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Tuesday 24 April 2012

Deny the British empire's crimes? No, we ignore them

New evidence of British colonial atrocities has not changed our national ability to disregard it
Mau Mau round-up, Kenya 1954
Members of the Devon Regiment round up local people in a search for Mau Mau fighters in Kenya in 1954. Photograph: Popperfoto/Popperfoto/Getty Images
 
There is one thing you can say for the Holocaust deniers: at least they know what they are denying. In order to sustain the lies they tell, they must engage in strenuous falsification. To dismiss Britain's colonial atrocities, no such effort is required. Most people appear to be unaware that anything needs to be denied.

The story of benign imperialism, whose overriding purpose was not to seize land, labour and commodities but to teach the natives English, table manners and double-entry book-keeping, is a myth that has been carefully propagated by the rightwing press. But it draws its power from a remarkable national ability to airbrush and disregard our past.

Last week's revelations, that the British government systematically destroyed the documents detailing mistreatment of its colonial subjects, and that the Foreign Office then lied about a secret cache of files containing lesser revelations, is by any standards a big story. But it was either ignored or consigned to a footnote by most of the British press. I was unable to find any mention of the secret archive on the Telegraph's website. The Mail's only coverage, as far as I can determine, was an opinion piece by a historian called Lawrence James, who used the occasion to insist that any deficiencies in the management of the colonies were the work of "a sprinkling of misfits, incompetents and bullies", while everyone else was "dedicated, loyal and disciplined".

The British government's suppression of evidence was scarcely necessary. Even when the documentation of great crimes is abundant, it is not denied but simply ignored. In an article for the Daily Mail in 2010, for example, the historian Dominic Sandbrook announced that "Britain's empire stands out as a beacon of tolerance, decency and the rule of law … Nor did Britain countenance anything like the dreadful tortures committed in French Algeria." Could he really have been unaware of the history he is disavowing?

Caroline Elkins, a professor at Harvard, spent nearly 10 years compiling the evidence contained in her book Britain's Gulag: the Brutal End of Empire in Kenya. She started her research with the belief that the British account of the suppression of the Kikuyu's Mau Mau revolt in the 1950s was largely accurate. Then she discovered that most of the documentation had been destroyed. She worked through the remaining archives, and conducted 600 hours of interviews with Kikuyu survivors – rebels and loyalists – and British guards, settlers and officials. Her book is fully and thoroughly documented. It won the Pulitzer prize. But as far as Sandbrook, James and other imperial apologists are concerned, it might as well never have been written.

Elkins reveals that the British detained not 80,000 Kikuyu, as the official histories maintain, but almost the entire population of one and a half million people, in camps and fortified villages. There, thousands were beaten to death or died from malnutrition, typhoid, tuberculosis and dysentery. In some camps almost all the children died.

The inmates were used as slave labour. Above the gates were edifying slogans, such as "Labour and freedom" and "He who helps himself will also be helped". Loudspeakers broadcast the national anthem and patriotic exhortations. People deemed to have disobeyed the rules were killed in front of the others. The survivors were forced to dig mass graves, which were quickly filled. Unless you have a strong stomach I advise you to skip the next paragraph.

Interrogation under torture was widespread. Many of the men were anally raped, using knives, broken bottles, rifle barrels, snakes and scorpions. A favourite technique was to hold a man upside down, his head in a bucket of water, while sand was rammed into his rectum with a stick. Women were gang-raped by the guards. People were mauled by dogs and electrocuted. The British devised a special tool which they used for first crushing and then ripping off testicles. They used pliers to mutilate women's breasts. They cut off inmates' ears and fingers and gouged out their eyes. They dragged people behind Land Rovers until their bodies disintegrated. Men were rolled up in barbed wire and kicked around the compound.

Elkins provides a wealth of evidence to show that the horrors of the camps were endorsed at the highest levels. The governor of Kenya, Sir Evelyn Baring, regularly intervened to prevent the perpetrators from being brought to justice. The colonial secretary, Alan Lennox-Boyd, repeatedly lied to the House of Commons. This is a vast, systematic crime for which there has been no reckoning.
No matter. Even those who acknowledge that something happened write as if Elkins and her work did not exist. In the Telegraph, Daniel Hannan maintains that just eleven people were beaten to death. Apart from that, "1,090 terrorists were hanged and as many as 71,000 detained without due process".
The British did not do body counts, and most victims were buried in unmarked graves. But it is clear that tens of thousands, possibly hundreds of thousands, of Kikuyu died in the camps and during the round-ups. Hannan's is one of the most blatant examples of revisionism I have ever encountered.

Without explaining what this means, Lawrence James concedes that "harsh measures" were sometimes used, but he maintains that "while the Mau Mau were terrorising the Kikuyu, veterinary surgeons in the Colonial Service were teaching tribesmen how to deal with cattle plagues." The theft of the Kikuyu's land and livestock, the starvation and killings, the widespread support among the Kikuyu for the Mau Mau's attempt to reclaim their land and freedom: all vanish into thin air. Both men maintain that the British government acted to stop any abuses as soon as they were revealed.
What I find remarkable is not that they write such things, but that these distortions go almost unchallenged. The myths of empire are so well-established that we appear to blot out countervailing stories even as they are told. As evidence from the manufactured Indian famines of the 1870s and from the treatment of other colonies accumulates, British imperialism emerges as no better and in some cases even worse than the imperialism practised by other nations. Yet the myth of the civilising mission remains untroubled by the evidence.

