Home » Poverty & Inequality

Category Archives: Poverty & Inequality

State of Europe: How the European Round Table of Industrialists Came to Wage Class War on Europe

 

State of Power 2014: The Transnational Institute

By: Andrew Gavin Marshall

screenshot_from_2014-01-20_154118_1

Originally posted at the Transnational Institute, 21 January 2014

In its third annual ‘State of Power’ report, TNI uses vibrant infographics and penetrating essays to expose and analyse the principal power-brokers that have caused financial, economic, social and ecological crises worldwide.

In my contribution to the ‘State of Power’ report (and in cooperation with Occupy.com), “State of Europe: How the European Round Table of Industrialists Came to Wage Class War on Europe,” I examine the role of a major corporate interest group in shaping the policies of the European Union.

From the introduction:

“Founded in 1983, the European Round Table of Industrialists (ERT) quickly became – and today remains – one of the most influential voices of organized corporate interests in Europe. Not quite a lobby, not quite a think tank, the ERT is an action-oriented group made up of roughly 50 CEOs or Chairmen of Europe’s top industrial corporations who collectively push specific ideologies, pressure political elites, and plan objectives and programs designed to shape the European Union and the ‘common market’. 

The past thirty years of the ERT’s existence has revealed it one of the most influential organizations in Europe, widely known to the EU’s political, technocratic, and financial elites, holding regular meetings, dinners, and social events with prime ministers and cabinet officials of EU member states, as well as the leadership of the European Commission itself. In the wake of the European debt crisis of the past several years, the ERT has again been at the forefront of shaping the changes within the EU, promoting austerity and structural reforms as the ‘solution’ to the debt crisis.

As through their three-decade history, the Round Table today continues to promote the ideologies and interests of corporate and financial power at the expense of the interests of labour and the population more widely. This paper aims to examine this highly influential group in order to shed some light on an organization very well known to those who make the important decisions within the EU, yet largely in the shadows to those who have to suffer the consequences of those decisions.”

To read the full essay on the ERT and the European Union, click here.

To review and access all of the reports which contributed to the TNI ‘State of Power’ report, click here.

 

About these ads

Global Power Project: The Group of Thirty, Financial Crisis Kingpins

Global Power Project: The Group of Thirty, Financial Crisis Kingpins

By: Andrew Gavin Marshall

25 February 2014

The following article was originally posted on 18 December 2013 at Occupy.com

Following parts onetwo and three of the Global Power Project’s Group of Thirty series, this fourth and final instalment focuses on a few of the G30 members who have played outsized roles both in creating and managing various financial crises, providing a window on to the ideas, institutions and individuals who help steer this powerful global group.

gpp-slide

The Assassin of Argentina

Prior to 2008, one of the most notable examples of a highly destructive financial crisis took place in Argentina which, heavily in debt, faced a large default and was brutally punished by financial markets and the speculative assault of global finance, otherwise known as “capital flight.” Less known in the story of Argentina’s 1998 to 2002 economic catastrophe was the significant role played by just one man: Domingo Cavallo.

A longtime member of the Group of Thirty, Cavallo formerly served both as Governor of the Central Bank and Minister of Economy in Argentina. He has been referred to  by Pulitzer Prize-winning economic researcher Daniel Yergin as “one of the most influential figures in recasting the relationship of state and marketplace in Latin America.”

Between 1976 and 1983, Argentina, ruled by a ruthless military dictatorship, was marred by excessive human rights abuses and persecution of intellectuals and dissidents during the so-called “Dirty War” in which as many as 30,000 people were killed or disappeared . The terror was reminiscent of nearby Chile, where a coup that brought dictator Augusto Pinochet to power in 1973, with the help of the CIA, provided a petri-dish experiment in the implementation of neoliberal “reforms.” It was Chile’s dictatorship that set the example, and Argentina’s soon followed.

In a 2002 interview, Domingo Cavallo noted that, “The experience of Chile during the ’80s was very instructive, I think, for most Latin American economies, and many politicians in Latin America, because Chile was successful by opening up and trying to expand their exports and in general their foreign trade and getting more integrated into the world economy… And of course we used, particularly here in Argentina, the experience of Chile to go ahead with our own reforms.”

Asked about the association between economic “reforms” in Chile and the ruthless dictatorship that implemented them, Cavallo explained, “There were discussions on the feasibility of implementing market reforms in a democracy. But in 1990… the first democratic president after Pinochet maintained the reforms and also tried to improve on them [and] it was demonstrated that itwould be possible  to implement similar reforms under a democratic regime.”

What specific reforms was Cavallo referring to? Under Argentina’s military dictatorship, Cavallo served for one year as Governor of the Central Bank in 1982, where he was responsible for implementing  a state bailout of corporations and banks. After, Cavallo returned to academic life. But all that changed with the election of Carlos Menem in 1989, who served as president until 1999. In 1991, Menem appointed Cavallo as Minister for Economy, a position he held until 1996.

Cavallo led the neoliberal restructuring of Argentina: pegging the Argentine peso to the U.S. dollar, trying to reduce inflation, undertaking massive privatizations while opening up the economy to “free trade,” and deregulating financial markets. The New York Times in 1996 heaped praise on Cavallo for his “constructive” role in leading the economy “back to vitality and international respectability,” despite the fact that his reforms “brought high unemployment  and painful reductions in social programs.”

Another NYT article credited Cavallo for the “stability” brought to Argentina through his “economic miracle,” while noting, without irony, that Cavallo’s miracle had “left million of Argentines… without a safety net” and with record-high unemployment, the emergence of urban slums, abandoned street children, over-crowded food banks, homeless shelters in churches, and even some people who were forced to eat cats in desperation. The “miracle” was so great, in fact, that despite all of the so-called stability it facilitated, President Menem ultimately dismissed Cavallo to the jubilation of tens of thousands of protesters in the streets. Though the people were pleased, financial markets expressed their disapproval .

With multiple economic and financial crises erupting around the world and in neighboring nations, Argentina, which pegged its currency to the U.S. dollar, found it could no longer compete. The touted neoliberal reforms were taking a toll as the country plunged into recession. Menem was replaced in 1999 by President Fernando De la Rua, who quickly sought support from the IMF to help repay the country’s debts owed to foreign – largely American  – banks.

But Cavallo wasn’t out. In 2001, he was re-appointed as the country’s Minister of Economy just in time to receive emergency powers enabling him handle the country’s ongoing financial crisis that he helped to create . At that point, financial markets felt Argentina could not be trusted to repay its debt and the IMF refused to provide further loans, on the basis that the country had not implemented enough neoliberal reforms to meet its demands. The economy crashed and the “much-hated” Cavallo had to resign, as did the President, who fled by helicopter from the Casa Rosada as Argentines protested en masse .

Even the Federal Reserve Bank of San Francisco noted in 2002 that there was “some truth” to the view that “Argentina’s debt position would have been sustainable if only market uncertainty had not triggered a crisis.” But, it added, had Argentina made the effort asked of it to reduce its debt, it could have avoided  “potentially destabilizing shifts in market sentiment.”

Domingo Cavallo

Domingo Cavallo

America’s Crisis-Causers

The role played by former Federal Reserve Chairman Alan Greenspan in creating the conditions that led to the 2008 global financial meltdown is known to many. What is less known is that Greenspan, too, is a former member of the Group of Thirty. Greenspan did not work alone, of course, in his efforts to deregulate the financial system and spur the growth of the derivatives markets, which laid the groundwork for the worst financial crisis in modern times. Larry Summers, who then served as deputy secretary and later Secretary of Treasury under Bill Clinton, was also very helpful in this regard. Summers, too, is a current member of the Group of Thirty.

Currently serving as President Emeritus and as a professor at Harvard University, Summers was the former director of President Obama’s National Economic Council from 2009 to 2011. Previously, he was President of Harvard (2001 to 2009) and, prior to his positions during the Clinton administration he was Chief Economist at the World Bank (1991 to 1993). Currently, Summers is a member not only of the G30 but of the Council on Foreign Relations, the Trilateral Commission, and he was also a member of the Steering Committee of the Bilderberg Group.

While Chief Economist at the World Bank, Summers signed an infamous 1991 memo in which it was suggested that rich countries should dump their toxic waste and pollutants in the poorest African nations — because by the time the toxins spurred the growth of cancer in the local population, they would already statistically be dead due to already high mortality rates. The memo noted : “I think the economic logic behind dumping a load of toxic waste in the lowest wage country is impeccable and we should face up to that.”

When Summers later went to work for the Clinton administration under Treasury Secretary Robert Rubin, he along with Rubin and Fed Chairman Greenspan formed the “Three Marketeers,” as Time referred to them, dedicated to  “inventing a 21st century financial system” where they placed their “faith [in] financial markets.”

