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Showing posts with label corporate power. Show all posts
Showing posts with label corporate power. Show all posts

Friday, 7 November 2014

The British government is leading a gunpowder plot against democracy


This bill of corporate rights threatens to blow the sovereignty of parliament unless it can be stopped
Illustration by Sébastien Thibault
Illustration by Sébastien Thibault
On this day a year ago, I was in despair. A dark cloud was rising over the Atlantic, threatening to blot out some of the freedoms our ancestors lost their lives to secure. The ability of parliaments on both sides of the ocean to legislate on behalf of their people was at risk from an astonishing treaty that would grant corporations special powers to sue governments. I could not see a way of stopping it.
Almost no one had heard of the Transatlantic Trade and Investment Partnership (TTIP) between the EU and the US, except those who were quietly negotiating it. And I suspected that almost no one ever would. Even the name seemed perfectly designed to repel public interest. I wrote about it for one reason: to be able to tell my children that I had not done nothing.
To my amazement, the article went viral. As a result of the public reaction and the involvement of remarkable campaigners, the European commission and the British government responded. The Stop TTIP petition now carries more than 750,000 signatures; the 38 Degrees petition has 910,000. Last month there were 450 protest actions across 24 member states. The commission was forced to hold a public consultation about the most controversial aspect, and 150,000 people responded. Never let it be said that people cannot engage with complex issues.
Nothing has yet been won. Corporations and governments – led by the UK – are mobilising to thwart this uprising. But their position slips a little every month. When the British minister responsible at the time, Ken Clarke, responded to my first articles, he insisted that “nothing could be more foolish” than making the European negotiating position public, as I’d proposed. But last month the commission was obliged to do just this. It’s beginning to look as if the fight against TTIP could become a historic victory for people against corporate power.
The central problem is what the negotiators call investor-state dispute settlement (ISDS). The treaty would allow corporations to sue governments before an arbitration panel composed of corporate lawyers, at which other people have no representation, and which is not subject to judicial review.
Already, thanks to the insertion of ISDS into much smaller trade treaties, big business is engaged in an orgy of litigation, whose purpose is to strike down any law that might impinge on its anticipated future profits. The tobacco firm Philip Morris is suing governments in Uruguay and Australia for trying to discourage people from smoking. The oil firm Occidental was awarded $2.3bn in compensation from Ecuador, which terminated the company’s drilling concession in the Amazon after finding that Occidental had broken Ecuadorean law. The Swedish company Vattenfall is suing the German government for shutting down nuclear power. An Australian firm is suing El Salvador’s government for $300m for refusing permission for a goldmine over concerns it would poison the drinking water.
The same mechanism, under TTIP, could be used to prevent UK governments from reversing the privatisation of the railways and the NHS, or from defending public health and the natural world against corporate greed. The corporate lawyers who sit on these panels are beholden only to the companies whose cases they adjudicate, who at other times are their employers.
As one of these people commented: “When I wake up at night and think about arbitration, it never ceases to amaze me that sovereign states have agreed to investment arbitration at all … Three private individuals are entrusted with the power to review, without any restriction or appeal procedure, all actions of the government, all decisions of the courts, and all laws and regulations emanating from parliament.”
So outrageous is this arrangement that even the Economist, usually the champion of corporate power and trade treaties, has now come out against it. It calls investor-state dispute settlement “a way to let multinational companies get rich at the expense of ordinary people”.
When David Cameron and the corporate press launched their campaign against the candidacy of Jean-Claude Juncker for president of the European commission, they claimed that he threatened British sovereignty. It was a perfect inversion of reality. Juncker, seeing the way the public debate was going, promised in his manifesto that “I will not sacrifice Europe’s safety, health, social and data protection standards … on the altar of free trade … Nor will I accept that the jurisdiction of courts in the EU member states is limited by special regimes for investor disputes.” Juncker’s crime was that he had pledged not to give away as much of our sovereignty to corporate lawyers as Cameron and the media barons demanded.
Juncker is now coming under extreme pressure. Last month 14 states wrote to him, privately and without consulting their parliaments, demanding the inclusion of ISDS (the letter was leaked a few days ago). And who is leading this campaign? The British government. It’s hard to get your head around the duplicity involved. While claiming to be so exercised about our sovereignty that it is prepared to leave the EU, our government is secretly insisting that the European commission slaughter our sovereignty on behalf of corporate profits. Cameron is leading a gunpowder plot against democracy.
He and his ministers have failed to answer the howlingly obvious question: what’s wrong with the courts? If corporations want to sue governments, they already have a right to do so, through the courts, like anyone else. It’s not as if, with their vast budgets, they are disadvantaged in this arena. Why should they be allowed to use a separate legal system, to which the rest of us have no access? What happened to the principle of equality before the law?
If our courts are fit to deprive citizens of their liberty, why are they unfit to deprive corporations of anticipated future profits? Let’s not hear another word from the defenders of TTIP until they have answered this question.
It cannot be ducked for much longer. Unlike previous treaties, this one is being dragged by campaigners into the open, where its justifications shrivel on exposure to the light. There’s a tough struggle to come, and the outcome is by no means certain, but my sense is that we will win.