Sunday 22 April 2012

Aggressive Captaincy



Nathan Lyon and Michael Clarke celebrate after getting rid of Sachin Tendulkar, Australia v India, 4th Test, Adelaide, 4th day, January 27, 2012
Michael Clarke doesn't give his bowlers protective fields by default like many other captains © Getty Images
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Captains: follow Clarke's lead

In the long run, captains who aim to win and set fields that will get them wickets are the ones who will succeed and last
April 22, 2012


Michael Clarke is quickly establishing a well-deserved reputation for brave and aggressive captaincy. His entertaining approach is based on one premise: trying to win the match from the opening delivery. This should be the aim of all international captains, but sadly it isn't.
In every era there are Test captains who prefer to attain a position of safety before they go all out for victory. These captains are frightened stiff of the Michael Clarkes, who make it obvious they are not interested in a draw. At least 50% of international captains consider a draw to be a good result and when that option is removed they easily panic.
The first thing a captain like Clarke understands is that he will lose some matches in constantly striving for victory. Once that premise is accepted the captain has reached the stage where he hates to lose but doesn't fear it. There's a huge difference: the latter is a positive state where the captain will do everything in his power to win; the former a mindset where the captain sets out not to lose.
An important indicator of a captain's thinking is his field placings. A positive captain will always make the opposing batsmen feel their very existence is threatened. Through his field placings he allows his bowlers to turn at the top of their mark and see where a wicket (other than bowled, lbw or through the batsman's stupidity) can be claimed. 

A bowler operating to a purely containing field is like Zorro without his sword; he's not very threatening. There has been plenty of discussion on whether the shorter forms of the game will adversely affect batting techniques and turn bowlers into cannon fodder. What the 50- and 20-over matches have actually had a marked influence on is field placings.

Whereas the No. 1 priority, by a wide margin, used to be taking wickets, followed by saving singles, and then, way off in the distance, stopping boundaries, in the mind of the modern captain the last one has assumed far too much importance.

The almost robotic use in Test matches of a deep cover point and a backward square leg on the boundary, regardless of whether the ball is being played in that direction, borders on mindless captaincy. When a fieldsman is unemployed for half an hour but the captain still retains him in that position, you have to wonder: who appointed this captain?

The change in attitude to field placings is perfectly summed up with some typical Caribbean humour and common sense.

Former West Indies fast bowler Herman Griffith was captaining a Barbados club side in the 1930s once, and called on his debutant offspinner to have a trundle. "Where do you want the field?" asked Griffith politely.

"I'd like a deep-backward square leg, a midwicket on the boundary and a long-on and long-off," replied the youngster.
"Give me the ball," growled Griffith.
Not unreasonably, the young man asked, "Why?"
"You intending to bowl shite," came the forthright answer.

Nowadays, most bowlers would be horrified if the captain didn't automatically give him a number of protective fielders in the deep. Clarke is not such a captain.

Sadly, his latest gambit - a challenging declaration at the Queen's Park Oval, which was answered with equal bravado by Darren Sammy, failed because of inclement weather. Nevertheless, it's to be hoped their positive endeavours have acted as a sharp reminder to the administrators.

In Test cricket the captain is allowed free rein. We've seen in the case of Clarke and Sammy what's possible when two captains use a bit of imagination and have a desire to produce a result. It's impossible to legislate for captaincy imagination. In the 50-over game, which is highly regulated through a variety of Powerplays, and bowling and field restrictions, there is less real captaincy involved.

Wherever possible, the captaincy should be left to the skippers, and those with imagination will prosper. Hopefully those who lack inspiration and the nerve to face a challenge will be quickly replaced by the selectors.
Former Australia captain Ian Chappell is now a cricket commentator and columnist
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Saturday 21 April 2012

India's Dharmic Tradition in contrast to Abrahamic Faiths Explained


The Left’s Untouchable


Why was Ambedkar’s critique of caste anathema for Indian Marxists?
It’s an abiding mystery of Indian politics: why the Left has consistently shown an uneasy reluctance to seriously engage with B.R. Ambedkar’s thoughts. When Ambedkar pushed for the Poona Pact in 1932, demanding separate electorates for Dalits, the Indian Left kept its distance from the issue. Symptomatically, E.M.S. Namboodiripad wrote: “This was a great blow to the freedom movement. For this led to the diversion of people’s attention from the objective of full independence to the mundane cause of the upliftment of the Harijans.”

EMS’s reaction to the Poona Pact was in consonance with his reading of Indian history in Marxist terms. Borrowing crudely from Marx’s understanding of the history of slavery, EMS found the caste system, despite its exploitative structure, to be “a superior economic organisation”, which facilitated organised production through a systematic allocation of labour. He didn’t note Ambedkar’s sophisticated distinction between “division of labour” and “division of the labourer” (including the hierarchy within that division) in the casteist relations of production. The eternal fixedness of the labourer with regard to his birth (as the “subject” who “will bear its Father’s name”), and the religious sanction behind such an identity, were deemed unimportant. Being mostly from the upper castes, Left scholars avoided examining the assumptions of caste.

Since before Independence, the mainstream Left framed the class question safely within the nationalist question; for EMS and his comrades, this issue was not a diversion.
Ambedkar had the courage to push for a radical division within the framework of nationalist politics, by asking for separate electorates. By calling Ambedkar’s cause “mundane”, EMS drew a specious distinction between the working class and Dalits, holding the former to be “superior”. Through this, EMS betrayed his predominantly upper-caste mindset. He is an exemplar of progressive casteism in the history of Left politics and thinking in India. This led to lower castes and Dalits not finding a place in the party hierarchy.

