Showing posts with label imperialism. Show all posts
Showing posts with label imperialism. Show all posts

Thursday, February 24, 2011

Plawiuk Does Hitchens On Libya

It is not up to the United States or President Obama to respond to Libya's civil war, declared on the people of Libya by the Qaddafi ruling family. It is up to NATO as the European allied military force to enforce rule in the oil exporting country they most rely on. Europe by far gets more oil and gas from Libya than anyone else.But instead of being the force to counter Libya's dictator they shy away from their military political responsibility.

NATO Not Planning to Interfere in Libya


UN Security Council struggles over action in Libya


Former Bulgarian Foreign Minister Solomon Passy has been cited by NATO Watch as one of the leading international voices urging NATO and the EU to take measures to guarantee peace, security, and human rights in Libya.

In an article entitled "Responsibility to Protect in Libya: Calls for Intervention Intensify", NATO Watch stresses that calls by civil society to halt mass atrocities in Libya, where the regime of dictator Muammar Gaddafi faces a popular uprising, have been on the rise.

And it can be done easily, blockading Tripoli and all major ports with NATO's Mediterranean Navy and as asked for by Libyan UN delegates, a no fly zone over Tripoli, stopping the air attacks on civilians. And lets not forget Tobruk in the East which would welcome international support to protect their free zone from Qaddafi's counterrevolution.


The region was quiet for the first few months of the war, until Fascist Italy declared war against France and Britain on June 10, 1940. It remained a major active theatre for two and a half years until the British Commonwealth Eighth Army crossed the border from Libya into Tunisia. In February 1943, command of the Eighth Army passed from the Middle East Command to the Allied Joint command for the Mediterranean, AFHQ. The Middle East Theatre remained quiet for the remainder of the war.


If gunboat diplomacy was ever needed it is today in Libya, if ever NATO was going to fulfill its self appointed mandate of being Europe's enforcer, then it must respond to this historic moment and fulfill its historical reasone detre, to be an armed force for imperialist goals and objectives. And last time I checked at least one of those reasons was to promote and protect democratic movements.

Friday, May 28, 2010

Cold War Chickens Come Home To Roost

During the cold war the CIA engaged in black ops to destabilize the Caribbean and other areas of Central and Latin America that they determined were their domain under the Monroe Doctrine. Ironically it was exactly these operations that led to the increase in the drug trade, since they were black ops the money used to pay for them was drug money. As it was in their operations in Viet Nam/Laos and Cambodia and later in Afghanistan and Contra Iran affair. And during this same time the American government began its war on drugs, a war that was bound to fail since it was American policy to encourage drug lords to fight the left, a policy begun after WWII in the port of Marseilles.

Here the consequences of the CIA cold war black ops are still being felt in Jamaica and downtown Toronto......


In a move that mirrored similar operations in Panama and other Latin American countries, U.S. intelligence agencies lent support to emerging right-winger Edward Seaga, then-leader of the Jamaican Labour Party. In a 1977 investigative report, Penthouse magazine, citing U.S. intelligence sources, described how the State Department sought to capitalize on the spreading violence between Mr. Coke’s Shower Posse and the garrisoned neighbourhoods that supported Mr. Manley: “Shipments of guns and sophisticated communication equipment begun to be smuggled into the island. In one shipment alone, which was grabbed by Manley’s security forces, there were 500 submachine guns.”

But after Mr. Seaga’s nine-year stint as prime minister in the 1980s, the U.S. justice system decided that their ally’s enforcer in Tivoli Gardens had become too powerful, as Mr. Coke’s violent network of drug dealers and gun runners boiled over onto U.S. soil. After the elder Mr. Coke’s capture and mysterious death in 1992, the funeral procession numbered in the tens of thousands. Marching next to his casket was Mr. Seaga, who told reporters that the dead man had been “a protector” of the people.

It was U.S. foreign policy that gave rise to the system that propped up the late Mr. Coke and his now fugitive son, said Mr. Crawford, the political analyst. “It is one of the supreme ironies of life, as far as Jamaica is concerned,” he said.

Sunday, October 18, 2009

US Protects Chinese Investments

There are more mercenary forces, euphemistically called 'contractors', in the American war zones of Iraq and Afghanistan then regular U.S. armed forces. They will remain behind when regular U.S. forces withdraw.

Mercenaries today operate in Iraq and Afghanistan, supplementing U.S. troop strength and guarding diplomats. In the spring of 2008, 180,000 private contractors worked in Iraq; by the spring of 2009, 68,200 were operating in Afghanistan. These “soldiers of fortune” treat each new posting as a “tour of duty” (a term used by a former Blackwater employee working in Afghanistan). Their deaths and casualty numbers are not included in the official Department of Defense numbers.

According to new statistics released by the Pentagon, with Barack Obama as commander in chief, there has been a 23% increase in the number of “Private Security Contractors” working for the Department of Defense in Iraq in the second quarter of 2009 and a 29% increase in Afghanistan, which “correlates to the build up of forces” in the country.


However the irony is that even the regular US forces are now acting not in defense of American idealism but in the pragmatic protection of Chinese foreign investments in these countries.

Of course the Americans will deny they are merely cops for China but after all they are in debt to China and as the old saying goes; he who pays the piper....


China cut its US Treasury-bill reserve by $3.4 billion to $797.1 billion in August, though it remained the largest foreign holder of US T-bills


When America reduces its regular armed forces in these war zones the mercenaries will be left behind to protect corporate interests not only American but Chinese.


[China$.jpg]

China showed little interest in Afghanistan throughout the 20th century but its growing energy and natural resource demand combined with increasing Afghan openness to foreign investors have alerted Beijing of the country’s potentials. This growing interest was particularly manifested with Beijing’s giant $3.5 billion investment in Afghanistan’s Aynak copper field late last year, the far largest foreign direct investment in Afghanistan’s history. Reports from Kabul also indicate that additional Chinese investments are underway. Although these investments may be the engine in Afghanistan’s economy, the Chinese piggy-backing on ISAF’s stabilization effort is bound to be unpopular in the U.S. and Europe, though not necessarily with the Afghan government.

America fights, China profits?
In making the case for converging U.S. and Chinese interests in Afghanistan, Robert Kaplan wrote last week in a New York Times opinion piece that, "The problem is that while America is sacrificing its blood and treasure, the Chinese will reap the benefits. The whole direction of America’s military and diplomatic effort is toward an exit strategy, whereas the Chinese hope to stay and profit."

In the op-ed, titled "Beijing’s Afghan Gamble," Kaplan also noted, "China will find a way to benefit no matter what the United States does in Afghanistan. But it probably benefits more if we stay and add troops to the fight."

No doubt the discussion will boil over after James Yeager, an American geologist, and former congressman Don Ritter, who has an advanced degree in metallurgical engineering and studied in Moscow, hold a press briefing in Washington on Thursday. The event is provocatively titled, "Report on the Aynak Copper Tender in Afghanistan: How China Won and the West Lost."

China Has Great Potential To Invest In Afghanistan: Interview With First Secretary Of Afghan Embassy In China

Q: On Nov. 20 in 2008, the Afghan Industry and Mines Minister, Ibrahim Adil divulged the name of the winner in the tender for the largest Aynak copper mine. The China Metallurgical Group company, offering $3 billion, won the tender. Did this Chinese company make investments? How do you evaluate the future relations between Afghanistan and China?

A: Yes, the Chinese company has made these investments, and on July 10, the ceremony took place to mark the start of production of copper at the Aynak mine. This is the biggest investment in Afghanistan. If we take into account the number of the unused mines in Afghanistan, it will become apparent that China has huge potential for investment in Afghanistan. Along with the increase of China's influence in the region, it will serve peace and stability in the region as a whole.

Q: China and the United States are the strategic and economic rivals. What can You say about the impact of this rivalry on Afghanistan?

A: The United States and China are working closely together in Afghanistan. Currently, Afghanistan has become a center of international cooperation. China is friendly neighbor for Afghanistan. Afghanistan is an independent country and determines how to build relations with other states. On the other hand, our strategic allies support the economic development of Afghanistan and the whole region, including China.

Q: China, taking advantage of its position and opportunities, helps Afghanistan to join the Shanghai Cooperation Organization (SCO). Is China concerned about the presence of NATO in Afghanistan?

A: China is a neighboring country that has never had problems with Afghanistan and, therefore, intends to increase cooperation with our country. China supports Afghanistan's political development. China's investment in Afghanistan's various projects can testify this fact. We invite China to invest. Creating a "trade corridor" will further develop relations.

With regard to the NATO presence, I can say that the alliance troops are in Afghanistan under the UN Security Council resolutions. China is also a member of the UN Security Council. As to China's concern about the presence of NATO in Afghanistan, I can say that we do not feel such concern. China supports the presence of international forces in Afghanistan because it actively fights against terrorism, which is a threat throughout the region.

Global Implications of China’s Big Investment in Iraq and Afghanistan

Helena Cobban


This article assesses the significance of China’s recently announced investments in large copper and oil development in Afghanistan and Iraq respectively, with potential significance not only for development and peace in the two war-torn nations, but also for China’s global role and the US-China relationship. With foreign and domestic investment in both nations barely trickling in despite UN, World Bank, NATO and US efforts, the Chinese plans are highly significant.

They are indicative not only of China’s aggressive search for energy and resource development opportunities, but also of a shift in US goals in the two countries: while all signs pointed to earlier US attempts to monopolize control of Iraqi oil for American companies, under present strategic conditions, the US appears to more than welcome the Chinese initiative.



Chinese firms eye Iraq oil fields

2009-10-09 10:45 BJT

Oil contracts could spell a win-win situation for both China and Iraq. The contract for Rumaila is key to Iraqi plans to breathe new life into a sector rich in reserves, but desperate for foreign cash to overhaul broken down facilities and obsolete practices. While Chinese oil giants are seizing the opportunity to invest and expand overseas.

Iraq has proven crude reserves of 115 billion barrels, ranking number three in the world after Saudi Arabia and Iran. But among the 80 oil fields, only 20 have been developed. Iraq opened its oil fields to foreign companies for the first time in June this year, putting six oil fields and two gas fields on auction. Many bidders turned up. But with many put off by instability in local security, only Rumaila found partners.