Tuesday, 12 November 2013

It's business that really rules us now

 

Lobbying is the least of it: corporate interests have captured the entire democratic process. No wonder so many have given up on politics
Tony Blair interview
‘Tony Blair and Gordon Brown purged the party of any residue of opposition to corporations and the people who run them. That's what New Labour was all about.' Photograph: Sean Dempsey/PA
It's the reason for the collapse of democratic choice. It's the source of our growing disillusionment with politics. It's the great unmentionable. Corporate power. The media will scarcely whisper its name. It is howlingly absent from parliamentary debates. Until we name it and confront it, politics is a waste of time.
The political role of business corporations is generally interpreted as that of lobbyists, seeking to influence government policy. In reality they belong on the inside. They are part of the nexus of power that creates policy. They face no significant resistance, from either government or opposition, as their interests have now been woven into the fabric of all three main political parties in Britain.
Most of the scandals that leave people in despair about politics arise from this source. On Monday, for instance, the Guardian revealed that the government's subsidy system for gas-burning power stations is being designed by an executive from the Dublin-based company ESB International, who has been seconded into the Department of Energy. What does ESB do? Oh, it builds gas-burning power stations.
On the same day we learned that a government minister, Nick Boles, has privately assured the gambling company Ladbrokes that it needn't worry about attempts by local authorities to stop the spread of betting shops. His new law will prevent councils from taking action.
Last week we discovered that G4S's contract to run immigration removal centres will be expanded, even though all further business with the state was supposed to be frozen while allegations of fraud were investigated.
Every week we learn that systemic failures on the part of government contractors are no barrier to obtaining further work, that the promise of efficiency, improvements and value for money delivered by outsourcing and privatisation have failed to materialise.
The monitoring which was meant to keep these companies honest is haphazard, the penalties almost nonexistent, the rewards can be stupendous, dizzying, corrupting. Yet none of this deters the government. Since 2008, the outsourcing of public services has doubled, to £20bn. It is due to rise to £100bn by 2015.
This policy becomes explicable only when you recognise where power really lies. The role of the self-hating state is to deliver itself to big business. In doing so it creates a tollbooth economy: a system of corporate turnpikes, operated by companies with effective monopolies.
It's hardly surprising that the lobbying bill – now stalled by the House of Lords – offered almost no checks on the power of corporate lobbyists, while hog-tying the charities who criticise them. But it's not just that ministers are not discouraged from hobnobbing with corporate executives: they are now obliged to do so.
Thanks to an initiative by Lord Green, large companies have ministerial "buddies", who have to meet them when the companies request it. There were 698 of these meetings during the first 18 months of the scheme, called by corporations these ministers are supposed be regulating. Lord Green, by the way, is currently a government trade minister. Before that he was chairman of HSBC, presiding over the bank while it laundered vast amounts of money stashed by Mexican drugs barons. Ministers, lobbyists – can you tell them apart?
That the words corporate power seldom feature in the corporate press is not altogether surprising. It's more disturbing to see those parts of the media that are not owned by Rupert Murdoch or Lord Rothermere acting as if they are.
For example, for five days every week the BBC's Today programme starts with a business report in which only insiders are interviewed. They are treated with a deference otherwise reserved for God on Thought for the Day. There's even a slot called Friday Boss, in which the programme's usual rules of engagement are set aside and its reporters grovel before the corporate idol. Imagine the outcry if Today had a segment called Friday Trade Unionist or Friday Corporate Critic.
This, in my view, is a much graver breach of BBC guidelines than giving unchallenged airtime to one political party but not others, as the bosses are the people who possess real power – those, in other words, whom the BBC has the greatest duty to accost. Research conducted by the Cardiff school of journalism shows business representatives now receive 11% of airtime on the BBC's 6 o'clock news (this has risen from 7% in 2007), while trade unionists receive 0.6% (which has fallen from 1.4%). Balance? Impartiality? The BBC puts a match to its principles every day.
And where, beyond the Green party, Plaid Cymru, a few ageing Labour backbenchers, is the political resistance? After the article I wrote last week, about the grave threat the transatlantic trade and investment partnership presents to parliamentary sovereignty and democratic choice, several correspondents asked me what response there has been from the Labour party. It's easy to answer: nothing.
Tony Blair and Gordon Brown purged the party of any residue of opposition to corporations and the people who run them. That's what New Labour was all about. Now opposition MPs stare mutely as their powers are given away to a system of offshore arbitration panels run by corporate lawyers.
Since Blair, parliament operates much as Congress in the United States does: the lefthand glove puppet argues with the right hand glove puppet, but neither side will turn around to face the corporate capital that controls almost all our politics. This is why the assertion that parliamentary democracy has been reduced to a self-important farce has resonated so widely over the past fortnight.
So I don't blame people for giving up on politics. I haven't given up yet, but I find it ever harder to explain why. When a state-corporate nexus of power has bypassed democracy and made a mockery of the voting process, when an unreformed political funding system ensures that parties can be bought and sold, when politicians of the three main parties stand and watch as public services are divvied up by a grubby cabal of privateers, what is left of this system that inspires us to participate?

Wednesday, 6 February 2013

Why the intellectual is on the run

Thanks to manufactured debates on TV, there is no time for irony and nuance nor are we able to distinguish between a charlatan and an academician

Harish Khare in The Hindu

Now that the Supreme Court has provided some sort of relief against harassment to Professor Ashis Nandy, it has become incumbent upon all liberal voices to ponder over the processes and arguments that combined to ensure that an eminent scholar had to slink out of Jaipur in the middle of the night because of his so-called controversial observations at a platform that was supposed to be a celebration of ideas and imagination. Sensitive souls are quite understandably dismayed; others have deplored the creeping culture of intolerance. Some see the great sociologist as a victim of overzealousness of identity politics. All this breast-beating is fine, but we do need to ask ourselves as to what illiberal impulses and habits are curdling up the intellectual’s space. We need to try to recognise how and why Professor Nandy’s nuanced observations on a complex social problem became “controversial.” Who deemed those remarks to be “controversial?” And, these questions cannot be answered without pointing out to the larger context of the current protocol of public discourse — as also to note, regretfully, that the likes of Mr. Nandy have themselves unwittingly countenanced these illiberal manners.

