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Sunday 5 July 2009

Democracy's Failing Light

Magazine| Jul 13, 2009

Essay - Is democracy a hit with humans because it mirrors our myopia?

ARUNDHATI ROY

While we're still arguing about whether there's life after death, can we add another question to the cart? Is there life after democracy? What sort of life will it be? By democracy I don't mean democracy as an ideal or an aspiration. I mean the working model: Western liberal democracy, and its variants, such as they are.

So, is there life after democracy?

Attempts to answer this question often turn into a comparison of different systems of governance, and end with a somewhat prickly, combative defence of democracy. It's flawed, we say. It isn't perfect, but it's better than everything else that's on offer. Inevitably, someone in the room will say: 'Afghanistan, Pakistan, Saudi Arabia, Somalia...is that what you would prefer?'

Whether democracy should be the utopia that all 'developing' societies aspire to is a separate question altogether. (I think it should. The early, idealistic phase can be quite heady.) The question about life after democracy is addressed to those of us who already live in democracies, or in countries that pretend to be democracies. It isn't meant to suggest that we lapse into older, discredited models of totalitarian or authoritarian governance. It's meant to suggest that the system of representative democracy—too much representation, too little democracy—needs some structural adjustment.

The question here, really, is: what have we done to democracy? What have we turned it into? What happens once democracy has been used up? When it has been hollowed out and emptied of meaning? What happens when each of its institutions has metastasised into something dangerous? What happens now that democracy and the Free Market have fused into a single predatory organism with a thin, constricted imagination that revolves almost entirely around the idea of maximising profit? Is it possible to reverse this process? Can something that has mutated go back to being what it used to be?

What we need today, for the sake of the survival of this planet, is long-term vision. Can governments whose very survival depends on immediate, extractive, short-term gain provide this? Could it be that democracy, the sacred answer to our short-term hopes and prayers, the protector of our individual freedoms and nurturer of our avaricious dreams, will turn out to be the endgame for the human race? Could it be that democracy is such a hit with modern humans precisely because it mirrors our greatest folly—our nearsightedness? Our inability to live entirely in the present (like most animals do) combined with our inability to see very far into the future makes us strange in-between creatures, neither beast nor prophet. Our amazing intelligence seems to have outstripped our instinct for survival. We plunder the earth hoping that accumulating material surplus will make up for the profound, unfathomable thing that we have lost.

It would be conceit to pretend that the essays in this book provide answers to any of these questions. They only demonstrate, in some detail, the fact that it looks as though the beacon could be failing and that democracy can perhaps no longer be relied upon to deliver the justice and stability we once dreamed it would.All the essays were written as urgent public interventions at critical moments in India—during the state-backed genocide of Muslims in Gujarat; just before the date set for the hanging of Mohammed Afzal, the accused in the December 13, 2001, Parliament attack; during US President George Bush's visit to India; during the mass uprising in Kashmir in the summer of 2008; after the November 26, 2008, Mumbai attacks. Often they were not just responses to events, they were responses to the responses.

Though many of them were written in anger, at moments when keeping quiet became harder than saying something, the essays do have a common thread. They're not about unfortunate anomalies or aberrations in the democratic process. They're about the consequences of and the corollaries to democracy; they're about the fire in the ducts. I should also say that they do not provide a panoramic overview. They're a detailed underview of specific events that I hoped would reveal some of the ways in which democracy is practised in the world's largest democracy. (Or the world's largest 'demon-crazy', as a Kashmiri protester on the streets of Srinagar once put it. His placard said: 'Democracy without Justice=Demon Crazy.')




Indelible mark: Campaigns like this one appealed to the middle class’s sense of ‘cool’

As a writer, a fiction writer, I have often wondered whether the attempt to always be precise, to try and get it all factually right somehow reduces the epic scale of what is really going on. Does it eventually mask a larger truth? I worry that I am allowing myself to be railroaded into offering prosaic, factual precision when maybe what we need is a feral howl, or the transformative power and real precision of poetry. Something about the cunning, Brahminical, intricate, bureaucratic, file-bound, 'apply-through-proper-channels' nature of governance and subjugation in India seems to have made a clerk out of me. My only excuse is to say that it takes odd tools to uncover the maze of subterfuge and hypocrisy that cloaks the callousness and the cold, calculated violence of the world's favourite new Superpower. Repression 'through proper channels' sometimes engenders resistance 'through proper channels'. As resistance goes this isn't enough, I know. But for now, it's all I have. Perhaps someday it will become the underpinning for poetry and for the feral howl.

***

'Listening to Grasshoppers', the essay from which this collection draws its title, was a lecture I gave in Istanbul in January 2008 on the first anniversary of the assassination of the Armenian journalist Hrant Dink. He was shot down on the street outside his office for daring to raise a subject that is forbidden in Turkey—the 1915 genocide of Armenians in which more than one million people were killed.My lecture was about the history of genocide and genocide denial, and the old, almost organic relationship between 'progress' and genocide.

I have always been struck by the fact that the political party in Turkey that carried out the Armenian genocide was called the Committee for Union and Progress. Most of the essays in this collection are, in fact, about the contemporary correlation between Union and Progress, or, in today's idiom, between nationalism and development—those unimpeachable twin towers of modern, free market democracy. Both of these in their extreme form are, as we now know, encrypted with the potential of bringing about ultimate, apocalyptic destruction (nuclear war, climate change).

Though these essays were written between 2002 and 2008, the invisible marker, the starting gun, is the year 1989, when in the rugged mountains of Afghanistan capitalism won its long jehad against Soviet Communism. (Of course, the wheel's in spin again. Could it be that those same mountains are now in the process of burying capitalism? It's too early to tell.) Within months of the collapse of the Soviet Union and the fall of the Berlin Wall, the Indian government, once a leader of the Non-Aligned Movement, performed a high-speed somersault and aligned itself completely with the United States, monarch of the new unipolar world.

Big game: Over ten billion dollars are believed to have been spent in the recent elections

The rules of the game changed suddenly and completely. Millions of people who lived in remote villages and deep in the heart of untouched forests, some of whom had never heard of Berlin or the Soviet Union, could not have imagined how events that occurred in those faraway places would affect their lives. The process of their dispossession and displacement had already begun in the early 1950s, when India opted for the Soviet-style development model in which huge steel plants (Bhilai, Bokaro) and large dams (thousands of them) would occupy the 'commanding heights' of the economy. The era of privatisation and structural adjustment accelerated that process at a mind-numbing speed.

Today, words like 'progress' and 'development' have become interchangeable with economic 'reforms', 'deregulation' and 'privatisation'. 'Freedom' has come to mean 'choice'. It has less to do with the human spirit than with different brands of deodorant. 'Market' no longer means a place where you go to buy provisions. The 'market' is a de-territorialised space where faceless corporations do business, including buying and selling 'futures'. 'Justice' has come to mean 'human rights' (and of those, as they say, 'a few will do'). This theft of language, this technique of usurping words and deploying them like weapons, of using them to mask intent and to mean exactly the opposite of what they have traditionally meant, has been one of the most brilliant strategic victories of the tsars of the new dispensation. It has allowed them to marginalise their detractors, deprive them of a language in which to voice their critique and dismiss them as being 'anti-progress', 'anti-development', 'anti-reform' and of course 'anti-national'—negativists of the worst sort. Talk about saving a river or protecting a forest and they say, 'Don't you believe in Progress?' To people whose land is being submerged by dam reservoirs and whose homes are being bulldozed they say, 'Do you have an alternative development model?' To those who believe that a government is duty-bound to provide people with basic education, healthcare and social security, they say, 'You're against the Market.' And who except a cretin could be against a Market?

To reclaim these stolen words requires explanations that are too tedious for a world with a short attention span, and too expensive in an era when free speech has become unaffordable for the poor.This language heist may prove to be the keystone of our undoing.

Two decades of this kind of 'Progress' in India has created a vast middle class punch-drunk on sudden wealth and the sudden respect that comes with it—and a much, much vaster, desperate underclass. Tens of millions of people have been dispossessed and displaced from their land by floods, droughts and desertification caused by indiscriminate environmental engineering and massive infrastructural projects, dams, mines and special economic zones. All of them developed in the name of the poor, but really meant to service the rising demands of the new aristocracy.

The battle for land lies at the heart of the 'development' debate. Before he became India's finance minister, P. Chidambaram was Enron's lawyer and member of the board of directors of Vedanta, a multinational mining corporation that is currently devastating the Niyamgiri hills in Orissa. Perhaps his career graph informed his worldview. Or maybe it's the other way around. In an interview a year ago, he said that his vision was to get 85 per cent of India's population to live in cities. Realising this 'vision' would require social engineering on an unimaginable scale. It would mean inducing, or forcing, about five hundred million people to migrate from the countryside into cities. That process is well under way and is quickly turning India into a police state in which people who refuse to surrender their land are being made to do so at gunpoint. Perhaps this is what makes it so easy for P. Chidambaram to move so seamlessly from being finance minister to being home minister. The portfolios are separated only by an osmotic membrane. Underlying this nightmare masquerading as 'vision' is the plan to free up vast tracts of land and all of India's natural resources, leaving them ripe for corporate plunder. In effect, to reverse the post-independence policy of land reforms.

Already forests, mountains and water systems are being ravaged by marauding multinational corporations, backed by a State that has lost its moorings and is committing what can only be called 'ecocide'. In eastern India, bauxite and iron ore mining is destroying whole ecosystems, turning fertile land into desert. In the Himalayas, hundreds of high dams are being planned, the consequences of which can only be catastrophic. In the plains, embankments built along rivers, ostensibly to control floods, have led to rising river beds, causing even more flooding, more waterlogging, more salinisation of agricultural land and the destruction of livelihoods of millions of people. Most of India's holy rivers, including the Ganga, have been turned into unholy drains that carry more sewage and industrial effluent than water. Hardly a single river runs its course and meets the ocean.


Unsustainable: Big dam projects, like this one in Tehri, find widespread support

Based on the absurd notion that a river flowing into the sea is a waste of water, the Supreme Court, in an act of unbelievable hubris, has arbitrarily ordered that India's rivers be interlinked, like a mechanical water supply system. Implementing this would mean tunnelling through mountains and forests, altering natural contours and drainage systems of river basins and destroying deltas and estuaries. In other words, wrecking the ecology of the entire subcontinent. (B.N. Kirpal, the judge who passed this order, joined the environmental board of Coca-Cola after he retired. Nice touch!)