In the final two years of the Clinton presidency, Summers served as the Treasury Secretary alongside his deputy and protégé, Timothy Geithner, another member of the G30 who would go on to make a mark on the financial crisis — largely by convincing President Obama to bail out the Wall Street banks that crashed the economy, with zero penalty to them. Under the Obama administration, Summers served for nearly two years as Chair of the National Economic Council and was a highly influential policymaker . In 2009, he had spoken at the highly influential ultra-conservative think tank, the Peterson Institute for International Economics, where he explained the administration’s approach to the economic recovery, noting that , “Our approach sought to go as much as possible with the grain of the market” as opposed to regulating markets.

When Summers left the Obama administration in late 2010, he returned to Wall Street and made a fortune  working for the hedge fund D. E. Shaw & Co. and Citigroup. This past summer, he was considered Obama’s favorite pick  to replace Ben Bernanke as Fed Chairman, but faced such stiff opposition within the Democratic Party that he withdrew his name, leaving Janet Yellen – the Vice Chair of the Fed and herself a former member of the Group of Thirty – to step in .

What we see, in this analysis of the Group of Thirty, are the connections between those in positions of power to respond to and manage economic and financial crises, and those in positions of power who created such crises. Naturally, as well, the G30′s membership includes numerous bankers who, as fortune had it, shared handsomely in the profits of those crises. Put simply, the G30 can be thought above all as an exclusive club of financial crisis kingpins. And it is a club, no doubt, that will continue to play a significant and not altogether helpful role in global financial management for years to come — or until something is done to stop them.

Andrew Gavin Marshall is a 26-year-old researcher and writer based in Montreal, Canada. He is project manager of The People’s Book Project , chair of the geopolitics division of The Hampton Institute, research director for Occupy.com’s Global Power Project and the World of Resistance (WoR) Report, and hosts a weekly podcast show with BoilingFrogsPost .

A Teaser to ‘The Empire of Poverty’: The First Volume of The People’s Book Project

A Teaser to ‘The Empire of Poverty’: The First Volume of The People’s Book Project

By: Andrew Gavin Marshall

slum

The following is a little teaser to some of the ideas, approach and perspective being pursued through the research and writing of the first volume of The People’s Book Project, ‘The Empire of Poverty.’ Please consider donating to the Project to help these efforts come to fruition.

It’s important to try to understand the global economic and financial system – the banks, corporations, central banks, economic policies (and effects) of governments, trade agreements, the creation and value of currencies, the function of the oft-heard ‘markets’ – as daunting as the task may seem. One might think that they need a degree in Economics in order to understand the complexities of the global economy, to comprehend the correct choices and policies which achieve the desired results. One might think that this is true, but it isn’t. The truth is that if most economists understood the global economy, and knew the ‘correct’ choices to make, we wouldn’t be where we currently are.

Economics – both theory and practice – is an illusion. There are no concrete rules on which to base economic thought; there is no ‘gravity’ to its physics. Economics is not science, it’s sophistry; the sleight of hand, the quick and slick tongue, the wave of the wand, the theatrics of the stage set for all to see, and the effects – as destructive as they may be to the real world and all life within it – are largely hidden from view; the illusion keeps the population enraptured in awe, aspiration, and fear.

This is not to say that there cannot be anything real produced or given growth by what we call ‘economics’: there are of course exchanges made, resources used, products created, lives benefitted, and entire societies and peoples changed. The effects are very real. However, they have a disproportionately destructive, oppressive, and dehumanizing effect upon the vast majority of humanity: they bestow upon a tiny fraction unparalleled power, and thus, dehumanization in another form; while creating a comparably minimal buffer of generally satiated and malleable middle classes, educated well-enough to work and survive the horror show that is the global economic order, but consumed by a culture lacking in substance and meaning, and thus, left morally, psychologically, and intellectually lobotomized, physically paralyzed, and thus, once again, dehumanized.

So our global economic order has the effect of generally dehumanizing all who are subject to its whims and whammies; which is to say, almost everyone, everywhere. Those peoples and societies that are not integrated into the global economy tend to be bombed, invaded, overthrown or droned. Those who remain are doomed to slow death: one in seven people on earth live in urban slums[1] – more than the combined populations of Canada, the United States, and the European Union – while the majority of humanity lives in deep poverty, in hunger, and malnutrition; with 18 million people being killed from poverty-related causes every year, including over 9 million children.[2] Every year.

During the Holocaust, approximately six million Jews were killed. Take that number, add 50% to make 9 million, and just think: this is how many children die every year from poverty. Every year a new Holocaust.

These deaths are preventable. Truly. It has been estimated that less than the yearly Pentagon budget would lift the poorest 3 billion people of the world out of extreme poverty. In fact, in the twenty years following the end of the Cold War in 1991, there were roughly 360 million preventable deaths caused by poverty-related issues, more than the combined deaths of all of the wars of the 20th century.[3]

But this is not our priority. Our priority is that banks and corporations make as much profits as possible, because this – by some unknown and unseen magic – will (it is said) benefit everyone else. It is propagated and believed that this system, as it exists, or even with the proper tinkering and toiling, can represent the totality of life and being on this world; to be humanizing, and to represent ‘human nature’ at its best. But if this system were ‘human nature,’ why would it be so dehumanizing? How many organisms grow by destroying that which their existence depends upon? Parasites, cancers and various diseases can kill the host before transferring to another.

We have no other host to go to. Those who sit atop the global structure know this, which is why they express such an interest in finding new planets to escape to (and presumably, plunder and destroy). The billionaires have given up pretending to care for the world’s billions of people suffering, which is why they are looking to space travel, mining asteroids, and searching for hospitable environments elsewhere.[4] Their long-term ‘exit strategy’ is to abandon ship, not to change the direction we currently traverse.

Are we – as a species – a cancer upon the earth? Looking at the big picture, it may often seem that way. But it is in the small moments, the single acts, exchanged emotions, interacting individuals, in the every day life – those moments of joy, love, wonder – in which we find our own personal meaning, in which we discover that humanity – and human nature – can be so much more than destructive, petty, and pestilent behaviour. We are told we are a society of ‘individuals’ – that we are free, democratic and equal. If that were the case: why are we so isolated? We are individuals, yes, in the physical sense: but we are disconnected from the collective, separated from the species as a whole.

We think and act individually, but do so ignorantly, and arrogantly. Our thoughts and feelings are collected and collated by our commanding culture of irrelevance. The immense gift of a human mind – with all of its possibilities and capabilities, both known and unknown – is largely squandered on pop culture, sports, celebrities, consumer items and entertainment. So long as we remain distracted by the ‘celebration of irrelevance’, we are lobotomized of our meaning.

Is this how you see yourself as an individual? As the world you live in? It’s not an appealing thought. So why, then, do we live in a world in which as individuals we may act morally, purposefully, passionately, and proudly; though as a collective species, we are petty, parasitic, power-mad, pathological, and pretty much evil?

Is it ‘human nature’ that our personal values and priorities are not reflected in the collective – institutionalized – expression of humanity? Or, is it that the way in which our society is constructed, the institutions and ideologies, the policies, programs, priorities and effects of the way in which our world is ordered and altered, is inherently counter to ‘human nature’? In other words: is human nature inherently self-destructive; or, is our constructed human ‘society’ (our global social, political and economic order) inherently destructive to human nature? Does human nature pervert the effects we have upon the world, or do the structures of world order – and power – pervert human nature?

It is this vast disconnect between our personal values and the form they take at the global – collective – level of the species, which is ultimately so dehumanizing. Because power is centralized at the top, and for such a tiny fraction of the species – so much so that there has never been a more unequal and vast ‘Empire of Poverty’ in all of human history, the ‘great inequality’ is not of wealth, but of power.

Wealth is an illusion: a manufactured means to power, a collective delusion. Power is central to human nature. Every person needs power: they need autonomy over their own lives, thoughts, feelings, and decisions. It is central to maturity, it is central to leaving adolescence and becoming an adult, and it is central to finding a sense of self-worth. Understanding oneself is to empower oneself. Power is about possibility, personal fulfillment, passion and purpose. It has individual and social representations. It can be seen – or not – in your own life, but also in the world around us.

A pre-requisite for power is freedom. The process of achieving freedom is, itself, empowering. Once (and if) achieved, it is of immense responsibility to use your new power of freedom wisely, for the effects that it may have upon others and the rest of the world are endless. Power is freedom, quite simply, because slavery is the opposite of both freedom and power: it is the most un-free and the most disempowering personal position to be in.

Freedom is power; power is freedom. If we were actually free, we would have significantly more power. But we don’t. We barely have any control over our own individual lives, let alone the world around us. We leave all that to the others, to those with the proper degrees, the ‘expertise,’ the politicians, the pundits, the ‘right’ people… because they’ve obviously done such a great job of it so far. We remain – as a species, and very often as individuals – neutered from the necessities of individual empowerment, subjected instead to the very-often-arbitrary abuses of power over others.