After all, this is not the first time — nor will it be the last — that a sentence in a complex argument has been picked up to be thrashed out into a controversy . This is now the only way we seem able to talk and argue among ourselves. And we take pride in this descent into unreasonableness. We are now fully addicted to the new culture of controversy-manufacturing. We have gloriously succumbed to the intoxicating notion that a controversy a day keeps the republic safe and sound from the corrupt and corrosive “system.”

This happens every night. Ten or 15 words are taken out of a 3,000-word essay or speech and made the basis of accusation and denunciation, as part of our right to debate. We insistently perform these rituals of denunciation and accusation as affirmation of our democratic entitlement. Every night someone must be made to burn in the Fourth Circle of Hell. In our nightly dance of aggression and snapping, touted as the finest expression of civil society and its autonomy from the ugly state and its uglier political minions, we turn our back on irony, nuance and complexity and, instead, opt for angry bashing, respecting neither office nor reputation. We are no longer able to distinguish between a charlatan and an academician. A Mr. Nandy must be subjected to the same treatment as a Suresh Kalmadi.
 
Nandy, a collateral victim

Mr. Nandy’s discomfort is only a minor manifestation of this cultivated bullishness. And let it be said that there is nothing personal against him. He is simply a collateral victim of the new narrative genre in which a “controversy” is to be contrived as a ‘grab-the-eyeballs’ game, a game which is played out cynically and conceitedly for its own sake, with no particular regard for any democratic fairness or intellectual integrity. By now the narrative technique is very well-defined: a “story” will not go off the air till an “apology” has been extracted on camera and an “impact” is then flaunted. In this controversy-stoking culture of bogus democratic ‘debate’, Mr. Nandy just happened to be around on a slow day. Indeed it would be instructive to find out how certain individuals were instigated to invoke the law against Mr. Nandy. Perhaps the Jamia Teachers’ Solidarity Association needs to be applauded for having the courage to call the Nandy controversy an instance of “media violence.”

At any given time, it is the task of the intellectual to steer a society and a nation away from moral uncertainties and cultural anxieties; it is his mandate to discipline the mob, moderate its passions, disabuse it of its prejudices, instil reasonableness, argue for sobriety and inject enlightenment. It is not the intellectual’s job to give in to the mob’s clamouring.
 
‘Middle class fundamentalism’

But, unfortunately, that is what our self-designated intellectuals have reduced themselves to doing: getting overawed by television studio warriors, allowing them to set the tone and tenor of dialogue. There is now a new kind of fundamentalism — that of what is touted as the “media-enabled middle class.” For this class of society, the heroes and villains are well defined. Hence, the idea of debate is not to promote understanding nor to seek middle ground nor to reason together, but to bludgeon the reluctant into conformity. Mary McCarthy had once observed that “to be continually on the attack is to run the risk of monotony … and a greater risk is that of mechanical intolerance.”

When intellectuals and academicians like Ashis Nandy allow themselves to be recruited to these “debates,” even if they are seen to be articulating a dissenting point of view, their very presence and participation lends credibility to the kangaroo courts of intimidation.
 
Manipulated voices

The so-called debate is controlled and manipulated and manufactured by voices and groups without any democratic credentials or public accountability. It would require an extraordinary leap of faith to forget that powerful corporate interests have captured the sites of freedom of speech and expressions; it would be a great public betrayal to trust them as the sole custodians of abiding democratic values and sentiments or promoters of public interest.

Intellectuals have connived with a culture of intolerance, accusation and controversy-stoking that creates hysteria as an extreme form of conformity. Every night with metronomic regularity our discourse-overlords slap people with parking tickets.

And a controversy itself becomes a rationale for political response. Let us recall how L.K. Advani was hounded out of the BJP leadership portals because a “controversy” was created over his Jinnah speech. And, that “controversy” was manufactured even before the text of the former deputy prime minister’s Karachi remarks were available in India. Nor should we forget how Jaswant Singh’s book on Jinnah was banned by the Gujarat Chief Minister, Narendra Modi, even before it was published because our newly designated national saviour had anticipated that a “controversy” would get created.

The Nandy ordeal should also caution against the current itch to demand “stringent” laws as a magical solution to all our complex social and political ills like corruption. It would be sobering to keep in mind that Mr. Nandy has been sought to be prosecuted under a stringent law based on the formula of instant complaint, instant cognisance and instant arrest. Mr. Nandy is lucky enough to have respected scholars give him certificates of good conduct, testify that he is not a “casteist” and that he is not against “reservation.” Lesser intellectuals may not be that fortunate. We must learn to be a little wary of our own good intentions and guard against righteous preachers.

