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Showing posts with label larceny. Show all posts
Showing posts with label larceny. Show all posts

Thursday, 17 March 2022

Western values? They enthroned the monster who is shelling Ukrainians today

 Aditya Chakrabortty in The Guardian
 
However repressive his regime, Vladimir Putin was tolerated by the US, Britain and the EU – until he became intolerable
 




Six days after Vladimir Putin ordered his soldiers into Ukraine, Joe Biden gave his first State of the Union address. His focus was inevitable. “While it shouldn’t have taken something so terrible for people around the world to see what’s at stake, now everyone sees it clearly,” the US president said. “We see the unity among leaders of nations and a more unified Europe, a more unified west.”

In the countdown to the invasion, the Conservative chairman Oliver Dowden flew to Washington to address a thinktank with impeccable links to Donald Trump. “As Margaret Thatcher said to you almost 25 years ago, the task of conservatives is to remake the case for the west,” the cabinet minister told the Heritage Foundation. “She refused to see the decline of the west as our inevitable destiny. And neither should we.”

Western values. The free world. The liberal order. Over the three weeks since Putin declared war on ordinary Ukrainians, these phrases have been slung about more regularly, more loudly and more unthinkingly than at any time in almost two decades. Perhaps like me you thought such puffed-chest language and inane categorisation had been buried under the rubble of Iraq. Not any more. Now they slip out of the mouths of political leaders and slide into the columns of major newspapers and barely an eyebrow is raised. The Ukrainians are fighting for “our” freedom, it is declared, in that mode of grand solipsism that defines this era. History is back, chirrup intellectuals who otherwise happily stamp on attempts by black and brown people to factcheck the claims made for American and British history.

To hold these positions despite the facts of the very recent past requires vat loads of whitewash. Head of the European Commission, Ursula von der Leyen, claims Vladimir Putin has “brought war back to Europe”, as if Yugoslavia and Kosovo had been hallucinations. Condoleezza Rice pops up on Fox to be told by the anchor: “When you invade a sovereign nation, that is a war crime.” With a solemn nod, the former secretary of state to George Bush replies: “It is certainly against every principle of international law and international order.” She maintains a commendably straight face.

None of this is to defend Putin’s brutality. When 55 Ukrainian children are made refugees every minute and pregnant women in hospital are shelled mid-labour, there is nothing to defend. But to frame our condemnations as a binary clash of rival value systems is to absolve ourselves of our own alleged war crimes, committed as recently as this century in Iraq and Afghanistan. It is to pretend “our” wars are just and only theirs are evil, to make out that Afghan boys seeking asylum from the Taliban are inevitably liars and cheats while Ukrainian kids fleeing Russian bombs are genuine refugees. It is a giant and morally repugnant lie and yet elements of it already taint our front pages and rolling-news coverage. Those TV reporters marvelling at the devastation being visited on a European country, as if its coordinates on a map are what counts, are just one example. Another is the newspapers that spent the past 20 years cursing eastern Europeans for having the temerity to settle here legally and now congratulating the British on the warmth of their hearts.

And then there is the unblushing desire expressed by senior pundits and thinktankers that this might end with “regime change” – toppling Putin and installing in the Kremlin someone more congenial to the US and UK and certainly better house-trained. Spotting the flaw here doesn’t require history, it just needs a working memory. The west has already tried regime change in post-communist Russia: Putin was the end product, the man with whom Bill Clinton declared he could do business, rather than the vodka-soused Boris Yeltsin. 

Indeed more than that, London and New York are not just guilty of hosting oligarchs – giving them visas, selling on their most valuable real estate and famous businesses – they helped create the oligarchy in Russia. The US and the UK funded, staffed and applauded the programmes meant to “transform” the country’s economy, but which actually handed over the assets of an industrialised and commodity-rich country to a few dozen men with close connections to the Kremlin.

In 1993, the New York Times Magazine ran a profile of a Harvard economist it called “Dr Jeffrey Sachs, Shock Therapist”. It followed Sachs as he toured Moscow, orchestrating the privatisation of Russia’s economy and declaring how high unemployment was a price worth paying for a revitalised economy. His expertise didn’t come for free, but was bankrolled by the governments of the US, Sweden and other major multinational institutions. But its highest cost was borne by the Russian people. A study in the British Medical Journal concluded: “An extra 2.5-3 million Russian adults died in middle age in the period 1992-2001 than would have been expected based on 1991 mortality.” Meanwhile, the country’s wealth was handed over to a tiny gang of men, who took whatever they could out of the country to be laundered in the US and the UK. It was one of the grandest and most deadly larcenies of modern times, overseen by Yeltsin and Putin and applauded and financed by the west.