So if we are not free, what are we? Certainly, we are not slaves, for we have no shackles, bear the brunt of no whips, serve no visible masters. We are, perhaps, slaves of another kind. We are financially, reflexively, intellectually, emotionally and hopelessly and very often spiritually enslaved to the system, as it exists. We are slaves to money. We serve the masters of money, with our time, with our labour and efforts, with our interactions, exchanges, interests, intelligence and aspirations. We are slaves to money.

Our society is built and sustained upon it; and our species is being driven to extinction because of it. The cause and effect of money – or more aptly, debt – slavery, is the distribution of power among the species: too few have too much, and too many have too little. This imbalance of power within the species is leading to our self-destruction, our inevitable extinction if we continue along this path.

Money is both the means and very often – the reason – for continuing down this path, for maintaining this imbalance. While very few have all the money, everyone – and everywhere else – has all the debt. This is not the wondrous ‘free market’ capitalist utopia which is incessantly babbled about, but the very real global feudal dystopia, both cause and effect of the power imbalance and money-system. In feudalism, there is no freedom, only serfdom.

Welcome to our global economic order, serf!

Welcome to the Empire of Poverty.

But it’s not hopeless. The truth is both painful, but also full of possibilities. The truth is that we do have the ability to understand the world we live in, to comprehend our global economic order. We don’t need a degree; we just need honesty.

The illusion that is our economic system is built not upon technical knowledge, but rather, technical language, a highly political language, “designed to make lies sound truthful, murder respectable, and to give a feeling of solidity to pure wind,” as George Orwell defined the term. Our inability to communicate honesty, and thus effectively, about our economic – and indeed, political and social – system is an essential mechanism in maintaining that system.

To speak and ‘understand’ this language, at least at a superficial level, usually does require some ‘education’: economists must be trained, so too must political and other social scientists. The artificial separations in their knowledge – (as in, the notion that the economic world exists separate from the political and social world, and thus, must be studied separately) ensures that none who receive a ‘proper education’ achieve a profound understanding of the world. Some may, but they are few and far between, and usually weeded out or co-opted.

Such a ‘proper education’ will allow one to gain enough basic knowledge related to the sector of society in which they aim to explore and advance, and they are given just enough knowledge to do so, but not enough to honestly look at – let alone have the capacity to communicate – the reality of how our global political, social and economic order functions and evolves. They may see problems, make recommendations, propose policies, and they may even do some good, but ultimately – as we still remain on the path toward extinction – they have not, and cannot – do enough.

Few possibilities – few ‘solutions’ – or opportunities, are communicated to the populations that are effected under and by these societies, and by the decisions the few at the top make. People are generally given a small set of options from which to choose, like guessing what’s behind door number one or two, when both are ultimately terrible, and ineffectual (in a positive sense). We put ‘faith’ – however empty – into the hands of politicians, we consume the crap spewed in the media, or we lose ourselves in the vast vacancy that is the ‘substance’ of our culture; a culture of mythology, lies, fantasy, persuasion, punishment, entertainment and manipulation.

Our hope is first in honesty. We can – and must – look honestly at the world for what it is, not what we want or imagine it to be, but what it is. Then, we can – and must – communicate this message, and to do so honestly and directly. This is a human reality, and it must become a part of a collective human knowledge, a shift in understanding, and thus, a change in direction; away from the current-inevitably of extinction, and toward survival. What comes after is for future generations to determine. For now, we must aim to simply survive.

Our goal must first be to begin charting a new path toward survival; this must be the duty of our present living and younger generations, as challenging, demanding and terrifying a responsibility that may be, it is either that, or extinction. And this is not a matter of hundreds or thousands of years away; it could be as soon as decades. If you – like me – are between 18 and 45 – the coming few decades of the world in which you currently live and hope to survive will become increasingly dreadful, destructive, oppressive, and disempowering. We cannot afford to continue kicking the can down the road, delaying – and exacerbating – the inevitable.

There is always hope, not in myths and fantasy, but hidden in reality. In our actions, ideas, in us – as individuals – connecting, interacting, sharing, working and creating together, as collectives, as part of a larger human organism; beginning to act as if we don’t want to self-destruct as a species, creating a new society – a new order – to make the current one obsolete. This is our great challenge. How do we navigate through living within the present existing order, while simultaneously seeking to create a new and alternative order? Moreover, how do we achieve this if it takes nearly all our effort, time and energy to simply survive the present order? To put it as crudely (and honestly) as possible: how the fuck are we supposed to change the world?!

I don’t know the answers. But I think that the best way to get them is to ask honest questions, seek an honest understanding, and to communicate honestly – about ourselves and the world – personally, and globally. This book is my attempt to understand and speak honestly about the world, not to speak in a language that only economists and political scientists or other so-called ‘experts’ can understand, but to speak plainly and directly. This will require me to dedicate some focus in attempting to translate political language into English. I don’t have a degree, and you won’t need one to read this, or to understand it.

The hope, then, that I hold for this book – and the wider book project of which it is apart – is that it presents an accessible and usable collection of knowledge. It is not the book that asks every question, or has ever answer (no books do!), but it is an attempt at taking a different approach to asking and seeking answers to some rather important questions about our world: what is the true nature of our society? How did we get here? Where are we going? Why? And, what can we do to change it?

This is but an introduction to our world, by no means comprehensive or conclusive, simply accessible, honest, and (hopefully) useful.

Andrew Gavin Marshall is a 26-year old researcher and writer based in Montreal, Canada. He is Project Manager of The People’s Book Project, chair of the Geopolitics Division of The Hampton Institute, research director for Occupy.com’s Global Power Project and the World of Resistance (WoR) Report, and hosts a weekly podcast show with BoilingFrogsPost.

Notes

[1]       Mike Davis, Planet of Slums (Verso: London, 2007), pages 151-173.

[2]       Thomas Pogge, “Keynote Address: Poverty, Climate Change, and Overpopulation,” Georgia Journal of International and Comparative Law (Vol. 38, 2010), pages 526-534.

[3]       Ibid.

[4]       Dan Vergano, “Billionaires back ambitious space projects,” USA Today, 13 May 2012:

http://usatoday30.usatoday.com/tech/science/space/story/2012-04-25/space-exploration-billionaires/54866272/1

The Debtor’s War: A Modern Greek Tragedy

The Debtor’s War: A Modern Greek Tragedy

By: Andrew Gavin Marshall

color-bars

Early on Thursday, 7 November 2013, Greek riot police stormed the offices of Greece’s main public broadcaster, which had been under a five-month occupation by workers who opposed the government’s decision to shutdown the broadcaster, firing thousands and destroying a major cultural institution. The broadcast seems to have come to an end.

The long and painful Greek tragedy continues, where society and culture are gutted, people impoverished, driven into a deep depression, with growing political and social conflicts, the rise of fascism, detention camps filled with immigrants from Africa and the Middle East, trying to escape the dictators we arm, or the wars we support, with suicide rates spiking, health and well-being deteriorate, services and support vanish, and all the people are left to be punished, humiliated, oppressed and destroyed… These are called “solutions” to an economic crisis, on the road to “economic recovery”… think about that for a moment.

Why is this done? Because some of the world’s largest banks demand it. The same banks that created the global financial crisis, and the European debt crisis, and the global food crisis (which drives tens of millions more people into hunger, and makes the banks richer in the process)., and which launder hundreds of billions of dollars in drug money, profit from arms sales, war and terror. Those banks want the people of Greece (and Spain, and Italy, Portugal, and Ireland, and everywhere, always, across the world) to pay the interest they feel they are owed.

Let me put this simply: a computer screen somewhere, at some big bank, says that some country owes that bank a certain amount of money, and thus, the people of that country must suffer and even die, so that the government can afford to pay back the bank. That’s what government’s are for, right? To serve banks… right?

Greece needs to pay the bank, because the bank and all the bank’s friends (what we call “financial markets”) have decided to punish the country of Greece by betting against the ability of the country to repay its debts, to crash its credit rating, making its ability to borrow and spend increasingly expensive and impossible. Now Greece is basically broke. Greece needs money, so it turns to the EU, the European Central Bank, and the IMF for “assistance.”

They demand that Greece – in return for the loan(s) – impoverish its population, cut all social services and health care, education, anything of benefit to the population – destroy it! – because it’s “too costly.” These are called “austerity measures.” Then, ensure that the newly-impoverished population has all their ‘benefits’ withdrawn, which were promised to them through the ‘social contract’ between the population and the government (essentially, a social agreement between people and the state which legitimizes the state’s ability to rule over them). These things must be destroyed. So things like pensions, social security, labour rights and regulations, protections and safety, industries, resources, services and anything that again benefits the population, must be dismantled and sold for cheap to foreign banks and corporations. All must be dismantled to ensure that the newly-impoverished population and country can be effectively and efficiently exploited by cosmopolitical corporations. These are called “structural reforms,” presumably because they ‘reform’ the very structure of society.