If we insist on manufacturing controversy every day, all in the name of giving vent to “anger”, it is only a matter of time before some sections of society will be upset, angry and resort to violence. If we find nothing wrong in manufacturing hysteria against Pakistan, or making wild allegations against this or that public functionary, how can we object to some group accusing Mr. Nandy of bias? When we do not invoke our power of disapproval over Sushma Swaraj’s chillingly brutal demand for “10 heads” of Pakistani soldiers, who will listen to us when we seek to disapprove Mayawati’s demand for action against Mr. Nandy?

Just as the Delhi gang rape forced us to question and contest the traditional complacency and conventions, the Ashis Nandy business will be worth the trouble if it helps us wise up to the danger of culture of bullishness and accusation. Unless we set out to reclaim the idea of civilised dialogue, the intellectuals will continue to find themselves on the run.
 
(Harish Khare is a veteran commentator and political analyst, and former media adviser to Prime Minister Manmohan Singh)

Sunday, 24 June 2012

‘Terrorism Isn’t The Disease; Egregious Injustice Is’


NARENDRA BISHT
INTERVIEW
‘Terrorism Isn’t The Disease; Egregious Injustice Is’
On laws like AFSPA, Unlawful Activities (Prevention) Act, sedition, democracy, terrorism and more
No one individual critic has taken on the Indian State like Arundhati Roy has. In a fight that began with Pokhran, moved to Narmada, and over the years extended to other insurgencies, people’s struggles and the Maoist underground, she has used her pensmanship to challenge India’s government, its elite, corporate giants, and most recently, the entire structure of global finance and capitalism. She was jailed for a day in 2002 for contempt of court, and slapped with sedition charges in November 2010 for an alleged anti-India speech she delivered, along with others, at a seminar in New Delhi on Kashmir, titled ‘Azadi—the only way’. Excerpts from an interview to Panini Anand:
How do you look at laws like sedition and the Unlawful Activities (Prevention) Act, or those like AFSPA, in what is touted as the largest democracy?
I’m glad you used the word touted. It’s a good word to use in connection with India’s democracy. It certainly is a democracy for the middle class. In places like Kashmir or Manipur or Chhattisgarh, democracy is not available. Not even in the black market. Laws like the UAPA, which is just the UPA government’s version of POTA, and the AFSPA are ridiculously authoritarian—they allow the State to detain and even kill people with complete impunity. They simply ought to have no place in a democracy. But as long as they don’t affect the mainstream middle class, as long as they are used against people in Manipur, Nagaland or Kashmir, or against the poor or against Muslim ‘terrorists’ in the ‘mainland’, nobody seems to mind very much.


 
 
“India’s democracy is for the middle class; for Kashmir or Manipur, it’s not available. Not even in the black market."
 
 
Are the people waging war against the State or is the State waging war against its people? How do you look at the Emergency of the ’70s, or the minorities who feel targeted, earlier the Sikhs and now the Muslims?
Some people are waging war against the State. The State is waging a war against a majority of its citizens. The Emergency in the ’70s became a problem because Indira Gandhi’s government was foolish enough to target the middle class, foolish enough to lump them with the lower classes and the disenfranchised. Vast parts of the country today are in a much more severe Emergency-like situation. But this contemporary Emergency has gone into the workshop for denting-painting. It’s come out smarter, more streamlined. I’ve said this before: look at the wars the Indian government has waged since India became a sovereign nation; look at the instances when the army has been called out against its ‘own’ people—Nagaland, Assam, Mizoram, Manipur, Kashmir, Telangana, Goa, Bengal, Punjab and (soon to come) Chhattisgarh—it is a State that is constantly at war. And always against minorities—tribal people, Christians, Muslims, Sikhs, never against the middle class, upper-caste Hindus.


How does one curb the cycle of violence if the State takes no action against ultra-left ‘terrorist groups’? Wouldn’t it jeopardise internal security?
I don’t think anybody is advocating that no action should be taken against terrorist groups, not even the ‘terrorists’ themselves. They are not asking for anti-terror laws to be done away with. They are doing what they do, knowing full well what the consequences will be, legally or otherwise. They are expressing fury and fighting for a change in a system that manufactures injustice and inequality. They don’t see themselves as ‘terrorists’. When you say ‘terrorists’ if you are referring to the CPI (Maoist), though I do not subscribe to Maoist ideology, I certainly do not see them as terrorists. Yes they are militant, they are outlaws. But then anybody who resists the corporate-state juggernaut is now labelled a Maoist—whether or not they belong to or even agree with the Maoist ideology. People like Seema Azad are being sentenced to life imprisonment for possessing banned literature. So what is the definition of ‘terrorist’ now, in 2012? It is actually the economic policies that are causing this massive inequality, this hunger, this displacement that is jeopardising internal security—not the people who are protesting against them. Do we want to address the symptoms or the disease? The disease is not terrorism. It’s egregious injustice. Sure, even if we were a reasonably just society, Maoists would still exist. So would other extremist groups who believe in armed resistance or in terrorist attacks. But they would not have the support they have today. As a country, we should be ashamed of ourselves for tolerating this squalor, this misery and the overt as well as covert ethnic and religious bigotry we see all around us. (Narendra Modi for Prime Minister!! Who in their right mind can even imagine that?) We have stopped even pretending that we have a sense of justice. All we’re doing is genuflecting to major corporations and to that sinking ocean-liner known as the United States of America.


