Contradictions

No civil war in Iraq, says Bush

Ok so Bush says there is 'no' civil war currently in Iraq, and the Pentagon agrees sort of....

Pentagon: Country ripe for civil war

So the question we all have to ask is...will there be a civil war in time for the U.S. elections in November. Place your wagers.

Also See:

War

Iraq

US Imperialism

US Economy


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Negotiations with the Taliban

The Terrorist State of Pakistan is making deals with the Taliban while executing competing warlords for their favour. So all ya pro-war dweebs whose the appeasers now?

The Lost Territories

North Waziristan and Quetta: Pakistani Tribal regions continue to slide into the hands of the Taliban and al-Qaeda

The Taliban have fought the Pakistani Army to a standstill, and forced them to largely remain in barracks in the North Waziristan agency capital of Miranshah. Beheadings of suspected U.S. spies are now commonplace; the bodies of the two latest victims "were dumped at separate places near Miranshah." Despite this, the Pakistani government is openly negotiating with the Taliban. This is the second time the Pakistani government has negotiated a settlement with the Taliban since the Pakistani Army was largely defeated in 2004.

The Taliban are not only negotiating a settlement which will allow them to remain in control of North Waziristan, but one which would require the Pakistani government to pay ‘huge compensation’ for fighting in the region. The Daily Times reports on the haggling over the tribute to be paid to the Taliban.

And for those of you who dismiss Jack Laytons call for negotiations well lookee who is in the Kabul Government and who Karzai is planning to make deals with.
Yep time to get out NOW!

Remember This War?
Abdul Salaam Rocketi, a former frontline Mujahedin commander in Afghanistan, earned a surname that reflects his prowess with rocket-propelled grenades and spent eight months in detention after U.S.-led forces drove out the Taliban in 2001. Now, as a member of the Afghan parliament, he encourages his former Taliban comrades to reconcile with the government of President Hamid Karzai. It's widely agreed that Afghanistan's national army and police, despite some improvements, are far too small and weak to take on powerful narco-traffickers, local warlords and increasingly audaciousKarzai's recent proposal to recruit tribal militias to become a sort of police auxiliary, which he figures will just encourage them to greater lawlessness and corruption. "These militias destroyed our country," he says, referring to the devastating civil war that shattered Afghanistan following the Soviet withdrawal in 1989. "The nation was fed up with them, so the Afghan people welcomed the Taliban. And now the government wants to bring them back? This is madness.

Also See:

Afghanistan

War


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Another Free Online Book

The Class of the New by Richard Barbrook

Netizens, elancers, cognitarians, swarm-capitalists, hackers, produsumers, knowledge workers, pro-ams... these are just a few of the monikers that have been applied to the new social class emerging from the networked workplace.

In this short book, Richard Barbrook presents a collection of quotations from authors who in different ways attempt to identify an innovative element within society: ‘the class of the new’. Announcing a new economic and social paradigm, this class constitutes a ‘social prophecy’ of the shape of work to come. From Adam Smith's ‘Philosophers’ of the late 18th century, down to the ‘Creative Class’ celebrated by sociologist Richard Florida today, the class of the new represents the future of production within and beyond capitalism.


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US War On Capitalism In Iran

The sabre rattling will increase since Iran has rightly stood up to the US over the issue of its development of a nuclear energy infrastructure. While the Americans have put the issue in the context of nuclear weapons the reality is that Iran views the American efforts as an attempt to end its domestic nuclear energy program. Which of course it is. The use of the chimera of WMD is an excuse to continue the American led sanctions on Irans development as a major capitalist state in the region.

The sanctions have been in place since the fall of the Shah of Iran's regime. This left Iran isolated and the economy reliant on state capitalism. The failure of the sanctions can be seen in Irans successful development of a Fordist economy. It is the only industrialized nation in the region, and one that has car manufacturing.

All other regimes in the region rely upon guest workers for their proletariat, including Lebanon. Outside of Iraq, Iran is the only Arab country with a developed traditional industrial capitalist economy and consequently a developed proletariat.

Economy of Iran
The Iranian government is attempting to diversify by investing revenues in other areas, including, car manufacturing, aerospace industries, consumer electronics, petrochemicals and nuclear technology. Iran is also hoping to attract billions of dollars worth of foreign investment by creating a more favorable investment climate, such as reduced restrictions and duties on imports and the creation of free-trade zones like in Chabahar and the Island of Kish. Modern Iran has a solid middle class and a growing economy but continues to be plagued with high inflation and unemployment.