Then, with the combination of impoverishment and exploitation, comes the saintly glow of the all-encompassing human desire and civilizational drive – our goal and purpose as a species on this planet, what our societies are organized by and for – the highest stage of humanity: “economic growth.” Who wouldn’t want “growth”? Well, unless we’re talking about something like a wart, rash, infection, inflammation, or a tumour, everyone wants “growth”, right? Even if it’s at the expense of entire societies and populations of actual individual and living human beings, like any single one of us. Just so long as they suffer for “growth,” all will be well and happy.

So what does “growth” mean? It means that the banks and corporations – which worked with government agencies and officials in creating the global economic and financial crises in the first place – now have the ability to reap the benefits of destruction: massive profits, and growing global power. Large corporations have more money than most countries on earth. Their power is protected by the state, their influence unquestioned, their domination of the world’s resources, materials, culture and society is rapidly advancing, and they are – institutionally and ideologically – totalitarian. So what’s not to love, really?

They want it all. Profit and power. Our world is dominated and being re-shaped by a tiny global financial, corporate, political and intellectual elite. And all must suffer so that they can have what anyone in their position would want to have: more, they want it all. And they want you to just shut up and let them take it all. If you have a problem with that, well, that’s what riot police, prisons, and fascism are for.

This is why Greece must suffer. This is why we hear the unholy trinity economic mantra of: “austerity,” “structural reform,” and “economic growth.” The modern Greek Tragedy of ‘The Debtor’s War’ is driven by the tyrannical trio known as the ‘Troika’: the European Commission (of unelected, unaccountable supranational elite technocrats who serve the interests of global corporate and financial power), the European Central Bank (of unelected technocrats and economists who serve the interests of “financial markets” and the big banks), and the IMF (of unelected technocrats and economists who serve global financial and corporate interests). This institutional ‘Troika’ (the EC, ECB, and IMF) demanded the implementation of the ideological ‘Troika’: austerity, structural reform, and economic growth.

Together, institutionally and ideologically, they wreak havoc upon humanity.

Welcome to the most completely INSANE point in human history; the all-or-nothing. Welcome to reality.

Now please, kindly help change it.

Egypt Under Empire, Part 3: From Nasser to Mubarak

Egypt Under Empire, Part 3: From Nasser to Mubarak

By: Andrew Gavin Marshall

Originally published at The Hampton Institute

Egyptians Prepare In Tahrir Square For The First Anniverary Of The Revolution

Part 1: Working Class Resistance and European Imperial Ambitions

Part 2: The “Threat” Of Arab Nationalism

Between 1952 and 2011, Egypt was ruled by three military dictators: Nasser, Sadat, and Mubarak. Nasser placated labour unrest and imposed many social programs that benefited the population. Sadat subsequently began to break down the ‘social contract’ with Egyptian society, and when Mubarak came to power in 1981, the following three decades witnessed the imposition of a neoliberal order, complete with crony-capitalists, corrupted bureaucracies and a repressive police force. Three decades of increased poverty, polarized wealth and power, and increased labour unrest all laid the groundwork for the 2011 popular uprising.

As Nasser came to power in Egypt in 1952, he successfully crushed labour militancy in the country, and even executed two labour leaders as a symbol of the new regime’s lack of tolerance for radical labour actions. Nasser engaged in a power struggle for a brief period, before assuming complete power in 1954, at which point independent political organizations were banned and he “ushered in a populist-corporatist pact between labour and the state,” in which “the state controls the bulk of the economic, political, and social domains, leaving little space for society to develop itself and for interest groups to surface, compete, and act autonomously.”[1]

Labour groups were organized “into a limited number of singular, compulsory, non-competitive, hierarchically ordered and functionally differentiated categories.” In 1957, the government created the General Federation of Egyptian Trade Unions (GFETU), monopolizing labour unions under the government, purging the radical leaders and co-opting the moderates. Since this period, “trade unions have functioned as an arm of the state rather than as democratic representatives of workers.” Thus, labour activism and actions largely subsided throughout the 1950s and 60s.[2]

Despite violent repression of independent political organizations, communists and militant labour groups, Nasser became incredibly popular both within Egypt and across the wider Arab world. He established a one-party state and a large security apparatus “to crush any and all dissent.” However, his articulation and actions related to Arab nationalism and Arab socialism – the twin pillars of his ‘revolution’ – sought to free Egypt and the Arab world from imperial domination, and to undertake a social revolution domestically as “part of an informal social contract where the population accepted constraints on its political freedom in exchange for the promise of higher living standards and a stronger nation.”[3]

A large network of social services was established, which “provided employment, education and healthcare, as well as subsidized transportation and food.” This program also entailed “spending large sums of money on the military, which was seen as the protector of the nation from external enemies.” These social programs helped to “create a modern middle class” in Egypt.[4] The allegiance of the middle class to the authoritarianism of the regime was secured by the government guaranteeing state employment to all university graduates.[5]

Nasser also implemented major agrarian reforms, which between 1952 and 1961, “redistributed about one seventh of the country’s cultivable land from large landowners… passed on to the landless and near landless fellahin rather than kept for direct use by the state.” This led to an “improvement of rural incomes and agricultural production,” and attempted to undermine the influence of the large landowning class of Egyptians.[6]

With the defeat of Egypt in the 1967 Arab-Israeli War, Nasser’s government suffered a humiliating defeat, and Nasser’s death in 1970 led to the emergence of a new dictator, Anwar Sadat, also emerging from the military, who ruled the country from 1970 until 1981. Undertaking a policy of ‘de-nasserisation,’ Sadat sought to undo many of Nasser’s more progressive policies, earning him the favour of the West. Among such policies were to return the “confiscated” land to the large landowners within Egypt by employing an ‘open door’ market-oriented program called infitah. The intifah helped to create the conditions for a real estate and credit boom, ultimately adding to Egypt’s foreign debt as the country became increasingly dependent upon foreign financing and ‘investment.’[7]

The infitah – or “opening” – wrote Hibbard and Layton, “offered an alternative vision of economic development to that of Arab socialism;” beginning a process of liberalization and an influx of Western capital, “to integrate Egypt into the Western capitalist system.” Sadat’s policies also oversaw the gradual elimination of Nasser’s social programs and “the abandonment of Nasser’s anti-imperialism.” The country quickly became more trade dependent, having to import staple foods, and foreign financing was limited to non-productive sectors of the economy. Egypt increasingly exported its labour to the Persian Gulf, which helped to reduce the problems of unemployment at home, and increased the country’s reliance upon remittances from its foreign workers sending their wages back home. In 1974, labour remittances, oil exports, tourism, foreign aid and the Suez Canal accounted for nearly a third of Egypt’s foreign income, a number that exploded to 75% in 1980. A new commercial elite developed with extensive ties to the state, while economic inequality between the rich and the rest of society accelerated.[8]

Such policies did not occur without resistance, however, with opposition emanating from academics, state bureaucrats and workers, with strikes and “popular unrest” occurring throughout the mid-1970s, with a major transport worker strike in 1976 and large bread riots in 1977. Sadat responded to the labour unrest and food riots by sending in the military to crush the protests. Sadat oversaw the construction of an alliance between the large landowning class, the business class, and the conservative religious elite, and even sought to build ties with the Muslim Brotherhood. Further, Sadat rebuilt ties with the United States, and even established an alliance and peace treaty with Israel, negotiated by the Carter administration in the U.S. as the 1979 Camp David Peace Accords. With that, Sadat lost a great deal of popular support, and Egypt’s Islamists rejected him. Sadat was ultimately assassinated by an Islamist group in 1981.[9]

In 1981, Hosni Mubarak then took control of Egypt, also emerging from within the military and continuing the trend of maintaining the military dictatorship established since 1952, and deepening the economic ‘reforms’ begun under Sadat. Under Mubarak, the military and economic elites became more closely integrated, and with the imposition on the Emergency Law following Sadat’s assassination, Mubarak wielded more authoritarian power, suspending the constitution and dismantling the rights of citizens, also allowing for “detention without charge, press censorship and other restrictions on civil liberties.” A new – parallel – legal system was constructed, relying upon military courts, purportedly for use against ‘terrorists’ but used to persecute any and all forms of political opponents.[10]

