Reform Or Revolution - the UK political system

 

By William Bowles

20 October, 2009
Countercurrents.org

 

It's really time I started writing more about the country I live in, the country of my birth, the UK, a country that has the oldest, the most cunning, the most duplicitous (not to mention the most mendacious) of all ruling classes. After all, they've been at it for five hundred years, finally being forced to come up with what they like to call parliamentary democracy over a century ago, but just how democratic is it? And can we really expect real change to come about through a system as corrupt and sclerotic as 'parliamentary democracy'?

 

Parliamentary democracy is a closed system, literally owned by the two main political parties who work in intimate cooperation with the state bureaucracy to maintain the status quo. For proof of this we need only look at the panic caused by the 'expenses' scandal and how the political class, fearful of any challenge to its hegemony has fought tool and nail, left and right to defend their privilege to spend our money as they please.

 

How they have managed to do this should be important to us and especially the confidence trick called Parliament. It is a system that has, for around a century, played the central role in the preservation of capitalism, in reality a private game with the political class being the players, the judges and the rule makers. In other words, a fix and a fix carried out, no less, with the complicity of organized labour.

 

We, the public, play our part by voting (or not) to maintain the 'game', getting bounced back and forth between two sides of same coin. But clearly the 'game' would seem to have run its course which, with all the talk of the state's 'lack of legitimacy', is reflected in the falling number of those who bother to vote or take part in any kind of political activity. Even the Labour Party's own membership has dwindled to a fraction of its size since 'New' Labour came to power (before coming to power in 1997 the Labour Party had over half a million members).

 

The worst thing about this scenario is that, aside from the Anarchists, the left has attempted to join in the 'game' for the past century and more, with predictable results. We only need to look at the 'left' in Parliament to see the truth, for no matter how left they are outside of Parliament, inside, they too have to play the 'game', effectively emasculating themselves in the process. If they don't, the results are predictable, for example, when George Galloway spoke out about the illegal invasion of Iraq in 2003, he was very quickly ejected from the 'game'. Just how seductive the 'game' is can be illustrated by Galloway's claim, via the Respect Party, that part of Respect's objective was to restore the Labour Party to its former, pre-Blairite reformist glory.

 

The exclusion of the real left from the political process by the Labour Party and its complicit trade unions goes back decades, illustrated by the endless disbanding and reforming of the Labour Party Young Socialists every time it moved to the real left. Also, the fact that under the Labour Party's 'bans and proscriptions', all attempts by the left within the Labour Party to seek common cause (and vice versa) with real progressives meant certain expulsion from the Party. True to its Cold War legacy Red-baiting was and remains Labour's methodology.

 

The trade unions are in the same fix, having handed over their power to the 'party of labour' long ago. Interestingly, William Morris's 'News From Nowhere' predicted this outcome in 1895 after the path of attempting to 'reform' capitalism won the day.

The end result is plain to see: a disenfranchised and alienated population, and with only a fraction of the workforce in trade unions (in the 1950s around 50% were unionized), most don't even get a look-see into the 'game' unless some scandal is exposed. Add to this a corrupt, incompetent and murderous political class, revealed in all its sordid details over the twelve years of Labour rule. Is it any wonder that the state 'lacks legitimacy'?

 

So what's the reason for this pathetic state of affairs? In a word: reformism, the idea that capitalism can be 'reformed' to more resemble socialism (capitalism with a human face?), a process that reached its zenith with the post-war Labour government and even then the nationalization of key sectors of the economy came about firstly because British capitalism was bankrupt. Secondly, it was under pressure from a working class who did not want to see a return to a reactionary and backward pre-war Britain. Things had to change but, how much? And, what kind of change?

 

The post-war Labour government was elected on a wave of progressive ideas following the defeat of Fascism: the National Health Service (the Tories realizing that a complicit population was essential to the survival of capitalism, had already created a new standardized national 'education' system), transport and energy were nationalized, a massive house building programme was initiated, Keynesian capitalism was born (even in the early 1960s many British homes had neither an indoor toilet or even a proper bathroom, let alone adequate heating).

 

So all the while the Labour Party (and successive Labour governments) were proclaiming socialism, in reality they were, not only, propping up domestic capitalism, worse still, their foreign policy was avowedly anti-communist and imperialist/colonialist! So those on the left who claim that 'New' Labour has somehow strayed from the path of righteousness need to brush up on their history. Britain's African, Asian, Latin American and Caribbean colonies got the same treatment from Labour as they did from the Tories; the same, racist and imperialist policies were enacted (if ever there was proof of just how the ideology of racism works when utilized by the state this is it) and nothing has changed eg, Iraq, Afghanistan, Iran, China, Russia, in fact any country that doesn't buy into Western 'democracy' gets the 'treatment'.

 

This is the terrible trajectory of reformism. It explains in part at least, why the left is so marginalized in British political life by what is, in effect, an unholy alliance between organized labour and its alleged voice, the Labour Party and their master, Capital.

But how to break this impasse? Over the past one hundred-plus years the British left has 'evolved' as an integral (if ineffectual) component of the reformist model with organized labour, led by a revolutionary party, viewed as the main vehicle for bringing about an end to capitalism through the ballot, a policy that obviously has not worked. Instead, the trade unions became an elitist battleground between left and right with corrupt practices on both sides. The 'rank and file' membership were relegated to mere onlookers whilst the labour elite slugged it out, with the left inevitably losing.

 

The end of the industrial working class

 

The end of the Keynesian model of capitalism in the 1970s with the birth of so-called neo-liberalism should surely have been a wake-up call for the left. Instead, it retreated in disarray, eventually fragmenting into small pieces, especially after the destruction of the largest and most powerful of unions, the miners by the Thatcher government (the opening shot in the deindustrialization of the UK). Instead we have witnessed the same entrenched left 'leadership' pushing the same failed reformist policies, the 'parliamentary road to socialism' as the British Communist Party called it.

 

The central question for the left is: what is to replace organized industrial labour, after all wasn't it organized labour that was to lead the revolution? In order to try and answer this question, we need to recognize that, whilst capitalism has transformed itself, largely by exporting manufacturing to our former colonies and, in the process, destroying the organized industrial working class, the left simply hasn't got it. Instead, it insists on fighting a battle long lost and with 'tools' that no longer exist.