The most insidious form of caste solidarity ignores and hides the stark fact that caste is part of what Althusser calls the “apparatus” of ideology and is based in material existence. Every form of social practice (and exploitation) in India is contextually casteist. It creates conditions of multiple prejudice between the bourgeois and the working class (where the scavenging class/caste goes unnamed). And this prejudice becomes part of the relations of production as caste introduces elements of segregation and humiliation within those relations. In the case of untouchables, one might in fact call it relations of waste, where the disposing of sewage, etc, is not accorded even the minimum standard of dignified working conditions.

Ambedkar pointed out how the class system had an “open-door character”, whereas castes were “self-enclosed units”. He gave a brilliant explanation of caste’s forced endogamy: “Some closed the door: others found it closed against them.” The image throws up a phenomenon opposite to the Kafkan idea of law: the (Hindu) gatekeeper of law, in Ambedkar’s explanation, is also the lawgiver, and he allows entry by birth, but no exit. Once entry has been secured in Hindu society, as Ambedkar argued, everyone who is not a Brahmin is an other. Hinduism is a uniquely self-othering social system, whose (touchable) norms are secured by declaring a brutal exception: untouchability.

In his comparison of Buddha and Marx, Ambedkar bypasses Marx’s idea of private property and keeps out the question of capital ownership. He also does not complicate the relation between ‘law’ and ‘government’. These appear to be limitations of the historical conjuncture of Dalit politics. But Ambedkar finds the materialist and non-violent character of Buddhism to be evoking another thinkable historical version of a Marxist society.

Some critics in the Indian Left see the Dalit movement as being merely a ‘politics of recognition’ and having no revolutionary potential. It is a shallow view of the movement against segregated exploitation that seeks to penetrate entrenched hegemony. The politics against untouchability demands more than good wages and working conditions: it asks for a reconfiguration of the socio-cultural space and the elimination of a violated and untouchable ‘bare life’.

Ambedkar had warned that the Indian socialist would have to “take account of caste after the revolution, if he does not take account of it before the revolution”.

In a discussion after the screening of his film, Jai Bhim Comrade, Anand Patwardhan said that even though Gandhi erred on the caste system, he did more against untouchability than the Left. Under the stark light of this observation, the Left must rethink its ideological history. Or else, the crisis of its political legitimacy may not outlive the warnings.

Friday 20 April 2012

Ways of bidding Farewell - Goodbye, God be with you, Khuda Hafiz, Allah Hafiz...

In Pakistan, saying goodbye can be a religious statement

To some, the growth of 'Allah hafiz' over 'Khuda hafiz', using a Qur'anic rather than Urdu name for God, is a symbol of change
Internet cafe in Peshawar, Pakistan
Pakistanis who continue to use 'Khuda hafiz' see the phrase as 'part of an ideological battle to retain what they see as a more pluralistic approach towards religion'. Photograph: M. SAJJAD/AP
 
Does it matter what name people use for God? This is the question thrown up as a result of a strange development in Pakistani etiquette.

Until about 10 years ago "Khuda hafiz", which means "God protect you", was the phrase commonly used to say goodbye. But, in the past decade, "Khuda hafiz" began to be overtaken by a new term "Allah hafiz". Now, "Allah hafiz" is used by everyone from religious clerics to fashion models and the country's top TV anchors.

While languages change and evolve with time, and Pakistan certainly has bigger problems such as corruption and militancy, the alteration has unsettled liberals in Pakistan, who say it reflects a wider change in the country's cultural landscape.

Khuda is the Urdu word for God, borrowed from Persian. Yet today, some people claim that Khuda can refer to any God, while Allah is the specific name for God in the Qur'anic scripture. Others have gone so far as to claim the word Khuda may even have pagan origins.

The promotion of "Allah hafiz" first began in the 1980s under the rule of General Zia-ul-Haq when Pakistan was involved in the US- and Saudi-backed jihad against the Soviet occupation of Afghanistan. According to some reports, "Allah hafiz" was first used in public in 1985 by a well-known TV host on the state-run PTV. However it would be years later that the greeting took off.

The arguments used by Muslims who are against using the name Khuda appear similar to the ones used by those Christians in the United States who say Allah is a different God to the one they worship. There is no denying there are key theological differences between Islam, Christianity and other religions when it comes to the nature of God, but these don't necessarily mean people from different faiths can't use the same name, while simultaneously holding on to their own unique beliefs.

A few years back, a Roman Catholic bishop from the Netherlands, Tiny Muskens, attracted media interest after calling on people of all faiths to use the name Allah for God: "Allah is a very beautiful word for God. Shouldn't we all say that from now on we will name God Allah? What does God care what we call him? It is our problem."

And millions of English-speaking Muslims have no hesitation in using the name God to refer to Allah. There are more than 10 million Christians who live in the Middle East who use Allah to refer to God. In Malaysia, there has been controversy on the matter for years about Christians being allowed to use Allah to refer to God, with even churches being attacked by some Muslims who object.

Some have speculated the name Khuda may actually come from the word "Khud" which means "self" ("Khud-a" therefore translating as "self-revealing"). In Pakistan, the name Khuda is rooted in the very culture and history of the country. In the national anthem the final verse makes a reference to Khuda. A few years back a very popular film came out with the title Khuda Kay Liye ("For the Sake of God"). When former president Pervez Musharraf left office in 2008 he famously said in his farewell speech "Pakistan ka Khuda hafiz hai" ("God protect Pakistan").