The regime of free market economic policies, administered by people who are blissfully ignorant of the fate of civilisations that grew too dependent on artificial irrigation, has led to a worrying shift in cropping patterns.Sustainable food crops, suitable to local soil conditions and micro-climates, have been replaced by water-guzzling, hybrid and genetically modified 'cash' crops which, apart from being wholly dependent on the market, are also heavily dependent on chemical fertilisers, pesticides, canal irrigation and the indiscriminate mining of ground water. As abused farmland, saturated with chemicals, gradually becomes exhausted and infertile, agricultural input costs rise, ensnaring small farmers in a debt trap. Over the last few years, more than 1,80,000 Indian farmers have committed suicide. While state granaries are bursting with food that eventually rots, starvation and malnutrition approaching the same levels as in sub-Saharan Africa stalk the land. Truly the nine per cent growth rate is beginning to look like a downward spiral. The higher the rate of this kind of growth, the worse the prognosis. Any oncologist will tell you that.


Looming spectre: The widow of a Vidarbha farmer who committed suicide

It's as though an ancient society, decaying under the weight of feudalism and caste, was churned in a great machine. The churning has ripped through the mesh of old inequalities, recalibrating some of them but reinforcing most. Now the old society has curdled and separated into a thin layer of thick cream—and a lot of water. The cream is India's 'market' of many million consumers (of cars, cell phones, computers, Valentine's Day greeting cards), the envy of international business. The water is of little consequence. It can be sloshed around, stored in holding ponds, and eventually drained away.

Or so they think, the men in suits. They didn't bargain for the violent civil war that has broken out in India's heartland: Chhattisgarh, Jharkhand, Orissa, West Bengal.
***

Coming back to 1989. As if to illustrate the connection between 'Union' and 'Progress', at exactly the same time that the Congress government was opening up India's markets to international finance, the right-wing Bharatiya Janata Party (BJP), then in the opposition, began its virulent campaign of Hindu nationalism (popularly known as 'Hindutva'). In 1990, its leader, L.K. Advani, travelled across the country, whipping up hatred against Muslims and demanding that the Babri Masjid, an old 16th-century mosque that stood on a disputed site in Ayodhya, be demolished and a Ram temple built in its place. In 1992, a mob, egged on by Advani, demolished the mosque. Feeding off the communal frenzy it had generated, the BJP, which had only two seats in Parliament in 1984, defeated the Congress in 1998 and came to power at the Centre.

It's not a coincidence that the rise of Hindutva corresponded with the historical moment when America substituted Communism with Islam as its great enemy. The radical Islamist mujahideen—whom President Reagan once entertained in the White House and compared to America's founding fathers—suddenly began to be called terrorists. CNN's live broadcast of the 1990-91 Gulf War—Operation Desert Storm—made it to elite drawing rooms in Indian cities, bringing with it the early thrills of satellite TV. Almost simultaneously, the Indian government, once a staunch friend of the Palestinians, turned into Israel's 'natural ally'. Now India and Israel do joint military exercises, share intelligence and probably exchange notes on how best to administer occupied territories.

By 1998, when the BJP took office, the 'Progress' project of privatisation and liberalisation was about eight years old. Though it had campaigned vigorously against the economic reforms, saying they were a process of 'looting through liberalisation', once it came to power the BJP embraced the free market enthusiastically and threw its weight behind huge corporations like Enron.(In representative democracies, once they're elected, the people's representatives are free to break their promises and change their minds.)

Within weeks of taking office, the BJP conducted a series of thermonuclear tests. Though India had thrown its hat into the nuclear ring in 1974, politically, the 1998 nuclear tests were of a different order altogether. The orgy of triumphant nationalism with which the tests were greeted introduced a chilling new language of aggression and hatred into mainstream public discourse. None of what was being said was new, only that what was once considered unacceptable was suddenly being celebrated. Since then, Hindu communalism and nuclear nationalism, like corporate globalisation, have vaulted over the stated ideologies of political parties. The venom has been injected straight into our bloodstream. It's there now—in all its violence and banality—for us to deal with in our daily lives, regardless of whether the government at the centre calls itself 'secular' or not. The Muslim community has seen a sharp decline in its fortunes and is now at the bottom of the social pyramid, along with Dalits and Adivasis. Certain events that occur in the life of a nation have the effect of parting the curtains and giving ordinary people a glimpse into the future. The 1998 nuclear tests were one such. You didn't need the gift of prophecy to tell in which direction India was heading.
***

In February 2002, following the burning of a train coach in which 58 Hindu pilgrims returning from Ayodhya were burned alive, the BJP government in Gujarat, led by chief minister Narendra Modi, presided over a carefully planned genocide of Muslims in the state. The Islamophobia generated all over the world by the September 11, 2001, attacks put the wind in their sails. The machinery of the state of Gujarat stood by and watched while more than 2,000 people were massacred. Gujarat has always been a communally tense state. There had been riots before. But this was not a riot. It was a genocidal massacre, and though the number of victims was insignificant compared to the horror of say Rwanda, Sudan or the Congo, the Gujarat carnage was designed as a public spectacle whose aims were unmistakable. It was a public warning to Muslim citizens from the government of the world's favourite democracy.

After the carnage, Modi pressed for early elections. He was returned to power with a mandate from the people of Gujarat. Five years later he repeated his success: he is now serving a third term as chief minister, widely appreciated by business houses for his faith in the free market, illustrating the organic relationship between 'Union' and 'Progress'. Or, if you like, between Fascism and the Free Market.

In January 2009 that relationship was sealed with a kiss at a public function. The CEOs of two of India's biggest corporations, Ratan Tata (of the Tata Group) and Mukesh Ambani (of Reliance Industries), while accepting the Gujarat Garima (Pride of Gujarat) award, celebrated the development policies of Modi, architect of the Gujarat genocide, and warmly endorsed him as a future candidate for prime minister.
***

As this book goes to press, the nearly two-billion-dollar 2009 general election has just been concluded. That's a lot more than the budget of the US elections. According to some media reports, the actual amount spent is closer to ten billion dollars. Where, might one ask, does that kind of money come from?

The Congress and its allies, the United Progressive Alliance (UPA), have won a comfortable majority. Interestingly, more than 90 per cent of the independent candidates who stood for elections lost. Clearly, without sponsorship it's hard to win an election.And independent candidates cannot promise subsidised rice, free TVs and cash-for-votes, those demeaning acts of vulgar charity that elections have been reduced to.



Victory?: A Congress worker celebrates the recent UPA victory as a CPI(M) worker looks on

When you take a closer look at the calculus that underlies election results, words like 'comfortable' and 'majority' turn out to be deceptive, if not outright inaccurate. For instance, the actual share of votes polled by the UPA in these elections works out to only 10.3 per cent of the country's population! It's interesting how the cleverly layered mathematics of electoral democracy can turn a tiny minority into a thumping mandate. Anyway, be that as it may, the point is that it will not be L.K. Advani, hate-monger incarnate, but secular Dr Manmohan Singh, gentle architect of the market reforms, a man who has never won an election in his life, who will be prime minister of the world's largest democracy for a second term.


Tribal war: Chhattisgarh has pitted tribespeople against their own through the Salwa Judum

In the run-up to the polls, there was absolute consensus across party lines about the economic 'reforms'. Govindacharya, formerly the chief ideologue of the BJP, progenitor of the Ram Janmabhoomi movement, sarcastically suggested that the Congress and BJP form a coalition. In some states they already have. In Chhattisgarh, for example, the BJP runs the government and Congress politicians run the Salwa Judum, a vicious government-backed 'people's militia'. The Judum and the government have formed a joint front against the Maoists in the forests who are engaged in a deadly and often brutal armed struggle against displacement and against land acquisition by corporations waiting to set up steel factories and to begin mining iron ore, tin and all the other wealth stashed below the forest floor. So, in Chhattisgarh, we have the remarkable spectacle of the two biggest political parties of India in an alliance against the Adivasis of Dantewada, India's poorest, most vulnerable people. Already 644 villages have been emptied. Fifty thousand people have moved into Salwa Judum camps. Three hundred thousand are hiding in the forests and are being called Maoist terrorists or sympathisers. The battle is raging, and the corporations are waiting.

It is significant that India is one of the countries that blocked a European move in the UN asking for an international probe into war crimes that may have been committed by the government of Sri Lanka in its recent offensive against the Tamil Tigers. Governments in this part of the world have taken note of Israel's Gaza blueprint as a good way of dealing with 'terrorism': keep the media out and close in for the kill. That way they don't have to worry too much about who's a 'terrorist' and who isn't. There may be a little flurry of international outrage, but it goes away pretty quickly.

Things do not augur well for the forest-dwelling people of Chhattisgarh.

Reassured by the sort of 'constructive' collaboration, the consensus between political parties, few were more enthusiastic about the recent general elections than some major corporate houses. They seem to have realised that a democratic mandate can legitimise their pillaging in a way that nothing else can. Several corporations ran extravagant advertising campaigns on TV, some featuring Bollywood film stars urging people, young and old, rich and poor, to go out and vote. Shops and restaurants in Khan Market, Delhi's most tony market, offered discounts to those whose index (voting) fingers were marked with indelible ink.Democracy suddenly became the cool new way to be. You know how it is: the Chinese do Sport, so they had the Olympics; India does Democracy, so we had an election. Both are heavily sponsored, TV-friendly spectator sports.

The BBC commissioned a coach on a train—the India Election Special—that took journalists from all over the world on a sightseeing tour to witness the miracle of Indian elections. The train coach had a slogan painted on it: 'Will India's voters revive the World's Fortunes?' BBC (Hindi) had a poster up in a cafe near my home. It featured a hundred dollar bill (with Ben Franklin) morphing into a 500 rupee note (with Gandhi). It said: 'Kya India ka vote bachayega duniya ka note?' (Will India's votes rescue the world's currency notes?) In these flagrant and unabashed ways, an electorate has been turned into a market, voters are seen as consumers, and democracy is being welded to the Free Market. Ergo: those who cannot consume do not matter.

What does the victory of the UPA mean in this election? Obviously a myriad things. The debate is wide open. Interpreting an Indian election is about as exact a science as sorcery. Voting patterns are intricately connected with local issues and caste and community equations that vary, quite literally, from polling booth to polling booth. There can be no reliable Big Conclusion. But here's something to think about.