The Iraqi government says the second round of bidding for oil contracts is due in the first half of December. And the government says it's committed to offering better security and all facilities needed for investments by foreign companies. Meanwhile, Chinese oil giants are also expanding investment in the country. Earlier this year, China's largest oil refiner Sinopec bought Addax Petroleum for about seven-and-a-quarter billion US dollars, to secure the Swiss oil explorer's high-potential oil blocks in West Africa and Iraq.


Iraqi worker operates valves at Rumaila oil field, near Basra, southern Iraq, file pic from 2005
The Rumaila project aims to increase output at the field by 2m barrels a day

Iraq's cabinet has ratified a deal with two foreign energy companies to develop the giant southern oilfield in Rumaila.

The contract with Britain's BP and CNPC of China is the first major deal with foreign firms to be signed since an international auction in June.


Iraqi crude deal 'boost' for China's oil security quest

The successful joint bid by BP and China National Petroleum Corp (CNPC) to develop an oilfield in Iraq has offered unique opportunities for the Chinese company to tap crude reserves in the oil-rich nation, analysts said yesterday.

But domestic oil producers should prepare themselves well for any uncertainties in the war-torn country, which boasts of the third-largest oil reserves in the world, they added.

Iraq on Tuesday made its first auction of major oil contracts since the 2003 US-led invasion. A consortium by BP and CNPC was finally awarded a contract to develop the Rumaila oilfield, the largest of six oil and two natural gas fields in the bidding.

The BP-CNPC group beat a bid from a consortium by Exxon Mobil and Malaysia's Petronas for the oilfield. It was the only successful bid in Tuesday's auction.

Besides CNPC, China's two other oil majors, Sinopec and CNOOC also took part in Tuesday's auction.

Rumaila is the workhorse of Iraq's oil sector, with a current capacity of 1.1 million barrels per day (bpd) out of Iraq's total national output of 2.4 million bpd.

With a foothold in Iraq, China can diversify its oil supplies to enhance energy security, said Lin Boqiang, professor, Xiamen University, adding that the consortium model can reduce risks both for BP and CNPC.

China, which became a net oil importer 16 years ago and which relies on imported oil for nearly half its requirement currently, has already seen domestic production peaking, said Lin. "The increase in China's oil consumption in future may all come from overseas oil reserves."


SEE:

China Burps Greenspan Farts Dow Hiccups

China: The Triumph of State Capitalism

China No Longer Red Nor In The Red

US vs China for Global Hegemony

Neo-Liberal State Capitalism In Asia


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Friday, December 19, 2008

Canada's Constant Gardner

The recent kidnapping in Niger of a Canadian Diplomat assigned to the UN reminded me of John LeCarre's novel; The Constant Gardner, which opens with the disappearance and subsequnet murder of a British Diplomats wife. In fact the senarios are very close.

In this case however the culprits are not global pharmaceutical companies but global mining companies as the article in the Globe and Mail (reprinted below) points out. Ironically while uranium mining is Niger's chief source of development funding, dominated by French corporartions, Canada's friendly imperialism is in promotion of gold mining.

Envoys visited Niger mine on day they vanished
Diplomats ate lunch at the site with employees and left in the afternoon without incident, company spokesman says

And of course we all know Niger from it's apparent role in justifying the U.S. invasion of Iraq because of its uranium.

The vesitages of French colonialism and in the case of other West African countries now in conflict, Belgium colonialism, are the real reason for the so called tribal wars that rage across that contient. The current wars are the old wars of the colonial age. Wars over resources in particular mining interests.The so called atrocities committed in the Congo, Darfur, Rawanda,etc. like the cutting off of hands and mass extermination of ethinic minorities, are not tribal traditions, but modern horrors introduced by European colonial powers. It was European Imperialism at the turn of last century that picked winners and losers and the losers are still fighting back.

However in the case of Niger, the losers are the vestiges of an earlier colonialism, that of Islam and its economy of slavery. This is often overlooked by the apologists for Islam, who attempt to white wash its own role in the development of Africa as a slave colony before the coming of Europeans. Before the European slave trade developed it was preceded by the Arab/Islamic slave trade, which it adapted to its colonial needs to build the new world.

Slavery is the result of patriarchical caste societies, who rely on it as an economic base for production. Caste societies are made up of warriors, merchants and priests and someone has to do the work, which results in the enslavement of those who are out-caste.

Today the small African countries that occasionally make it into the news, like Niger or Chad, are being fought over again for their resources, uranium, gold, copper, heavy metals, and oil. The so called tribal conflicts are localized wars on behalf of modern Imperialist nations, including not only America and Europe but China and yes Canada. Development in Africa remains 'resource' development for global corporations, not sustainable economies for Africans. The result is the mass migration from Africa to Europe of the dispossessed and the genocidal internecine conflicts that make the news like the situation today in Niger.

Because Globe and Mail opinion pieces disappear behind subscriber only walls I am reprinting it here in full.

COMMENTARY
Caught in the crossfire of two historical forces
GEOFFREY CLARFIELD
From Thursday's Globe and Mail
December 18, 2008 at 12:00 AM EST
The disappearance of two Canadian diplomats in the predominantly Muslim West African country of Niger - there is speculation their apparent abduction is related to a complex conflict involving the Niger government, rebel groups and international mining companies - is part of a much wider game: the struggle for political and economic power in one of the poorest countries in the world.
Niger is a nation of high infant-mortality rates. Slavery is still widely practised, with some sources suggesting that 8 per cent of the population live a life of bondage. Niger is also a nation plagued by periodic drought. It cannot grow enough food to feed itself, and it is dependant on donors. It has been democratic for less than a decade and it has experienced periodic rebellions by its northern ethnic groups.
The latest round of fighting began last year. This could be the fifth or the 10th "Tuareg revolt" of the past 100 years, depending on who's counting. Quite simply, there is a power struggle going on for who controls, and benefits from, Niger's meagre resources, a struggle that is being directed by the elites of two coalitions of ethnic groups - one largely African and agricultural that is based in the southern part of the country, the other largely Berber and nomadic pastoral that is based in the north. It is a struggle that has been going on for centuries, and it is a conflict as old as Jacob and Esau.
The southern, smallest and most densely populated part of the country is close to the Niger River where the Hausa, Djerma-Songhai and Gourmantche peoples sustain themselves through subsistence agriculture. These people are the dark-skinned descendants of the great sedentary Sahelian Muslim kingdoms that arose during the Middle Ages and to whose French-educated elites the former French colonialists gave the reins of power, when Niger became independent in the 1960s.
The largest groups of northerners are the Tuareg, light-skinned nomadic camel herders, former slave traders and raiders who were once the masters of the Saharan gold trade. During colonial times, they were the most resistant to modernization, education and change. They were, and to some degree remain, predatory warriors and smugglers who roam the desert caravan routes, taking what they want by sword or gun.
During colonial times, their elites did not send their sons to France, so they did not master the "means of administration." Ever since the southerners took control of the state and the army after independence, they have been at a distinct disadvantage.
Since then, their grazing lands have been restricted, their slave raiding and slaves have been declared illegal, their elites have not been represented in the government and, most galling to them, they have not shared in any of the wealth that has emerged from the uranium mines that supply Niger with 70 per cent of its export earnings and that are located in the desert wastelands of their traditional grazing lands.
Until recently, French companies had a monopoly on the mining and exportation of uranium from the deserts of northern Niger. In the past two years, however, the Niger government has considered allowing other companies to invest, including Canadian firms that are also involved in the development of gold mines. Through their periodic rebellions, the Tuareg are trying to tell both the government and foreign investors that they want a piece of the pie. And since it has been their historical custom to take what they want, they most likely kidnapped the two Canadians - Robert Fowler and Louis Guay, both of whom were representing the United Nations - in the hope that the Canadian government could help them put pressure on the Niger government and thus gain the pair's release.
UN negotiators have dealt with this kind of situation before, and one sincerely hopes they will find a way to negotiate the release of Mr. Fowler and Mr. Guay. Meantime, Canadians should recognize that Niger and the other states of the Sahel are one extended battleground between northerners and southerners. In Niger, Mali, Chad and Sudan, one must take great care not to get caught in the crossfire between these two opposing historical forces.
Geoffrey Clarfield is a Toronto-based anthropologist.




SEE:
Somali Eco Disaster Bred Pirates
Congo's Ghosts
A Contient of Children
History Of Slave Ships
The New Imperial Age
Mobile Capitalism
Our Jean
The Pentacost of Poverty
Your Breakfast Cup of Coffee

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Wednesday, December 17, 2008

Socialism or Barbarism

It is obvious to all of us that capitalism is once again in crisis, a crisis it created but failed to predict. While it was historically predictable and inevitable, it is the nature of capitalism.
And so the only solution is not band aid bail outs but for us, the proletriat to take over capitalism, which cannot exist without our labour, and which has produced an artifical boom of credit which we as proletarians were sold as consumers. Crediting the working class and the those who had no equity so that capital could continue to make record profits is what had kept America and its NAFTA allies going.
The public secret that is known to all of us, including capital, the state and the unions is that we the workers create real capital, production of goods which need to be consumed. All other capital, investments, the stock market, bonds, hedge funds, private equity, is all surplus value created by workers producing real value. The current crisis of capitalism is that finance, fictious capital, that produces no real value that is real objects we can consume, is now dominating the productive market. We the workers are not consuming the value we create.
And we now spiral into the real historic crisis of capitalism which is over production. And the solution to this crisis historically has been either war or revolution.
Unfortunately for the Trade Unions and the Social Democratic left the latter is not on their agenda. But for capital the former is a solution they are willing to use, by enabling counter revolutionary nationalism; fascism.
We live in interesting times once again. The phoney stability of consumer capitalism has its facade ripped away daily as its chief clowns; the politicians try to assure us all is fine with capitalism and there is no alternative, when they know full well the alternative is the historic reality of socialism or barbarism.