What used to be the organized industrial working class is now a shadow of its former self, worse still the creation of a so-called service-based economy, composed largely of non-union labour, much of it part-time. It is fragmented and lacks voice. It's here that the trade union movement reveals its real nature: where are the campaigns to unionize the unorganized if only to strengthen the power of the central union bureaucracy, the TUC?.

 

The only potential rising force in society, the so-called middle class, is barely even recognized as being a part of the working class by the left (we really need to question the use of the term middle class). Yet the economy is now managed by the 'middle class', a situation the ruling elite are only too aware of. The state is the single biggest employer and not coincidentally. The biggest unions are all mostly public employee unions, but these unions are split along 'middle'- working class lines.

 

In the private sector, with ascendancy of the financial services sector, marketing and distribution, especially of 'virtual' products, the capitalist economy is now in the hands of the managers and technicians, the so-called middle class. Just look at the chaos unleashed by paying young university whizz kids to play with the numbers in the futures markets, it's all a big game to them.

Britain is once more a Merchant's economy with 'wealth' being generated, not by the production of real and useful products and services, but by manipulating numbers on a gigantic, global scale and doing all of it in real time. The amount of money in private hands dwarfs the amount that the state messes about with as the UK's £20 billion public debt. The US's now (officially) $1.3 trillion debt demonstrates, after all, the state borrows it from the private sector (after the banks et al have ripped off their profits they get by charging interest on the money printed by the state that they then lend out to customers). It's a marvellous system, ingenious even, but utterly irrational, designed to do only one thing, produce a profit for the shareholders in the shortest possible time.

 

This is the setting, so for example, truly revolutionary trade unions would be demanding that running financial services like this is irrational, immoral, unstable and destructive, in other words, against the public's interest. So here's an alternative way of managing the economy, if for no other reason than to protect the interests of its members. But, for as long as the trade unions are in bed with the political class, such outcomes are just fantasies.

 

Instead, we get the following collaboration between the union hierarchy and the government!

 

"BBC Newsnight on Thursday revealed a leaked confidential document spilling the beans on a Royal Mail plan to impose cuts, provoke a strike and smash the union. This blows a hole in their spin over the past couple of weeks about an uncooperative union!

 

"The embarrassing bit was when the Newsnight presenter repeatedly asked Billy [Hayes, postal workers' union] how he felt about the CWU giving £7 million since 2001 to Labour to have it plotting against it, and did he support the 98% of London postal workers who had voted to break from Labour? Labour-lovin' Billy ducked it several times before lamely saying the party wasn't the same as the government." — "Royal Mail secret plot with 'the Shareholder'"

 

How can a trade union represent the interests of its members when its leadership are funding the very government that's trying to destroy it? This is the insane end-product of reformism, where workers fund a government via their trade unions that is a wholly owned subsidiary of capital.

 

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The Dragon spews fire at the Elephant

 
By M K Bhadrakumar

The surprise element was almost completely lacking. The expectation in Delhi for a while has been that sooner or later Beijing would hit out. Verbal affronts from India were becoming a daily occurrence and a nuisance for Being. Not a single day has passed for the past several months when either influential sections of the Indian strategic community or the English-language media, tied by the umbilical cord of financial patronage to the Indian establishment, failed to indulge in some vituperative attack on Chinese policies and conduct towards India.

Yet, when it finally came on Wednesday, the timing of the cumulative Chinese reaction was most curious. Beijing chose a very special day on its diplomatic calendar to make its point. The prime ministers of Russia and Pakistan, Vladimir Putin and Yousuf Raza Gilani,  Yousuf Raza Gilani, and the United States Assistant Secretary of State Kurt Campbell, were on official visits to Beijing. Indeed, Campbell had come on an important mission to prepare for the visit by US President Barack Obama to China next month.
 
Beijing made a big point that its current ruckus with Delhi was less bilateral and more geopolitical. Indeed, Wednesday's People's Daily commentary on India resorted to a colloquium that hasn't been heard in the dialogue across the Himalayas for very many years.

On the previous day, in two statements the Chinese Foreign Ministry provided the "curtain raiser" for the People's Daily commentary. The first statement focused attention on the recent Indian media campaign against China and asked Delhi to be "conducive toward promoting mutual understanding", rather than publishing false reports on border tensions.

The second statement was substantive and it conveyed that Beijing was "seriously dissatisfied" by the visit of the Indian prime minister 10 days ago to the state of Arunachal Pradesh (which China claims as its territory). The Chinese spokesman said, "China and India have not reached any formal agreement on the border issue. We demand that the Indian side pay attention to the serious and just concerns of the Chinese side and not to provoke incidents in the disputed region, in order to facilitate the healthy development of China-India relations."

The Indian reaction came within hours and was at the highest level of the foreign-policy establishment. Foreign Minister S M Krishna brushed off the Chinese statement, saying, "Well, regardless of what others say, it is the government of India's stated position that Arunachal Pradesh is an integral part of India. We rest at that." He added that Delhi was "disappointed and concerned" over China's objection.

The diplomatic backdrop was evidently getting electrified when the People's Daily struck. It literally tore into Indian policies. Leaving aside specifics, it dealt with what Beijing assessed to be the core issue - India's obsession with superpower status born out of its rooted complexes of having "constantly been under foreign rule ... throughout history" and its "recklessness and arrogance" towards its neighbors. "The dream of superpower is mingled with the thought of hegemony, which places the South Asian giant in an awkward situation and results in its repeated failure," the commentary pointed out.

The striking thing about the Chinese commentary was that it echoed a widespread criticism that is quite often voiced by India's neighbors. The commentary sought to establish a commonality of concerns between China and India's neighbors over the rising tide of Indian nationalism in the past decade or so with its disagreeable manifestations for regional cooperation. "To everyone's disappointment, India pursues a foreign policy of 'befriend the far and attack the near' ... India, which vows to be a superpower, needs to have its eyes on relations with neighbors and abandon its recklessness and arrogance as the world is undergoing earthshaking changes," the commentary claimed.