Sparing none: ‘Development’ and ‘Progress’ have left our rivers stinking and polluted

In its time in office, in order to mitigate the devastation caused by its economic policies, the former Congress regime passed three progressive (critics call them populist and controversial) parliamentary acts. The Forest Rights Act (which gave forest-dwellers legal right to land and the traditional use of forest produce), the Right to Information Act and, most important of all, the National Rural Employment Guarantee Act (NREGA). The NREGA guarantees every rural family a hundred days of work (hard, manual labour) a year at minimum wages. It amounts to an average of Rs 8,000 (about $170) per family per year. Enough for a good meal in a restaurant, including wine and dessert. Imagine how hellish times must be for even that tiny amount of money to come as a relief to millions of people who are reeling under the impact of the precipitous loss of their lands and their livelihoods. (Talk about crumbs from the high table. But then, which one of us has the heart, or the right, to argue that no crumbs are better than crumbs? Or, indeed, that no elections are better than meaningless elections?) Implementing the NREGA, seeing that the crumbs actually reach the people they're meant for, has occupied all the time and energy of some of India's finest and most committed social activists for the last several years. They have had to battle cartels of corrupt government officers, power-brokers and middlemen. They have faced threats and a fair amount of violence. One rural activist in Jharkhand immolated himself in anger and frustration at the injustice of it all.

Ironically, the NREGA only made it through Parliament because of pressure brought to bear on the UPA government by the Left Front and, it must be said, by Sonia Gandhi. It was passed despite tremendous resistance from the mandarins of the free market within the Congress party. The corporate media was more or less unanimously hostile to the Act. Needless to say, come election-time and the NREGA became one of the main planks of the Congress party's election campaign. There's little doubt that the goodwill it generated amongst the very poor translated into votes for the Congress.But now that the elections are over, victory is being attributed to the very policies that the NREGA was passed to mitigate! The Captains of Industry have lost no time in claiming the 'People's Mandate' as their own. 'It's fast forward for markets', the business papers crowed the morning after, 'Vote [was] for reforms, says India Inc'.

There is an even greater irony: the Left Front, acting with the duplicity that has become second nature to all parliamentary political parties, took a sharp turn to the right. Even while it criticised the government's economic policies at the Centre, it tried to enforce similar ones on its home turf in West Bengal. It announced that it was going to build a chemical hub in Nandigram, a manufacturing unit for the Tata Nano in Singur, and a Jindal Steel plant some kilometres outside the forests of Lalgarh, home to the Santhal people. It began to acquire land, most of it fertile farmland, virtually at gunpoint. The massive, militant uprisings that followed were put down with bullets and lathicharges. Lumpen 'party' militias ran amok among the protesters, raping women and killing people. But eventually the combination of genuine mass mobilisation and militancy worked. The people prevailed. They won all three battles, and forced the government to back off. The Tatas had to move the Nano project to Gujarat, that laboratory of fascism, which offered a 'good investment climate'. The Left Front was decimated in the elections in West Bengal, something that had not happened in thirty years.

The irony doesn't end there. In a fiendishly clever sleight of hand, the defeat of the Left is being attributed to its obstructionism and anti-development policies! 'Corporate captains feel easy without Left', the papers said. The stockmarket surged, looking forward to 'a summer of joy'. CEOs on TV channels celebrated the new government's 'liberation' from the Left. Hectoring news anchors have announced that the UPA no longer has any excuse to prevaricate on implementing reforms, unless of course it has 'closet socialists' hiding in its midst.

This is the wonderful thing about democracy. It can mean anything you want it to mean.

The absence of a genuinely left-wing party in mainstream politics is not something to celebrate. But the parliamentary Left has only itself to blame for its humiliation. It's not a tragedy that it has been cut to size. Perhaps this will create the space for some truly progressive politics.




Caught in a cleft: Despite democracy, Kashmir finds it impossible to speak what it thinks

For the sake of argument, let's for a moment contemplate the absurd and accept that India Inc and the Captains of Industry are right and that India's millions did in fact vote for the speeding up of market 'reforms'. Is that good news or bad news? Should we be celebrating the fact that millions of people who have something to teach the world, who have another imagination, another worldview and a more sustainable way of life, have decided to embrace a discredited ideology, one that has pushed this planet into a crisis from which it may never recover?

What good will forest rights be when there are no forests? What good will the Right to Information do if there is no redress for our grievances? What good are rivers without water? What good are plains without mountains to water and sustain them? It's as though we're hurtling down a cliff in a bus without brakes and fighting over what songs to sing.

'Jai Ho!' perhaps?

***

For better or for worse, the 2009 elections seem to have ensured that the 'Progress' project is up and running. However, it would be a serious mistake to believe that the 'Union' project has fallen by the wayside.

As the 2009 election campaign unrolled, two things got saturation coverage in the media.One was the 1,00,000 rupee (two thousand dollar) 'people's car', the Tata Nano—the wagon for the volks—rolling out of Modi's Gujarat. (The sops and subsidies Modi gave the Tatas had a lot to do with Ratan Tata's warm endorsement of him.) The other is the hate speech of the BJP's monstrous new debutant, Varun Gandhi (another descendant of the Nehru dynasty), who makes even Narendra Modi sound moderate and retiring. In a public speech, Varun Gandhi called for Muslims to be forcibly sterilised. 'This will be known as a Hindu bastion, no ***** Muslim dare raise his head here', he said, using a derogatory word for someone who has been circumcised. 'I don't want a single Muslim vote.'
Varun is a modern politician, working the democratic system, doing everything he can to create a majority and consolidate his votebank. A politician needs a votebank, like a corporation needs a mass market. Both need help from the mass media. Corporations buy that help. Politicians must earn it. Some earn it by dint of hard work, others with dangerous circus stunts. Varun's hate speech bought him national headlines. His brief stint in prison (for violating the Election Commission's code of conduct), cut short by a court order, made him an instant martyr. He was gently chastised for his impetuousness by his party elders (on TV, for public consumption). But then, in order to export his coarse appeal, he, like Narendra Modi, was flown around in a chopper as a star campaigner for the BJP in other constituencies.

Varun Gandhi won his election with a colossal margin. It makes you wonder—are 'the people' always right? It is worrying to think what lessons the BJP will draw from its few decisive victories and its many decisive losses in this election. In several of the constituencies where it has won, hate speech (and deed) served it well. It still remains by far the second largest political party, with a powerful national presence, the only real challenge to the Congress. It will certainly live to fight another day. The question is, will it turn the burners up or down?




Sting of acid: Despite (or due to) his hatespeak, Varun Gandhi won the elections from Pilibhit

This said, it would be a travesty to lay all the blame for divisive politics at the door of the BJP. Whether it's nuclear tests, the unsealing of the locks of the Babri Masjid, the culture of creating fissures and pitting castes and communities against each other, or passing retrograde laws, the Congress got there first and has never been shy of keeping the ball in play. In the past, both parties have used massacres to gain political mileage. Sometimes they feast off them obliquely, sometimes they accuse each other of committing mass murder. In this election, both the Congress and the BJP brazenly fielded candidates believed to be involved in public lynching and mass murder. At no point has either seen to it that the guilty are punished or that justice is delivered. Despite their vicious public exchange of accusations, so far they have colluded to protect one another from real consequences.

Eventually the massacres get absorbed into the labyrinth of India's judicial system where they are left to bubble and ferment before being trundled out as campaign material for the next election. You could say it's all a part of the fabric of Indian democracy. Hard to see from a train window. Whether the new infusion of young blood into the Congress will change the old party's methods of doing business remains to be seen.

As will be obvious from the essays in this book, the hoary institutions of Indian democracy—the judiciary, the police, the 'free' press and, of course, elections—far from working as a system of checks and balances, quite often do the opposite.They provide each other cover to promote the larger interests of Union and Progress. In the process, they generate such confusion, such a cacophony, that voices raised in warning just become part of the noise. And that only helps to enhance the image of the tolerant, lumbering, colourful, somewhat chaotic democracy. The chaos is real. But so is the consensus.
***

Speaking of consensus, there's the small and ever-present matter of Kashmir. When it comes to Kashmir the consensus in India is hardcore. It cuts across every section of the establishment—including the media, the bureaucracy, the intelligentsia and even Bollywood.

The war in the Kashmir Valley is almost 20 years old now, and has claimed about 70,000 lives. Tens of thousands have been tortured, several thousand have 'disappeared', women have been raped and many thousands widowed. Half a million Indian troops patrol the Kashmir Valley, making it the most militarised zone in the world. (The United States had about 1,65,000 active-duty troops in Iraq at the height of its occupation.) The Indian army now claims that it has, for the most part, crushed militancy in Kashmir. Perhaps that's true. But does military domination mean victory?

How does a government that claims to be a democracy justify a military occupation? By holding regular elections, of course. Elections in Kashmir have had a long and fascinating past. The blatantly rigged state election of 1987 was the immediate provocation for the armed uprising that began in 1990. Since then elections have become a finely honed instrument of the military occupation, a sinister playground for India's Deep State. Intelligence agencies have created political parties and decoy politicians, they have constructed and destroyed political careers at will. It is they more than anyone else who decide what the outcome of each election will be. After every election, the Indian establishment declares that India has won a popular mandate from the people of Kashmir.

In the summer of 2008, a dispute over land being allotted to the Amarnath Shrine Board coalesced into a massive, non-violent uprising. Day after day, hundreds of thousands of people defied soldiers and policemen—who fired straight into the crowds, killing scores of people—and thronged the streets. From early morning to late in the night, the city reverberated to chants of 'azadi! azadi!' ('freedom! freedom!'). Fruit-sellers weighed fruit chanting, 'azadi! azadi!' Shopkeepers, doctors, houseboat owners, guides, weavers, carpet-sellers—everybody was out with placards, everybody shouted 'azadi! azadi!' The protests went on for several days.

The protests were massive. They were democratic, and they were non-violent. For the first time in decades, fissures appeared in mainstream public opinion in India. The Indian state panicked. Unsure of how to deal with this mass civil disobedience, it ordered a crackdown. It enforced the harshest curfew in recent memory with shoot-at-sight orders. In effect, for days on end, it virtually caged millions of people. The major pro-freedom leaders were placed under house arrest, several others were jailed. House-to-house searches culminated in the arrest of hundreds of people. The Jama Masjid was closed for Friday prayers for an unprecedented seven weeks at a stretch.