Mubarak oversaw – during the 1980s and 1990s – a massively expanded entrenchment of neoliberal economic and social reforms in Egypt. Mubarak also pursued a major campaign against Islamists, who were making political gains with segments of the population by capitalizing on the poverty and popular anger toward the government, largely brought on as a result of the economic reforms. Mubarak’s Egypt thus became a major human rights violator, all the while receiving immense financial and military aid from Western governments, namely, the United States. The role of the security services – in particular the police forces under the control of the Interior Ministry – became more predominant throughout Mubarak’s rule, with torture and other abuses widespread.[11]

The military plays a very large role in the economy as well, and under Mubarak, military officials were appointed as regional governors, village chiefs and put in charge of state-run companies. The military itself has undertaken large land expropriations, runs companies and factories, giving it a major role to play in manufacturing, agriculture, construction, gas and consumer industries. The military, however, keeps most of its economic activities secret, and does not pay taxes while often using “conscripted labourers” for its workforce.[12]

Mubarak began to implement further ‘reforms’ to the agrarian sector along neoliberal lines during the 1980s. The Agriculture Minister Yusuf Wali began implementing agriculture sector liberalization policies in 1986, working “hand in hand with USAID and the World Bank.” The U.S. stressed “market-oriented” reforms and promoted export-led growth, as USAID invested $1.26 billion in the agricultural reforms. These reforms continued over the 1990s, and resulted in widespread dispossession of small farmers and a further alliance between economic and military-political elites.[13]

The major neoliberal reforms in Egypt arrived under Mubarak with the signing of a 1991 Economic Restructuring and Adjustment Program with the IMF, demanding liberalization of trade and prices, privatization, and labour ‘flexibility,’ as well as the removal of several social safety net measures.[14]

The ‘new economic elite’ that emerged in Egypt as a result of the IMF’s programs of the 1990s were closely tied to the ruling party, the National Democratic Party (NDP), and Mubarak’s son, Gamal, who headed the NDP. Prominent businessmen became more influential in policy-making circles and “the number of businessmen elected to Egypt’s parliament increased from 8 in 1995 to 150 by 2005.”[15] Public spending on social services was dramatically cut, state-owned industries were privatized and employees fired, resulting in “staggering hardships for the majority.”[16]

As labour was under sustained attack, they fought back, with twice as many labour protests in the 1990s than took place during the 1980s. With the 1991 IMF program, Egypt was firmly entrenched in a neoliberal ‘order,’ which would accelerate over the following two decades. Fifteen years following the IMF program’s beginning – by 2006 – Egyptian workers had been subjected to continuous hardships and exponentially increased their resistance to it.[17]

The privatization program led to the unprecedented plundering of the Egyptian economy into the hands of relatively few economic elites. Out of 314 state-run companies, 209 were privatized by 2005, “leading to a massive displacement of public sector workers, and with it a further weakening of the struggling labour movement.” The number of workers employed by public sector companies was cut in half between 1994 and 2001. The IMF praised the privatization program in 2006 for having “surpassed expectations.” Wealth and power was concentrated “in the hands of a tiny layer of the country’s elite,” and a few large conglomerates dominated the major sectors of the economy. As Henry Veltmeyer wrote, “Mubarak – and the Egyptian state as a whole – represented an entire capitalist class.”[18]

Neoliberal reforms were further implemented under Prime Minister Ahmed Nazif (2005-2011), which saw businessmen take a more direct role in managing the state, with six major government ministries being run by six major businessmen in the areas of trade and industry, housing, transportation, health, agriculture and social welfare. Taxes were dramatically cut for corporations and elites and dramatically increased for the rest of the population. Corruption and embezzlement of public funds was rampant as the privatization programs effectively subsidized “the private sector at the expense of the nation as a whole.”[19]

The costs of food, fuel and transportation skyrocketed, while Prime Minister Nazif instructed protesting Egyptians to “grow up.” Thus, in 2006, Egypt witnessed a new wave of labour unrest.[20] Independent forms of worker organization re-emerged and in 2006 alone, “there were 220 major strikes involving tens of thousands of workers in the largest strike wave that Egypt had seen in decades,” and which were increasingly linking up with peasant movements protesting against the large landowners.[21]

In 2006, a three-day strike of workers at a weaving and spinning factory in El-Mahalla was “a major turning point in the history of the Egyptian workers’ movement,” marking a total work-stoppage and for a much longer duration than strike action prior and helped in the formation of new workers associations with more democratic accountability, directly challenging the state monopoly over unions.[22]

The strike was “the largest and most politically significant industrial strike since a dispute in the same workplace in 1947,” having roughly 24,000 workers participating, with over 10,000 occupying the factory for three days and nights, and on the fourth day the government granted a concession by offering a 45-day bonus. This set off a wave of worker protests and strikes across the country over the following years. Between 2006 and 2009, an estimated 1.7 million workers participated in protest actions, including private and public industrial workers, postal workers, educational administrators, workers in transportation, tax collection, healthcare, and other sectors. The recent years of labour unrest has been referred to as “the largest social movement in over half a century” taking place within Egypt.[23]

Between 2006 and 2008, Egypt recorded annual growth rates of 7%, and in 2009 – while much of the world was experiencing negative growth – Egypt recorded a 4.6% growth rate. However, between 2008 and 2009, poverty in Egypt increased from 20% to 23.4%, while roughly 40% of Egyptians live on less than $2 per day, one-third of the population is illiterate, and youth make up roughly 90% of the unemployed. Thus, while the neoliberal reforms of the previous three decades produced high growth rates, “it has [also] led to worsening living standards for the majority of the population and the increased concentration of wealth in the hands of a tiny minority.”[24] Between 1998 and 2010, there were between 2 and 4 million workers who took part in between 3,400 and 4,000 strikes and other labour actions.[25] There were 266 strikes and labour actions in 2006, 614 in 2007, and they reached roughly 1,900 in 2009.[26]

As strikes escalated, the demands for higher wages and more democratic union representation evolved into demands for the end of the Mubarak regime (and the neoliberal reign of Prime Minister Nazif). One strike organizer in 2007 told a radio program, “We are challenging the regime.” At strikes, workers were chanting, “We will not be ruled by the World Bank! We will not be ruled by colonialism!” Images of signs at protests circulated, reading, “Down with the Government. We want a Free Government.” One strike leader who was arrested in 2007, said upon his release: “We want a change in the structure and hierarchy of the union system in this country… The way unions in this country are organized is completely wrong, from top to bottom. It is organized to make it look like our representatives have been elected, when really they are appointed by the government.”[27]

The second Palestinian Intifada in 2000 helped spawn new social movements within Egypt. The Cairo Conference was held in 2002 in an attempt to organize disparate social groups around two main shared positions: anti-neoliberalism and anti-war. In 2004, this led to the formation of the Kefaya (“Enough”), the Egyptian Movement for Change.[28] This was aided along by a major demographic change within the country, where by 2011, roughly 52% of Egypt’s population was under the age of 25, and it was this group which disproportionately lacked employment, with roughly 95% of post-secondary educated youth being unemployed or working in fields unrelated to their education with very low pay. It was this demographic which became increasingly mobilized around non-ideological movements such as Kefaya, organizing a series of anti-Mubarak protests between 2004 and 2005, demanding democracy and accountability. The younger members of this group then established the April 6 Movement, “an organization that emerged in support of the 2008 strike by textile workers in Mohalla al-Kubra.”[29]

A number of other social groups and protests organizations emerged from 2004 onwards, including Students for Change, Youth for Change, University Professors for Change, Workers for Change, Artists for Change, and the People’s Campaign for Change, among many others. In 2005, as Kefaya organized a massive anti-Mubarak protest, an organization of Egyptian intellectuals was formed as the National Assembly for Democratic Transition. Lawyers, journalists and other professions increasingly took part in protests.[30]

The April 6 Youth Movement began to support the Mahalla workers’ strike in 2008, with founder Ahmed Maher having started a Facebook page that quickly reached over 70,000 members. As support grew, the government crack down ensued, with roughly 500 activists arrested over the following two months, including Maher (who was also tortured).[31]

Since the Mubarak government made it illegal to hold meetings of more than five people, with a heavy-handed approach to information control and news censorship, Facebook and other Internet-based social media platforms quickly became very popular among young Egyptians. Roughly one in nine people in Egypt have Internet access, and 9% of those who have access used Facebook, making it the most visited website in the country, following Google and Yahoo. The Facebook page for the April 6 movement, reported the New York Times in 2009, was the page “with the most dynamic debates” among young Egyptians, “most of whom had never been involved with politics before joining the group.” The Facebook page provided a venue for young Egyptians “to assemble virtually and communicate freely about their grievances.”[32]

The United States has been a major sponsor of the Egyptian dictatorship, giving it extensive leverage with the regime. Between 1948 and 2011, the U.S. provided Egypt with a total of $71.6 billion in bilateral foreign aid (most of which consisted of an annual aid package of $1.3 billion in military aid from 1987 to present), and since the peace treaty with Israel was signed in 1979, Egypt has been the second-largest recipient of U.S. ‘aid’ in the world (after Israel).[33]

Another large international sponsor of the Egyptian dictatorship was the International Monetary Fund (IMF), which also heaped praise upon the Tunisian dictatorship of Ben Ali prior to its overthrow. In a 2010 report on Egypt, the IMF noted that the country had been following the Fund’s advice on economic reforms, though continued to recommend “phasing out energy subsidies” and increasing privatizations. The IMF further noted that, “the relationship between Egypt and the World Bank Group has been transformed and markedly improved over the last few years as a result of the progress Egypt has made in implementing reforms.”[34]

In 2010, labour unrest continued throughout the country, with one strike organizer telling the press in May of 2010, “The government represents the marriage between authority and money – and this marriage needs to be broken up… We call for the resignation of Ahmad Nazif’s government because it works only for businessmen and ignores social justice.”[35]

Egypt was clearly on the edge of an uprising, all that was required was a ‘spark’ – which came in the form of the Tunisian uprising in December of 2010 and January of 2011. With the overthrow of the long-time dictator, Ben Ali, in Tunisia, Egyptians were motivated to mobilize against Mubarak.

