinasse. For every liter of ethanol produced, 10 to 13 liters of vinasse are generated. Part of this residue can be used as fertilizer, but most of it pollutes rivers and the sources of underground water. If Brazil were to produce 17 or 18 billion liters of ethanol per year, this means that at least 170 billion liters of vinasse would be deposited in the sugarcane field areas. Just imagine the environmental impact.

Burning sugarcane to facilitate the harvesting process, destroys many of the microorganisms in the soil, contaminates the air and causes many respiratory illnesses.

The Brazilian National Institute of Space Research issues a state of emergency almost every year in Sao Paulo –where 60% of Brazil’s ethanol production takes place– because the burning-off has plunged the humidity levels in the air to extreme lows, between 13% and 15%; breathing is impossible during this period in the Sao Paulo area where the sugarcane harvest takes place.

The expansion of agrienergy production, as we know, is of great interest to the corporations dealing with genetically modified or transgenetic organisms, such as Monsanto, Syngenta, Dupont, Bass and Bayer.

In the case of Brazil, the Votorantim Corporation has developed technologies for the production of a non-edible transgenetic sugarcane, and we know of many corporations that are developing this same type of technology; since there are no measures in place to avoid transgenetic contamination in the native crop fields, this practice places food production at risk.

With regards to the denationalization of Brazilian territory, large companies have bought up sugar mills in Brazil: Bunge, Novo Group, ADM, Dreyfus as well as business magnates George Soros and Bill Gates.

As a result of all this, we are aware that the expansion of ethanol production has led to the expulsion of peasants from their lands and has created a situation of dependency on what we call the sugarcane economy, not because the sugarcane industry generates jobs, on the contrary, it generates unemployment because this industry controls the territory. This means that there is no room for other productive sectors.

At the same time, we are faced with the propaganda about the efficiency of this industry. We know that it is based on the exploitation of cheap and slave labor. Workers are paid according to the amount of sugar cane they cut, not according to number of hours they have worked.

In Sao Paulo State where the industry is most modern –“modern” is relative of course– and it is the country’s biggest producer, the goal for each worker is to cut between 10 to 15 tons of cane per day.

Pedro Ramos, a professor at Campinas University, made these calculations: in the 1980’s, the workers cut around 4 tons a day and were paid the equivalent of more or less 5 dollars. Today, they need to cut 15 tons of sugarcane to be paid 3 dollars a day.

Even the Ministry of Labor in Brazil made a study which shows that before, 100 square meters of sugarcane yielded 10 tons; today, with transgenetic cane one must cut 300 square meters to reach 10 tons. Thus, workers must work three times more to cut 10 tons. This pattern of exploitation has resulted in serious health problems and even death for the workers.

A researcher with the Ministry of Labor in Sao Paulo says that in Brazil, sugar and ethanol are soaked in blood, sweat and death. In 2005, the Ministry of Labor in Sao Paulo reported the death of 450 worker for other causes such as murder and accidents –would this be because transportation to the refineries is very unsafe?– and also as a result of illnesses such as heart attack and cancer.

According to María Cristina Gonzaga, who carried out the survey, this Ministry of Labor research shows that in the last five years, 1,383 sugarcane workers have died in Sao Paulo State alone.

Slave labor is also common in this sector. Workers are usually migrants from the northeast or from Minas Gerais, lured in by intermediaries. Normally the contract is not directly with the company, but through intermediaries –in Brazil we call them “gatos”— who chose the laborers for the sugar mills.

In 2006, the district attorney’s office of the Public Ministry inspected 74 sugar mills, only in Sao Paulo, and all of them were taken to court.

In March 2007 alone, the district attorney’s office of the Ministry of Labor rescued 288 workers from slavery in Sao Paulo.

That same month, in Mato Grosso State, 409 workers were pulled out of a sugar mill that produces ethanol; among them was a group of 150 indigenous people. In Mato Grosso, the central area of the country, indigenous people are used as slave labor force in the sugar industry.

Every year, hundreds of workers suffer similar conditions in the fields. What are these conditions? They work without being legally reported, with no protective equipment, without adequate food or water, without access to washrooms and with very precarious housing; moreover, they have to pay for their housing and food, which is very expensive, and they also have to buy their implements such as boots and machetes and, of course, when work-related accidents occur, which is often, they do not receive adequate care.

For us, the central issue is the elimination of the latifundia because behind this modern façade we have a central issue, and that is the latifundia in Brazil and, of course, in other Latin American countries. Likewise, a serious food production policy is called for.

Having said this, I would like to present a documentary that we filmed in Pernambuco State with sugarcane workers; this is one of the biggest sugarcane producing regions, and so you will be able to see what the conditions are really like.

This documentary was made with the Pastoral Land Commission of Brazil (CPT) and with the unions of forestry workers in the state of Pernambuco.