In 1848 Karl Marx and Frederick Engels argued in the Communist Manifestothat the historic fight between the oppressor and oppressed ended 'either ina revolutionary reconstitution of society at large, or in the common ruin ofthe contending classes'. Engels said that 'bourgeois society stands at thecrossroads, either transition to socialism or regression into barbarism'.Later Rosa Luxemburg, a Polish revolutionary working in Germany at the endof the First World War, raised the slogan: 'Socialism or Barbarism'!

The fact is that the elephant in the room is another form of barbarism, that which could result from the climate crisis created by mass industrialization. Instead of looking at the decline in production as an opportunity to create an ecological socialist society, the same old cries of more work, more jobs, more consumption is echoed by the capitalists, the unions and the social democrats. It's not that 'There Is No Alternative', rather the alternative is as clear as the nose on their faces, they just don't want to face it. Their political solutions are as bankrupt as the system they are trying to bail out.


Drought means workers hungry in U.S. produce capital
By TRACIE CONE Associated Press Writer
Posted: Dec. 12, 2008
MENDOTA, Calif. — Idled farm workers are searching for food in the nation's most prolific agricultural region, where a double blow of drought and a court-ordered cutback of water supplies has caused hundreds of millions of dollars in losses.
This bedraggled town is struggling with an unemployment rate that city officials say is 40 percent and rising. This month, 600 farm families depleted the cupboards of the local food bank, which turned away families - more than 100 of them - for the first time.
"We're supposed to supply the world," said Mendota Mayor Robert Silva, "and people are starving."
The state's most dire water shortage in three decades is expected to erase more than 55,000 jobs across the fertile San Joaquin Valley by summer and drive up food prices across the nation, university economists predict.
"People being thrown out of work are the ones who can least afford it," said Richard Howitt, a professor of agriculture economics at the University of California-Davis, who estimates that $1.6 billion in agriculture-related wages across the valley will be lost in the coming months because of dwindling water.


SEE:
There Is An Alternative To Capitalism


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Sunday, December 07, 2008

Chickens Come Home

America's secret wars reveals the reason behind recent so called unexpected terrorist assaults in Mubai and Pakistan. These are not random events but part of the asymetrical warfare that resulted from the Cold War.
While America declares war on Terrorism, the terrorists are a result of its cold war with Russia and attempts to create a global Imperial Empire. Proping up military dictatorships in opposition to the Soviet Union especially in Pakistan, led to the creation of the modern Islamic terrorist network, originally funded by the CIA. Al Quadia, and other such groups organized to defeat the Russians in Afghanistan.
After their victory over the Soviet Union and the subsequent decline in Russia's Imperial power in the region with the end of the Cold War, embolldened they turned their attention to the other Imperial nation in the region of the Middle East and Africa. Pakistan was an American client stte whith support from China. India was a Russian client state. The Taliban were created to take over in post soviet Afghanistan, by the Pakistan secret service, with a wink and a nod from the Pakistan government of the American backed Benazir Bhutto.
The Cold War has never really ended, it merely has morphed into the modern war that America is fighting in Afghanista, Pakistan, the Middle East and in The horn of Africa. And the globe is being divided yup between new Imperialist powers, not unlike the old colonial days of the 19th Century.
Instead of combating world poverty and mass unemployment, and encouraging development, U.S. Imperialism would prefer to fight the children of this impovershment. Chickens, home, roost.
Unfortunately it appears that America has not learned its lessons, and even under its new President it will continue its Imperial ambitions. Meet the new boss, same as the old boss.

The war on terror, which began in reaction to an attack on the United States by a small group of nationalist and Islamist Muslims, outraged by the presence of American military bases in close proximity to the Islamic holy places in Saudi Arabia, has now become a war against radicalism itself, disorderly states, other conflicts and failures in the non-Western world, poverty and social disorder ("breeding grounds” for terrorism), and “rogue nations,” meaning those that want to have nuclear weapons in order to deter attack by foreign enemies. This same war to make other states “into the American image” has been waged repeatedly during the last 50 years: in Vietnam, in Laos and Cambodia, in Nicaragua, in Iraq where “victory” (whatever that would be) still eludes the U.S., in Afghanistan in a war now spreading into Pakistan, in Somalia (through an Ethiopian proxy), and against Hezbollah and Hamas. It invariably has failed, at heavy cost to the societies involved, and little or no benefit to the United States. The rule long ago empirically established is that intervention in other countries to remake them invariably inflames and sustains nationalist resistance to the invader.

According to Islamic legal tradition, there are two different kinds of jihad. The first, offensive jihad, is when you seek out the infidel, offer him the opportunity to become a Muslim, and conquer him if he declines. That is how Muhammad and his successors went from obscure sect to global empire. Osama bin Laden has never called for an offensive jihad, probably because he knows no one would listen to him.
Defensive jihad, on the other hand, is the obligation of every able-bodied male Muslim to protect Muslim land from foreign invaders: all for one and one for all. In Afghanistan, the Soviet occupation offered bin Laden a textbook opportunity to fulfill this duty, and when the Soviets fell, he and the other foreign jihadists who had traveled there to fight were instantly branded as heroes. They hadn't just followed the classic defensive-jihad script; they'd proven that it worked.
Having found his purpose, bin Laden immediately set out to join another defensive jihad, and he wasn't picky. He even proposed to the Saudi government that he be allowed to kick Saddam Hussein out of Kuwait, since Saddam was a bad Muslim, and that was enough for bin Laden.
When the Saudis told him thanks but no thanks, bin Laden started looking at them for the bad-Muslim role. And when the Saudis opened their doors to U.S. troops to defeat Saddam and guarantee their continued security, bin Laden figured he had them. He argued that Saudi Arabia was now under foreign occupation by the Americans, making the United States a legitimate target.
And then we invaded Afghanistan. Initially this was not a good thing for Osama bin Laden. He and the rest of Al Qaeda had to flee. Some were killed, and a few were caught. He lost the operating base he had built with Taliban collusion, and it was pretty much guaranteed he would be a fugitive the rest of his natural life. For the United States, it wasn't the home run that catching bin Laden would have given us. But it was a solid double, the opening of a rally that combined projection of our military power with a reminder to the world that we could not be attacked without consequence.
Unfortunately, like the Soviets before us, we couldn't leave it at that. We were a global superpower (with allies behind us), and a superpower, we told ourselves, couldn't just knock out a regime and then walk away without caring about the consequences. We needed to set up our own government, and we wanted it to rule the country. We wanted it to be at least vaguely democratic, to allow TV (talk about American values), and to permit girls to go to school. All that, it turned out, required more than bearded Special Forces operators. It required an occupation.
From October 2001 until March 2003, as America's occupation grew, bin Laden began to recoup his losses. He became not simply a notorious public figure but a global actor with a gravitas well beyond that of a mere terrorist. When the 9/11 attacks were perpetrated, the U.S. was not in fact the occupier of a Muslim country, whatever bin Laden might have claimed. Yet through the U. S. response -- the invasion and occupation of Afghanistan, and subsequently Iraq -- suddenly it was. Bin Laden was no longer a liar. Now he was a prophet.

Some Obama supporters are wringing their hands over the selection of Hillary Clinton as Secretary of State. Hillary was, after all, a consistent supporter of the disastrous wars in Iraq and Afghanistan, and much more. But Barack Obama's selection of Reaganite and Bush family operative Robert Gates to continue as Secretary of War speaks volumes about the new administration's willingness to continue pulling the same wool over the public eyes as Democratic and Republican administrations past have done. Is this the "change" tens of millions voted for?

Obama's Cabinet: In an editorial, the Guardian says as Barack Obama's choices of cabinet members and advisers emerge, it looks more and more as if putting the American political system back on an even keel is his main purpose, and "steady as she goes" the motto he has in mind. Obama's Politics: Daily Telegraph Columnist Janet Daley wonders if Barack Obama is a secret right-winger. She asks if his left-liberal stance during the presidential campaign was just a ruse to seduce a new generation of dissident voters. Gaza Siege: Commentator Hasan Abu Nimah writes on what he calls the shame of the Gaza siege. For nearly three years Gaza's entire population, 1.5 million people, has been subjected to a cruel siege from land, sea and air, he says; but worse than the siege itself is the silence of the whole world. Arab News (Saudi Arabia) Hillary Worry: An editorial expresses concern about Hillary Clinton's appointment. A New York senator with often-expressed Zionist sympathies, Clinton may not be the person to head up the renewed drive for a Palestinian settlement, it says.

While naive, giddy and myopic establishment leftists have been celebrating the great “change” heralded by the election of Barack Obama, the President elect has been busy appointing people to key positions who advocate the same Neo-Con imperialist foreign policy crafted during eight years of the Bush administration.
The New York Times, widely recognized as the voice of the establishment Democratic left, set the tone of what we can expect from an Obama foreign policy in a lead editorial last Sunday entitled,
“A military for a dangerous new world.”
The editorial calls for U.S. military imperialism not to be scaled back under Obama, but to be vastly expanded both in terms of budget and scope.
Iran, China, Somalia, Russia and Pakistan are all listed as potential targets of U.S. military aggression and the paper echoes what Obama himself has said he will implement - an addition of nearly 100,000 more soldiers and marines to American ground forces, bringing the total to 759,000 active duty forces, at a cost of $100 billion dollars over the next six years.
Does this sound like a “change” from the Project For a New American century framework of endless “multi-theatre warfare,” the inspiration for eight years of Bush administration militarism, or an expansion of that very doctrine?

Report confirms 'shadow war' waged by US special forces
A 2004 classified order authorized the military to attack Al Qaeda operatives around the globe. As many as a dozen raids occurred under this mandate. Based on interviews with military and intelligence officials and senior Bush administration policymakers, The paper's report paints a picture of a shadow war conducted by commando teams from the US special forces' most elite units, often under the control of the Central Intelligence Agency (CIA). It's a war beamed live via Predator drone cameras to US spy masters in control rooms halfway around the globe, but often invisible to in-the-dark foreign governments. London's The Times Online reports the forces fighting the US "secret war" include the Green Berets, Navy Seals, Rangers, and a shadowy unit code-named Gray Fox. The article reports the number of US special forces at about 50,000, though less than 10,000 are "earmarked" for combat. The Christian Science Monitor reported last month that some experts are concerned that clandestine US raids into sovereign territory may be counterproductive. But taking such actions in Pakistan and now Syria may involve high diplomatic risks and offer limited military gain, say experts outside the military.