The western values that are being touted today helped enthrone the monster who is now shelling Ukrainian women and children. However corrupt and repressive his regime, Putin was tolerated by the west – until he became intolerable. In much the same way, until last month Roman Abramovich was perfectly fit and proper to own Chelsea football club. Now No 10 says he isn’t. There are no values here, not even a serious strategy. Today, Boris Johnson claims Mohammed bin Salman is a valued friend and partner to the UK, and sells him arms to kill Yemenis and pretends not to notice those he has executed. Goodness knows what tomorrow will bring.

Friday, 8 November 2013

Rail privatisation: legalised larceny


Train operators invest little cash but take massive profits. This wasn't what the Tories promised
A packed commuter train
A London commuter train: no free seats, no free Wi-Fi – but good news for shareholders. Photograph: Dan Kitwood/Getty Images
"It needs access to private capital, access to private management, it needs more money into the business, and all this will become possible." David Cameron on Royal Mail, October 2013
As they flog our public assets, government ministers always promise one thing: that they will be better cared for by the new private owners. Sure, they may look like hedge funds out for a fast buck, but we must consider them investors, who will plough in their own millions to burnish the family silver.
Thatcher said it in the 80s; and now, during this second coming of popular capitalism, her grandchildren are saying it too.
While giving away Royal Mail at a bargain-basement price, David Cameron promised the result would be a flood of private cash. When a unit supplying the NHS with blood was handed over to private equity, Jeremy Hunt's officials pleaded the need for investment. And you'll hear that justification over and over again, as the coalition privatises a further £15bn worth of companies, departments and assets currently held by the public.
Never mind ownership, ministers will soothe us: lie back and think of the investment. So let's do that. Let's go back to the last great privatisation and see how much investment it yielded.
Tuesday marks the 20th anniversary of rail privatisation, the day when the government finally pushed through the legislation to break up and sell off our train services. Throughout the flotation process, successive transport ministers pointed at the goodies to come. Take this reliably bouffant pledge from Steve Norris: "There is not the slightest shadow of doubt that, freed from the constraints of public sector financing, train operators … will generate substantially greater investment in the railways because of the privatisation of British Rail."
Was he right? I asked academics at the Centre for Research on Socio-Cultural Change (Cresc) to calculate how much companies such as Virgin and First Group are investing in their services. They looked at their return on capital employed, which is to say the amount train operators made on the money tied up in their business. A low ratio would indicate an industry doing as Norris and his colleagues foretold: ploughing cash into delivering a better service. A really high ratio would indicate the opposite: barely any cash going in.
The figures are astonishing. In the financial year ending in March 2012, the train companies gained an average return of 147% on every pound they put into their business. Forget about high: that is stratospheric. It suggests that – despite all the promises made by the freshly rehabilitated John Major – the train operators are investing barely anything, but making bumper returns.
If you're a pensioner, imagine a savings account that promised to give you next year a 147% return on your cash, rather than the 1% you'll typically get now. If you're a first-time buyer, imagine selling up next year at a 147% markup – impossible even in primest, most central London.
Other businesses would kill for the kind of low-investment, high-returns that Arriva, Stagecoach and the rest are making from their train sets. Big supermarkets get about £1.08 back for every quid they put in: all that stock ties up a lot of cash. Even the supposed profiteers over at Barclays would punch the air at a 10% return. For every pound the railway barons put in, they get £2.47 back.
And that most recent figure isn't a fluke. The Cresc team went back all the way to the start of the electronic database in 2004, and found that year after year the pre-tax return on capital employed was never less than 100%. Just as remarkable are the train operators' dividends: pretty much all the profit after tax was paid to shareholders.
No wonder Richard Branson is a billionaire with his own private island. No wonder Tim O'Toole, boss of FirstGroup, and Brian Souter, head of Stagecoach, are on more than a million quid a year each. They are rewarded handsomely for handing over every spare penny to their shareholders.
But by the same token, no wonder passengers in cattle class can't get free Wi-Fi, or even a seat on the evening train out of Euston: there's no cash left to make the services worth the often excessive fares. The really big improvements, such as the west coast mainline upgrade now enjoyed by Branson's business, are funded by taxpayers. Heads they win, tails we lose.
A train lobbyist reading this (hi there!) will tell you that measuring investment by the operators is barking up the wrong tree. Arriva and the rest are essentially commissioned by the government to run a line. But that ignores three things. First, the industry never stops banging on about its role as an "investor". Second, free cash without having to pony up much actual investment is very welcome to the Branson empire, among others.
And finally, if the operators are merely there as middlemen, to sell us tickets and clip them, then why do we need them? Specifically, why is Cameron so desperate to give the publicly-run east coast mainline to the private sector?
Capitalism is meant to be about private firms taking risks and reaping the rewards. The rail network on the other hand is about the public taking the risk and racking up huge debts, even while the private firms reap excessive rewards.
Look at those investment return figures again: that isn't the triumph of liberalisation; that's legalised larceny. It hardly bodes well for the next wave of sell-offs.