Once the rebellion was brought under control, the government did something extraordinary—it announced elections in the state. Pro-independence leaders called for a boycott. They were re-arrested. Almost everybody believed the elections would become a huge embarrassment for the Indian government. The security establishment was convulsed with paranoia. Its elaborate network of spies, renegades and embedded journalists began to buzz with renewed energy.No chances were taken. (Even I, who had nothing to do with any of what was going on, was put under house arrest in Srinagar for two days.)

Calling for elections was a huge risk. But the gamble paid off. People turned out to vote in droves. It was the biggest voter turnout since the armed struggle began. It helped that the polls were scheduled so that the first districts to vote were the most militarised even within the Kashmir Valley.

None of India's analysts, journalists and psephologists cared to ask why people who had only weeks ago risked everything, including bullets and shoot-at-sight orders, should have suddenly changed their minds. None of the high-profile scholars of the great festival of democracy—who practically live in TV studios when there are elections in mainland India, picking apart every forecast, exit poll and minor percentile swing in the voteshare—talked about what elections mean in the presence of such a massive, year-round troop deployment. (An armed soldier for every 20 civilians.) No one speculated about the mystery of hundreds of unknown candidates who materialised out of nowhere to represent political parties that had no previous presence in the Kashmir Valley. Where had they come from? Who was financing them? No one was curious.

No one spoke about the curfew, the mass arrests, the lockdown of constituencies that were going to the polls. Not many talked about the fact that campaigning politicians went out of their way to delink 'azadi' and the Kashmir dispute from elections, which they insisted were only about municipal issues—roads, water, electricity. No one talked about why people who have lived under a military occupation for decades—where soldiers could barge into homes and whisk away people at any time of the day or night—might need someone to listen to them, to take up their cases, to represent them.

The minute elections were over, the establishment and the mainstream press declared victory (for India) once again. The most worrying fallout was that in Kashmir, people began to parrot their colonisers' view of themselves as a somewhat pathetic people who deserved what they got. 'Never trust a Kashmiri,' several Kashmiris said to me. 'We're fickle and unreliable.' Psychological warfare has been an instrument of official policy in Kashmir. Its depredations over decades—its attempt to destroy people's self-esteem—are arguably the worst aspect of the occupation.

But only weeks after the elections it was back to business as usual. The protests and demands for azadi and the summary killings by security forces have begun again. Newspapers report that militancy is on the rise. Unsurprisingly, the poor turnout in the subsequent general elections did not elicit much comment.

It's enough to make you wonder whether there is any connection at all between elections and democracy.

The trouble is that Kashmir sits on the faultlines of a region that is awash in weapons and sliding into chaos. The Kashmiri freedom struggle, with its crystal-clear sentiment but fuzzy outlines, is caught in the vortex of several dangerous and conflicting ideologies—Indian nationalism (corporate as well as 'Hindu', shading into imperialism), Pakistani nationalism (breaking down under the burden of its own contradictions), US imperialism (made impatient by a tanking economy), and a resurgent medieval-Islamist Taliban (fast gaining legitimacy, despite its insane brutality, because it is seen to be resisting an occupation). Each of these ideologies is capable of a ruthlessness that can range from genocide to nuclear war.Add Chinese imperial ambitions, an aggressive, reincarnated Russia, the huge reserves of natural gas in the Caspian region and persistent whispers about natural gas, oil and uranium reserves in Kashmir and Ladakh, and you have the recipe for a new Cold War (which, like the last one, is cold for some and hot for others).

In the midst of all this, Kashmir is set to become the conduit through which the mayhem unfolding in Afghanistan and Pakistan spills into India, where it will find purchase in the anger of the young among India's 150 million Muslims who have been brutalised, humiliated and marginalised. Notice has been given by the series of terrorist strikes that culminated in the Mumbai attacks of 2008.

There is no doubt that the Kashmir dispute ranks right up there, along with Palestine, as one of the oldest, most intractable disputes in the world. That does not mean that it cannot be resolved. Only that the solution will not be completely to the satisfaction of any one party, one country or one ideology. Negotiators will have to be prepared to deviate from the 'party line'. Of course, we haven't yet reached the stage where the Government of India is even prepared to admit that there's a problem, let alone negotiate a solution. Right now it has no reason to. Internationally, its stocks are soaring. Its economy is still ticking over, and while its neighbours deal with bloodshed, civil war, concentration camps, refugees and army mutinies, India has just concluded a beautiful election.

However, Demon-crazy can't fool all the people all the time. India's temporary, shotgun solutions to the unrest in Kashmir (pardon the pun) have magnified the problem and driven it deep into a place where it is poisoning the aquifers.
***

Perhaps the story of the Siachen glacier, the highest battlefield in the world, is the most appropriate metaphor for the insanity of our times. Thousands of Indian and Pakistani soldiers have been deployed there, enduring chill winds and temperatures that dip to minus 40 Celsius. Of the hundreds who have died there, many have died just from the cold—from frostbite and sunburn. The glacier has become a garbage dump now, littered with the detritus of war, thousands of empty artillery shells, empty fuel drums, ice-axes, old boots, tents and every other kind of waste that thousands of warring human beings generate. The garbage remains intact, perfectly preserved at those icy temperatures, a pristine monument to human folly. While the Indian and Pakistani governments spend billions of dollars on weapons and the logistics of high-altitude warfare, the battlefield has begun to melt. Right now, it has shrunk to about half its size. The melting has less to do with the military standoff than with people far away, on the other side of the world, living the good life. They're good people who believe in peace, free speech and human rights. They live in thriving democracies whose governments sit on the UN Security Council and whose economies depend heavily on the export of war and the sale of weapons to countries like India and Pakistan. (And Rwanda, Sudan, Somalia, the Republic of Congo, Iraq, Afghanistan. .. it's a long list.) The glacial melt will cause severe floods in the subcontinent, and eventually severe drought that will affect the lives of millions of people. That will give us even more reasons to fight. We'll need more weapons. Who knows, that sort of consumer confidence may be just what the world needs to get over the current recession. Then everyone in the thriving democracies will have an even better life—and the glaciers will melt even faster.
***

While I read 'Listening to Grasshoppers' to a tense audience packed into a university auditorium in Istanbul (tense because words like unity, progress, genocide and Armenian tend to anger the Turkish authorities when they are uttered close together), I could see Rakel Dink, Hrant Dink's widow, sitting in the front row, crying the whole way through. When I finished, she hugged me and said, "We keep hoping. Why do we keep hoping?"

We, she said. Not you.

The words of Faiz Ahmed Faiz, sung so hauntingly by Abida Parveen, came to me:
Nahin nigah main manzil to justaju hi sahi,
Nahin wisaal mayassar to arzu hi sahi
I tried to translate them for her (sort of):
If dreams are thwarted, then yearning must take their place,
If reunion is impossible, then longing must take its place.
You see what I meant about poetry?


--------------------------------------------------------------------------------


[Adapted from Roy's Introduction to her new book of collected essays, Listening to Grasshoppers: Field Notes on Democracy, published this month by Hamish Hamilton (Penguin)]

Friday 3 July 2009

Privatisation has been a train wreck

 

 

With National Express abandoning a franchise, the system is bankrupt. Railway nationalisation is the only rational solution.


guardian.co.uk, Thursday 2 July 2009 18.30 BST

The temporary nationalisation of the east coast mainline service should be another nail in the coffin of the privatisation of the railways. It shows once again what a bad deal for taxpayers the privatisation of the railways has turned out to be.

The government says it plans to return the franchise as quickly as possible to a private contractor, but it should instead take the opportunity to retain the line in public hands. Following, as it does, the fiasco of Railtrack, which brought the national rail network to the brink of collapse in 2002, and the collapse of Metronet, in charge of two thirds of the misguided public private partnership (PPP) on the tube, this is the right time to plan returning the entire national rail network to public ownership. If the government tossed aside the ideological blinkers of the Treasury and got that message, they would do themselves a great deal of good among passengers and taxpayers alike.

It is a complete con for the National Express group to walk away from the contract, leaving a gap in the national rail budget, forcing the state to bear the cost while the service is re-franchised – possibly at a lower value than the National Express contract – but insisting on its right to continue to operate other franchises unscathed. National Express says it has received "clear and detailed" legal advice that it does not have to hand back its London to Essex franchise and East Anglia routes. So it wants to run away from a problem on one line and let the rest of us pick up the pieces, while continuing to make profits from other lines.

The attempt of National Express to avoid any consequences for their other franchises from their abandonment of the east coast service is just another example of the privateers trying to take the public sector for a ride. As Lord Adonis says, "It is simply unacceptable to reap the benefits of contracts when times are good, only to walk away from them when times become more challenging."

Time and again, we have seen the nationalisation of losses and the privatisation of profits. It's also the latest demonstration that it is a fairy tale that privatisation means the private sector takes the risk as well as taking its profit. In truth, every time a privatisation of a vital public service fails, the public sector picks up the tab. This culture of parts of the private sector fleecing the taxpayer has to stop.

Part of the problem is that civil servants are taken to the cleaners in the construction of the privatisation contracts by the private companies' sharper legal teams. One of the rationales for the tube's PPP was that it made no sense to hand billions of pounds of public money for tube upgrades over to London Underground management and civil servants who had such a poor record of delivering. Yet, these same civil servants were left to draw up the detail of the PPP contracts. They were completely turned over by the private sector.

But the real issue is that it is inherently wasteful to run these services on privatised lines. The nature of the privatising companies is that a significant proportion of the profits of their activities have to be paid in dividends to shareholders rather than reinvested in the service. This is money wasted. A publicly-owned company would be obliged to reinvest any revenues back into the transport system.

Furthermore, privatisation is justified on the grounds that the private sector is driven, through the rigour of competition, to be more efficient and more responsive to passengers' needs. This is a fiction in the case of a natural monopoly like a railway. Apart from the brief period of competition among bidders for contracts, there is no day-to-day competition at all – no one is going to build a rival railway line and poach passengers from the private franchisee. They are under no pressure from any competition at all. In such circumstances, it is more rational, and makes more sense in terms of sustaining investment, for rail services to be publicly-owned.
Nor is it the case that public ownership of the rail network naturally has to involve poorer management than the private sector.

There are many publicly-owned rail companies all over the world that provide services that British transport users can only envy. The task is to build up good quality management, including the best management from around the world, overseeing real investment that meets the needs of rail travellers.