What US sanctions did was to maintain Irans state capitalist regime. Even when it tried to privatize, that resulted not in greater production and productivity, that is development of its existing manufacturing ability, but distorted the marketplace by the introduction of imported goods, displacing home grown manufacturing.

Iran - Economic analysis of government's policies, investment ...
At the conclusion of the '89 war between Iran and Iraq, a movement of 'Economic Adjustment' took place. This was to transfer large productive units of economy to the entrepreneur of the private sector or restore the confiscated property to its owners, which partially did take place on the confiscated properties. Some business owners, rather than improving the quality of goods and services, crossed the lines and joined the growing number of businesses importing the same foreign goods. This resulted in closure of factories and massive layoffs. The factories that went into production, facing stiff competition form the importers, adopted other measures to be able to sustain a profitable business. Reducing the cost was the ultimate goal. To be able to achieve this, internal costs had to be trimmed to a minimum to turn a profit. Workers were layedoff as redundant; more disciplinary regulations were put in place which enhanced severity. The remaining workers were hired on contracts rather than permanent positions which reduced or eliminated the fringe benefits. These changes exerted more pressure on the workers and let to intensification of exploitation. These conditions lowered the standard and style of living of the workers. The workers were put under direct pressure. One way was to increase the speed of production not by means of modern and efficient machinery, but by tampering with the existing equipment and increasing its speed. With self-imposed regulations, manipulations and increased work hours they further endangered the workers safety and well being. Statistics have shown that these acts in fact did result in accidents. According to a local newspaper, Kar-o Kargar, 3000 fingers were cut off within a period of four months.

The current threat of increased sanctions means a continuation of America's economic war against Iran becoming a developed Industrial capitalist country, a major competitor to America and its client states like Saudi Arabia.

The use of domestic nuclear power is seen by Iran as crucial for both home use, domestic electricity, and for electrical power for manufacturing. Key to increasing Irans transformation into an industrialized economy. When Iran signed on to the IAEA Non Proliferation Declaration its economy boomed.

The current discussion of sanctions, is laughable. The American sanctions in place since 1979 have had negligble effect on Irans economic development, except to create a Stalinist State contrary to the ideology of free trade and free markets. Ironic that. Any further attempt to impose sanctions will not work either. What they will do is hurt the Gulf Emirates and other Persian Gulf Oil exporting economies, America's client states

Sanctions just one danger for Iran's economy
"Economic sanctions create problems, but the Iranian economy has learned to circumvent them, especially through third countries," said the chairman of the Atieh Group consultants, Bijan Khajehpour.

Laylaz said that under the worst-case scenario, with sanctions touching oil exports, the magnitude of such a decision would not only hurt Iran, currently producing 4.08 mln barrels per day of oil.

"Iran's military maneuvers in the Strait of Hormoz hold this message that the country is capable of blocking oil traffic. This could then affect the oil producers in the region," he said after Iran's recent war games in Persaian Gulf waters.

Why is the US declaring economic war on Iran over an issue which would seem ridiculous anywhere else. For instance if the US told Ontario to end its expansion of nuclear energy for domestic purposes. And identifying the enrichment of uranium for those purposes as being used for production of nuclear weapons.

The reality is that US Imperialism needs and wants an underdeveloped capitalism in the region. That region is not just the Middle East but the area's surrounding Iran, the 'Stans. It's occupation of Afghanistan allowed it a geopolitical expansion into the areas once controled by the old Soviet Union.
This Caspian basin region is rich in oil.Washington encourages multiple pipelines from Central Asia

If Iran was to become a major industrial power in the region, exporting cars, technology, consumer goods, it would be a competitor with India, Pakistan, Israel, as well as now becoming a supplier to the oil emirates. All American clients.

Regardless of the regime in power, Iran is America's major economic competitor in the region. With the destruction of the State Capitalist economy in Iraq, Iran remains the only developing industrialized country in the region. While a country like Dubai is booming, its boom is based on transportation and real estate developement. It is a place to invest capital not to produce capital. And it too relies upon guest workers.

Suadi Arabia and Kuwait remain underdeveloped resource economies, reliant on imported guest workers. There is a population of 4 million in Kuwait, three million are guest workers. Jordan, which is really Palestine, is an under-developed economy, one that also relies upon guest workers, the majority of those being Palestinians.

Only Iran is developing an industrialized fordist economy in the region. As such it is America's biggest competitor.

This is the real reason America is declaring war on Iran at this time. It used Iraq as its client state to attack Iran, thus encouraging an internecine battle between the only two developed industrialized countries in the region.