After US Raid Syrians Wonder if War on Terror Has Arrived

Suspicions about American intentions have flooded the Syrian press. A recent article in Abyadh Aswad, a weekly Syrian political magazine, suggests the attack might have been intended to warn Iraq's neighbors, namely Iran, not to disobey U.S. demands. The article also reflected a common Syrian reading—that the current administration is attempting to thwart attempts by the next American president to improve relations with Syria. The article also suggests the raid could have been driven by a desire to prevent Syrian influence in Iraq just after Syria sent its first ambassador to the country since 1979.

Did Secret Orders Keep US Commandos in Somalia?

Fifteen years ago, a botched Special Forces raid targeting warlords in Mogadishu resulted in the deaths of 18 U.S. servicemen and hundreds of others. The battle, recounted in the book and film Black Hawk Down, cut short an ambitious peacekeeping plan for war-torn Somalia. Since then, U.S. special operators have returned to the lawless East African country, thanks to secret orders approved in 2004 by then-Secretary of Defense Donald Rumsfeld and President George W. Bush, and reported yesterday in the New York Times. So now, the question becomes: How often have those commandos been in Somalia, and how long have they stayed?

Meanwhile, the better organized, and motivated, Islamic radicals take control of more towns. These militias are only a minority of the armed groups that exist throughout the country. The non-religious warlords (mainly the Transitional National Government, or TNG) are unable to unite sufficiently to suppress the religious groups (the Alliance for the Re-liberation of Somalia, or ARS, which is the successor to the Islamic Courts Union, or ICU). Kenya and Ethiopia find their borders crossed more frequently by Somali raiders (something which has been going on for centuries), and are seeking Western nations that will help contain Somali aggression. So far, the only people seriously listening are those with counter-terrorism forces (mainly American, British and French) in Djibouti (Somalia's neighbor in the north.) But this force of commandos keeps its operations very secret. Apparently, this Djibouti based force monitors what goes on in Somalia, and occasionally intervenes to kill key al Qaeda operatives. There are more al Qaeda showing up in Somalia, and apparently they are leading a terror campaign against relatively peaceful warlords controlling most of northern Somalia (Puntland and Somaliland).

Renditions fuel anger against U.S.

NAIROBI, Kenya—Clement Ibrahim Muhibitabo is one of the forgotten ones.So is Ines Chine. So is Abdul Hamid Moosa.Rwandan, Tunisian and South African citizens respectively, the three Africans are among the victims of one of the largest if most obscure rendition programs in the global war on terror: the mass arrest, deportation and secret imprisonment of some 100 people who fled an invasion of Somalia last year—a roundup that even included women and small children.The snatch-and-jail operation was carried out by U.S. allies Kenya and Ethiopia but involved CIA and FBI interrogators, say European diplomats, human-rights groups and the program's many detainees.

Yet the justifiable joy at Obama's ascendancy must be tempered with the knowledge that Guantánamo always has been a diversionary tactic in the "war on terror". The 250 men there represent fewer than 1% of the 27,000 prisoners being held by the US beyond the rule of law. There is a reason why most people have never heard of the plight of these unfortunates - they are ghost prisoners in secret prisons. Many are in Iraq and Afghanistan, but a smattering end up in US detention in Bosnia, Djibouti, Ethiopia, Kosovo and in 21st-century "prison hulks" off Diego Garcia and Somalia. The most miserable are held in proxy prisons in Egypt, Jordan and Morocco.

“The same group that we believe is responsible for Mumbai had a similar attack in 2006 on a train and killed a similar number of people,” the director of national intelligence, Mike McConnell, said last week in a speech at Harvard. “Go back to 2001 and it was an attack on the Parliament.” The Mumbai commuter train bombings killed at least 186. A dozen died in the assault on Parliament, which led to talk of war.
Second, Pakistan’s intelligence services have used Lashkar as a guerrilla force to fight India over their disputed border in Kashmir. That fight has raged since the British partitioned India and Pakistan in 1947. The rival nations went to war that year over Kashmir, and again in 1965 and 1971. Tens of thousands have been killed in political warfare since then.
Third, and most significantly, Lashkar’s roots, like Al Qaeda’s, lie in another war — the battle between Soviet forces occupying Afghanistan and Islamic rebels who fought them in the 1980’s. The rebels were backed by billions of dollars from the United States and Saudi Arabia. Their money and guns flowed through Pakistani intelligence.
In 1989, the Red Army left Afghanistan. The international Islamic holy warriors did not; many thousands of radicals from some 40 nations came to learn the lessons of jihad in Afghanistan, and Lashkar’s first foot soldiers were among them.
Lashkar was founded in 1989, supported by Saudi money and protected by Pakistani spies, according to Hussain Haqqani, Pakistan’s current ambassador to the United States, a former journalist who opposed Gen.
Pervez Musharraf when the general was Pakistan’s ruler. Pakistan’s role as quartermaster and state sponsor of Afghan jihad forces created “a nexus between Pakistan’s military and secret services, which was heightened by the state sponsorship of jihad against India,” he has written.
In December 2001, after the Lashkar attack on India’s Parliament, President Bush added the group to the official United States list of international terrorist organizations. He asked General Musharraf to jail Lashkar’s leaders and break up the group.
Some members were arrested. Others went to fight Americans alongside the
Taliban in Afghanistan rather than continue their battles against India’s Hindus in Kashmir, as the State Department and India’s Defense Ministry have reported; by 2006, attacks by Lashkar and its allies in Kashmir were half what they were a few years before.
But on April 23, 2006,
Osama bin Laden seemed to signal an open alliance with groups like Lashkar, and their goals. He issued a proclamation denouncing “a Crusader-Zionist-Hindu war against Muslims.” He referred to the United States, Israel and India in the statement, as it was broadcast and translated by Al Jazeera. “A U.N. resolution passed more than half a century ago gave Muslim Kashmir the liberty of choosing independence from India,” it said. “George Bush, the leader of the crusaders’ campaign, announced a few days ago that he will order his converted agent Musharraf to shut down the Kashmir mujahedeen camps, thus affirming that it is a Zionist-Hindu war against Muslims.”


On possible intent and strategy of the terror group that struck Mumbai on 26/11
The strategy and intent was to create chaos, fear, lack of confidence, communal divide. There is nothing like specific homegrown (terrorist) group. The terrorists have tapped on sense of anger and alienation and taken advantage of lack of government’s effort to take to task all the right wing parties. In the 2002 Gujarat massacre, there was no case made out against the perpetrators and even in the compensation given to the victims of the violence there was a disparity. The government has failed to address the root grievances. You see it in the north-east of India, as well. In Kashmir, the insurgency happened because of the repeated negativism of Delhi politics in the (Kashmir) Valley.
On Pakistan’s role in terror attacks on India
In Pakistan, for the last two decades, ISI operatives have been entrusted with the task of identifying families of poor. Usually, the family has one boy who is a wastrel and has no purpose in life. This good-for-nothing fellow is selected by the ISI and told things like he is a failure but this task (militancy which they call ‘Jihad’) will give him respect in his society. They tell him even if he dies in the course of operation, he will attain martyrdom, and will be hailed as a hero. This youth is then recruited by luring his families with salary, pensions and other financial benefits. Normally, $10 – 20,000 is set aside for this purpose. Traditionally, people joined the armed forces after a calling. But these people are not like that. Pakistan does this entire recruitment in a much organised way. The current government may not support this but it is a situation where the country is being haunted by its own mistakes. It’s a ‘Frankenstein’s Monster’ that they have created. It started with former Pakistani President late Muhammad Zia ul Haq. Zia’s strategy was to “bleed India through a thousand cuts.” Kashmir was his motive. It’s no secret that Pakistan has always harboured a desire to integrate the Indian side of Jammu & Kashmir into it, and that’s what the successive governments have wanted. These groups (militants) are a larger part of the same mind set. Apparently, the present Pakistan government is unable to control the militants.

US appears to be losing its secret war in Somalia
"Your government gets away with a lot here," said the prison warden, Hassan Mohamed Ibrahim, striding about his antique facility with a pistol tucked in the back of his pants. "In Iraq, the world is watching. In Afghanistan, the world is watching. In Somalia, nobody is watching."
It is a standoff war in which the Pentagon lobs million-dollar cruise missiles into a famine-haunted African wasteland the size of Texas, hoping to kill lone terror suspects who might be dozing in candlelit huts.
It is a covert war in which the CIA has recruited gangs of unsavory warlords to hunt down and kidnap Islamic militants and — according to Isse and civil rights activists — secretly imprison them offshore, aboard U.S. warships.
Mostly, though, it is a policy time bomb that will be inherited by the incoming Obama administration: a little-known front in the global war on terrorism that the U.S. appears to be losing, if it hasn't already been lost.
"Somalia is one of the great unrecognized U.S. policy failures since 9/11," said Ken Menkhaus, a leading Somalia scholar at Davidson College in North Carolina. "By any rational metric, what we've ended up with there today is the opposite of what we wanted."
What the Bush administration wanted, when it tacitly backed Ethiopia's invasion of Somalia in late 2006, was clear enough: to help a close African ally in the war on terror crush the Islamic Courts Union. The Taliban-like movement emerged from the ashes of more than 15 years of anarchy and lawlessness in Africa's most infamous failed state, Somalia.
At first, the invasion seemed an easy victory. By early 2007, the Courts had been routed, a pro-Western transitional government installed, and hundreds of Islamic militants in Somalia either captured or killed.
But over the past 18 months, Somalia's Islamists — now more radical than ever — have regrouped and roared back.