Beijing surely factored in that almost without exception, India's neighbors voice similar concerns and are currently seeking friendly and close ties with China to balance India's perceived overbearing attitude towards them. In effect, the Chinese commentary tapped into the near-total isolation that India faces today in the South Asian region.

Interestingly, the People's Daily followed up by running a sequel on Thursday, this time harshly telling Delhi a couple of things. One, it underlined that Delhi was seriously mistaken if it estimated that China could be hustled into a border settlement with India through pressure tactics. It affirmed categorically that the border dispute could be settled or a substantial step forward approaching a final solution could be taken "only on the condition that both of them [China and India] are ready to shake off the traditional and deep-seated misunderstandings".

Two, the commentary alleged that Delhi was getting "disoriented when making decisions" because it harbored a notion that the US was viewing India as a counterweight to China. Delhi was also becoming susceptible to the US stratagem to "woo India away from Russia and China and, in the meantime, feeding India's ambition to match China force by force by its ever burgeoning arms sales to India".

Most important, the commentary concluded that although China and India "will never pose a mortal foe to each other", if the Indian establishment and a "handful of irresponsible media institutions" didn't restrain themselves, "an accidental slip or go-off at the border would erode into a war", which neither side wanted. It is very obvious that Beijing sees the Indian establishment's hand behind the vituperative media campaign against China in recent months.

How the tensions pan out is another matter. In immediate terms, a flashpoint arises as the Indian government has approved a visit by the exiled Tibetan spiritual leader, the Dalai Lama, in November to Arunachal Pradesh. No doubt, if the visit goes ahead, the Sino-Indian relationship will nosedive into a corridor of deep chill from which it may take a long time for the two countries to emerge.

The curious thing is this will be taking place at a time when the geopolitics of the region and world development as a whole will be passing through a transformative period of far-reaching significance. Given the fact that China's global power is an established reality, India may be painting itself into a corner by opting out of a mutual understanding with Beijing precisely at this juncture when the agenda of global issues and regional security is heavily laden.

On the contrary, if Delhi pays heed to Chinese sensitivities about the Dalai Lama's peregrinations in November, it will be accused by the Indian nationalist camp as buckling under Chinese pressure. An element of grandstanding, unfortunately, is entering into the Sino-Indian relationship, which runs against the grain of its maturing in the recent decade.

Equally, a question mark now envelops the rationale of India hosting the Russian and Chinese foreign ministers in the coming weeks within the framework of the trilateral format. To be sure, the equilibrium within the format has been disturbed. Russia and China have been developing an intense strategic partnership; India's traditional ties with Moscow have significantly weakened under the current pro-US leadership in Delhi; and, now, India's normalization process with China has suffered a severe setback.

At the same time, Russia has begun a serious attempt to choreograph a positive trajectory to its languishing relationship with Pakistan by taking it out of the trough of benign neglect and injecting some dynamism into it. China, of course, enjoys an "all-weather friendship" with Pakistan.

Indian policies are predicated on the assumption that a Sino-US clash of interests is inevitable as China's surge as a world power has become unstoppable, and Washington will have use of Delhi as a counterweight to Beijing sooner than most people would think. Surely, there is disquiet in Delhi about the Barack Obama administration's regional policies, which no longer accord India the status of a pre-eminent power and which place primacy on the US's alliance with India's arch rival, Pakistan.

But Delhi hopes that Obama will ultimately have to pay heed to US business interests and therefore India holds a trump card in the burgeoning market that it offers to the American corporate sector - unlike Pakistan, which is a basket case at best, a can of worms at worst.

Simply put, India is estimated to be the biggest arms buyer in the world and a market estimated to be worth US$100 billion is presenting itself to exploitation by American arms manufacturers - provided Obama has his wits about him and realizes on which side his South Asian bread is buttered. Delhi hopes to incrementally pose an existential choice to Obama through an idiom that the US political establishment understands perfectly well: the business interests of its military-industrial complex.

One thing is clear. Powerful Indian lobbyists have been at work in whipping up a war hysteria and xenophobia over China. The Washington Post recently featured a Delhi-datelined report on the shenanigans of these Indian fat cats who mainly comprise retired Indian defense officials and senior bureaucrats who act as commission agents for big American arms manufacturers. There was a time when the Sandhurst-trained Indian military personnel retired to the cool hill stations and spent the sunset of their lives playing bridge or going for long walks and regaling their visitors with their wartime stories while sipping whisky.

Nowadays, the smart ones among the retired generals and top bureaucrats take up residence in Delhi's suburbs and overnight transform themselves into "strategic thinkers" and begin networking with some American think-tank or the other, while probing a new lease on life as brokers or commission agents for arms manufacturers.

All in all, it is virtually certain that these lobbyists can expect a windfall out of Sino-Indian tensions. After all, a case has been neatly made about the imperatives of a close Indian tie-up with the US. The current Indian political elite doesn't really need any prompting in that direction, but all the same, a degree of public accountability may at times become necessary. Transparency International has bestowed on India the distinction of being one of the most corrupt countries on the planet and it is an open secret that India's arms procurement program provides a vast avenue to siphon off national wealth.

If the Indian market for military hardware is worth $100 billion, it is quite understandable that a gravy train is getting ready for the Indian elites. The People's Daily commentator may have unwittingly waved off the train from the platform. And that was exactly what the Indian elites and fat cats wanted.

Now, all eyes will turn toward the visit by Indian Prime Minister Manmohan Singh to Washington in November. Obama has let it be known that Manmohan will be the first dignitary to be honored with a state banquet during his presidency.

The Americans are vastly experienced with the Indians' Himalayan ego and by now they know well enough where and how to tickle Indian vanities. How they pedal fresh dreams to the Indians and pick up the fruits of their endeavors will be keenly watched not only by the multitude of Indians back at home, but also by the Pakistanis, Chinese and the Russians.

Ambassador M K Bhadrakumar was a career diplomat in the Indian Foreign Service. His assignments included the Soviet Union, South Korea, Sri Lanka, Germany, Afghanistan, Pakistan, Uzbekistan, Kuwait and Turkey.