It shouldn't just be the east coast service that's nationalised and it shouldn't just be temporary. Ultimately, the rail network would

be more rationally run in the public sector.


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A coup Latin America didn't need


 

Johann Hari:

 

It was inevitable that the people at the top would fight to preserve their privileges

 
The ghost of the other, deadlier 9/11 has returned to stalk Latin America. On Sunday morning, a battalion of soldiers rammed their way into the Presidential Palace in Honduras. They surrounded the bed where the democratically elected President, Manuel Zelaya, was sleeping, and jabbed their machine guns to his chest. They ordered him to get up and marched him on to a military plane. They dumped him in his pyjamas on a landing strip in Costa Rica and told him never to return to the country that freely chose him as their head of state.
 
Back home, the generals locked down the phone networks, the internet and international TV channels, and announced their people were in charge now. Only sweet, empty music plays on the radio. Government ministers have been arrested and beaten. If you leave your home after 9pm, the population have been told, you risk being shot. Tanks and tear gas are ranged against the protesters who have thronged on to the streets.
 
For the people of Latin America, this is a replay of their September 11. On that day in Chile in 1973, Salvador Allende – a peaceful democratic socialist who was steadily redistributing wealth to the poor majority – was bombed from office and forced to commit suicide. He was replaced by a self-described "fascist", General Augusto Pinochet, who went on to "disappear" tens of thousands of innocent people. The coup was plotted in Washington DC, by Henry Kissinger.
 
The official excuse for killing Chilean democracy was that Allende was a "communist". He was not. In fact, he was killed because he was threatening the interests of US and Chilean mega-corporations by shifting the country's wealth and land from them to its own people. When Salvador Allende's widow died last week, she seemed like a symbol from another age – and then, a few days later, the coup came back.
 
Honduras is a small country in Central America with only seven million inhabitants, but it has embarked on a programme of growing democracy of its own. In 2005, Zelaya ran promising to help the country's poor majority – and he kept his word. He increased the minimum wage by 60 per cent, saying sweatshops were no longer acceptable and "the rich must pay their share".
 
The tiny elite at the top – who own 45 per cent of the country's wealth – are horrified. They are used to having Honduras run by them, for them.
 
But this wave of redistributing wealth to the population is washing over Latin America. In the barrios and favelas, I have seen how shanty towns made out of mud and rusted tin now have doctors and teachers and subsidised supermarkets for the first time, because they elected leaders who have turned the spigot of oil money in their direction. In Venezuela, for example, the poorest half of the country has seen its incomes soar by 130 per cent after inflation since they chose Hugo Chavez as their President, according to studies cited by the Nobel Prize-winning US economist Joseph Stiglitz. Infant mortality has plummeted.
 
No wonder so many Latin American countries are inspired by this example: the notion that Chavez has to "bribe" or "brainwash" people like Zelaya is bizarre.
 
It was always inevitable that the people at the top would fight back to preserve their unearned privilege. In 2002, the Venezuelan oligarchy conspired with the Bush administration in the kidnapping of Hugo Chavez. It was only a massive democratic uprising of the people that forced his return. Now they have tried the same in Honduras.
 
Yet the military-business nexus have invented a propaganda-excuse that is being eagerly repeated by dupes across the Western world. The generals claim they have toppled the democratically elected leader and arrested his ministers to save democracy.
Here's how it happened. Honduras has a constitution that was drawn up in 1982, by the oligarchy, under supervision from the outgoing military dictatorship. It states that the President can only serve only one term, while the military remains permanent and "independent" – in order to ensure they remain the real power in the land.
 
Zelaya believed this was a block on democracy, and proposed a referendum to see if the people wanted to elect a constituent assembly to draw up a new constitution. It could curtail the power of the military, and perhaps allow the President to run for re-election. The Supreme Court, however, ruled that it is unconstitutional to hold a binding referendum within a year of a presidential election. So Zelaya proposed holding a non-binding referendum instead, just to gauge public opinion. This was perfectly legal. The military – terrified of the verdict of the people – then marched in with their guns.
 
But there has been progress since the days of 1973, or even 2002. The coups against Allende and Chavez were eagerly backed by the CIA and White House. But this time, Barack Obama has said: "We believe the coup was not legal and that President Zelaya remains the President of Honduras." He called the coup "a terrible precedent".
 
His reaction hasn't been perfect: unlike France and Spain, he hasn't withdrawn the US Ambassador yet. He supports the International Monetary Fund and World Bank, which are vast brakes on Latin American democracy, and he bad-mouths Chavez while arming the genuinely abusive Colombian government. But it is a vast improvement on Bush and McCain, who would have been mistily chorusing "We are all Honduran Generals now".
 
The ugliest face of the Latin American oligarchy is now standing alone against the world, showing its contempt for democracy and for its own people. They are fighting to preserve the old continent where all the wealth goes to them at the end of a machine gun. I have seen the price for this: I have lived in the rubbish dumps of the continent, filled with dark-skinned scavenging children, while a few miles away there are suburbs that look like Beverly Hills.
 
This weekend, Zelaya will return to the country that elected him, flanked by the presidents of Argentina and the Organisation of American States, to take his rightful place. Whether he succeeds or fails will tell us if the children of the rubbish dumps have reason to hope – and whether the smoke from the deadliest 9/11 has finally cleared.



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Wednesday 1 July 2009

Debt is capitalism’s dirty little secret


 

 

By Ben Funnell
Published: June 30 2009 19:14 | Last updated: June 30 2009 19:14
 
Just why is there so much debt in the Anglo-Saxon world? Bankers and regulators know well that it is in nobody's long-term interests to have allowed borrowing to escalate to a position where the US now owes far more, as a multiple of the economy, than at the start of the Great Depression.
 
The answer is capitalism's dirty little secret: excessive lending was the only way to maintain the living standards of the vast bulk of the population at a time when wealth was being concentrated in the hands of an elite.
 
The amount by which the elite has benefited is startling, and illustrates the problem with lightly regulated free markets: the rich get much richer while the rest do not get richer at all. According to Soci̩t̩ G̩n̩rale economists, the inflation-adjusted income of the highest-paid fifth of US earners has risen by 60 per cent since 1970, while it has fallen by more than 10 per cent for the rest. As was recently pointed out in the New York Review of Books, the Walton family, of Wal-Mart fame, is wealthier than the bottom third of the US population put together Рabout 100m people. These are staggering statistics, confirmed by measures such as the US and
UK's ever-rising Gini coefficients, which estimate income disparity. Another way of putting this is that the share of profits in gross domestic product is at a 100-year high, or was until very recently.
 
Put simply, the benefits of economic growth have gone into the pockets of plutocrats rather than the bulk of the population. So why has there been no revolution? Because there was a solution: debt. If you couldn't earn it, you could borrow it. Cheap financing was made widely available. Financial innovations such as the asset-backed securities market aided this process, as did government-sponsored agencies such as Fannie Mae and Freddie Mac. Regulators welcomed it all while perhaps taking insufficient account of the moral hazard problem it posed: that ever-increasing leverage meant the authorities had to keep interest rates low, otherwise the debt burden would cripple consumption. This prompted more leverage, which exacerbated the problem.
 
A walk in any low-income area in the UK confirms this. There are BMWs in the driveways, satellite dishes on the roofs and furniture delivery vans on the streets. In both Britain and America the jobless were encouraged to buy their own homes. No one begrudges anyone else the right to own a home or buy luxury goods. The problem is that the luxuries need to be paid for out of earnings and the houses out of equity topped up with an affordable amount of debt.
 
The question is whether the debt load – total US credit market debt outstanding was $53,000bn (€38,000bn, £32,000bn) at the end of March, or 3.7 times GDP – is at all sustainable and, if not, how it can be lowered without sinking the economy. Those pushing extra debt in an effort to boost the economy via increased consumption point to the scale of assets backing the debt. The net worth of US households, including their houses and after counting debt, was $50,000bn in March, according to the Fed. Not a bad tally for 306m people: $165,000 each. However, the cost of servicing this debt as a proportion of income, even with record low rates, is at a 30-year high, above 15 per cent, as incomes have stagnated and the total level of debt has risen.
 
The debt burden has to come down, which means more saving and lower economic growth for many years to come. Along the way inflation is likely to return, probably sooner and more violently than most expect, which will prompt investors to demand a higher return and make it even harder for governments to tackle the debt. At best the debt will fall slowly over many cycles and simply trim otherwise resilient growth. At worst it could cause growth to lurch upwards before tumbling again, with all the attendant uncertainty that entails. At this point, no one can know which is more likely. I incline to the more benign view because of the size of household assets but, if the dollar's reserve currency status should come under serious attack, rates would have to rise to defend it and that could itself cause a consumption crisis.
 
What can be done? First, although it is not ideal, we should not be too hasty about abandoning the capitalist model. It is less bad than any other system yet invented. But we should redouble our efforts to increase productivity through innovation and creating new markets; simply squeezing lower-income workers is a bad option, which helped get us into this mess in the first place. This requires investment in education and research. Second, we have to learn to live within our means. This means spending less than we earn, perhaps doing without the BMWs, flat-screen television sets and leather sofas. Third, we should be careful in distributing the higher tax burden that we will inevitably have to bear over the coming decade. Very high marginal tax rates did not work in the 1970s and will not work now. That said, income disparity at current levels is a political time-bomb that needs to be dealt with. Finally, we should all come to terms with the fact that these are structural issues needing structural solutions; they need to be enforced over a longer time period than any one government's term. So we need a new political consensus, one aimed at reducing overall debt levels while reducing inequality by encouraging education, entrepreneurship and investment in innovation.

The writer is an asset manager at GLG Partners



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Tuesday 30 June 2009

Will the Indian government be able to do this?


 

Sebi for ban on Price Waterhouse

 
K V Ramana / DNA
 

Even as the tainted auditors of scam-hit Satyam Computer Services (now Mahindra Satyam) are languishing in jail (Andhra Pradesh High Court on Monday rejected the bail pleas of two former auditors of PriceWaterhouse, S Gopalakrishnan and his deputy Talluri Srinivas), the stock markets regulator Securities Exchange Board of India (Sebi) is all for prohibiting Price Waterhouse and the jailed auditors from any further  issuance of compliance certifications to listed companies in the country.

The regulator is also of the view that PW and auditors should be restrained from accessing the securities market henceforth.