When Iraq was becoming an economic threat the U.S. attacked it on the pretext of its invasion of Kuwait. The reality of the 1991 war was that it could have been settled diplomatically by allowing Iraq access to the Persian Gulf. While the Americans and their UN allies attacked Iraq the ruling class in Kuwait left to party in discos in Egypt.

The Iraq sanctions like their Iranian counter part, were counter productive. They did little to halt the state capitalist development of Iraq. Thus in order to crush a competitive capitalist state in the region the Bush regime did Israel a favour, and bombed Iraq back to the stone age in 2003.

Israel did America a favour in return, bombing its neighbour Lebanon into the stone age, in order to make sure the region has no Arab capitalist economies that could compete with Israel or America.

Imperialism demands a region that is empty, that can be filled by a particular national capitalism, in this case American capitalism. Its corporations which are rebuilding Iraq, like Haliburton and Bechtel. Corporations which are competitors with Arab capitalists like Bin Laden Inc.

Iran uses irregular military operations to destablize its competitors as well. Funding Hezbollah, supporting and giving succour to Afghanistan mujahdin as well as succour to Mujahdin and Shia rebels in Pakistan. The result has been an increase in opium addiction amongst the poor and the unemployed in Iran. An irony that. The fact is that the Mujihadin relied upon opium production in Afghanistan and Pakistan to pay for weapons supplied to it by the CIA for its war against the Soviet Union. Thanks to the creation of narco terrorism in the region the chickens have come home to roost in Iran which supports these irregular armies.

However if the world really wants Iran to change, it would forgo the Americans demand that Iran give up its domestic nuclear progam, and actually aid Iran in developing as a capitalist economy.

Then the working classes would continue to revolt as they have before, leading to the collapse of the US puppet regime of the Shah and continue to under the mullahs. The only real change that can occur in Iran is if it is allowed to become a major capitalist economy in the region. Thus the proletariat will be able to launch a real reform campaign from a position of real power.

America's sanctions and threats of war will not do that. And of course that is not what they are intended to do.

Also See:

Iran

US Imperialism



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War Is Good Business

How you can profit from the coming Middle East war.
And after all we do want to make them big bucks.
Capitalism has no morality. It's only moral is how to make a profit.


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The Cost of War

As George Bernard Shaw once said, if you put all the economists in the world end to end they would still not reach a conclusion.

Guns, butter and the Fed: Rethinking Iraq's economic impact ...
So what exactly is the war's impact?

The U.S. is spending $6 billion a month on Iraq under current appropriations. To date, expenditures have totaled an estimated $320 billion, a supplemental bill now working its way through Congress, according to a report by Steven Kosiak, a budget analyst with the Center for Strategic and Budgetary Assessments.

A study by the Congressional Budget Office forecast an additional $225 billion in spending over the next 10 years, assuming troop levels fall to 50,000 in a few years.

"Taken together, it is quite possible that the United States will ultimately spend more on U.S. military operations in Iraq and Afghanistan than it did on the Korean War ($455 billion) or the Vietnam War ($650 billion)," Kosiak wrote.

But a study by Joseph Stiglitz, a Nobel Prize-winning economist, war critic, and former Clinton administration official, estimated the total cost of the war in the range of $750 billion to $1.2 trillion. A big part of that, he says, is the continuing cost of health-care for the more than 17,000 soldiers wounded in the Iraq conflict.

Economists say it's very difficult to document the war's economic fallout. Bob Parker, a former chief statistician for the Bureau of Economic Analysis, said the most complicating factor is that the military is spending much of the money overseas, which doesn't directly benefit the economy on the home front.

Smith said the war impact is "highly concentrated in a few industries and few locations," especially near the military's major staging areas like Fayetteville, N.C., Jacksonville Fla., and Norfolk Va.Companies like Halliburton Co. and Bechtel Group Inc. have benefited, Smith said.

Some economists, who oppose the war, believe it is hurting the economy in insidious ways.

"The problem of the war was it was so easy to finance, if that is a problem," said Robert Brusca, chief economist at FAO Economics.

On a political level, the war has pushed back Social Security reform and longer-term fixes to so-called structural aspects of the federal budget deficit.

At the end of the day, economists are growing increasingly worried as the war begins its fourth year on the ground.

"We've got this sort of house of cards," said Swonk. "It is either a strong house of cards or the whole thing could implode on us. It could go either way."