Some continue to use the "Khuda hafiz" despite the popularity of "Allah hafiz". To these people, "Khuda hafiz" is part of an ideological battle to retain what they see as a more pluralistic approach towards religion, yet for others it is tradition or nostalgia that keeps the usage alive. Outside Pakistan, "Khuda hafiz" is also known to be used in Iran, Afghanistan, Tajikistan and among Muslims in India.
Interestingly, while Allah is an Arabic word, the Arabs themselves don't use "Allah hafiz" – which is a purely Pakistani-manufactured invention mixing Arabic with Persian. Rather the Arabs use "ma salama" or "Allah ysalmak" when parting company. And for any who feel there is no need to mention God in a greeting in any language, remember even the English word "goodbye" derives from "God be with you", which was the standard greeting at one time.

Thursday 19 April 2012

How Pakistan makes US pay for Afghan war


By Dilip Hiro

The following ingredients should go a long way to produce a political thriller. Mr M, a jihadi in an Asian state, has emerged as the mastermind of a terrorist attack in a neighboring country, which killed six Americans. After sifting through a vast cache of intelligence and obtaining a legal clearance, the State Department announces a $10 million bounty for information leading to his arrest and conviction. Mr M promptly appears at a press conference and says, "I am here. America should give that reward money to me."

A State Department spokesperson explains lamely that the reward is meant for incriminating evidence against Mr M that would stand up in court. The prime minister of M's home state condemns foreign interference in his country's internal affairs. In the midst of this imbroglio, the US decides to release $1.18 billion in aid to the cash-strapped government of the defiant prime minister to persuade him to reopen supply lines for US and North Atlantic Treaty Organization (NATO) forces bogged down in the hapless neighboring Islamic Republic of Afghanistan.

Alarmingly, this is anything but fiction or a plot for an upcoming international sitcom. It is a brief summary of the latest development in the fraught relations between the US and Pakistan, two countries locked into an uneasy embrace since September 12, 2001.

Mr M is Hafiz Muhammad Saeed, a 62-year-old former academic with a tapering, hennaed beard, and the founder of the Lashkar-e Taiba (the Army of the Pure, or LeT), widely linked to several outrageously audacious terrorist attacks in India.

The LeT was formed in 1987 as the military wing of the Jammat-ud Dawa religious organization (Society of the Islamic Call, or JuD) at the instigation of the Pakistani army's formidable intelligence agency, Inter-Services Intelligence (ISI). The JuD owes its existence to the efforts of Saeed, who founded it in 1985 following his return to his native Lahore after two years of advanced Islamic studies in Riyadh, Saudi Arabia, under the guidance of that country's grand mufti, Shaikh Abdul Aziz bin Baz.

On its formation, the LeT joined the seven-year-old anti-Soviet jihad in Afghanistan, an armed insurgency directed and supervised by the ISI with funds and arms supplied by the Central Intelligence Agency (CIA) and the Saudis. Once the Soviets withdrew from Afghanistan in 1989, the Army of the Pure turned its attention to a recently launched anti-Indian jihad in Indian-administered Kashmir and beyond.

The terrorist attacks attributed to it range from the devastating multiple assaults in Mumbai in November 2008, which resulted in 166 deaths, including those six Americans, to a foiled attack on the Indian parliament in New Delhi in December 2001, and a successful January 2010 attack on the airport in Kashmir's capital Srinagar.

In January 2002, in the wake of Washington's launching of the "war on terror", Pakistan formally banned the LeT, but in reality did little to curb its violent cross-border activities. Saeed remains its final authority. In a confession, offered as part of a plea bargain after his arrest in October 2009 in Chicago, David Coleman Headley, a Pakistani-American operative of LeT involved in planning the Mumbai carnage, said: "Hafiz Saeed had full knowledge of the Mumbai attacks and they were launched only after his approval."

In December 2008, the United Nations Security Council declared the JuD a front organization for the banned LeT. The provincial Punjab government then placed Saeed under house arrest using the Maintenance of Public Order law. But six months later, the Lahore High Court declared his confinement unconstitutional.

In August 2009, Interpol issued a Red Corner Notice, essentially an international arrest warrant, against Saeed in response to Indian requests for his extradition. Saeed was again put under house arrest but in October the Lahore High Court quashed all charges against him due to lack of evidence.

It is common knowledge that Pakistani judges, fearing for their lives, generally refrain from convicting high-profile jihadis with political connections. When, in the face of compelling evidence, a judge has no option but to order the sentence enjoined by the law, he must either live under guard afterwards or leave the country.

Such was the case with Judge Pervez Ali Shah who tried Mumtaz Qadri, the jihadi bodyguard who murdered Punjab's governor Salman Taseer for backing an amendment to the indiscriminately applied blasphemy law. Soon after sentencing Qadri to capital punishment last October, Shah received several death threats and was forced into self-exile.

Aware of the failures of the Pakistani authorities to convict Saeed, US agencies seemed to have checked and cross-checked the authenticity of the evidence they had collected on him before the State Department announced, on April 2, its reward for his arrest. This was nothing less than an implied declaration of Washington's lack of confidence in the executive and judicial organs of Pakistan.

Little wonder that Pakistani Prime Minister Yousaf Raza Gilani took umbrage, describing the US bounty as blatant interference in his country's domestic affairs. Actually, this is nothing new. It is an open secret that, in the ongoing tussle between Pakistani President Asif Ali Zardari and his bete noire, army chief of staff General Ashfaq Parvez Kiani, the Barack Obama administration has always backed the civilian head of state. That, in turn, has been a significant factor in Gilani's stay in office since March 2008, longer than any other prime minister in Pakistan's history.

How to trump a superpower
Given such strong cards, diplomatic and legal, why then did the Obama administration commit itself to releasing more than $1 billion to a government that has challenged its attempt to bring to justice an alleged mastermind of cross-border terrorism?