It wasn't supposed to turn out this way when the U.S. provided intelligence to the invading Ethiopians two years ago.
The homegrown Islamic radicals who controlled most of central and southern Somalia in mid-2006 certainly were no angels. They shuttered Mogadishu's cinemas, demanded that Somali men grow beards and, according to the U.S. State Department, provided refuge to some 30 local and international jihadists associated with al-Qaida.
But the Islamic Courts Union's turbaned militiamen had actually defeated Somalia's hated warlords. And their enforcement of Islamic religious laws, while unpopular among many Somalis, made Mogadishu safe to walk in for the first time in a generation.
A military think tank at West Point studying Somalia concluded last year that, in some respects, failed states were admirable places to combat al-Qaida, because the absence of local sovereignty permitted "relatively unrestricted Western counterterrorism efforts."


Ghana: The New World Order II

Whether Afrika and Afrikans as a whole are aware, the stark reality is that there is a new "scramble for Afrika".
The original "scramble for Afrika" was in the aftermath of the Congress of Berlin in 1884/1885 where America and her western cousins such as Britain, France, Belgium, the Netherlands literally carved up Afrika for themselves and in the process stealing vast swathes of Afrikan land and by proxy creating the artificial boundaries we see today and in the course splitting entire families.
The current "scramble for Afrika" is a sinister and deadly attempt by Afrika's so-called development partners in a bid to save themselves from the inordinate financial chaos which is engulfing them.
This new "scramble for Afrika" has even more players with China, India, Turkey and Russia all vying to rape Afrika of its vital resources like Gold, Diamonds, Colthan, Oil and Copper.
Whilst the west, India, China, Russia et al all claim to be Afrika's "development partners" the truth of the matter is that billions of dollars' worth of natural resources are being looted from Afrika sometimes with the help of corrupt Afrikan "leaders". - Many Afrikan people are unaware of this grand theft that comes under the guise of "development partners", "globalization" and "strategic investors".
Instead of enriching Afrikan countries, some big American and European multi-national corporations are facilitating corruption and provoking instability right across the Afrikan continent - AS WE SEE IN D R CONGO.
Simon Taylor, a former director of Global Witness, a UK human rights campaigning organisation, said "Western companies and banks have colluded in stripping Afrika's resources. We need to track revenues from oil, mining and logging into national budgets to make sure that the money is not siphoned off by corrupt officials".
Looting of state assets by corrupt leaders should become a crime under international law, he said "The G8 should take the lead in this".
While the British government claims it leads the world in the "fight against poverty", the reality is that it is creating poverty and misery in Afrika by being the major arms supplier to 10 out of 14 conflict-racked African countries, including Somalia, Sudan and Rwanda.

Security Blanket: Western Democracy and the Strategy of Tension

We've written often here of the Pentagon's plan to foment terrorism where needed to achieve the goals of the "National Security State." This is but one of a staggering array of examples of the use of "the strategy of tension" by the "advanced" Western democracies of the modern world. This week came yet another. As Robert Mancini reports in the Guardian, the former president of Italy, Francesco Cossiga, let a great many cats out of the bag . First revealed by Italian Prime Minister Giulio Andreotti in 1991, Gladio (from the Latin for "sword") is still protected to this day by its founding patrons, the CIA and MI6. Yet parliamentary investigations in Italy, Switzerland and Belgium have shaken out a few fragments of the truth over the years. These have been gathered in a new book, NATO's Secret Armies: Operation Gladio and Terrorism in Western Europe, by Daniele Ganser, as Lila Rajiva reports on CommonDreams.org.
Originally set up as a network of clandestine cells to be activated behind the lines in case of a Soviet invasion of Western Europe, Gladio quickly expanded into a tool for political repression and manipulation, controlled and funded by NATO and Washington. Using right-wing militias, underworld figures, government provocateurs and secret military units, Gladio not only carried out widespread terrorism, assassinations and electoral subversion in democratic states like Italy, France and West Germany, but also bolstered fascist tyrannies in Spain and Portugal, abetted the military coup in Greece, and aided Turkey's ferocious repression of the Kurds. All of this in the name of "preserving democracy" and "defending civilization."
Among the "smoking guns" unearthed by Ganser is a Pentagon document, Field Manual FM 30-31B, which detailed the methodology for launching terrorist attacks in nations that "do not react with sufficient effectiveness" against "communist subversion." Ironically, the manual states that the most dangerous moment comes when leftist groups "renounce the use of force" and embrace the democratic process. It is then that "US army intelligence must have the means of launching special operations which will convince Host Country Governments and public opinion of the reality of the insurgent danger." Naturally, these peace-throttling "special operations must remain strictly secret," the document warns.And as we have often noted here, similar operations -- the "El Salvador option," death squads, "High-Value Targeting," etc. -- have been an integral part of the Anglo-American subjegation of Iraq. Indeed, they are a pillar of the "counterinsurgency doctrine" proclaimed by the other president-in-waiting, David Petraeus, and now avidly embraced by the War Machine. As Tara McElvey reports in The American Prospect, the Pentagon is eager to apply "High-Value Targeting" and refinements of the "Phoenix Program" -- in which U.S. forces and local proxies murdered more than 20,000 people -- and the whole panoply of "psy-ops" to imperial imbroglios around the world, applying them "to Afghanistan, then Pakistan, the Philippines, Colombia, Somalia, and elsewhere."
But more war is exactly what we've been promised by our agents of change. More war, an even bigger War Machine, "tougher" security measures, national ID cards packed with personal data and tracking devices, more surveillance cameras, new "preventive detention" laws -- and more unbounded authority to use public money to bail out the elite. Yet how to make this happen in the current atmosphere of exhaustion and anxiety? How to catalyze the public into continuing to support the Security State? How to discredit the rising chorus of opposition to neocolonialism, elite cronyism, rampant militarism and growing authoritarianism?

Did US push detention of American without charges?

An American Muslim subjected to several years of intense FBI scrutiny and questioning about links to terrorism has been held without charges, access to a lawyer or contact with his family for nearly three months by the security services of the United Arab Emirates.
The case of Naji Hamdan, coupled with FBI interrogations of an American citizen secretly detained without charges in East Africa, raises the question of whether the Bush administration has asked other nations to hold Americans suspected of terrorism links whom U.S. officials lack the evidence to charge.
That allegation is central to a lawsuit that the American Civil Liberties Union was planning to file Tuesday in federal court in Washington against President Bush, Attorney General Michael Mukasey and FBI Director Robert Mueller.
"If the U.S. government is responsible for this detention and we believe it is, this is clearly illegal because our government can't contract away the Constitution by enlisting the aid of other governments that do not adhere to the Constitution's requirements," said Ahilan Arulanantham of the ACLU's southern California office.
The lawsuit, to be brought on behalf of Hamdan's wife and brother, demands that the U.S. government extend to Hamdan his constitutional guarantee against illegal detention by asking the UAE to release him.
"The most elemental legal principles by which we govern ourselves cannot countenance the lawless detention of a United States citizen at the behest of his own government," said a draft of the lawsuit provided to McClatchy by the ACLU.
A spokesman for the FBI's Los Angeles office, Alonzo Hill, referred all inquiries about Hamdan, a former resident of the city's Hawthorne neighborhood, to FBI headquarters in Washington, saying, "This is a counter-terrorism case."

The American Way of Justice

As his client, Salim Hamdan, is released from Guantanamo Bay, revisit one bold JAG lawyer's inside accounting of how he convinced the Supreme Court that President Bush had breached the Constitution.

What I sought was simply that the president, just like the soldiers, sailors, and marines under his command, be required to comply with the Uniform Code of Military Justice and the Geneva Conventions. Because I believe that resorting to secret prisons, coercive interrogations, and the abandonment of the rule of law is not the way to keep our country safe from a handful of fanatics. Last summer, with the help of my civilian co-counsel, Professor Neal Katyal, and the law firm of Perkins Coie, I won the case in the Supreme Court of the United States. The problem is that the victory, as big as it was, was disdained by the administration, which has attempted to defy the Supreme Court and the rule of law by building Guantanamo up in the wake of the decision, instead of down. That needs to change.

SEE:

Worth Reading After Mubai

Somali Eco Disaster Bred Pirates

Mayor Of Kabul Says Get Out

Pakistan: Feudalism Not Democracy

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Monday, November 24, 2008

Command Capitalism

China remains a one party state, not unlike Alberta, and the command economy has transformed into command capitalism. China's model of capitalism is an alternative to American style capitalism, and to prove its model to the world it is expanding its own form of Free Trade agreements with newly emerging capitalist economies. Welcome to 21st Century Imperialism.

This is why Bush and Harper have spent the last few weeks in international meetings defending American Capitalsim, China and Europe offer other models of capitalism, with China coming to the aid of countries abandoned by the Americans or in some cases like Costa Rica directly competing for market share with the Americans. China has embraced Free Trade in direct competition with the U.S. including in its own backyard. And depsite Bush's claims that free markets creat free people, China proves that democracy and freedom are not inherent to capitalism.

Capitalism in the west developed out of the collapse of autarchic fuedalism, not much differnt than the autarchy of command economies in the East. In fact all of Asia's capitalist development has been by autarchic state capitalsm, some under right wing military dictatorships, such as Korea and Taiwan, or through the Japanese model of an integrated Military Banking Industrial State complex or through the Chinese model.

And all ot the real growth in Asia has come about with fordist manufaturing and the creation of a proletariat.And with the development of a Chinese proletariat based on fordist manufacturing model comes the inevitable, workers organizing to improve their standards of living. And being tied into the international capitalist market place means that China too suffers when capitalism melts down. Forcing it to expend its mass of capital in promoting trade for its products and to speed up production for its own consumption.

Governments need to move fast, because this crisis, which has taken several forms already, is about to change form again. In the past few months, we've moved from a seizing up of credit markets to the collapse of economic demand in the mainstream economy. Soon we could see a string of sovereign defaults of poor and emerging economies that can't meet their debt obligations.
Even worse, hundreds of millions of previously poor people from Hungary and Turkey to India and China - recent arrivals in the global middle class who've benefited from an economic boom fuelled by endless quantities of cheap credit - are about to see their standard of living fall of a cliff. Around the world, Western-style capitalism will be discredited, as it's perceived to have wiped out people's jobs and life savings.