With this, the outstanding and much admired Brazilian leader concluded her speech.

And now I shall present the opinions of the sugarcane cutters as they appeared in the film shown to us by María Luisa. In the documentary, when the people are not identified by name, they are identified as being a man, a woman or a young man. I am not including them all because there were so many.

Severino Francisco de Silva.- When I was 8 years old, my father moved to the Junco refinery. When I got there, I was about to turn 9; my father began to work and I was tying up the cane with him. I worked some 14 or 15 years in the Junco sugar mill.

A woman.- I’ve been living at the sugar mill for 36 years. Here I was married and I gave birth to 11 children.

A man.- I’ve been cutting cane for many years, I don’t even know how to count.

A man.- I started working when I was 7 and my life is that: cutting cane and weeding.

A young man.- I was born here, I’m 23 years old, and I’ve been cutting cane since I was 9.

A woman.- I worked for 13 years here in Salgado Plant. I planted cane, spread fertilizer, cleaned sugarcane fields.

Severina Conceiçäo.- I know how to do all this field work: spread fertilizer, plant sugar cane. I did it all with a belly this big (she refers to her pregnancy) and with the basket beside me, and I kept on working.

A man.- I work; every work is difficult, but sugarcane harvest is the worst work we have here in Brazil.

Edleuza.- I get home and I wash the dishes, clean the house, do the house chores, do everything. I used to cut cane and sometimes I’d get home and I wasn’t able to even wash the dishes, my hands were hurting with blisters.

Adriano Silva.- The problem is that the foreman wants too much of us at work. There are days when we cut cane and get paid, but there are days when we don’t get paid. Sometimes it’s enough, and sometimes it isn’t.

Misael.- We have a perverse situation here; the foreman wants to take off from the weight of the cane. He says that what we cut here is all that we have and that’s that. We are working like slaves, do you understand? You can’t do it like this!

Marco.- Harvesting sugar cane is slave work, it’s really hard work. We start out at 3 in the morning; we get back at 8 at night. It’s only good for the boss, because he earns more every day that goes by and the worker loses, production decreases and everything is for the boss.

A man.- Sometimes we go to sleep without having washed, there’s no water, we wash up in a stream down there.

A young man.- Here we have no wood for cooking, each one of us, if we want to eat, has to go out and find wood.

A man.- Lunch is whatever you can bring from home, we eat just like that, in the hot sun, carrying on as well as you can in this life.

A young man.- People who work a lot need to have enough food. While the boss of the sugar plantation has an easy life, with all the best of everything, we suffer.

A woman.- I have gone hungry. I would often go to bed hungry, sometimes I had nothing to eat, nothing to feed my daughter with; sometimes I’d go looking for salt; that was the easiest thing to find.

Egidio Pereira.- You have two or three kids, and if you don’t look after yourself, you starve; there isn’t enough to live on.

Ivete Cavalcante.- There is no such thing as a salary here; you have to clean a ton of cane for eight reales; you earn according to whatever you can cut: if you cut a ton, you earn eight reales, there is no set wage.

A woman.- A salary? I’ve never heard of that.

Reginaldo Souza.- Sometimes they pay us in money. Nowadays they are paying in money; in the winter they pay with a voucher.

A woman.- The voucher, well, you work and he writes everything down on paper, he passes it on to another person who goes out to buy stuff at the market. People don’t see the money they earn.

José Luiz.- The foreman does whatever he wants with the people. What’s happening is that I called for him to “calculate the cane”, and he didn’t want to. I mean: in this case he is forcing someone to work. And so the person works for free for the company.

Clovis da Silva.- It’s killing us! We cut cane for half a day, we think we are going to get some money, and when he comes around to calculate we are told that the work was worth nothing.

Natanael.- The cattle trucks bring the workers here, it’s worse than for the boss’s horse; because when the boss puts his horse on the truck, he gives him water, he puts sawdust down to protect his hoofs, he gives him hay, and there is a person to go with him; as for the workers, let them do what they can: get in, shut the door and that’s that. They treat the workers as if they were animals. The “Pro-Alcohol” doesn’t help the workers, it only helps the sugarcane suppliers, it helps the bosses and they constantly get richer; because if it would create jobs for the workers, that would be basic, but it doesn’t create jobs.

José Loureno.- They have all this power because in the House, state or federal, they have a politician representing these sugarcane mills. Some of the owners are deputies, ministers or relatives of sugar mill owners, who facilitate this situation for the owners.

A man.- It seems that our work never ends. We don’t have holidays, or a Christmas bonus, everything is lost. Also, we don’t even get a fourth of our salary, which is compulsory; it’s what we use to buy clothes at the end of the year, or clothing for our children. They don’t supply us with any of that stuff, and we see how every day, it gets much more difficult.