The answer lies in what happened at two Pakistani border posts about two kilometers from the Afghan frontier in the early hours of November 26, 2011. NATO fighter aircraft and helicopters based in Afghanistan carried out a two-hour-long raid on these posts, killing 24 soldiers.

Enraged, Pakistan's government shut the two border crossings through which the US and NATO had until then sent a significant portion of their war supplies into Afghanistan. Its officials also forced the US to vacate Shamsi air base, which was being used by the CIA as a staging area for its drone air war in Pakistan's tribal areas along the Afghan border. The drone strikes are exceedingly unpopular - one poll found 97% of respondents viewed them negatively - and they are vehemently condemned by a large section of the Pakistani public and its politicians.

Furthermore, the government ordered a comprehensive review of all programs, activities and cooperation arrangements with the US and NATO. It also instructed the country's two-tier parliament to conduct a thorough review of Islamabad's relations with Washington. Having taken the moral high ground, the Pakistani government pressed its demands on the Obama administration.

An appointed Parliamentary Committee on National Security (PCNS) then deliberately moved at a snail's pace to perform the task on hand, while the Pentagon explored alternative ways of ferrying goods into Afghanistan via other countries to sustain its war there.

By contrast, a vociferous campaign against the reopening of the Pakistani supply lines led by the Difa-e Pakistan Council (Defense of Pakistan), representing 40 religious and political groups, headed by Hafiz Saeed, took off. Its leaders have addressed huge rallies in major Pakistani cities. It was quick to condemn Washington's bounty on Saeed, describing it as "a nefarious attempt" to undermine the council's drive to protect the country's sovereignty.

Meanwhile, the loss of the daily traffic of 500 trucks worth of food, fuel and weapons from the Pakistani port of Karachi through the Torkham and Chaman border crossings into Afghanistan, though little publicized in US media, has undermined the fighting capability of US and NATO forces.

"If we can't negotiate or successfully renegotiate the reopening of ground lines of communication with Pakistan, we have to default and rely on India and the Northern Distribution Network (NDN)," said a worried Lieutenant General Frank Panter to the Readiness Subcommittee of the Armed Services Committee of the US House of Representatives on March 30. "Both are expensive propositions and it increases the deployment or redeployment."

The main part of the NDN is a 3,220-mile (5,100 kilometer) rail network for transporting supplies between the Latvian port of Riga and the Uzbek town of Termez (connected by a bridge over the Oxus River to the Afghan settlement of Hairatan). According to the Pentagon, it costs nearly $17,000 per container to go through the NDN compared to $7,000 through the Pakistani border crossings.

Moreover, US and NATO are allowed to transport only "non-lethal goods" through the NDN.

Other military officials have warned that the failure to reopen the Pakistani routes could even delay the schedule for withdrawing American "combat troops" from Afghanistan by 2014. That would be bad news for the Obama White House with the latest Washington Post/NBC News poll showing that, for the first time, even a majority of Republicans believe the Afghan war "has not been worth fighting". A CBS News/New York Times survey indicated that support for the war was at a record low of 23%, with 69% of respondents saying that now was the time to withdraw troops.

In the Pakistani capital, Islamabad, the PCNS finally published a list of preconditions that the US must meet for the reopening of supply lines. These included an unqualified apology for the air strikes last November, an end to drone attacks, no more "hot pursuit" by US or NATO troops inside Pakistan, and the taxing of supplies shipped through Pakistan.

Much to the discomfiture of the Obama administration, a joint session of the National Assembly and the senate called to debate the PCNS report took more than two weeks to reach a conclusion.

On April 12, parliament finally unanimously approved the demands and added that no foreign arms and ammunition should be transported through Pakistan. The Obama administration is spinning this development not as an ultimatum but as a document for launching talks between the two governments.

Even so, it has strengthened Gilani's hand as never before. Furthermore, he has to take into account the popular support the Saeed-led Difa-e Pakistan Council is building for keeping the Pakistani border crossings permanently closed to NATO traffic. Thus, Saeed, a jihadi with a US bounty on his head, has emerged as an important factor in the complex Islamabad-Washington relationship.

Squeezing Washington: The pattern
There is, in fact, nothing new in the way Islamabad has been squeezing Washington lately. It has a long record of getting the better of US officials by identifying areas of American weakness and exploiting them successfully to further its agenda.

When the Soviet bloc posed a serious challenge to the US, the Pakistanis obtained what they wanted from Washington by being even more anti-Soviet than America. Afghanistan in the 1980s is the classic example.

Following the Soviet military intervention there in December 1979, the Pakistani dictator General Muhammad Zia ul-Haq volunteered to join Washington's Cold War against the Kremlin - but strictly on his terms. He wanted sole control over the billions of dollars in cash and arms to be supplied by the US and its ally Saudi Arabia to the Afghan mujahideen (holy warriors) to expel the Soviets from Afghanistan. He got it.

That enabled his commanders to channel a third of the new weapons to their own arsenals for future battle against their archenemy, India. Another third were sold to private arms dealers on profitable terms. When pilfered US weapons began appearing in arms bazaars of the Afghan-Pakistan border towns (as has happened again in recent years), the Pentagon decided to dispatch an audit team to Pakistan.

On the eve of its arrival in April 1988, the Ojhiri arms depot complex, containing 10,000 tons of munitions, mysteriously went up in flames, with rockets, missiles and artillery shells raining down on Islamabad, killing more than 100 people.

By playing on Ronald Reagan's view of the Soviet Union as "the evil empire", Zia also ensured that the American president would turn a blind eye on Pakistan's frantic, clandestine efforts to build an atom bomb. Even when the CIA, the National Security Agency and the State Department determined that a nuclear weapon assembled by Pakistan had been tested at Lop Nor in China in early 1984, Reagan continued to certify to congress that Islamabad was not pursuing a nuclear weapons program in order to abide by a law which prohibited US aid to a country doing so.