The United States' superpower status will wane over the next two decades as power spreads among several countries and moves from the West to the East, a report by the country's intelligence agency says.
The National Intelligence Council's Global Trends report, issued every four years to document looming problems, predicts a new global system will emerge where no single state dominates.
"By 2025, the U.S. will find itself as one of a number of important actors on the world stage, albeit still the most powerful one," the report by U.S. intelligence agencies says.
China is poised to have more impact than any other country, but the report also foresees a rise by India and Russia.
If trends continue, the report predicts China will have the world's second-largest economy by 2025, be a leading military power, while becoming the world's largest importer of natural resources and also the biggest polluter.
What is striking, the report notes, is that none of the three rising stars adhere to a Western liberal model but rather a system of state capitalism, under which the government takes a key role in economic management.
The transition will leave a world system "almost unrecognizable" in comparison to today, the report says.


Hu visit marks China's growing interest in Latin America
Chinese President Hu Jintao begins a Latin America tour on Monday, taking in Costa Rica, Cuba and Peru, as China tightens economic ties and the region hopes for help in tougher times.
The Asian giant has increased diplomacy and investment in Latin America in recent years, with an eye on its natural resources and developing markets for manufactured goods and even arms.
Many in Latin America hope for an investment boost to help ride out the economic crisis.
Exports from the continent to China include soya and iron ore from Brazil, soya from Argentina, copper from Chile, tin from Bolivia, and oil from Venezuela.
The trade is still only a small percent of the continent's total, but it is growing.
China's state-run Xinhua news agency reported this month that exports to Latin America grew 52 percent in the first nine months of 2008 to 111.5 billion dollars.
Hu will visit San Jose and Havana between a G-20 meeting on the global crisis in Washington on November 15 and an Asian Pacific Economic Cooperation forum summit in Peru on November 22.

"It's more than just symbolic that Hu Jintao has decided to come, because it is clearly making the point that it is no longer a Taiwanese stronghold," said Costa Rican analyst Luis Guillermo Solis.
Both Taiwan and China have been accused of using so-called "dollar diplomacy" to get nations to ally with them.
But China's economic might is hard to compete with, especially in tough economic times.
Part of China's incentives to Costa Rica came from China's enormous foreign exchange reserves with an offer to buy 300 million dollars in bonds.

Costa Rica, a major exporter of computer components, is now prepared to negotiate a free trade deal with China, the foreign trade minister said here this week, dismissing fears of an invasion of Chinese products into the tiny Costa Rican market.
China has expanded its high level missions to the whole continent in recent years, making investments and agreements with such oil producers as Venezuela, Ecuador, Colombia, Argentina, Brazil and Mexico.
"The fact is that China has been locked out of a lot of countries for energy deals" in the past, Brown said. "It's going to be going into these areas more and more."
China has also advanced to economic assistance and direct investment, sometimes taking over from the region's main commercial partner and neighbor, the United States.
The teaching of Chinese in schools and universities and scholarships to China, as in Costa Rica's deal, add to a charm offensive.
And although Latin American economies are in a stronger position to withstand financial setbacks than in the past, a strong economic partner such as China is more attractive than ever.


China is Costa Rica's second-largest trading partner -- although the amount of trade between the two countries is subject to interpretation. China claims it imported $2.3 billion in goods from Costa Rica in 2007, and exported $570 million. Costa Rican officials have said exports to China were valued at $848 million and imports at $763 million. Either set of numbers seems like small potatoes compared to Costa Rica's trade with the U.S.: $3.9 billion in exports last year, and $4.6 billion in imports, according to the U.S. Commerce Department.

A free trade agreement to be signed by China and Peru in March will go into effect in the second half of 2009, if everything goes as planned, the Chinese Ministry of Commerce announced. The agreement will benefit China’s light machinery industry as well as those of its electronics, domestic appliances, heavy machinery, automobile engines, chemical items, vegetables and fruit. Peru's fishmeal and aquatic products industry, as well as its mining sector, among others, will be reaping benefits from the accord, Reuters reports.

Tacos, Ugly Betty gain Mexico a foothold in China
MEXICO CITY — Armed with tortillas and telenovelas, Mexican companies that have relied on trade ties to the United States are heading to China, challenging old images of a country that many Mexicans consider a rival for foreign investment and jobs.
Mexican exports to China have jumped nine-fold since 2000, soaring from $ 204 million to $ 1. 9 billion in 2007. It’s the fastest growing market for and seventh-largest buyer of Mexican goods, according to Mexico’s government.
Some of Mexico’s most prominent companies have opened operations in China since 2006, expanding beyond their traditional trading turf in the Americas and Europe to vie for a foothold in what is expected to become the world’s biggest market. Even amid the current economic slowdown, China’s 2009 growth rate is projected to hover around 8 percent.
“This is a great signal that commercial relations between Mexico and China are on a good path,” said Juan Jose Ling, director of GDEM, a business development group that promotes Chinese-Mexican ties.

But Mexico relies more than its neighbors on manufactured exports, and many Mexicans saw the Asian giant as an economic enemy that diverted jobs and foreign capital. Since 2000, hundreds of thousands of Mexican jobs have been lost as foreign-owned assembly plants moved to China — which displaced Mexico as the secondlargest supplier of goods to the United States after Canada in 2003, U. S. Census Bureau data show.
China also was accused of flooding markets with low-cost toys and textiles. Even ubiquitous statuettes of Mexico’s iconic Lady of Guadalupe now bear the stamp “Made in China.” Yet more than a dozen big Mexican companies no longer see China as a financial foe, and have joined the global race to capture a slice of its $ 1. 3 trillion retail market.


In Beijing, well-planned modern infrastructure sits comfortably alongside historic monuments. Massive ring roads and modern high-rise apartments seem to be perfectly synchronised to ensure perfect movement of traffic and human beings.
This city of more than 11 million people lacks the chaos that is the hallmark of so many Asian megacities such as Mumbai. It also lacks the stern rigidity of cities of state-controlled countries.
China was not always like this. Free markets and capitalism were allowed to flourish in this communist country 30 years ago when the Chinese leader, Deng Xiaoping, introduced economic reforms that sought to modernise agriculture, industry, science and technology.
Known as the architect of China’s emergence as an economic powerhouse, Deng managed to unleash what the Lonely Planet guide refers to as “the long-repressed capitalist instincts of the Chinese” by reforming the agricultural sector, creating special economic zones and “growth poles” in urban areas that served as boomtowns and factories for China’s exports.
In the 1990s, China began intensifying its pro-urban development strategy by investing heavily in cities to boost economic growth.
The results have been remarkable. China’s economic growth has soared to 9 per cent a year and the country has been able to lift nearly 500 million people out of extreme poverty within one generation.
THE QUALITY OF LIFE FOR URBAN residents has improved with cities such as Beijing having the lowest levels of income inequality in the world. Shanghai now stands alongside Singapore and New York as a city with the tallest buildings.
More than 300 million rural migrants have moved to cities since 1980 and 60 per cent of the country’s population is projected to be urban by 2030.
Urbanisation has been one of the key pillars upon which China’s economic success rests.
But unlike other countries, particularly in Africa, rapid urbanisation has not led to the proliferation of slums. This is because China is still a command-and-control economy that can mobilise resources quickly to respond to changing demands.
According to James Adams, the vice-president of the World Bank’s East Asia and Pacific region, “China recognised early on that urban development is not possible on the cheap and that building ahead of demand makes lots of sense.”
He notes that Beijing and Tianjin spend more than 10 per cent of their GDP on roads, water and sewerage services, housing construction and transport, and that “China’s phenomenal ability to mobilise financial resources for urban development through domestic credit and foreign direct investment is what keeps the funds for cities coming.”
National policies that give Chinese municipalities the authority to implement regulations governing land use and transport and decentralised urban planning have also played a part in helping China’s cities to cope with rapid urbanisation more effectively than other middle-income countries such as Brazil and South Africa.
The cracks, however, are beginning to show. Sit-ins and protests by workers in China’s booming industrial cities are on the rise.
Rural-urban disparities are widening, and a growing urban middle class is beginning to ask difficult questions about democracy, freedom of expression and human rights.
The global financial crisis is also having an impact on the economic growth rate, which is projected to slow down.
Nonetheless, as I sipped a glass of Chinese Cabernet Sauvignon wine in a bookshop-cum-café in Beijing, I found it hard to make a case against China’s development model.
I mean, does it really matter if the CEO of your bank is an official of the Communist Party? And what use is democracy when it can’t help put dinner on the table?


Warning from China's premier
"We must be aware that this year would be the worst in recent times for our economic development," Chinese Premier Wen Jiabao warned in the Communist Party magazine Qiushi on November 1."It is very difficult to maintain high growth and a low inflation rate in the long run. These unfavourable factors have already affected our country, and will continue to. There are also many pronounced problems in domestic economic activity," he wrote.As Minqi Li explained in an article in the April 2008 Monthly Review, China's economic growth in the late 1990s and 2000s depended heavily on it being a net exporter. The US alone accounts for 20 per cent of China's total export market, so a US recession alone would have a major impact. In 2007, Europe replaced the US as China's largest export market but Europe too has gone into recession.China's rapid economic growth also relied on Chinese capitalists (state and private) and foreign capitalists operating in China exploiting labour at a rate of about "one-twentieth of that in the US, one-sixteenth that of South Korea, one-quarter of that in Eastern Europe and one-half of that in Mexico or Brazil".While, a large, productive, and cheap labour force allows Chinese capitalists and foreign capitalists in China to profit from intense and massive exploitation, this places a brake on domestic demand making up for collapsing Western export markets.

The initial phases of the Free Trade Agreement between China and the Association of Southeast Asian Nations have brought significant benefits for both parties, helping to absorb external pressures at a time of slowing global growth.
On Oct. 22, Chinese Vice Premier Wang Qishan told the fifth China-ASEAN Business and Investment Summit that it is paramount for the two partners to accelerate their economic cooperation in the face of weakening global demand. Association of Southeast Asian Nations (ASEAN) officials also stated their wish for deeper economic ties with China, stressing the need to reduce the bloc's exposure to slowing demand from the U.S., Europe and Japan.