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From North Carolina, a model of how to transform education

 

Johann Hari:

It's proven that schools will succeed if they are genuinely comprehensive

The chief executive of Tesco, Britain's largest private employer, has issued a warning: are kids dont no nuffink. Terry Leahy said this week that our educational standards are "woefully low", and that young recruits to Tesco often have to be taught basic literacy, numeracy and communication skills before they can be unleashed on the aisles or stockrooms.
 
He's not alone. This warning rumbles across the country. A friend of mine is an academic at a middle-ranking university, and she recently showed me some of her students' essays. "It's quite normal for them not to know how to use paragraphs, or commas, or to be able to spell," she said, shaking her head. Some are barely literate, despite a clutch of A-levels. She found the same at two other universities.
 
It's not enough to glibly announce that there's no problem, as the Government did this week. Yes, a Chicken Little cry that educational standards are plummeting echoes across every age: one of the oldest tablets ever discovered in an archaeological dig warns that the kids of today aren't what they use to be. Yes, there are still a lot of good schools. Yet there are more children getting into Oxbridge every year from the pool of 300 kids at Eton than from the 300,000 kids on free school meals. Either you believe those Etonians are born smarter - an absurd proposition - or our school system is failing poor children on a vast scale. How many great minds are we allowing to atrophy just because they weren't born to wealth?
 
It doesn't have to be like this. A far better system is possible; we just need to follow the evidence. And the road-map runs through - of all places - North Carolina. Something extraordinary has been happening in the state's schools over the past few decades, and the best guide to this experiment is an important new book by Professor Gerald Grant called Hope and Despair in the American City: Why There Are No Bad Schools in Raleigh.
 
He looks at two very similar cities - Syracuse in New York State, and Raleigh in North Carolina. They are both 1950s boomtowns turned to 1980s ghost towns. It's the same-old, sad-old story: industry shrivelled and the white middle classes stampeded to the suburbs, leaving behind shell-cities scarred by poverty. Yet there is today an extraordinary gap between these cities. In Syracuse, only 25 per cent of 12-year-olds can read, write or do arithmetic to the appropriate basic level - while in Raleigh, it is 91 per cent. Almost all of the schools in Syracuse fail; none of the schools in Raleigh do. What are they doing differently?
 
Raleigh's governors decided to do something bold and unconventional: they looked to the scientific evidence. In 1966, Professor James Coleman was commissioned by the White House to conduct the largest study, to that time, of what makes good pupils succeed and bad pupils fail. After years of on-the-ground analysis, he came up with something nobody expected. He found that the single biggest factor determining whether you do well at school or not isn't your parents, your teachers, your school buildings or your genes. It was, overwhelmingly, the other kids sitting in the classroom with you. If a critical mass of them are demotivated, pissed off and disobedient, you won't learn much. But if a critical mass of them are hard-working, keen and stick to the rules, you will probably learn. Watch any 10-year-old: they are little machines for snuffling out the sensitivities of their peer group, and conforming to them.
 
Facing their schools' failure in the 1980s, the Raleigh school board returned to this evidence and tried to puzzle out: how should it change the way we run our schools? Touring the schools, they could see why the research was right. Children from poor families need more help than kids from rich families. They are more likely to have chaotic home lives, less likely to have the importance of education drilled into them from birth, and they have lower expectations for themselves.
 
In small numbers, in an ordered environment, these poor children can quickly be brought up to the level of the rest, and indeed exceed them in many cases. But when they form the majority of a school's pupils, the teachers can't cope, discipline breaks down, and learning stops. A school for poor children soon becomes a poor school.
 
So they formulated a bold - and strikingly simple - solution. They wouldn't allow any school, by law, to have more than 40 per cent of its children on free school meals, or more than 25 per cent of children who were a grade below their expected level in reading or maths. Suddenly, the children who needed the most help wouldn't be lumped together where their problems would become insurmountable; they would be broken up and fanned out across the educational system. Raleigh merged its school system with white suburban Wake County, so they became one entity, sharing pupils. In order to soothe suburban suspicion at this change, Raleigh turned a third of its inner-city schools into specialist academies, offering excellent music or drama or language specialisms. Soon, children were bussing in both directions every morning, in and out of the suburbs.
 
Many conservatives savaged the plan as "social engineering" and said it was doomed to fail. Some parents were angry, and a few decamped for the private school system - until the results came in. Within a decade, Raleigh went from one of the worst-performing districts in America to one of the best. The test scores of poor kids doubled, while those of wealthier children also saw a slight increase. Teenage pregnancies, crime and high school drop-out rates fell substantially.
 
It's not hard to see why. Each school had a core majority who respected the rules and valued education - and the other kids normalised to their standards. Those who found it tough could now be given special attention, because they weren't any longer surrounded by a mass of equally troubled kids. Today, 94 per cent of parents in Raleigh say they are happy with their child's education. School boards supporting this integration keep getting re-elected.
 
Raleigh succeeded because it built genuinely comprehensive schools: in which rich, middle-class and poor kids learned together. In Britain, we tell ourselves we have built "comprehensives" - but, except in a few enclaves, we have done nothing of the sort.
We allocate school places according to how close you live to a school. This immediately creates a social apartheid where middle-class children have successful schools in leafy suburbs, while poorer children are ring-fenced in sink schools and end up at Tesco at 16 with few useable skills. (Rich children are creamed off entirely into private schools.) Comprehensivisation didn't fail; it didn't happen.
 
There are only a few areas in Britain with genuinely mixed schools, like Grampian - and they get the best overall results. At the opposite end of the spectrum is Kent, where children from the middle and the rich are creamed off into grammar schools in which just one per cent of kids are on free school meals. They have the worst overall results in the country.
So we know how to make schools work: integrate them. Occasionally, our politicians take a tiny step that brings us closer to this.
 
The Labour council in Brighton allocates school places by lottery; the Tories say they will abandon catchment areas, letting a few poor kids slip through. But both only tinker at the extreme social segregation that crowbars apart the educational system.
Integration is a good policy for bleak recession times since it delivers dramatic improvements at little extra cost. Raleigh actually spends less than the US national average on its schools, and 25 per cent less per pupil than failing Syracuse. In the long term, integration actually saves us a fortune in welfare payments and prevented crime.
 