A woman.- I am a registered worker and I’ve never had a right to anything, not even medical leaves. When we get pregnant, we have a right to a medical leave, but I didn’t have that right, family guarantees; I also never got any Christmas bonus, I always got some little thing, and then nothing more.

A man.- For 12 years he’s never paid the bonuses or vacations.

A man.- You can’t get sick, you work day and night on top of the truck, cutting cane, at dawn. I became sick, and I was a strong man.

Reinaldo.- One day I went to work wearing sneakers; when I swung the machete to cut cane, I cut my toe, I finished work and went home.

A young man.- There are no boots, we work like this, many of us work barefoot, the conditions are bad. They said that the sugar mill was going to donate boots. A week ago he cut his foot (he points) because there are no boots.

A young man.- I was sick, I was sick for three days, I didn’t get paid, they didn’t pay me a thing. I saw the doctor to ask for a leave and they didn’t give me one.

A young man.- There was a lad who came from “Macugi”. He was at work when he started to feel sick, and vomit. You need a lot of energy, the sun is very hot and people aren’t made of steel, the human body just can’t resist this.

Valdemar.- This poison we use (he refers to the herbicides) brings a lot of illness. It causes different kinds of diseases: skin cancer, bone cancer, it enters the blood and destroys our health. You feel nauseous, you can even fall over.

A man.- In the period between harvests there is practically no work.

A man.- The work that the foreman tells you to do, must be done; because as you know, if we don’t do it… We aren’t the bosses; it’s them that are the bosses. If they give you a job, you have to do it.

A man.- I’m here hoping someday to have a piece of land and end my days in the country, so that I can fill my belly and the bellies of my children and my grandchildren who live here with me.

Could it be that there is anything else?

End of the documentary.

There is nobody more grateful than I for this testimony and for María Luisa’s presentation which I have just summarized. They make me to remember the first years of my life, an age when human beings tend to be very active.

I was born on a privately owned sugarcane latifundium bordering on the north, east and west on large tracts of land belonging to three American transnational companies which, together, possessed more than 600 thousand acres. Cane cutting was done by hand in green sugarcane fields; at that time we didn’t use herbicides or even fertilizers. A plantation could last more than 15 years. Labor was very cheap and the transnationals earned a lot of money.

The owner of the sugarcane plantation where I was born was a Galician immigrant, from a poor peasant family, practically an illiterate; at first, he had been sent here as a soldier, taking the place of a rich man who had paid to avoid military service and at the end of the war he was shipped back to Galicia. He returned to Cuba on his own like countless other Galicians who migrated to other countries of Latin America.

He worked as a hand for an important trans-national company, the United Fruit Company. He had organizational skills and so he recruited a large number of day-workers like himself, became a contractor and ended up buying land with his accumulated profits in an area neighboring the southern part of the big American company. In the eastern end of the country, the traditionally independent-minded Cuban population had increased notably and lacked land; but the main burden of eastern agriculture, at the beginning of the last century, rested on the backs of slaves who had been freed a few years earlier or were the descendents of the old slaves and on the backs of Haitian immigrants. The Haitians did not have any relatives. They lived alone in their miserable huts made of palm trees, clustered in hamlets, with only two or three women among all of them. During the short harvesting season, cockfights would take place.

The Haitians would bet their pitiful earnings and the rest they used to buy food which had gone through many intermediaries and was very expensive.

The Galician landowner lived there, on the sugarcane plantation. He would go out just to tour the plantations and he would talk to anyone who needed or wanted something from him. Often times he would help them out, for reasons that were more humanitarian than economic. He could make decisions.

The managers of the United Fruit Company plantations were Americans who had been carefully chosen and they were very well paid. They lived with their families in stately mansions, in selected spots. They were like some distant gods, mentioned in a respectful tone by the starving laborers. They were never seen at the sugarcane fields where they sent their subordinates. The shareholders of the big transnationals lived in the United States or other parts of the world. The expenses of the plantations were budgeted and nobody could increase one single cent.

I know very well the family that grew out of the second marriage of that Galician immigrant with a young, very poor Cuban peasant girl, who, like him, had not been able to go to school. She was very self-sacrificing and absolutely devoted to her family and to the plantation’s financial activities.

Those of you abroad who are reading my reflections on the Internet will be surprised to learn that that landowner was my father. I am the third of that couple’s seven children; we were all born in a room in a country home, far away from any hospital, with the help of a peasant midwife, dedicated heart and soul to her job and calling upon years of practical experience. Those lands were all handed over to the people by the Revolution.

I should just like to add that we totally support the decree for nationalization of the patent from a transnational pharmaceutical company to produce and sell in Brazil an AIDS medication, Efavirenz, that is far too expensive, just like many others, as well as the recent mutually satisfactory solution to the dispute with Bolivia about the two oil refineries.

I would like to reiterate our deepest respect for the people of our sister nation of Brazil.

Comments