Is the State acting like the Orwellian Big Brother, with its tapping of phones, attacks on social networks?
The government has become so brazen about admitting that it is spying on all of us all the time. If it does not see any protest on the horizon, why shouldn’t it? Controlling people is in the nature of all ruling establishments, is it not? While the whole country becomes more and more religious and obscurantist, visiting shrines and temples and masjids and churches in their millions, praying to one god or another to be delivered from their unhappy lives, we are entering the age of robots, where computer-programmed machines will decide everything, will control us entirely—they’ll decide what is ethical and what is not, what collateral damage is acceptable and what is not. Forget religious texts. Computers will decide what’s right and wrong. There are surveillance devices the size of a sandfly that can record our every move. Not in India yet, but coming soon, I’m sure. The UID is another elaborate form of control and surveillance, but people are falling over themselves to get one. The challenge is how to function, how to continue to resist despite this level of mind-games and surveillance.

 
 
"Contemporary Emergency has gone to the workshop for denting-painting. It’s come out smarter, and more streamlined.”
 
 
Why do you feel there’s no mass reaction in the polity to the plight of undertrials in jails, people booked under sedition or towards encounter killings? Are these a non-issue manufactured by few rights groups?
Of course, they are not non-issues. This is a huge issue. Thousands of people are in jail, charged with sedition or under the UAPA, broadly they are either accused of being Maoists or Muslim ‘terrorists’. Shockingly, there are no official figures. All we have to go on is a sense you get from visiting places, from individual rights activists collating information in their separate areas. Torture has become completely acceptable to the government and police establishment. The nhrc came up with a report that mentioned 3,000 custodial deaths last year alone. You ask why there is no mass reaction? Well, because everybody who reacts is jailed! Or threatened or terrorised. Also, between the coopting and divisiveness of ngos and the reality of State repression and surveillance, I don’t know whether mass movements have a future. Yes, we keep looking to the Arab ‘spring’, but look a little harder and you see how even there, people are being manipulated and ‘played’. I think subversion will take precedence over mass resistance in the years to come. And unfortunately, terrorism is an extreme form of subversion.


Without the State invoking laws, an active police, intelligence, even armed forces, won’t we have anarchy?
We will end up in a state of—not anarchy, but war—if we do not address the causes of people’s rising fury. When you make laws that serve the rich, that helps them hold onto their wealth, to amass more and more, then dissent and unlawful activity becomes honourable, does it not? Eventually I’m not at all sure that you can continue to impoverish millions of people, steal their land, their livelihoods, push them into cities, then demolish the slums they live in and push them out again and expect that you can simply stub out their anger with the help of the army and the police and prison terms. But perhaps I’m wrong. Maybe you can. Starve them, jail them, kill them. And call it Globalisation with a Human Face.

Tuesday, 8 May 2012

Extend Freedom of Information to the Private Sector

Freedom of information: my monstrous idea will keep corporate tyrants at bay

Extending transparency laws to the private sector would make the likes of News International think twice before misbehaving
Illustration by Daniel Pudles
Illustration by Daniel Pudles
 
Modern government could be interpreted as a device for projecting corporate power. Since the 1980s, in Britain, the US and other nations, the primary mission of governments has been to grant their sponsors in the private sector ever greater access to public money and public life.

There are several means by which they do so: the privatisation and outsourcing of public services; the stuffing of public committees with corporate executives; and the reshaping of laws and regulations to favour big business. In the UK, the Health and Social Care Act extends the corporate domain in ways unimaginable even five years ago.

With these increasing powers come diminishing obligations. Through repeated cycles of deregulation, governments release big business from its duty of care towards both people and the planet. While citizens are subject to ever more control – as the state extends surveillance and restricts our freedom to protest and assemble – companies are subject to ever less.

In this column I will make a proposal that sounds – at first – monstrous, but I hope to persuade you is both reasonable and necessary: that freedom of information laws should be extended to the private sector.

The very idea of a corporation is made possible only by a blurring of the distinction between private and public. Limited liability socialises risks that would otherwise be carried by a company's owners and directors, exempting them from the costs of the debts they incur or the disasters they cause. The bailouts introduced us to an extreme form of this exemption: men like Fred Goodwin and Matt Ridley are left in peace to count their money while everyone else must pay for their mistakes.

So I am asking only for the exercise of that long-standing Conservative maxim – no rights without responsibilities. If you benefit from limited liability, the public should be permitted to scrutinise your business.

Companies already have certain obligations towards transparency, such as the publication of financial statements and annual reports. But these tell us only a little of what we need to know. In News International's annual report, you will find none of the information disclosed at the Leveson inquiry, though it is of pressing public interest. In fact it is only due to a combination of the Guardian's persistence and pure chance (the discovery that Milly Dowler's phone had been hacked) that we know anything about the wide-ranging assault on democracy engineered by that company.

Privatisation and outsourcing ensure that private business is, or should be, everyone's business. Private companies now provide services we are in no position to refuse, yet, unlike the state bodies they replace, they are not subject to the Freedom of Information Act. The results can be catastrophic for public accounts.

Just as the Blair government did while imposing the disastrous private finance initiative, the Bullingdon boys now shield their schemes from public scrutiny behind the corporate information wall. Companies are once again striking remarkable deals, hatched in secret, at the expense of taxpayers, pupils and patients. Last week, for example, we learned that Circle Healthcare will be able to extract millions of pounds a year from a public hospital, Hinchingbrooke, which is in deep financial trouble. Crucial information about the deal remains secret on the grounds of Circle's "commercial confidentiality".

The principle of corporate transparency is already established in English law. The Freedom of Information Act has a clause enabling the government to extend it to companies with public contracts. Unsurprisingly, it has not been exercised. The environmental information rules of 2004 define a public authority as any body providing public services, which includes corporations. Why should this not apply universally?