Yes, the right will scream at first that it is "an attack on the middle class". In fact, it is a great compliment to the middle class: it wants to use their children and their values as the sun around which every child's education revolves. Yes, some parents will scream that they don't want their kids being taught alongside "chavs" and "pikeys". This should be called out bluntly - it is bigotry.
A democracy is based on a bargain: every child gets a chance to succeed, whatever their background. Today, we are breaking our deal. We are leaving millions of children to fail, just because their parents didn't have money. Do we want to be a country where our children are sorted at five into different playgrounds according to Daddy's bank account? Do we want to be an place where rich children only glimpse poor children from the car window as they are driven to their better, plusher school, and their better, plusher lives? Or do we want something better for our kids?
 
Our politicians insist that "we're all in this together". This will only be true if - at last, and at least - our children go to school together.

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We're all in this together (except when times are good)

 

The idea of shared responsibility only seems to apply during a recession

Mark Steel - The Independent
 

From now on, anyone who wants to make you worse off has a new catchphrase. If a mugger demands your wallet and you refuse to give it to him, he'll say "Haven't you heard? We're all in this together." And as he takes it he'll say: "See, we've all got to make a sacrifice."
 
It's a shame how it works, because this shared responsibility only seems to apply during a recession. While the banks were making billions, very few politicians were screaming "For God's sake you idiots, share all those bonuses out. Can't you see we're all in this together," which goes to show how complicated economics can be.
 
Luckily for the richest layer of society, we weren't in it together back then, so from 1997 to 2007 the wealthiest 1 per cent of the country could double its share of the wealth, while the poorest 10 per cent had their share cut in half. Then came the banking crash, after which that top layer took a humble and radical decision to carry on exactly the same.
 
So in the last year, the average pay of directors of FTSE companies has risen by 10 per cent, to reach £791,000. The first question to these people must be what couldn't they get with only £721,000 that they need the extra for?
 
If a director was told his salary was staying the same, would he shout: "WHAT? How am I going to pay for the kids' space programme? I've already had a red reminder bill from Nasa, I'll have to do some mini-cabbing in the evening or I'll be having the bailiffs round."
 
Others have softened the blow of recession in other ways. For example the chief of P&O was awarded, along with his pay rise, £80,000 worth of tickets for top sporting events. Imagine if a union leader called a press conference and said: "While the management have conceded tickets for semi-final day at Wimbledon, there has sadly been no progress on the issue of the Third Test at Trent Bridge, and so the strike is due to begin at midnight tonight."
 
Or there's Martin Sorrell, Group chief of WPP advertising, who in the last year laid off 7,200 staff and collected a £20m salary. But because we're all in it together maybe he gave them a little jingle as he laid them off, singing "You won't be let back in with a Sorrell sacking, now you're on - the dole."
 
No one even attempts to justify these raises any more, although they ought to be told to try, so we could see them muttering: "Well, it's imperative I earn more than last year, to compensate for all the suffering of knowing we're all in it together. Yes, that's it." Instead, George Osborne and Peter Mandelson tell us these amounts would make little difference to the overall debt of the country. So they make do with an occasional call on the banking industry to "show restraint". In which case both parties will presumably change their stance towards the slightly smaller amounts claimed illegally by people on benefits, and commission adverts that go "Benefit cheats - we're closing in. And when we do, you'll be asked to show restraint and responsibility in the amount that you fiddle in the future. Thank you."
 
The cry that we're suddenly together has happened countless times, in every recession. There was probably a Roman emperor who announced "Citizens of Rome. Unfortunately it appears I have used up all the gold of the empire in having a temple built for me and my wives. It's not my fault because no one was regulating me, as I had the last regulator crucified. So the most important thing is for all slaves to work themselves to a wretched death as quickly as possible, as we're all very much in this together. Cheers."
And maybe worst of all, if Labour do try to oppose the absurdity of a pair of multi-millionaires insisting we're all in it together, they'll look even more ridiculous than the Tories themselves. Because when Brown complains about scurrilous bankers he has to explain why he's spent the last 14 years addressing bankers' galas with speeches that go "My lords, ladies and gentlemen. What do you want - less tax? De-regulation? Women? You just say it, I'll sort it."
 
And Mandelson will struggle to present himself as an opponent of the wealthy, despite claiming "Labour is in my blood". Maybe he'll say next "You know, whenever I'm on a trillionaire's yacht I always drink Brown Ale, because I am at heart a working man."
So the only coherent line they could put would be to say "The Tories are vicious. Whereas we are vicious but incompetent. So you can rest assured that when we try to cut your income in half, you have every chance of getting away with it because we'll leave all the paperwork on the bus. Vote Labour."

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Vedanta versus the villagers: the fight for the sacred mountain

Tribes say plans by UK-listed mining firm Vedanta to mine on holy land will destroy their way of life

•  Gethin Chamberlain in Niyamgiri, India

• guardian.co.uk, Monday 12 October 2009 20.14 BST

 

Members of the Kutia Kondh tribe in the village of Dangadahal in the foothills of Niyamgiri mountain in Orissa state, India. Stone is being excavated for roads so Vedanta can extract bauxite. Photograph: Gethin Chamberlain

The ash spills out across the plain beneath the brooding bulk of Niyamgiri mountain, swamping the trees that once grew here, forming dirty grey-brown drifts around the stems of the now-dead scrub.

Every day there is more ash, pouring out of the alumina refinery that squats among the steep-sided, jungle-clad hills of western Orissa, India. The dust hangs in the air and clings to the landscape, settling on the huts of the aboriginal Kondh tribes who call this place home, choking those who breathe it in.

Niyamgiri is as remote as any place in the country: 600km from the state capital Bhubaneswar, accessible only by narrow, shattered roads pocked with deep holes, a world away from the economic powerhouse that is 21st-century India.

It is a place of quiet beauty, of lush green paddy fields and huge mango trees, where self-sufficient tribes still share the jungle with elephant, tiger and leopard. Yet this most unlikely place is now the frontline in a clash of civilisations that has pitched the indigenous population up against the corporate might of the British mining company Vedanta Resources, intent on dragging Niyamgiri into the modern world.