Today, there are an estimated 120 nuclear bombs in the arsenal of a nation that has more Islamist jihadis per million people than any other country in the world. From October 2007 to October 2009, there were at least four attacks by extremists on Pakistani army bases known to be storing nuclear weapons.

In the post-9/11 years, Pakistan's ruler General Pervez Musharraf managed to repeat the process in the context of a new Afghan war. He promptly joined president George W Bush in his "war on terror", and then went on to distinguish between "bad terrorists" with a global agenda (al-Qaeda), and "good terrorists" with a pro-Pakistani agenda (the Afghan Taliban).

Musharraf's ISI then proceeded to protect and foster the Afghan Taliban, while periodically handing over al-Qaeda militants to Washington. In this way, Musharraf played on Bush's soft spot - his intense loathing of al-Qaeda - and exploited it to further Pakistan's regional agenda.

Emulating the policies of Zia and Musharraf, the post-Musharraf civilian government has found ways of diverting US funds and equipment meant for fighting al-Qaeda and the Taliban to bolster their defenses against India. By inflating the costs of fuel, ammunition and transport used by Pakistan's 100,000 troops posted in the Afghan-Pakistan border region, Islamabad received more money from the Pentagon's Coalition Support Fund (CSF) than it spent. It then used the excess to buy weapons suitable for fighting India.

When the New York Times revealed this in December 2007, the Musharraf government dismissed its report as "nonsense". But after resigning as president and moving to London, Musharraf told Pakistan's Express News television channel in September 2009 that the funds had indeed been spent on weapons for use against India.

Now, the widely expected release of the latest round of funds from the Pentagon's CSF will raise total US military aid to Islamabad since 9/11 to $14.2 billion, two-and-a-half times the Pakistani military's annual budget.

There is a distinct, if little discussed, downside to being a superpower and acting as the self-appointed global policeman with a multitude of targets. An arrogance feeding on a feeling of invincibility and an obsession with winning every battle blind you to your own impact and even to what might be to your long-term benefit. In this situation, as your planet-wide activities become ever more diverse, frenzied, and even contradictory, you expose yourself to exploitation by lesser powers otherwise seemingly tied to your apron strings.

Pakistan, twice during America's 33-year-long involvement in Afghanistan made a frontline state, is a classic example of that. Current policymakers in Washington should take note: it's a strategy for disaster.

Dilip Hiro, a TomDispatch regular, is the author of 33 books, the most recent being the just-published Apocalyptic Realm: Jihadists in South Asia (Yale University Press, New Haven and London).

(Copyright 2012 Dilip Hiro.)

Wednesday 18 April 2012

Argentina Re-Nationalises an Oil Company

Standard & Poor's puts Argentina on 'negative watch' over YPF nationalisation plan

Standard & Poor's has put a "negative watch" on Argentina's credit rating, citing "rising restrictions to international trade" and "steps to nationalise oil company YPF" as reasons for the move.

Spain’s Repsol has threatened legal action against any company that attempts to invest in YPF following its expropriation by Argentina last week as the government expressed determination to “pay nothing at all” in compensation to the Spanish oil company.
Women walk past a poster that reads "CFK - YPF. They're ours, they're Argentine" in Buenos Aires last week. Photo: Reuters
Despite affirming its "B" credit rating, S&P added that the South American country's recent actions "could exacerbate existing weaknesses in the economy", pointing to high inflation and increasingly rigid government expenditure.

The news came after Spain’s Repsol threatened legal action against any company that attempts to invest in YPF following its expropriation by Argentina last week, as the government expressed determination to “pay nothing at all” in compensation to the Spanish oil company.

The move would discourage external partners from providing the investment YPF needs to exploit vast shale oil deposits discovered within the Latin American country and is the latest attempt by Repsol to fight back against the illegal seizure of its subsidiary.

“We reserve the right to take legal action against any party investing in the YPF and its assets following the unlawful expropriation of the company,” Kristian Rix, a spokesman for Repsol in Madrid, told the Daily Telegraph on Monday.

The Spanish energy company believes billions of dollars are required to develop Argentina’s prospects including at least €25bn a year over the next decade to exploit the Vaca Muerta shale discovery made last year.

Julio De Vido, Argentina’s Planning Minister has already approached Brazil's state-run oil company Pertobras over investment in YPF and plans to contact other foreign oil companies including Exxon, Chevron and ConocoPhilips.

The development comes amid yet more rhetoric from Argentina as government sources insisted the offer of compensation would be “zero pesos”.

Shares in Repsol and Spanish builder Sacyr Vallehermoso, which owns a 10pc stake in the company, fell by 4.7pc and 10.7pc respectively on Monday after government sources quoted in Argentina’s daily newspaper La Nacion said the government was “determined to pay nothing at all to Repsol”.

Antonio Brufau, CEO of Repsol has argued that its YPF stake had a value of $10.5bn.
“They are looking into and finding out everything on the management of Repsol: irregularities, lack of investment, defective technical plans, financial and accounting issues. There is a debt of $9bn,” an unnamed official told the newspaper.

The government is assuming that any legal action processed through international tribunals could take five or six years, confided the source.

Meanwhile, details of the aggressive tactics employed by the government of Cristina Fernandez de Kirchner towards Spanish executives at YPF during the takeover emerged in a briefing issued by Spain’s foreign office to all its embassies fermenting hostilities between the two countries.