In an investigation report on the Satyam scam, which has been sent to the CBI, the stock markets regulator has taken serious view of the discrepancies in the performance of the auditors and the auditing firm while certifying the documents of Satyam.

"Action may be taken against Price Waterhouse and its two partners in accordance with the provisions of Section 11, 11B and 11 (4) of the Sebi Act, 1992 and Regulation 11 of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations 2003," the report said.

Sebi has recommended two actions against PW and the auditors, including "prohibiting PriceWaterhouse and both the partners (S Gopalakrishnan and Srinivas Talluri) from issuing any certificate with respect to compliance of obligations of listed companies and intermediaries registered with Sebi and requirements of those made under securities laws (Sebi Act 1992, the Securities Contracts (Regulations) Act, 1956, the Depositories Act, 1996 and the provisions of the Companies Act, 1956, which are administered by SEBI under Section 55A thereof), the rules, regulations, guidelines made under these Acts, and the listing agreement for a certain period."

In addition, the investigation report has also called for "restraining PriceWaterhouse and both the partners from accessing the securities market and prohibiting them from buying, selling or dealing in the securities of Satyam and its associate listed companies in any manner or whatsoever for a particular period".

The 30-page report, extracts of which are available with DNA, observed several violations on part of the auditors in verifying the documents. "PW has overlooked such starkly visible indicators that should have aroused the suspicion of any prudent person but more so that of a professional auditor which has intimate access to all the records of the company that is being audited, at its disposal," the report observed.

According to the report, "there are grave professional lapses on the part of the auditors revealed (in the investigation), which are inseparably a part of the fraud perpetrated in the capital market."

The regulator has found the violations on four counts including the failure on part of the PW India and the two partners to be vigilant in the conduct of their professional duties for performing mandatory procedures with regard to dispatch of letters and receipt of external confirmations of balances from the banks in which Satyam had claimed to have maintained deposit accounts.

The report also felt that the auditors failed to obtain sufficient information and give due regard to the significant materiality of the particular item of assets as mandated by AAS 13 that warranted careful scrutiny before expression of opinion.

"The gross negligence displayed during the conduct of their audits in Satyam for the period of March 2001 to September 2008 has led to accumulation of false balances in deposit accounts in the books of the company. This led to certification to false financial statements which threw a veil over the overstated assets in the form of bank balances and debtors, fictitious sales revenues and inflated profits. This resulted in publication of substantially incorrect annual financial statements. The role of the auditors in failing to be vigilant and perform their duties as per their mandate has caused untold loss in the confidence of investors and irreparable damage to the integrity of the market," the report said.

Holding PW and auditors totally responsible for the Satyam scam, the Sebi report felt that the auditors' negligence in verifying the material facts before certifying the accounts led to false and misleading price discovery for the Satyam scrip in the stock market.

When asked to comment on the recommendations of the regulator against PW, the auditing firm said, "Price Waterhouse can confirm that it received a notice from Sebi some months ago as part of its investigation into the situation at Satyam Computer Services Ltd. We are actively responding to Sebi in relation to its enquiries. This is an ongoing investigation that is some way from being completed. We are not aware of any Sebi report making any recommendations."

However, it said, PW is committed to cooperate with various agencies looking into the Satyam scam including Sebi.




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Yes, addicts need help. But all you casual cocaine users want locking up

 

 

I know people who drink fair-trade tea and coffee, shop locally and snort drugs at parties. They are disgusting hypocrite

 

George Monbiot

guardian.co.uk, Monday 29 June 2009 20.00 BST 

 

It looked like the first drop of rain in the desert of drugs policy. Last week Antonio Maria Costa, the executive director of the UN office on drugs and crime, said what millions of liberal-minded people have been waiting to hear. "Law enforcement should shift its focus from drug users to drug traffickers … people who take drugs need medical help, not criminal retribution." Drug production should remain illegal, possession and use should be decriminalised. Guardian readers toasted him with bumpers of peppermint tea, and, perhaps, a celebratory spliff. I didn't.

 
I believe that informed adults should be allowed to inflict whatever suffering they wish – on themselves. But we are not entitled to harm other people. I know people who drink fair-trade tea and coffee, shop locally and take cocaine at parties. They are revolting hypocrites.
 
Every year cocaine causes some 20,000 deaths in Colombia and displaces several hundred thousand people  from their homes. Children are blown up by landmines; indigenous people are enslaved; villagers are tortured and killed; rainforests are razed. You'd cause less human suffering if instead of discreetly retiring to the toilet at a media drinks party, you went into the street and mugged someone. But the counter-cultural association appears to insulate people from ethical questions. If commissioning murder, torture, slavery, civil war, corruption and deforestation is not a crime, what is?
 
I am talking about elective drug use, not addiction. I cannot find comparative figures for the United Kingdom, but in the United States casual users of cocaine outnumber addicts by about 12 to one. I agree that addicts should be helped, not prosecuted. I would like to see a revival of the British programme that was killed by a tabloid witch-hunt in 1971: until then all heroin addicts were entitled to clean, legal supplies administered by doctors. Cocaine addicts should be offered residential detox. But, at the risk of alienating most of the readership of this newspaper, I maintain that while cocaine remains illegal, casual users should remain subject to criminal law. Decriminalisation of the products of crime expands the market for this criminal trade.
 
We have a choice of two consistent policies. The first is to sustain global prohibition, while helping addicts and prosecuting casual users. This means that the drugs trade will remain the preserve of criminal gangs. It will keep spreading crime and instability around the world, and ensure that narcotics are still cut with contaminants. As Nick Davies argued during his investigation of drugs policy for the Guardian, major seizures raise the price of drugs. Demand among addicts is inelastic, so higher prices mean that they must find more money to buy them. The more drugs the police capture and destroy, the more robberies and muggings addicts will commit.
The other possible policy is to legalise and regulate the global trade. This would undercut the criminal networks and guarantee unadulterated supplies to consumers. There might even be a market for certified fair-trade cocaine.
 
Costa's new report begins by rejecting this option. If it did otherwise, he would no longer be executive director of the UN office on drugs and crime. The report argues that "any reduction in the cost of drug control … will be offset by much higher expenditure on public health (due to the surge of drug consumption)". It admits that tobacco and alcohol kill more people than illegal drugs, but claims that this is only because fewer illegal drugs are consumed. Strangely however, it fails to supply any evidence to support the claim that narcotics are dangerous. Nor does it distinguish between the effects of drugs themselves and the effects of the adulteration and disease caused by their prohibition.
 
Why not? Perhaps because the evidence would torpedo the rest of the report. A couple of weeks ago, Ben Goldacre drew attention to the largest study on cocaine ever undertaken, completed by the World Health Organisation in 1995. I've just read it, and this is what it says. "Health problems from the use of legal substances, particularly alcohol and tobacco, are greater than health problems from cocaine use. Few experts describe cocaine as invariably harmful to health. Cocaine-related problems are widely perceived to be more common and more severe for intensive, high-dosage users and very rare and much less severe for occasional, low-dosage users … occasional cocaine use does not typically lead to severe or even minor physical or social problems." This study was suppressed by the WHO after threats of an economic embargo by the Clinton government. Drugs policy in most nations is a matter of religion, not science.
 
The same goes for heroin. The biggest study of opiate use ever conducted (at Philadelphia general hospital) found that addicts suffered no physical harm, even though some of them had been taking heroin for 20 years. The devastating health effects of heroin use are caused by adulterants and the lifestyles of people forced to live outside the law. Like cocaine, heroin is addictive; but unlike cocaine, the only consequence of its addiction appears to be … addiction. 
 
Costa's half-measure, in other words, gives us the worst of both worlds: more murder, more destruction, more muggings, more adulteration. Another way of putting it is this: you will, if Costa's proposal is adopted, be permitted without fear of prosecution to inject yourself with heroin cut with drain cleaner and brick dust, sold illegally and soaked in blood; but not with clean and legal supplies.

 
His report does raise one good argument, however. At present the trade in class A drugs is concentrated in the rich nations. If it were legalised, we could cope. The use of drugs is likely to rise, but governments could use the extra taxes to help people tackle addiction. But because the wholesale price would collapse with legalisation, these drugs would for the first time become widely available in poorer nations, which are easier for companies to exploit (as tobacco and alcohol firms have found) and which are less able to regulate, raise taxes or pick up the pieces. The widespread use of cocaine or heroin in the poor world could cause serious social problems: I've seen, for example, how a weaker drug – khat – seems to dominate life in Somali-speaking regions of Africa. "The universal ban on illicit drugs," the UN argues, "provides a great deal of protection to developing countries".
 
So Costa's office has produced a study comparing the global costs of prohibition with the global costs of legalisation, allowing us to see whether the current policy (murder, corruption, war, adulteration) causes less misery than the alternative (widespread addiction in poorer nations)? The hell it has. Even to raise the possibility of such research would be to invite the testerics in Congress to shut off the UN's funding. The drug charity Transform has addressed this question, but only for the UK, where the results are clear-cut: prohibition is the worse option. As far as I can discover, no one has attempted a global study. Until that happens, Costa's opinions on this issue are worth as much as mine or anyone else's: nothing at all.
 


 


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Color Revolutions, Old And New


 

 

By Stephen Lendman

29 June, 2009
Countercurrents.org

 

In his new book, "Full Spectrum Dominance: Totalitarian Democracy in the New World Order," F. William Engdahl explained a new form of US covert warfare - first played out in Belgrade, Serbia in 2000. What appeared to be "a spontaneous and genuine political 'movement,' (in fact) was the product of techniques" developed in America over decades.

 

In the 1990s, RAND Corporation strategists developed the concept of "swarming" to explain "communication patterns and movement of" bees and other insects which they applied to military conflict by other means. More on this below.

 

In Belgrade, key organizations were involved, including the National Endowment for Democracy (NED), the International Republican Institute (IRI), and National Democratic Institute. Posing as independent NGOS, they're, in fact, US-funded organizations charged with disruptively subverting democracy and instigating regime changes through non-violent strikes, mass street protests, major media agitprop, and whatever else it takes short of military conflict.

 

Engdahl cited Washington Post writer Michael Dobbs' first-hand account of how the Clinton administration engineered Slobodan Milosevic's removal after he survived the 1990s Balkan wars, 78 days of NATO bombing in 1999, and major street uprisings against him. A $41 million campaign was run out of American ambassador Richard Miles' office. It involved "US-funded consultants" handling everything, including popularity polls, "training thousands of opposition activists and helping to organize a vitally important parallel vote count."