It is the mineral wealth lying beneath the slopes of the mountain that has drawn Vedanta to Niyamgiri. It wants to turn the hillside into a giant bauxite mine to feed its refinery at the foot of the mountain.

The FTSE 100-listed company, which is run by the abrasive billionaire Anil Agarwal, is pressing ahead despite a desperate local rearguard action and an international outcry. Yesterday the British government turned on the company, issuing an unexpectedly damning assessment of its behaviour.

Vedanta hopes the refinery will produce at least one million tonnes of alumina a year. But the Kondh people – the Dongria, Kutia and Jharania – need the bauxite too. It holds water remarkably well and helps feed the perennial streams on which they and the animals that live on the mountain rely. Once the bauxite is gone, they fear, the streams will run dry. And that will be the end of the Kondh.
Faced with ferocious local opposition and an international campaign to stop the development, the company has returned time and again to the courts to push its plans through. In July, after numerous setbacks and rulings against it, it was finally given permission by India's supreme court to start mining.
It has wasted no time. Already, the skeleton of an enormous conveyor belt snakes out of the refinery and up to the foot of the mountain. Beyond it, an ugly scar of deep red earth runs up the hillside where hundreds of trees have been felled. Convoys of lorries trundle along the narrow roads, churning them to mud.

There are still legal challenges that the protesters can make and there is also the remote possibility that Vedanta shareholders, which include the Church of England, could bring pressure on the board to reverse its plans.

Although the mining is yet to start in earnest, those who live in the hundreds of small villages that dot the slopes are in no doubt that the effects of Vedanta's presence are already being felt. People and animals are dying, they say: the number of cases of tuberculosis have shot up.
Basanti Majhi sits with her hands folded in her lap, in a hut in the centre of the Kutia Kondh village of Rengopali, a couple of hundred metres from where the company has sited the red mud pond that holds the waste slurry from the refining process.
The 12-year-old started coughing hard last year; her family took her to a doctor, who confirmed TB. She complains of constant pains in her hips and joints and of problems from the dust that settles on the village. "The dust gets in my eyes and it makes it hard to breathe," she says.
Salesmen
Her uncle, Lingaraj Majhi, says 12 people have died from TB in the village in the last year, including a nine-year-old girl and two middle-aged women. He blames dust and smoke from the refinery and the presence of the red mud pond.
"We never used to have a problem but the cases started to appear in the last two years," he said. "During the summer the dust comes in to our houses and gets everywhere, even into our food."
Outside the hut where Basanti sits is a plaque announcing the inauguration of the electrification of the village on 25 June 2008 in a scheme sponsored by Vedanta. Similiar signs adorn the walls of buildings all over the district, part of a concerted campaign by the company to win over the local population. It is hard to move without seeing the name Vedanta. But its critics are unconvinced, suggesting that in many instances the company is simply piggy-backing on existing schemes.
No sooner had the electricity arrived than salesmen turned up, hoping to take advantage of the small group of people who had received small packets of compensation for the loss of their land (many did not) to the red mud pond. Some of the villagers were persuaded to blow their cash on television sets and satellite dishes. Some also bought motorbikes. Only later did they stop to consider how they would pay for the electricity and the fuel to keep them going. With their land gone, few can afford it, and the dishes and bikes stand idle.
"The company promised us a developed way of life with electricity and such things, but now we have to pay for the electricity and we don't have any money," says Kuni Majhi, 40.
She used to grow crops on seven hectares of common land; when the pond was built, she lost the land. There was no compensation. Worse, many of the trees in the area were chopped down, so now she has to trek further to reach the jungle to find firewood and to pick whatever produce she can find.
"The way we were living, we were self-sufficient, and we had lived like that for generations," she says. "We could have lived like that for many more generations too. Because of these people, we cannot. But we will still fight to continue the old ways."
To the animist Kondh tribes, the mountain is more than the place where they live: it is their god. It has sustained them for generations, providing everything they need to survive. All over its slopes there are small shrines where they place offerings to the mountain from whatever they have taken from the jungle. When the mining starts, they fear that the mountain will be taken away from them.
High up in the foothills, 13 families live in two rows of huts in the Dongria Kondh village of Devapada. The huts line a central area in which an imposing wooden ceremonial arch marks the place where animal sacrifices are carried out.
The village is only accessible on foot, the path meandering through meadows in which the tribe is growing paddy. Every now and then there is a wooden watchtower, in which they will sit at night to guard against the wild animals which try to get at the crop, beating drums or waving lighted torches to scare them off.
Now they also have to keep watch for the contractors who are trying to build roads up the mountainsides.
"We don't want a road. The company will come and kill us," says Sitaram Kulesika, 23. He is sitting on a charpoy under the shade of a tree, toying with a new Nokia mobile phone, a rare concession to the outside world. Kulesika is involved in the campaign to stop the mining: the phone, he says, is a necessary evil to keep in touch with his fellow activists. "We stopped them coming up here. We went to explain to them that if they came we would have to leave. We don't want to get into clashes, so we are explaining peacefully."
Lost crops
Others have been less peaceful: the Kondh men routinely carry axes which they use for hunting and to work in the forest, and the contractors are wary of them. A number of the company's vehicles have been attacked in recent months.
Kulesika insists they just want to be left to get on with their lives. "We get everything we need from the mountain except salt and kerosene and we can barter for those," he says. But even now, that is becoming harder. "The smoke brings ash here and it is settling in the village. We can see the impact on the mango and the pineapple and the orange and banana. The flowers are falling early and the fruit is falling and we are losing our crops and the quality of the food is declining."
Down on the plain, the heavens have opened, huge drops of rain hammering into the muddy ruts which mark the road around the turn-off to the refinery. There are security guards everywhere, patrolling in vehicles and on motorbikes. A barbed wire fence and a wide ditch protect the growing hill of ash: any attempt to approach brings the guards out in force.
A short distance away, a crowd has gathered in the centre of the road. It is pouring with rain and they huddle under umbrellas to listen to the leaders of the anti-Vedanta campaign telling them that they can still stop the mine from going ahead. There are a few communist party banners and a lot of red bandanas tied around heads. A few men carry spears and bows and arrows; many more have brought their axes, which they wave in the air from time to time.
The police watch warily from behind a barricade, clutching bamboo shields and their long wooden lathis. They fear trouble, though the rain has dampened the enthusiasm of the crowd. The speakers finish and the crowd drifts away. An hour or so later, back in his village of Kundobodi, close to the refinery, Kumati Majhi, one of the protest leaders, is still railing against Vedanta. The company claims it is committed to sustainable development of the area, he says, but their actions tell another story.
"Once they start mining the mountain will be bulldozed and the rivers will dry up and our livelihood will be lost," he says. "We will become fish out of water. We don't know how to adapt and survive and our way of living is not available in the cities. We will be extinct."