Mr de Vido and Axel Kicillof, the deputy economy minister, arrived at company headquarters with armed security guards who used “physical violence and threats” to force Spanish YPF employees from the building giving them five minutes to collect their personal belongings, the internal memo said.

Spanish YPF executives were then “hunted down” for “harsh interrogation” and they and their families sought refuge at the home of a senior executive awaiting repatriation to Spain.

In addition, eyebrows were raised over the state appointment of one of new managers of YPF. Exequiel Espinosa, the head of state oil company Enarsa, was once embroiled in a corruption scandal that threatened to derail Mrs Kirchner’s campaign for presidency in 2007.

Mr Espinosa was one of the Argentine officials on board a plane carrying Guido Antonini, a Venezuelan businessman who was caught landing in Buenos Aires with a suitcase of $800,000 allegedly destined for Mrs Kirchner’s campaign.

The matter forced the resignation of Claudio Uberti, an Argentine government official involved in trade and investment deals with Venezuela and cost Diego Uzcategui, president of Venezuela oil company PDVSA as both were on board the plane.

But Mr Espinosa, who was also one of the eight passengers on the private jet hired by Enarsa, survived the association unscathed.

“He’s a complete Kichnerista crony and now he’s in charge of exploration and production at YPF,” said a source connected to the Latin American energy industry.

Repsol may fight a move by the Eskenazi family to buy back shares in YPF citing a “force majeure” argument to declare the agreement void.

The company could argue that the agreement to buy back Eskenazi shares in the event that Repsol was to lose its majority stake was not applicable in the context of expropriation.

It also emerged on Monday that Argentine officials had searched a property used by Mr Braufau in Buenos Aires, seizing computers and documents apparently without an official court order.

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Argentina's oil grab is timely retort to rampaging capitalism

Cristina Fernández's actions, however clumsy, are part of a worldwide reaction to exploitation by business and the rich
ARGENTINA-fernandez-KIRCHNER-ELECTION
Cristina Fernández's move was populist and clumsy, but perfectly understandable. Photograph: Daniel Garcia/AFP/Getty Images
Suppose the British government knew that a key shareholder in Centrica, our last great British energy company and owner of British Gas, was to sell its stake to Gazprom, so making Russian state ownership inevitable. I hope that, in this scenario, the government would expand the provision of the Enterprise Act that allows Britain to block takeovers that are against the national interest to include gas and nuclear power. (The act is currently confined to defence, financial services and the media.) I'm pretty certain that Centrica chairman Sir Roger Carr, also president of the CBI, shares the same view. No country can be indifferent to the ownership of strategic assets and thus the use to which they might be put. Its first obligation is to the well-being of its citizens.

The Argentinian government was faced with just this dilemma last week. YPF is its national oil and gas company, which it sold to the Spanish oil company Repsol for $15bn in 1999 as part of its privatisation drive. It has not been a great deal for either party. Argentinian oil and gas production has slumped, exploration for new reserves has been run down and this oil-rich country is now an oil importer, with Repsol accused of looting the company and betraying its obligations.

Repsol's excuse is that Argentinian price controls are absurdly tough. It has wanted to sell its holding for some time and last July finally found a potential buyer: the Chinese state oil company Sinopec. On Monday, fearing that the deal was about to be done, the Argentinian government seized the lion's share of Repsol's stake to get majority control. Better that YPF is owned by the Argentinian government than the Chinese Communist party is their reasoning.

Many governments would have done the same. Ownership matters. Yet Argentina has been roundly condemned – the EU, Spain, Mexico and even Britain have all weighed in. The Economist thunders that President Cristina Fernández's antics must not go unpunished; nationalisation is a sin beyond redemption. The inference is that Repsol should have been allowed freely to dispose of its shares to whichever buyer and at the best price it could achieve. Argentina and its citizens have no right to intervene.

Ms Fernández was certainly high-handed and very arbitrary. She only seized enough shares from Repsol to secure 51% control and has yet to say what the state will pay in compensation; the other shareholders are hapless bystanders with their investment shredded. There is more than a whiff of shameless populism to her actions. But to portray Repsol as an injured innocent whose natural rights have been unfairly suborned is to traduce economic and political reality.

For too long, companies and the rich worldwide, egged on by American Republicans and British Tories, have shamelessly exploited the proposition that there is only one proper relationship between them and society: they do what they want on their own terms. And society must accept this because it is the sole route to "wealth generation". Capital exists above state and society.

Fernández's actions, however clumsy and unfair in their execution, are part of a growing worldwide reaction to the excesses that this proposition has brought. Repsol does not, and did not, have a God-given right to sell control in YPF to whomever it pleases while Argentina's interests can go hang. It exists in a symbiotic relationship with the society in which it trades. The right to trade and to own are privileges that come with reciprocal obligations as the Ownership Commission, which I chaired, argued earlier this year. They cannot exist in a vacuum because companies' actions have profound effects.

Moreover, companies, especially energy companies, need public agencies to help mitigate the risk of undertaking huge investments in a world where the future is unknowable. Across the globe, business and the rich insist on denying these elementary truths. Now they are reaping the whirlwind as a hostile reaction gathers pace worldwide. Capitalism's self-appointed custodians have become its worst enemies.

It is the driving force behind the Occupy Movement. It is why Jean Luc Melénchon, the hard left French presidential candidate, has had such a successful election campaign. It is why so many governments are co-ordinating their investigation into Amazon, the company paying negligible tax on its worldwide profits. It is why President Obama has adopted the Buffet tax on millionaires as a popular part of his re-election campaign. It is why George Osborne felt he had to balance his high-risk reduction in the top rate of income tax to 45%with a passionate declaration of war on the rich evading tax.