Also See:

War

Iraq

Afghanistan

US Imperialism

US Economy

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The Economics of War In Lebanon

War Is The Health of the State.

The conflict in the Middle East is no far-off war. For businesses around the globe, the warring parties are trading nations, sources of labour, supply, natural resources and food. Not for nothing were thousands of foreign workers doing business in Lebanon. Not for nothing are major western nations investing in the region. Lebanon: history and global impact

And in this case the State of Israel could afford to attack Lebanon. It also had too attack its major Port competitor, whose production and economy was begining to boom, threatening competition with Israels export market. Hezbollah was the pretext for a bit of good old fashioned capitalist punishment.

Israel economy should weather Lebanon war, for now
"War is unpleasant, but if Israel could have chosen the economy's best point for being attacked, this is the best timing because it is facing this challenge from very, very solid ground," said Ella Fried, head of research and development at financial information publisher Dun & Bradstreet Israel.Israel's war with Hezbollah guerrillas in Lebanon should not derail the Jewish state's robust economy as long as fighting ends soon.The $130 billion economy has ridden a wave of positive sentiment since 2004 and is headed for a second straight year of growth above 5 percent on strong exports, a revival of consumer spending and heavy foreign investment.Foreign investors have not been deterred. Financial markets have been fairly stable with stock prices and the shekel only down slightly since last Wednesday. Those that are selling are Israelis, not foreigners. The Finance Ministry said even if it needed to boost defence spending, it would do so within the budget framework since Israel is running a surplus so far this year.The credit rating agencies agree Israel is in a good position to overcome a short-term conflict with Hezbollah.

In a joint statement issued by D&B Israel and the Purchasing and Logistics Managers Association it was noted that the fall in the index was attributed to the war in Lebanon, which slowed down domestic demand for Israeli products, and caused a sharp drop in employment and output. The statement also noted that the Procurement Managers Index will drop further in August 2006, and will indicate continued economic slow down. However, according to D&B Israel, the expected continued growth in export demand should bring about a reasonable optimism about Israeli manufacturing recovery later this year.

Merrill Lynch: Shekel reflects economy's strength
In a report on prospects for the shekel, US investment house Merrill Lynch gives a generally positive assessment of the Israeli economy in the wake of the fighting in Lebanon. However, the report does point to certain worries, which it says are liable to cap any upside in the shekel. The report recommends long positions in Israeli inflation-linked Galil bonds, but also recommends investors to hedge foreign currency exposure.

"We believe that the shekel’s recent resilience in the face of the Israeli war against Hezbollah in Lebanon points to the country’s underlying economic strengths," Merrill Lynch analyst Mehmet Simsek writes. "The slowdown in domestic demand is likely temporary, inflation looks contained, external balance is healthy, and fiscal deficit is likely to remain below 3.0% of GDP."

Nevertheless, Simsek sees three clouds on the horizon. "First, investors are concerned about the impact of the war on political stability. Second, there is uncertainty as to whether the government will be able to maintain its pre-war fiscal stance. Third, strong domestic and external demand has underpinned solid economic performance. A slowdown in US activity may reduce external demand."

Israel is reconstructing despite the rocket attacks, which ended up as weak attacks, creating small scale fires more than any major damage to infrastructe. Unlike the economic effects of the Israeli airwar on Lebanon. Which was not collatoral damage but a deliberate and successful attack on Lebanese capitalism. An attack on a competitor nation.

Lebanon: Deliberate destruction or "collateral damage"?
The widespread destruction of apartments, houses, electricity and water services, roads, bridges, factories and ports, in addition to several statements by Israeli officials, suggests a policy of punishing both the Lebanese government and the civilian population in an effort to get them to turn against Hizbullah. Israeli attacks did not diminish, nor did their pattern appear to change, even when it became clear that the victims of the bombardment were predominantly civilians, which was the case from the first days of the conflict.

Blogger Aqoul noted that durining the hieght of the war the Lebanese domestic economy was in a desperate straight as dollars fled the economy. What the heck did you think was happening with the mass exodus of refugees. They may have left goods, relatives, and pets behind but they emptied their bank accounts.

Aqoul: The Economic Side of the Lebanon War

Building off of the desperate spin by Lebanon's Central Bank Governor, Riad Salameh (who seems to be doing a yoeman job in the face of disastrous circumstances, the article notes an emerging (as of one week ago) dollar shortage and attempts to keep the psychology in play by noting US protection:

"The dollars are going to be brought in by sea with international agreement, under US protection," said Mr Salameh.