Andrew Gavin Marshall is an independent researcher and writer based in Montreal, Canada. He is Project Manager of The People’s Book Project, head of the Geopolitics Division of the Hampton Institute, Research Director for Occupy.com’s Global Power Project and hosts a weekly podcast show at BoilingFrogsPost.

Notes

[1] Rabab El-Mahdi, “Labour protests in Egypt: causes and meanings,” Review of African Political Economy (Vol. 38, No. 129, September 2011), page 390.

[2] Ibid.

[3] Scott Hibbard and Azza Salama Layton, “The origins and future of Egypt’s revolt,” Journal of Islamic Law and Culture (Vol. 12, No. 3, October 2010), pages 198-199.

[4] Ibid, page 199.

[5] Rabab El-Mahdi, op. cit., page 390.

[6] Ray Bush, “Coalitions for Dispossession and Networks of Resistance? Land, Politics and Agrarian Reform in Egypt,” British Journal of Middle Eastern Studies (Vol. 38, No. 3, December 2011), page 395.

[7] Ibid.

[8] Scott Hibbard and Azza Salama Layton, “The origins and future of Egypt’s revolt,” Journal of Islamic Law and Culture (Vol. 12, No. 3, October 2010), page 200.

[9] Ibid, pages 200-201.

[10] Ibid, pages 201-202.

[11] Ibid, pages 202-203.

[12] Angela Joya, “The Egyptian revolution: crisis of neoliberalism and the potential for democratic politics,” Review of African Political Economy (Vol. 38, No. 129, September 2011), page 372.

[13] Ray Bush, op. cit., pages 396-397.

[14] Angela Joya, op. cit., page 370.

[15] Ibid.

[16] Scott Hibbard and Azza Salama Layton, op. cit., page 202.

[17] Rabab El-Mahdi, op. cit., page 395.

[18] Henry Veltmeyer, “Unrest and Change: Dispatches from the Frontline of a Class War in Egypt,” Globalizations (Vol. 8, No. 5, October 2011), page 612.

[19] Angela Joya, op. cit., pages 370-371.

[20] Rabab El-Mahdi, op. cit., page 395.

[21] Henry Veltmeyer, op. cit., page 612.

[22] Rabab El-Mahdi, op. cit., pages 397-399.

[23] Ibid, pages 387-388.

[24] Henry Veltmeyer, op. cit., page 611.

[25] Joel Beinin, “Egyptian Workers and January 25th: A Social Movement in Historical Context,” Social Research (Vol. 79, No. 2, Summer 2012), page 326.

[26] Ibrahim Awad, “Breaking Out of Authoritarianism: 18 Months of Political Transition in Egypt,” Constellations (Vol. 20, No. 2, 2013), page 278.

[27] Joel Beinin, op. cit., page 331.

[28] Angela Joya, op. cit., pages 368-369.

[29] Scott Hibbard and Azza Salama Layton, “The origins and future of Egypt’s revolt,” Journal of Islamic Law and Culture (Vol. 12, No. 3, October 2010), pages 206-207.

[30] Angela Joya, op. cit., page 369.

[31] Ellen Knickmeyer, “Fledgling Rebellion on Facebook Is Struck Down by Force in Egypt,” The New York Times, 18 May 2008:

http://www.washingtonpost.com/wp-dyn/content/story/2008/05/17/ST2008051702711.html

[32] Samantha M. Shapiro, “Revolution, Facebook-Style,” The New York Times, 22 January 2009:

http://www.nytimes.com/2009/01/25/magazine/25bloggers-t.html?pagewanted=1&_r=1

[33] Jeremy M. Sharp, “Egypt: Background and U.S. Relations,” Congressional Research Service, 27 June 2013: page 9.

[34] Patrick Bond, “Neoliberal threats to North Africa,” Review of African Political Economy (Vol. 38, No. 129, September 2011), pages 483-484.

[35] Joel Beinin, “Egyptian Workers and January 25th: A Social Movement in Historical Context,” Social Research (Vol. 79, No. 2, Summer 2012), page 339.

An Anarchistic Understanding of the Social Order: Environmental Degradation, Indigenous Resistance, and a Place for the Sciences

An Anarchistic Understanding of the Social Order: Environmental Degradation, Indigenous Resistance, and a Place for the Sciences

By: Andrew Gavin Marshall

The following was an original essay published in the Spanda Journal (Vol. 4, No. 1, 2013: Anarchy and Non-Profit: An Emerging Affair), an open-access journal which you can download for free here.

469645_10152443551580234_374786709_o

FOR ROUGHLY FIVE HUNDRED YEARS, INDIGENOUS peoples have been struggling against the dominant institutions of society, against imperialism, colonialism, exploitation, impoverishment, segregation, racism, and genocide. The struggle continues today under the present world social order and against the dominant institutions of ‘neoliberalism’ and globalization: the state, corporations, financial institutions and international organizations. Indigenous communities continue to struggle to preserve their cultural identities, languages, histories, and the continuing theft and exploitation of their land. Indigenous resistance against environmental degradation and resource extraction represents the most direct source of resistance against a global environmental crisis which threatens to lead the species to extinction. It is here that many in the scientific community have also taken up the cause of resistance against the destruction of the global environment. While Indigenous and scientific activism share similar objectives in relation to environmental issues, there is a serious lack of convergence between the two groups in terms of sharing knowledge, organization, and activism.

Indigenous groups are often on the front lines of the global environmental crisis – at the point of interaction (or extraction) – they resist against the immediate process of resource extraction and the environmental devastation it causes to their communities and society as a whole. The continued repression, exploitation and discrimination against Indigenous peoples have made the struggle – and the potential consequences of failure – significantly more problematic. This struggle has been ongoing for centuries, and as the species heads toward extinction – as it is along our current trajectory – Indigenous peoples will be on the front lines of that process. Many in the scientific community have been struggling for decades to address major environmental issues. Here, the focus is largely on the issue of climate change, and the approach has largely been to work through institutions in order to create enough pressure to reform. Yet, after decades of organizing through academic and environmental organizations, lobbying governments, corporations and international organizations, progress has been slow and often ineffectual, with major international conferences being hyped up but with little concrete results. Indigenous peoples continue to struggle against the dominant institutions while many in the scientific community continue to struggle within the dominant institutions, though their objectives remain similar.

A major problem and disparity becomes clear: Indigenous peoples – among the most repressed and exploited in the world – are left to struggle directly against the most powerful institutions in the world (states and transnational corporations), while many in the sciences – an area of knowledge which has and continues to hold enormous potential to advance the species – attempt to convince those powerful institutions to profit less at exactly the point in history when they have never profited more. Indigenous communities remain largely impoverished, and the scientific community remains largely dependent for funding upon the very institutions which are destroying the environment: states, corporations and international organizations. Major barriers to scientific inquiry and research can thus be established if the institutions feel threatened, if they choose to steer the sciences into areas exclusively designed to produce ‘profitable’ forms of knowledge and technology. As humanity enters a critical stage – perhaps the most critical we have ever faced as a species – it is important to begin to acknowledge, question, and change the institutional contradictions and constraints of our society.

It seems only logical that a convergence between Indigenous and scientific activism, organization, and the sharing of knowledge should be encouraged and facilitated. Indeed, the future of the species may depend upon it. This paper aims to encourage such a convergence by applying an anarchistic analysis of the social order as it relates to environmental degradation, specifically at the point of interaction with the environment (the source of extraction). In classifying this as an anarchistic analysis, I simply mean that it employs a highly critical perspective of hierarchically organized institutions. This paper does not intend to discuss in any detail the issue of climate change, since that issue is largely a symptom of the problem, which at its source is how the human social order interacts directly with the environment: extraction, pollution, degradation, exploitation and destruction at the point of interaction.