 

Thousands of spray paint cans were used "by student activists to scrawl anti-Milosevic graffiti on walls across Serbia," and throughout the country around 2.5 million stickers featured the slogan "Gotov Je," meaning "He's Finished."

 

Preparations included opposition leader training in nonviolent resistance techniques at a Budapest, Hungary seminar - on matters like "organiz(ing) strike(s), communicat(ing) with symbols....overcom(ing) fear, (and) undermin(ing) the authority of a dictatorial regime." US experts were in charge, incorporating RAND Corporation "swarming" concepts.

 

GPS satellite images were used to direct "spontaneous hit-and-run protests (able to) elude the police or military. Meanwhile, CNN (was) carefully pre-positioned to project images around the world of these youthful non-violent 'protesters.' " Especially new was the use of the Internet, including "chat rooms, instant messaging, and blog sites" as well as cell phone verbal and SMS text-messaging, technologies only available since the mid-1990s.

 

Milosevic was deposed by a successful high-tech coup that became "the hallmark of the US Defense policies under (Rumsfeld) at the Pentagon." It became the civilian counterpart to his "Revolution in Military Affairs" doctrine using "highly mobile, weaponized small groups directed by 'real time' intelligence and communications."

 

Belgrade was the prototype for Washington-instigated color revolutions to follow. Some worked. Others failed. A brief account of several follows below.

 

In 2003, Georgia's bloodless "Rose Revolution" replaced Edouard Shevardnadze with Mikhail Saakashvili, a US-installed stooge whom Engdahl calls a "ruthless and corrupt totalitarian who is tied (not only to) NATO (but also) the Israeli military and intelligence establishment." Shevardnadze became a liability when he began dealing with Russia on energy pipelines and privatizations. Efforts to replace him played out as follows, and note the similarities to events in Iran after claims of electoral fraud.

 

Georgia held parliamentary elections on November 2. Without evidence, pro-western international observers called them unfair. Saakashvili claimed he won. He and the united opposition called for protests and civil disobedience. They began in mid-November in the capital Tbilisi, then spread throughout the country. They peaked on November 22, parliament's scheduled opening day. While it met, Saakashvili-led supporters placed "roses" in the barrels of soldiers' rifles, seized the parliament building, interrupted Shevardnadze's speech, and forced him to flee for his safety.

 

Saakashvili declared a state of emergency, mobilized troops and police, met with Sherardnadze and Zurab Zhvania (the former parliament speaker and choice for new prime minister), and apparently convinced the Georgian president to resign. Celebrations erupted. A temporary president was installed. Georgia's Supreme Court annulled the elections, and on January 4, 2004, Saakashvili was elected and inaugurated president on January 25.

 

New parliamentary elections were held on March 28. Saakashvili's supporters used heavy-handed tactics to gain full control with strong US backing in plotting and executing his rise to power. US-funded NGOs were also involved, including George Soros' Open Society Georgia Foundation, Freedom House, NED, others tied to the Washington establishment, and Richard Miles after leaving his Belgrade post to serve first as ambassador to Bulgaria from 1999 - 2002, then Georgia from 2002 - 2005 to perform the same service there as against Milosevic.

 

Ukraine's "Orange Revolution" followed a similar pattern to Georgia and now Iran. After Viktor Yanukovych won the November 21, 2004 run-off election against Viktor Yushchenko, it erupted following unsubstantiated claims of fraud. Yanukovych favored openness to the West but represented a pro-Russian constituency and was cool towards joining NATO. Washington backed Yushchenko, a former governor of Ukraine's Central Bank whose wife was a US citizen and former official in the Reagan and GHW Bush administrations. He favored NATO and EU membership and waged a campaign with the color orange prominently featured.

The media picked up on it and touted his "Orange Revolution" against the country's Moscow-backed old guard. Mass street protests were organized as well as civil disobedience, sit-ins and general strikes. They succeeded when Ukraine's Supreme Court annulled the run-off result and ordered a new election for December 26, 2004. Yushchenko won and was inaugurated on January 23, 2005.

 

In his book, "Full Spectrum Dominance," Engdahl explained how the process played out. Under the slogan "Pora (It's Time)," people who helped organize Georgia's "Rose Revolution" were brought in to consult "on techniques of non-violent struggle." The Washington-based Rock Creek Creative PR firm was instrumental in branding the "Orange Revolution" around a pro-Yushchenko web site featuring that color theme. The US State Department spent around $20 million dollars to turn Yanukovych's victory into one for Yushchenko with help from the same NGOs behind Georgia's "Rose Revolution" and others.

 

Myanmar's August - September 2007 "Saffron Revolution" used similar tactics as in Georgia and Ukraine but failed. They began with protests led by students and opposition political activists followed by Engdahl's description of "swarming mobs of monks in saffron, Internet blogs, mobile SMS links between protest groups, (and) well-organized (hit-and-run) protest cells which disperse(d) and re-form(ed)."

 

NED and George Soros' Open Society Institute led a campaign for regime change in league with the State Department by its own admission. Engdahl explained that the "State Department....recruited and trained key opposition leaders from numerous anti-government organizations in Myanmar" and ran its "Saffron Revolution" out of the Chaing Mai, Thailand US Consulate.

 

Street protesters were "recruited and trained, in some cases directly in the US, before being sent back to organize inside Myanmar." NED admitted funding opposition media, including the Democratic Voice of Burma radio.

 

Ahead of the 2008 Beijing Olympics, Washington tried to embarrass and destabilize China with a "Crimson Revolution" in Tibet - an operation dating from when George Bush met the Dalai Lama publicly in Washington for the first time, awarded him the Congressional Gold Medal, and backed Tibetan independence.

 

On March 10, Engdahl reported that Tibetan monks staged "violent protests and documented attacks (against) Han Chinese residents....when several hundred monks marched on Lhasa (Tibet's capital) to demand release of other monks allegedly detained for celebrating the award of the US Congress' Gold Medal" the previous October. Other monks joined in "on the 49th anniversary of the Tibetan uprising against Chinese rule."

 

The same instigators were involved as earlier - NED, Freedom House, and others specific to Tibet, including the International Committee for Tibet and the Trace Foundation - all with ties to the State Department and/or CIA.

 

The above examples have a common thread - achieving what the Pentagon calls "full spectrum dominance" that depends largely on controlling Eurasia by neutralizing America's two main rivals - Russia militarily, China economically, and crucially to prevent a strong alliance between the two. Controlling Eurasia is a strategic aim in this resource-rich part of the world that includes the Middle East.

Iran's Made-in-the-USA "Green Revolution"

 

After Iran's June 12 election, days of street protests and clashes with Iranian security forces followed. Given Washington's history of stoking tensions and instability in the region, its role in more recent color revolutions, and its years of wanting regime change in Iran, analysts have strong reasons to suspect America is behind post-election turbulence and one-sided Western media reports claiming electoral fraud and calling for a new vote, much like what happened in Georgia and Ukraine.

 

The same elements active earlier are likely involved now with a May 22, 2007 Brian Ross and Richard Esposito ABC News report stating:

 

"The CIA has received secret presidential approval to mount a 'black' operation to destabilize the Iranian government, current and former officials in the intelligence community tell the Blotter on ABCNews.com. The sources who spoke on the condition of anonymity....say President Bush has signed a 'nonlethal presidential finding' that puts into motion a CIA plan that reportedly includes a coordinated campaign of propaganda, disinformation and manipulation of Iran's currency and international financial transactions."

 

Perhaps disruptions as well after the June 12 election to capitalize on a divided ruling elite - specifically political differences between Mahmoud Ahmadinejad and Supreme Leader/Grand Ayatollah Ali Khamenei on one side and Mir Hossein Mousavi, former president Hashemi Rafsanjani, and Grand Ayatollah Hossein Ali Montazeri on the other with Iran's Revolutionary Guard so far backing the ruling government. It's too early to know conclusively but evidence suggests US meddling, and none of it should surprise.

 

Kenneth Timmerman provides some. He co-founded the right wing Foundation for Democracy in Iran (FDI) and serves as its executive director. He's also a member of the hawkish Committee on the Present Danger (CPD) and has close ties to the equally hard line American Enterprise Institute, the same organization that spawned the Project for the New American Century (PNAC), renamed the Foreign Policy Initiative (FPI) for much the same purpose.

 

On the right wing newsmax.com web site, Timmerman wrote that the NED "spent millions of dollars during the past decade promoting color revolutions in places such as Ukraine and Serbia, training political workers in modern communications and organizational techniques." He explained that money also appears to have gone to pro-Mousavi groups, "who have ties to non-governmental organizations outside Iran that (NED) funds."

 

Pre-election, he elaborated about a "green revolution in Tehran" with organized protests ready to be unleashed as soon as results were announced because tracking polls and other evidence suggested Ahmadinejad would win. Yet suspiciously, Mousavi declared victory even before the polls closed.

 

It gets worse. Henry Kissinger told BBC news that if Iran's color revolution fails, hard line "regime change (must be) worked for from the outside" - implying the military option if all else fails. In a June 12 Wall Street Journal editorial, John Bolton called for Israeli air strikes whatever the outcome - to "put an end to (Iran's) nuclear threat," despite no evidence one exists.

 

Iran's rulers know the danger and need only cite Iraq, Afghanistan, and numerous other examples of US aggression, meddling, and destabilization schemes for proof - including in 1953 and 1979 against its own governments.

 

On June 17, AP reported that Iran "directly accused the United States of meddling in the deepening crisis." On June 21 on Press TV, an official said "The terrorist Mujahedin Khalq Organization (MKO) has reportedly played a major role in intensifying the recent wave of street violence in Iran. Iranian security officials reported (the previous day) that they have identified and arrested a large number of MKO members who were involved" in the nation's capital.

 

They admitted to having been trained in Iraq's camp Ashraf and got directions from MKO's UK command post "to create post-election mayhem in the country." On June 20 in Paris, MKO leader Maryam Rajavi addressed supporters and expressed solidarity with Iranian protesters.