Structural shift. China's economy is moving away from traditional processing and assembly operations, sourcing more components domestically as its industries move up the value chain. Southeast Asia lacks the technology and skills to provide many of the required high-end imports and raw materials. It thus risks the prospect of a shrinking trade surplus with China and greater vulnerability to currency fluctuations.

Reform of financial system
(China Daily)Updated: 2008-11-15 17:07
As leaders of the 20 largest economies gather in Washington DC to discuss a coordinated plan to deal with the global financial crisis, it is necessary to reassess the existing US dollar-dominated international financial system. It is a speculation-rife, supervision-lacking system.
After the collapse of the Bretton Woods System in the early 1970s, the US rushed to introduce the Jamaica System, which is still in effect, in an attempt to carry forward its financial dominance. The Jamaica System, strictly speaking, is not new, and it has elements of Bretton Woods.
Under this financial structure, the US has excessively indulged itself in the benefits, but has tried to shrink from its responsibility as the world's largest economy. The superpower's unrestrained issuance of dollars to bolster its unrestrained domestic credit consumption and its efforts to maximize its national interests by adopting policies, such as transferring financial risk and crisis to other countries, has added vulnerability to the international financial system.
An absolute authority always leads to corruption. The unchallenged hegemony of the US has contributed to its abuse of power and conduct.
Long ago the European Union proposed that the international community strengthen supervision over hedge funds, which mainly stem from the US, and serves as an important source of its financial capital.
The EU's recommendation has repeatedly been ignored by Washington. As an important prop of the Bretton Woods System, the International Monetary Fund (IMF), has long been utilized by the US as a tool to push for neo-liberalism worldwide.
While offering aid to some crisis-plagued emerging economies, the lame-duck organization has never given up its interference in the economic jurisdiction of recipients in contravention of the UN. This has plunged some of these countries into a worse economic situation, sometimes resulting in political and social upheaval.
Since the exposure of the US financial crisis, the IMF has remained idle and other international financial bodies, such as the World Bank and the Bank of International Settlement, due to serious defects, have also been unable to play their roles as creditors and effective monitors.
The current defective international financial system has been widely criticized, but no country can ignore the dominant role of the US in it.
However, the unprecedented international financial tsunami in a century we are experiencing, and the summit on the crisis, have offered a rare opportunity for some competing players to change the existing international financial establishment to their advantage.
The hegemonic status of the US is now under challenge from its friend on the other side of the Atlantic Ocean, the EU. For many years, the expanded EU has pushed for market integration among its members and accordingly consolidated its strength to rival the US. That can be seen by the rising status of the euro in international markets.
It has been elevated to a major international currency, but admittedly it still has a long way to go before dethroning the US dollar as the world's leading reserve currency.
Behind the euro there is no unified capital market, military or fiscal policy. European countries have different economic development levels and political preferences.
At the same time, the regional community is plagued by problems of immigration, and an aging population. All this present hurdles to snatching the world's No 1 financial status from the US.
The EU has also been a beneficiary of the US-manipulated international financial order. So it is not difficult to understand why up to now it has not proposed major reforms.
We look forward to some positive measures from the Washington summit but should not pin our hopes too high.
The author Jiang Yong is a researcher with the China Institute of Contemporary International Relations




Crisis puts brake on sales of cars


By Patti Waldmeir Financial Times


It had to happen sometime: after several years of stratospheric growth, the Chinese vehicle industry has come back to earth with a bump - and found itself facing a grim reality of weak demand and cut-throat competition that could persist well into the future.Even before the western financial world imploded - stoking fears of a global recession that has chilled the hearts of car buyers, even in faraway China - industry analysts were expecting a slowdown in Chinese car sales this year. But by that, they meant 15 or 20 per cent growth (down from 34 per cent in 2006 and 24 per cent last year) - not low single-digits this year, and flat sales next year, as predicted recently by JD Power, the auto consultancy.Chinese car industry growth had defied gravity for so long - rising from only 5,000 cars in 1980 to 5.8m forecast for 2008, making it the world's second largest auto market - that it was hard to imagine anything could cause such a hard landing. But that was before the credit crisis.In many ways, Chinese car buyers ought to have been well insulated from the crisis: according to Mike Dunne of JD Power in Shanghai, 93 per cent of car purchases are still made with cash. But Li Shufu, chairman of Geely, one of China's largest automakers, says the effect is predominantly psychological. "If consumers think the global economic situation is bad, they also think maybe prices will fall," and they stop buying cars, he told the Financial Times recently in an interview. In China, no one wants to buy a car until the price is as low as possible.But China's car industry was already highly competitive, even before the threat of further price declines. According to Dieter Seemann, commercial executive director of Shanghai Volkswagen, one of VW's two carmaking joint ventures, China has 81 automotive brands compared with 47 in the US - the world's largest car market - and 47 carmakers compared to 16 in the US. VW says prices fell by a staggering 37 per cent from 2001 to 2007, and forecasts further price erosion of 8 per cent from 2008 to 2010. In the short term, says Joseph Liu, General Motors' Asia-Pacific head of sales and marketing, "everyone will suffer".But the medium- to long-term forecast is more cheerful. Nick Reilly, head of Asia-Pacific operations for GM, says market fundamentals remain strong. GM is still forecasting 10 per cent growth for this year and as much or more for next. "I don't see this as the start of a significant decline," he says.Jeffrey Shen, president of Changan Ford Mazda, one of Ford's Chinese joint ventures, says: "We see this as a shortterm adjustment. Long term the [growth] trend in the Chinese automotive industry will continue." Ford believes that when per capita GDP reaches $6,000, the industry will boom and carbuying "will get into every family", Mr Shen says.Ford acknowledges that car sales in China's richer, more export-focused east and south have slowed, but says sales in the interior are beginning to take up the slack - as China has shifted manufacturing production to cheaper regions.In the longer term, one basic fact remains paramount: only 20 out of 1,000 people in China own a car (compared wi th roughly 500 per 1,000 in the US and EU). That fundamental fact will drive the industry for many years to come.Most industry forces expect the Chinese government to stimulate demand in the short term, as a way of propping up the economy in difficult times. "The car industry can serve as a cushion for the overall economy," a senior official of Changan Motors, a large state-owned automaker, said recently. But in the longer term, Beijing's ambitions are much grander.China knows it missed out on decades of automotive technology, because of its Communist past. Now Beijing plans to leapfrog that gap to a new greener future: One plug-in hybrid electric car is expected on the Chinese market within weeks, from BYD, the upstart Shenzhen battery manufacturer that recently rose from nothing to become the biggest-selling Chinese auto maker. And nearly all of China's other leading auto companies say they are working on alternative fuel vehicles. They are counting on backing from Beijing - which has said that 10 per cent of China's cars must run on alternative fuels by 2012 - for everything from tax breaks to the massive infrastructure of charging stations needed for electric cars.China's peculiar brand of authoritarian semi-capitalism could even give Beijing an advantage in the battle, says Paul Gao, author of a recent McKinsey report on electric cars: democracies need to consult on such things as electric vehicles; but Beijing could just decide to support the technology, and it would happen."In China things can happen very fast, or very slowly," says Mr Liu of GM. If the past is any guide, change in the Chinese car industry will be fast-forward