The governor played down reports of pressure on the Lebanese pound, saying the central bank, which has about $13bn (£7bn, €10bn) in foreign exchange reserves, was committed to the currency's stability and would maintain the confidenceof the markets. Lebanese nationals tend to dump the Lebanese pound and shift into dollars during political crises.

It should be noted that Lebanon's banking system is already heavily dollarised (it is not common in region to be able to withdraw foreign currency from ATMs, as one can in Leb Land), and doubtless part of the shortage was (and is) because of the Israeli blockade, as well as panic dumping of Lebanse livres.

More interesting, however, are the seat of the pants figures cited here:

The central bank does not disclose the amount of money that it has used to prop up the Lebanese Pound. The English language Daily Star newspaper quoted a trader as saying $500m on the first day of the fighting and thereafter gradually less. Foreign reserves may have been depleted by$1bn-$2bn.

The time frame for the USD 1 billion is not clear, but let's say first week cost CB Lebanon USD 1 billion, second week almost that. Assume downward pressure will resume with the collapse of ceasefire talk and the open hostility between the Lebanese government - well the whole world really - and the US over its increasingly irrational position. One billion a week is obviously not sustainable, unless of course the Gulf comes to the rescue - which is very, very possible but obviously has its own costs.

Sad note to add:

The outbreak of the fighting found Lebanon in a relatively strong economic and monetary position, with a "historically high level of foreign reserves and foreign holdings", said the governor. The balance of payments surplus is estimated atabout $1.8bn.

Rather obviously the past month has not helped that.

At the end of the war and with the current dismal ceasefire, which allows Israel to continue to blockade Lebanon, the Lebanese economy has gone down the toilet.

Lebanon: Reconstruction and Rivalry
August 30, 2006 22 24 GMT
Lebanese Finance Minister Jihad Azour warned Aug. 30 that the country could sink into a recession in the wake of $15 billion worth of destruction wrought by Israeli bombing during the 34-day conflict with Hezbollah and the continuing Israeli blockade. As Lebanon is rebuilt, an array of regional rivalries will emerge as Saudi Arabia, Qatar and Iran shop for influence in the country.Even before the war, Lebanon was struggling to pull itself out of a massive debt that stood at $38.6 billion -- 183 percent of the country's gross domestic product. Current Lebanese estimates of the economic impact of the war are as high as $9.5 billion. U.N. estimates put the number even higher, around $15 billion. In an economy where value-added taxes from trade (Beirut's port earned the government $5 million a day before the war) and tourism (mainly from Gulf Arab nations) made up 37 percent of annual Lebanese government income, relieving the debt will not be easy. The Israeli blockade -- intended to cut off arms and supplies to Hezbollah -- and tourists' travel fears have all but eliminated these sources of revenue. This is where the regional jockeying comes in.

And the attack on the Lebanese power station not only has an impact on the environment of the Medditeranian , it also directly impacts Lebanese fishing and tourism industries.

An Environmental crisis at the door: Impact of the war on Lebanon

Impacts on Tourism
The tourism industry has badly suffered. Beach-based tourism was a major economic
activity in Lebanon and constituted a major part of the Lebanon’s gross domestic product
(GDP). Many public and private beaches have been heavily affected including fishermen
and leisure boats/ships and yachts. It is well known that he Lebanese harbors host
leisure and tourists’ yachts and boats from all over the Arab and Mediterranean
countries. The time needed to clean up the sand, the rocks, the shallow reef and the marine
ecosystem as a whole, is long to impact the tourism industry chronically.

Impacts on Biodiversity & the Fishing Industry
The fishing industry is suffering from both the siege on Lebanon by the Israeli army and
the oil spills that killed the living creatures and fishes in the nearby breeding areas.
In addition the Lebanese coastline is made up of mainly rocky shores. The initial
estimates show that the mortality of limpets and other herbivores is high. Further
detailed studies need to be carried out to assess the true scale of the damage.

While Israeli tourist resorts, while suffering a decline in tourists due to the war, are not devasted and destroyed. In fact even after the Hezbollah rocket attacks manufacturing in the North of Israel was minimally affected.

Fog of war dissipates: Finance Ministry puts total damages at NIS
About one week ago, the socio-economic cabinet announced an NIS 100 million grant to local government in the North. This followed NIS 50 million which had been transferred in an emergency measure two weeks earlier. The Interior Ministry press release announcing the funding said division would be determined by a professional committee headed by Belinkov. State officials believe a total of NIS 2 billion in aid will be transferred to local governments and emergency services in the North.