The Campaign for Freedom of Information points out that the Scottish government almost adopted this idea: it proposed extending the transparency laws to major government contractors. But though this plan was overwhelmingly popular, it was dropped last year on the grounds that the contractors were opposed to it. (Who would have guessed?) South Africa, by contrast, provides a general right of access to the records of private bodies. The ANC, aware of how corporations assisted apartheid, recognises that the state is not the only threat to democracy.

Freedom of information is never absolute, nor should it be. Companies should retain the right, as they do in South Africa, to protect material that is of genuine commercial confidentiality; though they should not be allowed to use that as an excuse to withhold everything that might embarrass them. The information commissioner should decide where the line falls, just as he does for public bodies today.

The purpose of this monstrous proposal is not just to shine a light into the rattling cupboards of private companies, but to change the way in which they behave. A body that acts as if the world is watching presents less of a threat to the public interest than a body that knows it won't get caught. Would News International have acted as it did if its emails could have been revealed as a matter of course rather than a matter of chance? If it is true that "governments don't rule the world, Goldman Sachs rules the world", should we not be entitled to know what Goldman Sachs is up to? Is that not the only means we have of preventing its unelected power from becoming tyrannical?

I realise that it is not a good time to be making this request: far from extending our transparency laws, Cameron hints that he wants to roll them back. But unless we decide what we want and how we mean to obtain it – however remote it might now seem – we have no means of making social progress. If we are to reclaim power from the corporations that have seized it, first we need to know what that power looks like.

Monday, 22 August 2011

For all Anna supporters - do you have answers to these questions?


Arundhati Roy
Arundhati Roy. File photo
The Hindu Arundhati Roy. File photo

While his means maybe Gandhian, his demands are certainly not.

If what we're watching on TV is indeed a revolution, then it has to be one of the more embarrassing and unintelligible ones of recent times. For now, whatever questions you may have about the Jan Lokpal Bill, here are the answers you're likely to get: tick the box — (a) Vande Mataram (b) Bharat Mata ki Jai (c) India is Anna, Anna is India (d) Jai Hind.

For completely different reasons, and in completely different ways, you could say that the Maoists and the Jan Lokpal Bill have one thing in common — they both seek the overthrow of the Indian State. One working from the bottom up, by means of an armed struggle, waged by a largely adivasi army, made up of the poorest of the poor. The other, from the top down, by means of a bloodless Gandhian coup, led by a freshly minted saint, and an army of largely urban, and certainly better off people. (In this one, the Government collaborates by doing everything it possibly can to overthrow itself.)

In April 2011, a few days into Anna Hazare's first “fast unto death,” searching for some way of distracting attention from the massive corruption scams which had battered its credibility, the Government invited Team Anna, the brand name chosen by this “civil society” group, to be part of a joint drafting committee for a new anti-corruption law. A few months down the line it abandoned that effort and tabled its own bill in Parliament, a bill so flawed that it was impossible to take seriously.

Then, on August 16th, the morning of his second “fast unto death,” before he had begun his fast or committed any legal offence, Anna Hazare was arrested and jailed. The struggle for the implementation of the Jan Lokpal Bill now coalesced into a struggle for the right to protest, the struggle for democracy itself. Within hours of this ‘Second Freedom Struggle,' Anna was released. Cannily, he refused to leave prison, but remained in Tihar jail as an honoured guest, where he began a fast, demanding the right to fast in a public place. For three days, while crowds and television vans gathered outside, members of Team Anna whizzed in and out of the high security prison, carrying out his video messages, to be broadcast on national TV on all channels. (Which other person would be granted this luxury?) Meanwhile 250 employees of the Municipal Commission of Delhi, 15 trucks, and six earth movers worked around the clock to ready the slushy Ramlila grounds for the grand weekend spectacle. Now, waited upon hand and foot, watched over by chanting crowds and crane-mounted cameras, attended to by India's most expensive doctors, the third phase of Anna's fast to the death has begun. “From Kashmir to Kanyakumari, India is One,” the TV anchors tell us.

While his means may be Gandhian, Anna Hazare's demands are certainly not. Contrary to Gandhiji's ideas about the decentralisation of power, the Jan Lokpal Bill is a draconian, anti-corruption law, in which a panel of carefully chosen people will administer a giant bureaucracy, with thousands of employees, with the power to police everybody from the Prime Minister, the judiciary, members of Parliament, and all of the bureaucracy, down to the lowest government official. The Lokpal will have the powers of investigation, surveillance, and prosecution. Except for the fact that it won't have its own prisons, it will function as an independent administration, meant to counter the bloated, unaccountable, corrupt one that we already have. Two oligarchies, instead of just one.

Whether it works or not depends on how we view corruption. Is corruption just a matter of legality, of financial irregularity and bribery, or is it the currency of a social transaction in an egregiously unequal society, in which power continues to be concentrated in the hands of a smaller and smaller minority? Imagine, for example, a city of shopping malls, on whose streets hawking has been banned. A hawker pays the local beat cop and the man from the municipality a small bribe to break the law and sell her wares to those who cannot afford the prices in the malls. Is that such a terrible thing? In future will she have to pay the Lokpal representative too? Does the solution to the problems faced by ordinary people lie in addressing the structural inequality, or in creating yet another power structure that people will have to defer to?

