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Showing posts with label curse. Show all posts
Showing posts with label curse. Show all posts

Saturday 14 May 2016

Corrupt elites will fight hard to stop the dismantling of the looting machines from which they draw their vast wealth

States that get all their revenues from selling their oil, gas and minerals could easily turn into kleptocracies where the majority stay poor

Patrick Cockburn in The Independent

A shooper at the Olaya mall in the Saudi capital of Riyadh. Ordinary citizens may be hit by efforts to tackle global corruption and patronageGetty


Can corruption be controlled by reform or is it so much the essential fuel sustaining political elites that it will only be ended – if it ends at all – by revolutionary change?

The answer varies according to which countries one is talking about, but in many - particularly those relying on the sale of natural resources like oil or minerals - it is surely too late to expect any incremental change for the better. Anti-corruption drives are a show to impress the outside world or to target political rivals.

The anti-corruption summit in London this week may improve transparency and disclosure, but it can scarcely be very effective against politically well-connected racketeers, busily transmuting political power into great personal wealth.

This is peculiarly easy to do in those countries in the Middle East and Africa which suffer from what economists call “the resource curse”, where states draw their revenues directly from foreign buyers of their natural resources. The process is described in compelling detail by Tom Burgis in his book, The Looting Machine: Warlords, Tycoons, Smugglers and the Systematic Theft of Africa’s Wealth. He quotes the World Bank as saying that 68 per cent of people in Nigeria and 43 per cent in Angola, respectively the first and second largest oil and gas producers in Africa, live in extreme poverty, or on less than $1.25 a day. The politically powerful live parasitically off the state’s revenues and are not accountable to anybody.


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This is the essay on corruption that Cameron didn't want you to read

Burgis explains the devastating outcome of a government acquiring such great wealth without doing more than license foreign companies to pump oil or excavate minerals. This “creates a pot of money at the disposal of those who control the state. At extreme levels the contract between rulers and the ruled breaks down because the ruling class does not need to tax the people – so it has no need for their consent.”

He writes primarily about Africa south of the Sahara, but his remarks apply equally to the oil states of the Middle East. He rightly concludes that “the resource industry is hardwired for corruption. Kleptocracy, or government by theft, thrives. Once in power, there is little incentive to depart.” Autocracy flourishes, often same ruler staying for decades.

Most, but not all, of this is true of the Middle East oil producers. A difference is that most of these have patronage and client systems through which oil wealth funds millions of jobs. This goes a certain way in distributing oil revenues among the general population, though the benefits are unfairly skewed towards political parties or dominant sectarian and ethnic groups.

In Iraq there are seven million state employees and pensioners out of a population of 33 million who are paid $4bn a month or a big chunk of total oil income. Often these employees don’t do much or, on occasion, anything at all, but it is an exaggeration to imagine that Iraq’s oil money is all syphoned off by the ruling elite.

I remember in one poor Shia province in south Iraq talking to local officials who said that they had just persuaded the central government to pay for another 50,000 jobs, though they admitted that they had no idea what these new employees would be doing.

Reformers frequently demand that patronage be cut back in the interests of efficiency, but a more likely outcome of such a change is that a smaller proportion of the population would benefit from the state income.



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Saudi is about to attempt its own version of Mao's Great Leap Forward

This could be the result of Deputy Crown Prince Mohammed bin Salman’s radical plans to transform the way Saudi Arabia is run and end its reliance on oil by 2030. He may well find that the way Saudi society works has long gelled and face strong resistance to changing a system in which ordinary Saudis feel entitled to some sort of job and salary.

The “resource curse” is not readily reversible, because it eliminates other forms of economic activity. The price of everything produced in an oil state is too expensive to compete with the same goods made elsewhere so oil becomes the only export. Migrants pour in as local citizens avoid manual labour or employment with poor pay and conditions.

A further consequence of the curse is that the rulers of resource rich states – like many an individual living on an unearned income – get an excessive and unrealistic idea of their own abilities. Saddam Hussein was the worst example of such megalomania, starting two disastrous wars against Iran and Kuwait. But the Shah of Iran was not far behind the Iraqi leader in grandiose ideas, blithely ordering nuclear power stations and Concorde supersonic passenger aircraft.

Muammur Gaddafi insisted that Libyans study the puerile nostrums of the Green Book, and those failing that part of the public examinations about the book, were failed generally and had to re-take all their exams again.

Can “the looting machine” in the Middle East, Africa and beyond be dismantled or made less predatory?



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Catholic leaders are undoing the good work of Pope Francis on migrants

Its gargantuan size and centrality to the interest of ruling classes probably makes its elimination impossible, though competition, transparency and more effective bureaucratic procedures in the award of contracts might have some effect. The biggest impulse to resistance locally to official corruption has come because the fall in the price of oil and other commodities since 2014 means that the revenue cake has become too small to satisfy all the previous beneficiaries.

The mechanics and dire consequences of this system are easily explained though often masked by neo-liberal rhetoric about free competition.