The reaction is long overdue and is producing some long-needed corrections. For example, in the last fortnight alone, Goldman Sachs' Lloyd Blankfein, Barclays' Bob Diamond and Citibank's Vikram Pandit have all faced angry shareholders, responding to the new mood, protesting about the extravagance of their bonuses compared to their institutions' paltry performance. They are being forced to accept less. Proportionality in top pay is beginning to be restored, if still a long way off.

But the mood needs to be channelled. Argentina may have done everyone a service by forcibly reminding global business that there are unpleasant consequences for neglecting economic and social responsibilities, but summary nationalisation without compensation is hardly a solid template for the future. It is a harbinger of Chinese-style arbitrary government; a move from crony capitalism to crony statism. It is time to reassert that while capitalism may be a proven route to prosperity, it only works in a complex interdependence with the state and society. There have to be rules at home and abroad to make a desirable world of open borders, free trade and free business work. Taxes have to be paid rather than evaded. Pay has to be proportional to contribution. Labour leader Ed Miliband was roundly and universally criticised as a leftist innocent just seven months ago when he differentiated between good and bad capitalism; now he looks extraordinarily prescient.

If more of his party – especially the shadow cabinet – would rally to his cause, there is a phenomenal political opportunity. The mood is changing. It needs to be channelled: the creation of a new and different compact with business, finance and the rich. It is what electorates across the world want to see. President Fernández, in her gauche way, has tapped into a global mood.

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Argentina's critics are wrong again about renationalising oil

In taking back oil and gas company YPF, Argentina's state is reversing past mistakes. Europe is in no position to be outraged
Argentine President Cristina Fernandez de Kirchner
Argentinia's president, Cristina Kirchner, announces that the oil company YPF is subject to expropriation. Photograph: Daniel Garcia/AFP/Getty Images
The Argentinian government's decision to renationalise the oil and gas company YPF has been greeted with howls of outrage, threats, forecasts of rage and ruin, and a rude bit of name-calling in the international press. We have heard all this before.

When the government defaulted on its debt at the end of 2001 and then devalued its currency a few weeks later, it was all doom-mongering in the media. The devaluation would cause inflation to spin out of control, the country would face balance of payments crises from not being able to borrow, the economy would spiral downward into deeper recession. Then, between 2002 and 2011, Argentina's real GDP grew by about 90%, the fastest in the hemisphere. Employment is now at record levels, and both poverty and extreme poverty have been reduced by two-thirds. Social spending, adjusted for inflation, has nearly tripled. All this is probably why Cristina Kirchner was re-elected last October in a landslide victory.

Of course this success story is rarely told, mostly because it involved reversing many of the failed neoliberal policies – that were backed by Washington and its International Monetary Fund – that brought the country to ruin in its worst recession of 1998-2002. Now the government is reversing another failed neoliberal policy of the 1990s: the privatisation of its oil and gas industry, which should never have happened in the first place.

There are sound reasons for this move, and the government will most likely be proved right once again. Repsol, the Spanish oil company that currently owns 57% of Argentina's YPF, hasn't produced enough to keep up with Argentina's rapidly growing economy. From 2004 to 2011, Argentina's oil production has actually declined by almost 20% and gas by 13%, with YPF accounting for much of this. And the company's proven reserves of oil and gas have also fallen substantially over the past few years.

The lagging production is not only a problem for meeting the needs of consumers and businesses, it is also a serious macroeconomic problem. The shortfall in oil and gas production has led to a rapid rise in imports. In 2011 these doubled from the previous year to $9.4bn, thus cancelling out a large part of Argentina's trade surplus. A favourable balance of trade has been very important to Argentina since its default in 2001. Because the government is mostly shut out of borrowing from international financial markets, it needs to be careful about having enough foreign exchange to avoid a balance of payments crisis. This is another reason that it can no longer afford to leave energy production and management to the private sector.

So why the outrage against Argentina's decision to take – through a forced purchase – a controlling interest in what for most of the enterprise's history was the national oil company? Mexico nationalised its oil in 1938, and, like a number of Opec countries, doesn't even allow foreign investment in oil. Most of the world's oil and gas producers, from Saudi Arabia to Norway, have state-owned companies. The privatisations of oil and gas in the 1990s were an aberration; neoliberalism gone wild. Even when Brazil privatised $100bn of state enterprises in the 1990s, the government kept majority control over energy corporation Petrobras.

As Latin America has achieved its "second independence" over the past decade-and-a-half, sovereign control over energy resources has been an important part of the region's economic comeback. Bolivia renationalised its hydrocarbons industry in 2006, and increased hydrocarbon revenue from less than 10% to more than 20% of GDP (the difference would be about two-thirds of current government revenue in the US). Ecuador under Rafael Correa greatly increased its control over oil and its share of private companies' production.

So Argentina is catching up with its neighbours and the world, and reversing past mistakes in this area. As for their detractors, they are in a weak position to be throwing stones. The ratings agencies threatening to downgrade Argentina – should anyone take them seriously after they gave AAA ratings to worthless mortgage-backed junk during the housing bubble, and then pretended that the US government could actually default? And as for the threats from the European Union and the rightwing government of Spain – what have they done right lately, with Europe caught in its second recession in three years, nearly halfway through a lost decade, and with 24% unemployment in Spain?

It is interesting that Argentina has had such remarkable economic success over the past nine years while receiving very little foreign direct investment, and being mostly shunned by international financial markets. According to most of the business press, these are the two most important constituencies that any government should make sure to please. But the Argentinian government has had other priorities. Maybe that's another reason why Argentina gets so much flak.