The treasury is currently focusing on limiting the damage to the 2006 state budget. According to treasury budgets director Kobi Haber, the day after the war is over, the treasury will begin to deal with the 2007 budget. Haber estimates that instead of an economy that had been expected to grow in 2006, according to all the usual indicators, by 5.2-5.5 percent of GDP, 2006 will end with less than 4 percent economic growth.

The allocation table for the NIS 100 million about to be distributed to northern towns, has created great confusion and resentment. It appears that the key criterion was the number of rocket strikes in a given jurisdiction. As a result, large regional councils that stretch across thousands of dunams, will get larger grants, even if their population is smaller and they need fewer services than more urban neighbors. Galilee authority Shagor is slated to receive NIS 1 million in aid, while neighboring city Nazareth will receive only NIS 765,000. In addition, the 240,000-dunam Mateh Asher, with a population of just 18,000 people, is entitled to NIS 3.3 million, just a little less than the four Haifa suburbs the Krayot will get to serve their collective population of 163,000.

In contrast, Kiryat Shmona mayor Haim Birbibai says, "we got 25 percent of the rockets from the Hezbollah, but only 3.8 percent of the compensation from the state."

After the end of the last Israeli occupation Hezbollah rebuilt Southern Lebanon while the crony capitalism of Rafik Hariri rebuilt Beirut and northern Lebanon. With his assasination it remains to be seen if his family and corporation can do the Lebanese miracle twice.

Impact of the War on Terror on Certain
Aspects of US Policy in the Middle East
The early and mid-1990's marked a period of
economic promise. Several trends and events combined to offer hope that a
much-needed regional economic takeoff was finally under way. They included
the end of the Lebanese civil war; the onset of the Oslo peace process with its
promise of eventual peace and Arab-Israeli joint venturing in trade and
investment; relatively stable oil prices; significant progress on the part of
important Arab economies such as Egypt's in debt-restructuring and budgetary
rationalization; and the emergence of several viable local stock markets that
encouraged private sector capital formation and inflows of foreign investment on
the back of a promised wave of privatization of public enterprises

Certainly the attempt by the central government to match and beat Hezbollahs generosity in rebuilding homes, Hezbollah have give each Shia $12, 000 US Dollars ( ironic that, US Dollars, petro-dollars from Iran) , with a promise of $40,000 for Lebanese home and business owners , will put the economy in the tank.

Along with the need for massive expenditures in rebuilding roads, schools, the power station, hospitals, all the infrastructure of civil society, the politics of outmatching Hezbollah in generosity are poorly thought out. But given the chance to bribe the Lebanese with their own money, the state acts in its short term political interests rather than the long term economic interests of capitalism in Lebanon.


The irony here is that Lebanons benefactors are Arab nations like Saudi Arabia, who if they were any other capitalist state could sue Israel for its destruction of civilian infrastructure. They can't because they don't recongize the State of Israel. Opps.

Israel will benefit from increased US investment after this war. Already the American Jewish lobby is gathering support funds and business in Israel has not been as badly damaged. The use of anti-personal cluster bombs helped the US eliminate some of its excess military inventory which it could not legally use. Putting dollars in the hands of the US who badly need it due to their extended wars in Iraq and Afghanistan.

The use of the cluster bombs also was a deliberate attempt by Israel create a situation of very real economic insecurity, to delay the reconstruction of Southern Lebanon. One cannot rebuild as quickly if one is clearing away cluster bombs.

The continued illegal blockade of Lebanons ports also allows Haifa and other Israeli ports to open in advance of their Lebanese competitors. They are less concerned with humanitarian aid or even weapons getting in then they are about exports getting out.

It is Israeli state policy to attack the economic base of its competitors; whether Lebanon or Palestine.

ei: Economic Update: Westbank and Gaza

It follows that suspending revenue transfers, constraining Palestinian movement and access and reducing aid flows would cause severe economic damage if the available tools were employed with sufficient vigor. Second, the impact of the suspension of clearance revenue transfers and restrictions on movement and access would be much greater than the impact of reduced aid flows.

The relative impact of GOI and donor actions is borne out by the economics of the second intifada--a period in which the various restrictions placed on the movement of people, labor and goods, and on the transfer of revenues collected by GOI on the PA's behalf, led to a contraction in real personal incomes of almost 40 percent between the third quarter of 2000 (Q3/2000) and Q3/2002--despite a doubling of annual donor disbursements in the same period.

Also See:

Lebanon

Israel

Imperialism







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