This analysis will seek to critically assess the actions and functions of states, corporations, international organizations, financial institutions, trade agreements and markets in how they affect the environment, primarily at the point of interaction. It is also at this point where Indigenous peoples are taking up the struggle against environmental degradation and human extinction. Through an anarchistic analysis of Indigenous repression and resistance at the point of interaction between the modern social order and the environment (focusing primarily on examples from Canada), this paper hopes to provide encouragement to those in the scientific community seeking to address environmental issues to increase their efforts in working with and for the direct benefit of Indigenous peoples. There exists a historical injustice which can and must be rectified: the most oppressed and exploited peoples over the past five hundred years of a Western-dominated world are on the front lines of struggling for the survival of the species as a whole. Modern science – which has done so much to advance Western ‘civilization’ – can and should make Indigenous issues a priority, not only for their sake, but for the species as a whole. Indeed, it is a matter of survival for the sciences themselves, for they will perish with the species. An anarchistic analysis of the social order hopes to encourage a convergence between Indigenous and scientific knowledge and activism as it relates to resolving the global environmental crisis we now face.

GLOBAL CORPORATE POWER

Corporations are among the most powerful institutions in the world. Of the top 150 economies in 2010, 58% were corporations, with companies like Wal-Mart, Royal Dutch Shell, ExxonMobil, and BP topping the charts[1]. According to Fortune’s Global 500 list published in 2012, the top ten corporations in the world were: Royal Dutch Shell, ExxonMobil, Wal-Mart, BP, Sinopec Group, China National Petroleum, State Grid, Chevron, ConocoPhillips, and Toyota Motor[2]. The Global 500 corporations posted record revenues for 2011 at USD 29.5 trillion, up 13.2% from the previous year. Eight of the top ten conglomerates were in the energy sector, with the oil industry alone generating USD 5 trillion in sales, approximately 17% of the total sales of the Global 500. The second largest sector represented in the Global 500 was commercial banks, followed by the auto industry[3].

A scientific study conducted by the Swiss Federal Institute of Technology in Zurich analyzed the ‘network of control’ wielded through 43,000 transnational corporations (TNCs), identifying “a relatively small group of companies, mainly banks, with disproportionate power over the global economy.” The researchers identified a ‘core’ of 1,318 companies which owned roughly 80% of the global revenues for the entire network of 43,000 TNCs. Above the core, the researchers identified a ‘super-entity’ of 147 tightly-knit corporations – primarily banks and financial institutions – collectively owning each other’s shares and 40% of the wealth in the total network. One researcher commented, “In effect, less than 1 per cent of the companies were able to control 40 percent of the entire network[4].”

Writing in the Financial Times, a former US Treasury Department official, Robert Altman, referred to financial markets as “a global supra-government,” explaining:

They oust entrenched regimes where normal political processes could not do so. They force austerity, banking bail-outs and other major policy changes. Their influence dwarfs multilateral institutions such as the International Monetary Fund. Indeed, leaving aside unusable nuclear weapons, they have become the most powerful force on earth[5].

The “global supra-government” of financial markets push countries around the world into imposing austerity measures and structural reforms, which have the result of benefiting the “super-entity” of global corporate power. The power and wealth of these institutions have rapidly accelerated in the past three decades of neoliberal ‘reforms’ promoting austerity, liberalization, deregulation, privatization and financialization. Neoliberal ideology was politically championed by Ronald Reagan in the United States and Margaret Thatcher in Great Britain, but was largely imposed upon the so-called ‘Third World’ (Latin America, Asia, and Africa) through major international organizations like the World Bank and the IMF. The results of this massive transfer of wealth and power to an increasingly connected and small fraction of the world’s population have been devastating for humanity and the world as a whole. This process guided by neoliberal dogma has been most often referred to as ‘globalization.’

As the 1980s debt crisis gripped the ‘Third World,’ the IMF and World Bank came to the ‘rescue’ with newly designed loan agreements called ‘Structural Adjustment Programs’ (SAPs). In return for a loan from these institutions, countries would have to adhere to a set of rigid conditions and reforms, including austerity measures (cutting public spending), the liberalization of trade, privatization, deregulation, and currency devaluation[6]. The United States controls the majority shares of both the World Bank and IMF, while the US Treasury Department and Federal Reserve work very closely with the IMF and its staff[7]. If countries did not adhere to IMF and World Bank ‘conditions,’ they would be cut off from international markets, since this process was facilitated by “unprecedented co-operation between banks from various countries under the aegis of the IMF[8].” The conditions essentially opened up the borrowing countries to economic imperialism by the IMF, World Bank, and transnational corporations and financial institutions, which were able to gain access and control over the resources and labour markets of poor countries. Thus, the 1980s has been known as the “lost decade of development,” as many ‘Third World’ countries became poorer between 1980 and 1990[9]. Joseph Stiglitz, a former chief economist at the World Bank, wrote that, “such conditions were seen as the intrusion by the new colonial power on the country’s own sovereignty[10].”

The structural adjustment programs imposed upon the Third World devastated the poor and middle classes of the borrowing countries, often resulting in mass protests against austerity[11]. In fact, between 1976 and 1992, there were 146 protests against IMF- sponsored austerity measures in 39 different countries, including demonstrations, strikes and riots. The governments, in response, would often violently repress protests[12]. The government elites were often more integrated with and allied to the powerful institutions of the global economy, and would often act as domestic enforcers for the demands of international banks and corporations. For many countries imposing structural adjustment programs around the world, authoritarian governments were common[13]. The IMF and World Bank structural adjustment programs also led to the massive growth of slums around the world, to the point where there are now over a billion people living in urban slums (approximately one out of every seven people on earth)[14].

Further, the nations of the Third World became increasingly indebted to the powerful financial institutions and states of the industrial world with the more loans they took. The wealthy elites within the Third World plunder the domestic wealth of their countries in cooperation with global elites, and send their money into Western banking institutions (as ‘capital flight’) as their domestic populations suffer in poverty. The IMF and World Bank programs helped facilitate capital flight through the deregulation and ‘liberalization’ of markets, as well as through the opening up of the economies to unhindered exploitation. Some researchers recently compared the amount of money in the form of aid and loans going into Africa compared to that coming leaving Africa in the form of capital flight, and found that “sub-Saharan Africa is a net creditor to the rest of the world by a substantial margin.” The external debt owed by 33 sub-Saharan African countries to the rest of the world in 2008 stood at USD 177 billion. Between 1970 and 2008, capital flight from those same 33 African countries amounted to USD 944 billion. Thus, “the rest of the world owes more to these African countries than they owe to the rest of the world[15].”

The neoliberal ideology of ‘profit before people’ – enforced by the dominant states, corporations, banks and international organizations – has led to a world of extreme inequality, previously established by centuries of empire and colonialism, and rapidly accelerated in the past three decades. As of 2004, one in every three human deaths was due to poverty-related causes. In the twenty years following the end of the Cold War, there were approximately 360 million preventable deaths caused by poverty-related issues. Billions of people go hungry, lack access to safe drinking water, adequate shelter, medicine, and electricity. Nearly half of humanity – approximately 3.1 billion people as of 2010 – live below the USD 2.50/day poverty line. It would take roughly USD 500 billion – approximately 1.13% of world income (or two-thirds of the US military budget) – to lift these 3.1 billion people out of extreme poverty. The top 1% own 40% of the world’s wealth, while the bottom 60% hold less than 2% of the world’s wealth. As Thomas Pogge wrote, “we are now at the point where the world is easily rich enough in aggregate to abolish all poverty,” but we are “choosing to prioritize other ends instead.” Roughly 18 million people die from poverty-related causes every year, half of whom are children under the age of five. Pogge places significant blame for these circumstances upon the “global institutional arrangements that foreseeably and avoidably increase the socioeconomic inequalities that cause poverty to persist [...] [policies which] are designed by the more powerful governments for the benefit of their most powerful industries, corporations, and citizens[16].”

In 2013, Oxfam reported that the fortunes made by the richest 100 people in the world over the course of 2012 (USD 240 billion) would have been enough to lift the world’s poorest people out of poverty four times over. An Oxfam executive, Barbara Stocking, noted that this type of extreme wealth – which saw the world’s richest 1% increase their income by 60% in the previous twenty years – is “economically inefficient, politically corrosive, socially divisive and environmentally destructive [...] We can no longer pretend that the creation of wealth for few will inevitably benefit the many – too often the reverse is true[17].” A study by the Tax Justice Network in 2012 found that the world’s superrich had hidden between USD 21 and 32 trillion in offshore tax havens, meaning that inequality was “much, much worse than official statistic show,” and that “for three decades extraordinary wealth has been cascading into the offshore accounts of a tiny number of superrich,” with the top 92,000 of the world’s superrich holding at least USD 10 trillion in offshore accounts[18].