 

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Asda slips up on banana price war

A vicious supermarket price war has broken out over bananas, but the people who really foot the bill are the plantation workers

• Felicity Lawrence
• guardian.co.uk, Monday 12 October 2009 17.30 BST
•  

A third of banana sales are now fair trade. Photograph: Helen Yates/Picture It Now

 

 

Bananas down to 38p per kilo in Asda, 35p per kilo in Tesco this week. A supermarket price war over a fruit with as much comic potential as the banana ought to be funny. Asda has said that it will take the cost of slashing the retail price from its own margins and not pass the pain on down the supply chain, so surely consumers can only benefit as the big four rivals slug it out for market share. Except, of course, we know that's not how the script usually runs when UK supermarkets start price wars.

 
If anyone thinks supermarkets are in the business of simply handing cash back to customers, they are being naive. I've been analysing data on price rises in Asda on some of the biggest-selling brands between 8 July this year and last week – when the banana wars got heavy. There's been a 72% increase in PG Tips tea, a 45% rise on some Colgate top-selling toothpastes, a more than 100% increase on some Pringles crisps, 38% on Rich Tea biscuits, and 85% on single cream. These are steep rises, not on goods that were previously on promotion, but on the usual price.
 
That looks to me remarkably like a supermarket increasing its margin to build a war chest of cash. Can I be sure? No. Like most shoppers, I find it impossible to keep track of supermarket pricing because it is so variable and opaque. Even the competition authorities have admitted they do not have the resources to monitor what the big picture is. But it's a fair bet that what supermarkets give back to us with one hand, they are taking, or have already taken, with the other. In the short term, cutting the price of bananas and selling them below the cost of production is a game for them, a paper exercise in shifting profits around, designed to grab publicity, pull shoppers in to spend on other highly profitable goods, and squeeze their competitors.
But in the medium and long term, it's no game for the rest of the banana industry. A phony supermarket price war is a real war for them – one in which they tend to suffer the collateral damage. We know from the bitter history of such price wars that the costs have been passed down the chain, if not immediately, then over the subsequent months.

 

Asda/Wal-Mart was able to fund its early banana war in 2002 on the back of a global deal with Del Monte, which gave the transnational retailer an extraordinarily low price. Fair trade campaign groups have documented the conditions that were behind that price. In 1999, Del Monte sacked all 4,300 of its workers on one of its biggest plantations in Costa Rica, the country that supplies much of UK demand. They re-employed them on wages reduced by 30-50%, on longer hours, with fewer benefits.

This model was subsequently rolled out across the industrial banana sector. Aid organisations say that a deterioration in conditions has accompanied each banana war. That around 50% of workers on these plantations are now migrants within Latin America is a reflection of how poor pay and conditions became. For all their protestations that the cuts are not passed on, the fact remains that the world price of bananas has been driven down relentlessly since the 1970s. On the ground, fair trade campaigners say they still find evidence of poverty wages, excessive hours, poor health and safety standards, intimidation of union members and environmental degradation.
 
Under pressure from bad publicity about these conditions, the big global banana traders – Del Monte, Chiquita and Dole – were actually pushed into working with aid organisations and local unions to do something about them. They have seemed concerned to distance themselves from the trade's banana republic legacy. All that work, however, may be put at risk by Asda's gaming.
Most British shoppers do not want to be part of the exploitation that has historically been associated with the fruit. One third of banana sales are now fair trade, helped by Sainsbury's and Waitrose making the commitment to buy all their bananas from fair trade sources in 2007. But the current race to the bottom will put enormous pressure on them as they subsidise the difference. The smaller farmers, many of them in the Windward Islands, who produce that fair trade fruit fear the downward pressure on their prices the price war will build.
 
At some point, Asda will decide that the benefit of this particular loss leader has run its course. It will move on. But by then the damage to other people's livelihoods may have been done.

 

It's a zero-sum game, and if you want to know what happens when they play it, you need only look at the fate of British dairy farmers. Squeezed by the supermarkets over many years, the British dairy sector has been brought to the brink of collapse. We now cannot even meet demand for fresh milk, but have to import millions of litres each day from mainland Europe.

Did consumers benefit from this assault on sustainable farming and our long-term food security? The office of fair trading thought not, finding Asda, among others, guilty two years ago of price-fixing. So, please, don't fall for their bananas.

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Obama, man of peace? No, just a Nobel prize of a mistake

 

October 11, 2009

Robert Fisk: 

The US president received an award in the faint hope that he will succeed in the future. That's how desperate the Middle East situation has become

His Middle East policy is collapsing. The Israelis have taunted him by ignoring his demand for an end to settlement-building and by continuing to build their colonies on Arab land. His special envoy is bluntly told by the Israelis that an Arab-Israel peace will take "many years". Now he wants the Palestinians to talk peace to Israel without conditions. He put pressure on the Palestinian leader to throw away the opportunity of international scrutiny of UN Judge Goldstone's damning indictment of Israeli war crimes in Gaza while his Assistant Secretary of State said that the Goldstone report was "seriously flawed". After breaking his pre-election promise to call the 1915 Armenian massacres by Ottoman Turkey a genocide, he has urged the Armenians to sign a treaty with Turkey, again "without pre-conditions". His army is still facing an insurgency in Iraq. He cannot decide how to win "his" war in Afghanistan. I shall not mention Iran.
 