 

In 2007, German intelligence called MKO a "repressive, sect-like and Stalinist authoritarian organization which centers around the personality cult of Maryam and Masoud Rajavi." MKO expert Anne Singleton explained that the West intends to use the organization to achieve regime change in Iran. She said its backers "put together a coalition of small irritant groups, the known minority and separatist groups, along with the MKO. (They'll) be garrisoned around the border with Iran and their task is to launch terrorist attacks into Iran over the next few years to keep the fire hot." They're perhaps also enlisted to stoke violence and conduct targeted killings on Iranian streets post-election as a way to blame them on the government.

 

On June 23, Tehran accused western media and the UK government of "fomenting (internal) unrest." In expelling BBC correspondent Jon Leyne, it accused him and the broadcaster of "supporting the rioters and, along with CNN," of setting up a "situation room and a psychological war room." Both organizations are pro-business, pro-government imperial tools, CNN as a private company, BBC as a state-funded broadcaster.

 

On its June 17 web site, BBC was caught publishing deceptive agitprop and had to retract it. It prominently featured a Los Angeles Times photo of a huge pro-Ahmadinejad rally (without showing him waving to the crowd) that it claimed was an anti-government protest for Mousavi.

 

Throughout its history since 1922, BBC compiled a notorious record of this sort of thing because the government appoints its senior managers and won't tolerate them stepping out of line. Early on, its founder, John Reith, wrote the UK establishment: "They know they can trust us not to be impartial," a promise faithfully kept for nearly 87 years and prominently on Iran.

 

With good reason on June 22, Iranian MPs urged that ties with Britain be reassessed while, according to the Fars news agency, members of four student unions planned protests at the UK embassy and warned of a repeat of the 1979 US embassy siege.

 

They said they'd target the "perverted government of Britain for its intervention in Iran's internal affairs, its role in the unrest in Tehran and its support of the riots." Iran's Foreign Ministry spokesperson, Hassan Ghashghavi, wouldn't confirm if London's ambassador would be expelled. On June 23, however, AP reported that two UK diplomats were sent home on charges of "meddling and spying."

 

State TV also said hard-line students protested outside the UK embassy, burned US, British and Israeli flags, hurled tomatoes at the building and chanted: "Down with Britain!" and "Down with USA!" Around 100 people took part.

 

Britain retaliated by expelling two Iranian diplomats. UN Secretary-General Ban Ki-moon demanded an immediate end to "arrests, threats and use of force." Iran's official news agency, IRNA, reported that the Iranian Foreign Ministry rejected Ban's remarks and accused him of meddling. On June 23, Obama said the world was "appalled and outraged" by Iran's violent attempt to crush dissent and claimed America "is not at all interfering in Iran's affairs."

 

Yet on June 26, USA Today reported that:

 

"The Obama administration is moving forward with plans to fund groups that support Iranian dissidents, records and interviews show, continuing a program that became controversial" under George Bush. For the past year, USAID has solicited funds to "promote democracy, human rights, and the rule of law in Iran," according to its web site.

 

On July 11, 2008, Jason Leopold headlined his Countercurrents.org article, "State Department's Iran Democracy Fund Shrouded in Secrecy" and stated:

 

"Since 2006, Congress has poured tens of millions of dollars into a (secret) State Department (Democracy Fund) program aimed at promoting regime change in Iran." Yet Shirin Abadi, Iran's 2003 Nobel Peace prize laureate, said "no truly nationalist and democratic group will accept" US funding for this purpose. In a May 30, 2007 International Herald Tribune column, she wrote: "Iranian reformers believe that democracy can't be imported. It must be indigenous. They believe that the best Washington can do for democracy in Iran is to leave them alone."

 

On June 24, Brent Scowcroft, former National Security

Advisor to Gerald Ford and GHW Bush, told Al Jazeera television that "of course" Washington "has agents working inside Iran" even though America hasn't had formal relations with the Islamic Republic for 30 years.

 

Another prominent incident is being used against Iran, much like a similar one on October 10, 1990. In the run-up to Operation Desert Storm, the Hill & Knowlton PR firm established the Citizens for a Free Kuwait (CFK) front group to sell war to a reluctant US public. Its most effective stunt involved a 15-year-old Kuwaiti girl known only as Nayirah to keep her identity secret.

 

Teary eyed before a congressional committee, she described her eye-witness account of Iraqi soldiers "tak(ing) babies out of incubators and leav(ing) them on the cold floor to die." The dominant media featured her account prominently enough to get one observer to conclude that nothing had greater impact on swaying US public opinion for war, still ongoing after over 18 years.

 

Later it was learned that Nayirah was the daughter of Saud Nasir al-Sabah, a member of Kuwait's royal family and ambassador to the US. Her story was a PR fabrication, but it worked.

 

Neda (meaning "voice" in Farsi) Agha Soltani is today's Nayirah - young, beautiful, slain on a Tehran street by an unknown assassin, she's now the martyred face of opposition protesters and called "The Angel of Iran" by a supportive Facebook group. Close-up video captured her lying on the street in her father's arms. The incident and her image captured world attention. It was transmitted online and repeated round-the-clock by the Western media to blame the government and enlist support to bring it down. In life, Nayirah was instrumental in Iraq's destruction and occupation. Will Neda's death be as effective against Iran and give America another Middle East conquest?

 

Issues in Iran's Election

 

Despite being militant and anti-Western as Iran's former Prime Minister, Mousavi is portrayed as a reformer. Yet his support comes from Iranian elitist elements, the urban middle class, and students and youths favoring better relations with America. Ahmadinejad, in contrast, is called hardline. Yet he has popular support among the nation's urban and rural poor for providing vitally needed social services even though doing it is harder given the global economic crisis and lower oil prices.

 

Is it surprising then that he won? A Mousavi victory was clearly unexpected, especially as an independent candidate who became politically active again after a 20 year hiatus and campaigned only in Iran's major cities. Ahmadinejad made a concerted effort with over 60 nationwide trips in less than three months.

 

Then, there's the economy under Article 44 of Iran's constitution that says it must consist of three sectors - state-owned, cooperative, and private with "all large-scale and mother industries" entirely state-controlled, including oil and gas that provides the main source of revenue.

 

In 2004, Article 44 was amended to allow more privatizations, but how much is a source of contention. During his campaign, Mousavi called for moving away from an "alms-based" economy - meaning Ahmadinejad's policy of providing social services to the poor. He also promised to speed up privatizations without elaborating on if he has oil, gas, and other "mother industries" in mind. If so, drawing support from

Washington and the West is hardly surprising. On the other hand, as long as Iran's Guardian Council holds supreme power, an Ahmadinejad victory was needed as a pretext for all the events that followed. At this stage, they suspiciously appear to be US-orchestrated for regime change. Thus far, Iran's Revolutionary Guard, Basij militia, and other security forces have prevailed on the streets to prevent it, but it's way too early to declare victory.

 

George Friedman runs the private intelligence agency called Stratfor. On June 23 he wrote:

 

"While street protests in Iran appear to be diminishing, the electoral crisis continues to unfold, with reports of a planned nationwide strike and efforts by the regime's second most powerful cleric (Rafsanjani) to mobilize opposition against (Ahmadinejad) from within the system. In so doing he could stifle (his) ability to effect significant policy changes (in his second term), which would play into the hands of the United States."

 

Ahmadinejad will be sworn in on July 26 to be followed by his cabinet by August 19, but according to Stratfor it doesn't mean the crisis is fading. It sees a Rafsanjani-led "rift within the ruling establishment (that) will continue to haunt the Islamic Republic for the foreseeable future."

 

"What this means is that....Ahmadinejad's second term will see even greater infighting among the rival conservative factions that constitute the political establishment....Iran will find it harder to achieve the internal unity necessary to complicate US policy," and the Obama administration will try to capitalize on it to its advantage. Its efforts to make Iran into another US puppet state are very much ongoing, and for sure, Tehran's ruling government knows it. How it will continue to react remains to be seen.

"Swarming" to Produce Regime Change

 

In his book, "Full Spectrum Dominance," Engdahl explained the RAND Corporation's groundbreaking research on military conflict by other means. He cited researchers John Arquilla and David Ronfeldt's 1997 "Swarming & The Future of Conflict" document "on exploiting the information revolution for the US military. By taking advantage of network-based organizations linked via email and mobile phones to enhance the potential of swarming, IT techniques could be transformed into key methods of warfare."

 

In 1993, Arquilla and Ronfeldt prepared an earlier document titled "Cyberwar Is Coming!" It suggested that "warfare is no longer primarily a function of who puts the most capital, labor and technology on the battlefield, but of who has the best information about the battlefield" and uses it effectively.

 

They cited an information revolution using advanced "computerized information and communications technologies and related innovations in organization and management theory." They foresaw "the rise of multi-organizational networks" using information technologies "to communicate, consult, coordinate, and operate together across greater distances" and said this ability will affect future conflicts and warfare. They explained that "cyberwar may be to the 21st century what blitzkrieg was to the 20th century" but admitted back then that the concept was too speculative for precise definition.

 

The 1993 document focused on military warfare. In 1996, Arquilla and Ronfeldt studied netwar and cyberwar by examining "irregular modes of conflict, including terror, crime, and militant social activism." Then in 1997, they presented the concept of "swarming" and suggested it might "emerge as a definitive doctrine that will encompass and enliven both cyberwar and netwar" through their vision of "how to prepare for information-age conflict."

 

They called "swarming" a way to strike from all directions, both "close-in as well as from stand-off positions." Effectiveness depends on deploying small units able to interconnect using revolutionary communication technology.

 

As explained above, what works on battlefields has proved successful in achieving non-violent color revolution regime changes, or coup d'etats by other means. The same strategy appears in play in Iran, but it's too early to tell if it will work as so far the government has prevailed. However, for the past 30 years, America has targeted the Islamic Republic for regime change to control the last major country in a part of the world over which it seeks unchallenged dominance.

 

If the current confrontation fails, expect future ones ahead as imperial America never quits. Yet in the end, new political forces within Iran may end up changing the country more than America can achieve from the outside - short of conquest and occupation, that is.

 

A final point. The core issue isn't whether Iran's government is benign or repressive or if its June 12 election was fair or fraudulent. It's that (justifiable criticism aside) no country has a right to meddle in the internal affairs of another unless it commits aggression in violation of international law and the UN Security Council authorizes a response. Washington would never tolerate outside interference nor should it and neither should Iran.

 

Stephen Lendman is a Research Associate of the Centre for Research on Globalization. He lives in Chicago and can be reached at lendmanstephen@sbcglobal.net.



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