Meanwhile the props and the choreography, the aggressive nationalism and flag waving of Anna's Revolution are all borrowed, from the anti-reservation protests, the world-cup victory parade, and the celebration of the nuclear tests. They signal to us that if we do not support The Fast, we are not ‘true Indians.' The 24-hour channels have decided that there is no other news in the country worth reporting.

‘The Fast' of course doesn't mean Irom Sharmila's fast that has lasted for more than ten years (she's being force fed now) against the AFSPA, which allows soldiers in Manipur to kill merely on suspicion. It does not mean the relay hunger fast that is going on right now by ten thousand villagers in Koodankulam protesting against the nuclear power plant. ‘The People' does not mean the Manipuris who support Irom Sharmila's fast. Nor does it mean the thousands who are facing down armed policemen and mining mafias in Jagatsinghpur, or Kalinganagar, or Niyamgiri, or Bastar, or Jaitapur. Nor do we mean the victims of the Bhopal gas leak, or the people displaced by dams in the Narmada Valley. Nor do we mean the farmers in NOIDA, or Pune or Haryana or elsewhere in the country, resisting the takeover of the land.

‘The People' only means the audience that has gathered to watch the spectacle of a 74-year-old man threatening to starve himself to death if his Jan Lokpal Bill is not tabled and passed by Parliament. ‘The People' are the tens of thousands who have been miraculously multiplied into millions by our TV channels, like Christ multiplied the fishes and loaves to feed the hungry. “A billion voices have spoken,” we're told. “India is Anna.”

Who is he really, this new saint, this Voice of the People? Oddly enough we've heard him say nothing about things of urgent concern. Nothing about the farmer's suicides in his neighbourhood, or about Operation Green Hunt further away. Nothing about Singur, Nandigram, Lalgarh, nothing about Posco, about farmer's agitations or the blight of SEZs. He doesn't seem to have a view about the Government's plans to deploy the Indian Army in the forests of Central India.

He does however support Raj Thackeray's Marathi Manoos xenophobia and has praised the ‘development model' of Gujarat's Chief Minister who oversaw the 2002 pogrom against Muslims. (Anna withdrew that statement after a public outcry, but presumably not his admiration.)

Despite the din, sober journalists have gone about doing what journalists do. We now have the back-story about Anna's old relationship with the RSS. We have heard from Mukul Sharma who has studied Anna's village community in Ralegan Siddhi, where there have been no Gram Panchayat or Co-operative society elections in the last 25 years. We know about Anna's attitude to ‘harijans': “It was Mahatma Gandhi's vision that every village should have one chamar, one sunar, one kumhar and so on. They should all do their work according to their role and occupation, and in this way, a village will be self-dependant. This is what we are practicing in Ralegan Siddhi.” Is it surprising that members of Team Anna have also been associated with Youth for Equality, the anti-reservation (pro-“merit”) movement? The campaign is being handled by people who run a clutch of generously funded NGOs whose donors include Coca-Cola and the Lehman Brothers. Kabir, run by Arvind Kejriwal and Manish Sisodia, key figures in Team Anna, has received $400,000 from the Ford Foundation in the last three years. Among contributors to the India Against Corruption campaign there are Indian companies and foundations that own aluminum plants, build ports and SEZs, and run Real Estate businesses and are closely connected to politicians who run financial empires that run into thousands of crores of rupees. Some of them are currently being investigated for corruption and other crimes. Why are they all so enthusiastic?

Remember the campaign for the Jan Lokpal Bill gathered steam around the same time as embarrassing revelations by Wikileaks and a series of scams, including the 2G spectrum scam, broke, in which major corporations, senior journalists, and government ministers and politicians from the Congress as well as the BJP seem to have colluded in various ways as hundreds of thousands of crores of rupees were being siphoned off from the public exchequer. For the first time in years, journalist-lobbyists were disgraced and it seemed as if some major Captains of Corporate India could actually end up in prison. Perfect timing for a people's anti-corruption agitation. Or was it?

At a time when the State is withdrawing from its traditional duties and Corporations and NGOs are taking over government functions (water supply, electricity, transport, telecommunication, mining, health, education); at a time when the terrifying power and reach of the corporate owned media is trying to control the public imagination, one would think that these institutions — the corporations, the media, and NGOs — would be included in the jurisdiction of a Lokpal bill. Instead, the proposed bill leaves them out completely.
Now, by shouting louder than everyone else, by pushing a campaign that is hammering away at the theme of evil politicians and government corruption, they have very cleverly let themselves off the hook. Worse, by demonising only the Government they have built themselves a pulpit from which to call for the further withdrawal of the State from the public sphere and for a second round of reforms — more privatisation, more access to public infrastructure and India's natural resources. It may not be long before Corporate Corruption is made legal and renamed a Lobbying Fee.

Will the 830 million people living on Rs.20 a day really benefit from the strengthening of a set of policies that is impoverishing them and driving this country to civil war?

This awful crisis has been forged out of the utter failure of India's representative democracy, in which the legislatures are made up of criminals and millionaire politicians who have ceased to represent its people. In which not a single democratic institution is accessible to ordinary people. Do not be fooled by the flag waving. We're watching India being carved up in war for suzerainty that is as deadly as any battle being waged by the warlords of Afghanistan, only with much, much more at stake.

Wednesday, 10 August 2011

For the public, the primary domestic concern is unemployment. For financial institutions the primary concern is the deficit. Therefore, only the deficit is under discussion.