China’s economy losing steam, workers losing jobs and wages
Guangdong province faces millions of job losses in coming months
Vincent Kolo, chinaworker.info
The global capitalist crisis has struck southern China’s export powerhouse Guangdong with the force of a super-typhoon. It is “the worst economic environment of our lives” exclaimed the chief economist of Hong Kong’s Chamber of Commerce. A domino effect of factory closures is rippling through industries such as toys, footwear, textiles and light engineering in Dongguan, Shenzhen, and other heavily industrialised cities in the Pearl River Delta. The Federation of Hong Kong Industries (whose members run their production from the delta) warns of 2.5 million job losses in the coming three months – 27,000 every single day! The same source said 20,000 Hong Kong-owned small and medium-sized enterprises could close down by the Lunar New Year (January 2009).“Depression”For years the world has marvelled at China’s spectacular growth figures, now it should prepare for spectacular figures of another sort! City leaders in Dongguan speak of a “depression” in the city of seven million people, mostly migrant sweatshop workers. Wang Zhiguang, vice chairman of the Dongguan Toy Industry Association, told Guangzhou Daily: “Of some 3,800 toy factories in Dongguan, no more than 2,000 are likely to survive the next couple of years.”Skyrocketing costs for fuel and raw materials, the Chinese currency’s rise, and shrinking export markets, have squeezed already narrow profit margins. “After the EU and the US changed the market thresholds for China-made toys, and because of recalls in 2007, our testing fees have gone up by about 25%,” a toy industry spokesman said.Several Hong Kong-owned factories have gone bust in the last week, including three run by the world’s largest toymaker Smart Union Group, which makes toys for Mattel and Hasbro. “It’s scary,” engineer Zeng Yangwen, 26, who worked for Smart Union for three years, told Reuters. “The companies that folded before were small. This is the first big one to go under.”Daily protestsThousands of workers have lost their jobs and many have taken to the streets to demand unpaid wages. Their former bosses in many cases have spirited away valuable assets and disappeared. Street protests and demonstrations at local government offices have been a daily occurrence in many townships in the region. In at least one case in Shenzhen, at the Xixian factory linked to luxury watch retailer Peace Mark, also Hong Kong-owned, more than 600 workers staged a sit-in for two days to demand their wages. More such protests are on the cards in coming weeks and months.Exporting regions like the Pearl River Delta are the first to be hit by the crisis, as their export markets wither under the impact of the global recession, while input costs have risen, and bank credit has become tighter. This is just the first phase of what is clearly a significant industrial slowdown in China, exacerbated by the simultaneous bursting of gigantic financial bubbles in the Chinese stock market and property sector. Added to this there is of course the global capitalist crisis, which is hammering export markets and threatens new financial upheavals. Asian stock markets sank to four-year lows this week on fears that growing difficulties in China and other ‘emerging markets’ will prolong the global recession. From being a possible ray of hope, China’s faltering economy is becoming another source of despair for the global capitalists.All the above factors mean the current industrial downturn can be far more serious than China’s leaders and most commentators publicly recognise. The Beijing regime continues to reassure the public how ‘basically strong’ the economy is. But in part these statements are tailored to avoid further frightening capitalist ‘investors’ (speculators) – who are more inclined towards panic from the global meltdown than they are to be calmed by recent market-supporting measures from the Chinese regime and central bank.“The slowdown in the Chinese economy so far is unexpectedly serious,” Li Wei of Standard Chartered Bank told China Daily. All the main economic data now point downward. China’s gross domestic product (GDP) growth slowed to 9% in the third quarter, the slowest rate since during the SARS crisis of 2003, and the fifth consecutive quarter of reduced growth. All the forecasts for 2008 and 2009 are being scaled down, and several economists now warn of growth dipping below the crucial 8% level in 2009. Morgan Stanley’s latest forecast is 8.2%, while CICC predicts just 7.3%. Li Wei of Standard Chartered forecasts 7.9% in 2009 and only 7% in 2010. Anything below 8% is a recession in the Chinese context, meaning rocketing unemployment and falling living standards for broad layers of the population.Investment slowsInvestment too, a key motor of GDP growth since the start of the century, has seen a sharp slowdown. The Chinese Academy of Social Sciences warns that real fixed asset investment (after compensating for higher producer prices) could grow by 15% overall this year, compared to 20% growth in 2007. This poses big problems for the central government: even its monetary easing (interest rates have been cut twice in the last month) and lifting of earlier credit restrictions on banks, may not have the desired effect if companies are reluctant to invest due to a sluggish market and huge levels of existing surplus capacity. Industries such as steel, coal, and power generation, have grown far beyond the limits of the Chinese economy in the course of a frenetic seven to eight year investment bubble, and are dependent on the country’s XXXL-sized export machine to sustain demand. If this machine fails, so do they. Steel and coal firms have announced production cuts for the first time in years in order to put the brakes on sharply falling prices brought about by lower demand and excess capacity. Coal prices are down 14% and steel by 30% since the summer. 23 of the nations 71 largest steel firms reported losses last month, and Beijing may reintroduce tax incentives for steel exports, despite opposition from the US and EU. Clearly, the slowdown is not confined to export industries or regions, although these are being hit first and hardest.While China’s overall GDP growth still seems impressive by global comparisons, its complex and fragmented economy can experience widely divergent processes at the same time. Guangdong and other coastal provinces are, because of globalisation (they trade more with the US and Europe than with the rest of China), showing clearer signs of recession at this stage than most Western economies. There has been a spate of suicides by capitalists in these provinces. All told perhaps 20 million workers have lost their jobs in 2008 as a result of business collapses. But as the overall economy is still growing, many of these worker (most are migrants) can be absorbed elsewhere. At a certain point in the downward cycle, however, this ability to soak up the new unemployed will likely break down and open unemployment will soar and, with it, the threat of serious unrest.Government measuresProperty markets – pumped up to fantasy levels in the speculative wave of recent years – have deflated sharply, by 40% in some cities such as Shenzhen. The coastal exporting regions that are suffering most from the crisis and the property meltdown are also the main launch-pad for the much discussed but yet to be seen “rebalancing” of the economy towards domestic consumption. Per capita GDP in the wealthiest coastal provinces is roughly twice the level in the north-eastern provinces, three times the level in the central provinces and five or six times the level in the poorest western provinces. Much greater consumption – close to double today’s level – would be needed to break the economy’s huge dependence on exports and avert a serious downturn. If increased consumption does not come from the wealthier provinces, then where? But the combined blows of falling property prices, factory closures and recession, migrants moving elsewhere, will serve to weaken rather than strengthen consumption in these regions. For the first time in modern Chinese history, since the pro-capitalist reform and opening process began 30 years ago, the coastal provinces may be headed for slower growth and greater dislocation than their poor relations in the interior. Already, coastal companies are gearing up for an assault on the markets of other provinces. The stage is being set for a dramatic increase in inter-provincial rivalries and economic disputes. Beijing may find itself in the role of referee at a dogfight!The central government has responded to the current slowdown with a series of measures that include even more investment in infrastructure, restoration of tax rebates to labour intensive export industries (these were cut two years ago as Beijing moved to soften US protectionism) and special rules to ease loan terms for small and medium-sized companies. The pace of currency appreciation will surely slow, if not reverse, and US protests over this fact may be bought off for a time with a Chinese commitment to keep up its lending to the US government’s huge state bailouts. Other steps have been taken to shore up the sinking stock market, to prevent the main CSI 300 index slipping below the psychologically important 2,000 mark. The market has plummeted 70% this year, but the latest measures – using state companies and the sovereign wealth fund, CIC, to buy up shares – have not prevented further falls (the CSI 300 is down on 1,833 points at the time of writing). The government will soon in all probability announce a stimulus package containing tax cuts and extra funds for public investment. It is rumoured that this package will be worth 400bn yuan ($58bn). That the plan has been delayed may reflect deep divisions inside the regime’s economic management team over what ‘mix’ of policies to adopt. Many CCP bigwigs now favour tax cuts, accepting the liberal economists’ argument that this is the fastest way to stimulate consumption. Less than one-third of China’s wage earners would benefit from a tax cut as the remainder do not earn enough to pay any tax. Fear of protestsWhat is the role of local-level governments in the Pearl River Delta and other export hubs in the rising wave of factory closures? There is of course a big risk of instability and even riots and the authorities are keen to diffuse this. At the same time the CCP local administrations have created an environment that allows corrupt capitalists to run their businesses into the ground and then abscond, leaving workers, creditors, and suppliers, in the lurch. Many of today’s fugitive bosses were well integrated with local officials and paid well for their services. Today the factories are being sealed for “immediate auction”, with workers allowed to remain temporarily only in the dormitories and canteens.At the same time the local governments are using public budgets to pay out unpaid wages to redundant workers, a fact that is drawing increasing criticism on similar lines to anger at bank bail-outs in the West. In order to clear the streets and prevent the anger of workers crystallising into a wider struggle across factory or township borders, governments are using the ‘carrot’ of compensation rather than the ‘stick’ of police repression – at least for the time being. The local government in Zhangmutou township, Dongguan, paid out more than 24 million yuan ($3.5 million) to compensate the 7,000 former workers of Smart Union Group, China Daily reported (23 October). This was the township’s entire budget for the coming year! Yet workers are owed four times this amount and may never receive the full amount. Once paid off and dispersed, the authorities hope migrant workers will move onto other jobs or other areas. Rival factories have been sending recruitment agents into the demonstrations in Dongguan and Shenzhen to fill their quota of vacancies.The main focus of workers’ protests has been to get part if not all of the wages they are owed. This is the still basic level at which the struggle stands today, not seeking to challenge the bosses’ right to turn thousands out onto the streets. The perspective of many migrant workers is that 1) they hope and believe that by moving again if necessary they can get new work, and 2) It is not really possible to challenge the bosses and officialdom: “They will do as they want, what can we do?”

The Challenge Of The New Statism
The liberal democracies have experienced financial shocks and reacted, but not as free market advocates expected. Adam Smith’s name is not being loudly heard in the world’s central banks. Instead we have western governments recommending federal interference in their poorly regulated economies and incorporating methods similar to those that guide New Statist nations, such as China and Russia. This phenomenon reveals that Francis Fukayama, who received commendation for his 1989 philosophical tract: The End of History, might have spoken too fast."What we may be witnessing is not just the end of the Cold War, or the passing of a particular period of post-war history, but the end of history as such: that is, the end point of mankind's ideological evolution and the universalization of Western liberal democracy as the final form of human government."Fukayama repeated a thesis of often maligned Karl Marx that liberal democracy is an integral part of the capitalist system but refuted Marx's assertion that “capitalism would inevitably lead to increasing class polarization and class conflict,” and “through its own inherent processes of development it is destined to give rise ultimately to its own dissolution." It now seems that both of these scholars have erred and the more prescient is Azar Gat, Professor of National Security at Tel Aviv University. In a Foreign Affairs article: The Return of Authoritarian Great Powers, July/Aug 2007, Professor Gat argues that Fukuyama has not considered the emergence of imposing authoritarian nations, "which could 'end the end of history'." Gat proposes a challenge: “These authoritarian capitalist regimes could inspire other states to follow their model.”The New StatismIn a previous article, The New Statism, The Rise of Corporate States, Alternative Insight, Oct. 2007, the writer independently outlined a similar concept: "A new statism, in various prescriptions, exercises control over the political, moral, economic and social fabric of several nations and has the potential to control the destiny of the world."An earlier article, The Socialization of America, Alternative Insight, April 2005, stated: “The global economy has been pioneered by the United States but has not been a perfect fit for new pioneering nations. In order to provide prosperity for its people, the United States must implement policies that offset the deleterious effects of globalization. American history shows that private industry has never been the sole source of solutions to recurrent economic problems.”The former article described several nations that can be described as "authoritarian capitalist” regimes. China and Russia are the most prominent, but India, Israel, Venezuela, Bolivia and Vietnam, and several autocratic Arab nations can also be considered New Statist. Their institutions include significant New Statist characteristics:The government allows free enterprise but might invest in some industries (mixed economy) and control industries related to national defense, natural resources, communications and media. In some cases it also has extensive land ownership.The government, by direct or indirect mechanisms, partially regulates international money transfers, international trade, wages, prices, internal investment and segments of the labor market.The government promotes nationalism, reinforces chauvinism and allies the education system with these efforts.The government exercises powers that lessen opposition and prevent excessive dissent.With the liberal political and economic world suffering from an economic downfall, emerging nations might be less likely to adopt the free market model and more likely to consideration the autocratic Statist paradigm as an attractive alternative to liberal democracy. Even the free marketers are shelving their concepts and applying Statist solutions for private problems. Rather than an end to history, the liberal democracy movement has become only a stage in history. As predicted by rejected and non-conventional economists, a new stage of history is unfolding.




SEE:
The New Imperial Age
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