In authoritarian states without accountability or a fair legal system, this approach becomes a license to loot. Corruption cannot be tamed because it is at the very heart of the system.

Tuesday 10 March 2015

The Curse of KP - Kevin Pietersen

Simon Barnes in Cricinfo

There will be a great deal of analysis of England's performance at the World Cup and their consequent failure to reach the knockout stage after their defeat by Bangladesh. Most of it will be concerned with England's traditional shortcomings in 50-over cricket.

People will point out that England are hopelessly out of date, still stuck in the approach they used when they played ODIs with a red ball - and it was a bit rusty then. They will talk about Joe Root and Ian Bell scoring 24 runs off 38 balls as a classic example of this fuddy-duddiness, and they will be right.

They will speak about English snobbery, the hierarchical way they view the various forms of cricket, with ODIs as the poor relation to Test cricket - even though this overlooks the fact that over the last 18 months England have been almost equally poor in Test matches.

That's not a cheap shot. England's limitations in limited-overs cricket don't matter. The real issue is that the team is broken. Broken in all the forms in which it appears. Shattered. Traumatised. Wrecked. Destroyed. And apparently incapable of healing itself.

The problems with 50-over cricket are what scientists would call the proximate cause of this disaster. If England want to set things aright, they must look to the ultimate cause.

That means checking out the Curse of the Bambino. This is a baseball story: it tells of the problems that affected the Boston Red Sox after they traded Babe Ruth to the New York Yankees. They failed to win the World Series again until 2004: a barren patch of 86 years.

England are suffering from the Curse of KP: and nearly a year after his sacking the team in all its forms is worse off than ever. Against Bangladesh the two witless run-outs, the wading-through-treacle batting, and the tendency for wickets to fall in clusters showed a deeper malaise than their inability to get their heads around a different format of cricket.

How did it begin? I watched England when they were - briefly - at the very peak of the Test match rankings. I watched them destroy Australia in Australia, I watched them hammer India in India, and in both these efforts, Kevin Pietersen was at the heart of it.

England are the team that died of a joke. It's a fact that tyrants and other kinds of egomaniac hate jokes. They don't understand them - apart from someone slipping on a banana skin and breaking his neck. It follows that jokes are often the most powerful weapons against such people.

The parody Twitter account KPGenius caused deep pain to Pietersen. It follows that it gave deep delight to people in the England team who found Pietersen difficult to deal with. The subversive giggling created a deep fissure through the team. When you have such a geology it doesn't take much to create a major landslide.

And that's what happened when England went to Australia in 2013 still fancying themselves a great cricket team. Mitchell Johnson's ferocious bowling acted like a ton of dynamite on that fault line and the team collapsed. A team of talented players found that they could do no right. It was a tour punctuated by the departure of cricketers who could take no more, and it was followed by that of coaches who felt the same.

This was bad enough, but in seeking a cure, England made it far worse. They made a great to-do of sacking Pietersen and setting up his beleaguered captain, Alastair Cook, as a moral rallying point for an England relaunch. This role was too much for Cook and the traumatised team he was leading.

Cook's own form fell away and he was replaced as one-day captain just before the World Cup. They brought in Eoin Morgan instead - not a bad plan, except that Morgan can't buy a run himself, looks like a busted flush in all forms of cricket, and in the decisive match against Bangladesh was out third ball for nought.

All this after England had shunted the Ashes series around - itself a disastrous decision - to give themselves a full winter of white-ball cricket to get ready for this tournament. And just to add another pint of bat's blood to this witch's brew, the incoming chairman of the England and Wales Cricket Board, Colin Graves, has just suggested that there was a way open for Pietersen's return.

Either Graves is stupid or he is deliberately destabilising Cook, Paul Downton, chief exec of the ECB, and the head coach, Peter Moores, all at once. No other interpretation is possible. Certainly it did a grand job of upsetting an already troubled team on the eve of the crucial match of the World Cup.

So the Curse of KP continues. The result is a team in mental paralysis. I remember Steve Davis, the great snooker player, telling me: "It's all right to miss a ball. You're entitled to miss a ball. It's when you start thinking wrong that you're in trouble."

And that's England. They have been thinking wrong ever since Johnson dynamited the fissure and caused England's collapse. The executive, the coaches, the captains, the players: all incapable of thinking straight in the desperately difficult times that began with defeat at the hands of Australia and continue to this day.

England can't play one-day cricket very well, but that's old news. The real problem is that right now they can't play any kind of cricket. I know they beat India in the Test matches last summer, but India, notoriously poor travellers, went out of their way to help them.

This defeat by Bangladesh, this untimely and undignified exit from the World Cup is not a new problem, nor is it a pure cricketing matter. It's the logical result of trauma. Bangladesh were good enough to prey on England's weakness and doubt, and take a famous victory.

The Curse of KP strikes again. Never mind, perhaps England will win the World Cup in 86 years' time.