America In Decline


“It is a common theme” that the United States, which “only a few years ago was hailed to stride the world as a colossus with unparalleled power and unmatched appeal is in decline, ominously facing the prospect of its final decay,” Giacomo Chiozza writes in the current Political Science Quarterly.

The theme is indeed widely believed. And with some reason, though a number of qualifications are in order. To start with, the decline has proceeded since the high point of U.S. power after World War II, and the remarkable triumphalism of the post-Gulf War '90s was mostly self-delusion.

Another common theme, at least among those who are not willfully blind, is that American decline is in no small measure self-inflicted. The comic opera in Washington this summer, which disgusts the country and bewilders the world, may have no analogue in the annals of parliamentary democracy.

The spectacle is even coming to frighten the sponsors of the charade. Corporate power is now concerned that the extremists they helped put in office may in fact bring down the edifice on which their own wealth and privilege relies, the powerful nanny state that caters to their interests.

Corporate power’s ascendancy over politics and society – by now mostly financial – has reached the point that both political organizations, which at this stage barely resemble traditional parties, are far to the right of the population on the major issues under debate.

For the public, the primary domestic concern is unemployment. Under current circumstances, that crisis can be overcome only by a significant government stimulus, well beyond the recent one, which barely matched decline in state and local spending – though even that limited initiative probably saved millions of jobs.

For financial institutions the primary concern is the deficit. Therefore, only the deficit is under discussion. A large majority of the population favor addressing the deficit by taxing the very rich (72 percent, 27 percent opposed), reports a Washington Post-ABC News poll. Cutting health programs is opposed by overwhelming majorities (69 percent Medicaid, 78 percent Medicare). The likely outcome is therefore the opposite.

The Program on International Policy Attitudes surveyed how the public would eliminate the deficit. PIPA director Steven Kull writes, “Clearly both the administration and the Republican-led House (of Representatives) are out of step with the public’s values and priorities in regard to the budget.”

The survey illustrates the deep divide: “The biggest difference in spending is that the public favored deep cuts in defense spending, while the administration and the House propose modest increases. The public also favored more spending on job training, education and pollution control than did either the administration or the House.”

The final “compromise” – more accurately, capitulation to the far right – is the opposite throughout, and is almost certain to lead to slower growth and long-term harm to all but the rich and the corporations, which are enjoying record profits.

Not even discussed is that the deficit would be eliminated if, as economist Dean Baker has shown, the dysfunctional privatized health care system in the U.S. were replaced by one similar to other industrial societies’, which have half the per capita costs and health outcomes that are comparable or better.

The financial institutions and Big Pharma are far too powerful for such options even to be considered, though the thought seems hardly Utopian. Off the agenda for similar reasons are other economically sensible options, such as a small financial transactions tax.

Meanwhile new gifts are regularly lavished on Wall Street. The House Appropriations Committee cut the budget request for the Securities and Exchange Commission, the prime barrier against financial fraud. The Consumer Protection Agency is unlikely to survive intact.

Congress wields other weapons in its battle against future generations. Faced with Republican opposition to environmental protection, American Electric Power, a major utility, shelved “the nation’s most prominent effort to capture carbon dioxide from an existing coal-burning power plant, dealing a severe blow to efforts to rein in emissions responsible for global warming,” The New York Times reported.

The self-inflicted blows, while increasingly powerful, are not a recent innovation. They trace back to the 1970s, when the national political economy underwent major transformations, ending what is commonly called “the Golden Age” of (state) capitalism.

Two major elements were financialization (the shift of investor preference from industrial production to so-called FIRE: finance, insurance, real estate) and the offshoring of production. The ideological triumph of “free market doctrines,” highly selective as always, administered further blows, as they were translated into deregulation, rules of corporate governance linking huge CEO rewards to short-term profit, and other such policy decisions.

The resulting concentration of wealth yielded greater political power, accelerating a vicious cycle that has led to extraordinary wealth for a fraction of 1 percent of the population, mainly CEOs of major corporations, hedge fund managers and the like, while for the large majority real incomes have virtually stagnated.

In parallel, the cost of elections skyrocketed, driving both parties even deeper into corporate pockets. What remains of political democracy has been undermined further as both parties have turned to auctioning congressional leadership positions, as political economist Thomas Ferguson outlines in the Financial Times.

“The major political parties borrowed a practice from big box retailers like Walmart, Best Buy or Target,” Ferguson writes. “Uniquely among legislatures in the developed world, U.S. congressional parties now post prices for key slots in the lawmaking process.” The legislators who contribute the most funds to the party get the posts.

The result, according to Ferguson, is that debates “rely heavily on the endless repetition of a handful of slogans that have been battle-tested for their appeal to national investor blocs and interest groups that the leadership relies on for resources.” The country be damned.

Before the 2007 crash for which they were largely responsible, the new post-Golden Age financial institutions had gained startling economic power, more than tripling their share of corporate profits. After the crash, a number of economists began to inquire into their function in purely economic terms. Nobel laureate Robert Solow concludes that their general impact may be negative: “The successes probably add little or nothing to the efficiency of the real economy, while the disasters transfer wealth from taxpayers to financiers.”

By shredding the remnants of political democracy, the financial institutions lay the basis for carrying the lethal process forward – as long as their victims are willing to suffer in silence.

Noam Chomsky is emeritus professor of linguistics and philosophy at the Massachusetts Institute of Technology in Cambridge, Mass. His most recent book is '9-11:Tenth Anniversary