And now President Barack Obama has just won the Nobel Peace Prize. After only eight months in office. Not bad. No wonder he said he was "humbled" when told the news. He should have felt humiliated. But perhaps weakness becomes a Nobel Peace Prize winner. Shimon Peres won it, too, and he never won an Israeli election. Yasser Arafat won it. And look what happened to him. For the first time in history, the Norwegian Nobel committee awarded its peace prize to a man who has achieved nothing - in the faint hope that he will do something good in the future. That's how bad things are. That's how explosive the Middle East has become.
 
Isn't there anyone in the White House to remind Mr Obama that the Israelis have never obliged a US president who asked for an end to the building of colonies for Jews - and Jews only - on Arab land? Bill Clinton demanded this - it was written into the Oslo accords - and the Israelis ignored him. George W Bush demanded an end to the fighting in Jenin nine years ago. The Israelis ignored him. Mr Obama demands a total end to all settlement construction. "They just don't get it, do they?" an Israeli minister - apparently Prime Minister Benjamin Netanyahu - was reported to have said when the US Secretary of State, Hillary Clinton, reiterated her president's words. That's what Avigdor Lieberman, Israel's crackpot foreign minister - he's not as much a crackpot as Mahmoud Ahmadinejad, but he's getting close - said again on Thursday. "Whoever says it's possible to reach in the coming years a comprehensive agreement," he announced before meeting Mr Obama's benighted and elderly envoy George Mitchell, "... simply doesn't understand the reality."
 
Across Arabia, needless to say, the Arab potentates continue to shake with fear in their golden minarets. That great Lebanese journalist Samir Kassir - murdered in 2005, quite possibly by Mr Obama's new-found Syrian chums - put it well in one of his last essays. "Undeterred by Egypt since Sadat's peace," he wrote, "convinced of America's unfailing support, guaranteed moral impunity by Europe's bad conscience, and backed by a nuclear arsenal that was acquired with the help of Western powers, and that keeps growing without exciting any comment from the international community, Israel can literally do anything it wants, or is prompted to do by its leaders' fantasies of domination."
 
So Israel is getting away with it as usual, abusing the distinguished (and Jewish) head of the UN inquiry into Gaza war crimes - which also blamed Hamas - while joining the Americans in further disgracing the craven Palestinian Authority "President" Mahmoud Abbas, who is more interested in maintaining his relations with Washington than with his own Palestinian people. He's even gone back on his word to refuse peace talks until Israel's colonial expansion comes to an end. In a single devastating sentence, that usually mild Jordanian commentator Rami Khouri noted last week that Mr Abbas is "a tragic shell of a man, hollow, politically impotent, backed and respected by nobody". I put "President" Abbas into quotation marks since he now has Mr Ahmadinejad's status in the eyes of his people. Hamas is delighted. Thanks to President Obama.
 
Oddly, Mr Obama is also humiliating the Armenian president, Serg Sarkisian, by insisting that he talks to his Turkish adversaries without conditions. In the West Bank, you have to forget the Jewish colonies. In Armenia, you have to forget the Turkish murder of one and a half million Armenians in 1915. Mr Obama refused to honour his pre-election promise to recognise the 20th century's first holocaust as a genocide. But if he can't handle the First World War, how can he handle World War Three?
 
Mr Obama advertised the Afghanistan conflict as the war America had to fight - not that anarchic land of Mesopotamia which Mr Bush rashly invaded. He'd forgotten that Afghanistan was another Bush war; and he even announced that Pakistan was now America's war, too. The White House produced its "Afpak" soundbite. And the drones came in droves over the old Durand Line, to kill the Taliban and a host of innocent civilians. Should Mr Obama concentrate on al-Qa'ida? Or yield to General Stanley McChrystal's Vietnam-style demand for 40,000 more troops? The White House shows the two of them sitting opposite each other, Mr Obama in the smoothie suite, McChrystal in his battledress. The rabbit and the hare.
 
No way are they going to win. The neocons say that "the graveyard of empire" is a cliché. It is. But it's also true. The Afghan government is totally corrupted; its paid warlords - paid by Karzai and the Americans - ramp up the drugs trade and the fear of Afghan civilians. But it's much bigger than this.
 
The Indian embassy was bombed again last week. Has Mr Obama any idea why? Does he realise that Washington's decision to support India against Pakistan over Kashmir - symbolised by his appointment of Richard Holbrooke as envoy to Afghanistan and Pakistan but with no remit to discuss divided Kashmir - enraged Pakistan. He may want India to balance the power of China (some hope!) but Pakistan's military intelligence realises that the only way of persuading Mr Obama to act fairly over Kashmir - recognising Pakistan's claims as well as India's - is to increase their support for the Taliban. No justice in Kashmir, no security for US troops - or the Indian embassy - in Afghanistan.
 
Then, after stroking the Iranian pussycat at the Geneva nuclear talks, the US president discovered that the feline was showing its claws again at the end of last week. A Revolutionary Guard commander, an adviser to Supreme Leader Khamenei, warned that Iran would "blow up the heart" of Israel if Israel or the US attacked the Islamic Republic. I doubt it. Blow up Israel and you blow up "Palestine". Iranians - who understand the West much better than we understand them - have another policy in the case of the apocalypse. If the Israelis attack, they may leave Israel alone. They have a plan, I'm told, to target instead only US troops in Iraq and Afghanistan, and their bases in the Gulf and their warships cruising through Hormuz. They would leave Israel alone. Americans would then learn the price of kneeling before their Israeli masters.
 
For the Iranians know that the US has no stomach for a third war in the Middle East. Which is why Mr Obama has been sending his generals thick and fast to the defence ministry in Tel Aviv to tell the Israelis not to strike at Iran. And why Israel's leaders - including Mr Netanyahu - were blowing the peace pipe all week about the need for international negotiations with Iran. But it raises an interesting question. Is Mr Obama more frightened of Iran's retaliation? Or of its nuclear capabilities? Or more terrified of Israel's possible aggression against Iran?
 
But, please, no attacks on 10 December. That's when Barack Obama turns up in Oslo to pocket his peace prize - for achievements he has not yet achieved and for dreams that will turn into nightmares.

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