THE ENVIRONMENTAL IMPACT OF INEQUALITY

The human social order – dominated by states, corporations, banks and international organizations – has facilitated and maintained enormous inequality and poverty around the world, allowing so few to control so much, while the many are left with little. This global social and economic crisis is exacerbated by the global environmental crisis, in which the same institutions that dominate the global social order are simultaneously devastating the global environment to the point where the future of the species hangs in the balance.

Just as the dominant institutions put ‘profit before people,’ so too do they put profit before the environment, predicating human social interaction with the environment on the ideology of ‘markets’: that what is good for corporations will ultimately be good for the environment. Thus, the pursuit of ‘economic growth’ can continue unhindered – and in fact, should be accelerated – even though it results in massive environmental degradation through the processes of resource extraction, transportation, production and consumption[19].

Trading arrangements between the powerful rich nations and the ‘periphery’ poor nations allow for the dominant institutions to exploit their economic and political influence over weaker states, taking much more than they give[20]. These trading relationships effectively allow the rich countries to offshore (or export) their environmental degradation to poor countries, treating them as exploitable resource extraction sources. As the resources of poor nations are extracted and exported to the rich nations, the countries are kept in poverty (with the exception of their elites who collude with the powerful countries and corporations), and the environmental costs associated with the high consumption societies of the industrial world are ultimately off-shored to the poor countries, at the point of interaction[21]. Thus, international trade separates the societies of consumption from the effects of extraction and production, while the poor nations are dependent upon exports and exploiting their cheap labour forces[22]. This process has been termed ecological unequal exchange[23].

Between the mid-1970s and mid-1990s, the majority of the world’s non-renewable resources were transferred from poor to rich nations, accelerating in volume over time (due to technological advancements), while decreasing in costs (to the powerful nations). Thus, between 1980 and 2002, the costs of resource extraction declined by 25% while the volume of resource extraction increased by more than 30%. Environmentally destructive processes of resource extraction in mining and energy sectors have rapidly accelerated over the past few decades, resulting in increased contamination of soils, watersheds and the atmosphere. Negative health effects for local populations accelerate, primarily affecting Indigenous, poor and/or migrant populations, who are subjected to excessive pollutants and industrial waste at nearly every part of the process of extraction, production and transportation of resources and goods[24].

In an examination of 65 countries between 1960 and 2003, researchers found that the rich countries “externalized” the environmentally destructive consequences of resource over-use to poor, periphery nations and populations, thus “assimilating” the environments of the less-developed nations into the economies of the powerful states, disempowering local populations from having a say in how their resources and environments are treated[25]. Rich societies consume more than can be sustained from their own internal resource wealth, and thus, they must “appropriate” resource wealth from abroad by ‘withdrawing’ the resources in environmentally destructive (and thus, more economically ‘efficient’) ways. Apart from ecologically destructive ‘withdrawals,’ the rich nations also facilitate ecologically destructive ‘additions,’ in the form of pollution and waste which cause environmental and health hazards for the poor societies. This is facilitated through various trading arrangements (such as the development of Export Processing Zones), consisting of minimal to no environmental regulations, cheap labour and minimal restrictions on corporate activities[26].

While Japan and Western Europe were able to reduce the amount of pollutants and ‘environmental additions’ they made within their own societies between 1976 and 1994, they accelerated their ‘additions’ in waste and pollutants to the poor countries with which they traded, “suggesting a progressive off-shoring over the period onto those peripheral countries” not only of labour exploitation, but of environmental degradation[27]. Foreign Direct Investment (FDI) by transnational corporations has been linked to extensive environmental hazards within the countries in which they are ‘investing,’ including growth in water pollution, infant mortality, pesticide use, and the use of chemicals which are often banned in the rich nations due to high toxicity levels and dangers to health and the environment, and greater levels of carbon dioxide emissions. Indeed, between 1980 and 2000, the total anthropogenic CO2 emissions from the rich countries increased by 21%, while over the same period of time in the poor countries it more than doubled. While forested areas in the rich nations increased by less than 1% between 1990 and 2005, they declined by 6% over the same period of time in poor countries, contributing to soil erosion, desertification, climate change and the destruction of local and regional ecosystems[28].

According to an analysis of 268 case studies of tropical forest change between 1970 and 2000, researchers found that deforestation had shifted from being directed by states to being directed and implemented by corporations and ‘economic’ interests across much of Latin America, Africa, and Asia. This was largely facilitated by the IMF and World Bank agreements which forced countries to reduce their public spending, and allowed for private economic interests to obtain unprecedented access to resources and markets. The rate of deforestation continued, it simply shifted from being state-led to “enterprise driven[29].”

Using a sample of some sixty nations, researchers found that IMF and World Bank Structural Adjustment Programs (SAPs) were associated with higher levels of deforestation than in countries which did not sign the SAP agreements, as they allowed rich nations and corporations to “externalize their forest loss” to poor nations. Further, “economic growth” as defined by the World Bank and IMF was related to increased levels of deforestation, leading the researchers to acknowledge that, “economic growth adversely impacts the natural environment[30].” World Bank development loans to countries (as separate from structural adjustment loans) have also been linked to increased rates of deforestation in poor nations, notably higher rates than those which exist in countries not receiving World Bank loans[31].

Military institutions and armed warfare also have significant environmental impacts, not simply by engaging in wars, but simply by the energy and resources required for the maintenance of large military structures. As one US military official stated in the early 1990s, “We are in the business of protecting the nation, not the environment[32].” While the United States is the largest consumer of energy among nations in the world, the Pentagon is “the world’s largest [institutional] consumer of energy[33].” The combination of US tanks, planes and ships consume roughly 340,000 barrels of oil per day (as of 2007)[34]. Most of the oil is consumed by the Air Force, as jet fuel accounted for roughly 71% of the entire military’s oil consumption[35].

Nations with large militaries also use their violent capabilities “to gain disproportionate access to natural resources[36].” Thus, while the US military may be the largest single purchaser and consumer of energy in the world, one of its primary functions is to secure access to and control over energy resources. In an interview with two McKinsey & Company consultants, the Pentagon’s first-ever assistant secretary of defense for operational energy and programs, Sharon E. Burke, stated bluntly that, “My role is to promote the energy security of our military operations,” including by increasing the “security of supply[37].”

In a study of natural resource extraction and armed violence, researchers found that, “armed violence is associated with the extraction of many critical and noncritical natural resources, suggesting quite strongly that the natural resource base upon which industrial societies stand is constructed in large part through the use and threatened use of armed violence.” Further, when such armed violence is used in relation to gaining access to and control over natural resources, “it is often employed in response to popular protest or rebellion against these activities.” Most of this violence is carried out by the governments of poor nations, or by mercenaries or rebels, which allows for distancing between the rich nations and corporations which profit from the plundering of resources from the violent means of gaining access to them. After all, the researcher noted, “other key drivers of natural resource exploitation, such as the IMF, World Bank, WTO, and global marketplace, cannot, on their own, guarantee core nation access to and control over vital natural resources[38].” Perhaps unsurprisingly, then, the United States – and other powerful nations – and the major arms companies within them are the largest arms dealers in the world[39].

It is clear that for scientists – and anyone else – interested in addressing major environmental issues, the source of the problem lies in the very structure and function of our dominant modern institutions, at the point of interaction. In short: through states, armed violence, banks and corporations, international organizations, trade agreements and global ‘markets,’ the environment has become a primary target of exploitation and destruction. Resources fuel the wealth and power of the very institutions that dominate the world, and to maintain that power, they engage in incredibly destructive activities with negative consequences for the environment and the human species as a whole. The global environmental crisis is intimately related to the global social and economic crises of wealth inequality and poverty, labour exploitation, and ‘economic growth.’ To address the environmental crisis in a meaningful way, this reality must first be acknowledged. This is how an anarchistic understanding of the environmental crisis facing the world and humanity can contribute to advancing how we deal with these profound issues. For the sciences, the implications are grave: their sources of funding and direction for research are dependent upon the very institutions which are destroying the environment and leading humanity to inevitable extinction (if we do not change course). Advancing an anarchistic approach to understanding issues related to Indigenous repression and resistance to environmental degradation can help provide a framework through which those in the scientific community – and elsewhere – can find new avenues for achieving similar goals: the preservation of the environment and the species.

INDIGENOUS REPRESSION AND RESISTANCE

Indigenous peoples in the Americas have been struggling against colonialism, exploitation, segregation, repression and even genocide for over 500 years. While the age of formal colonial empires has passed, the struggle has not. Today, Indigenous peoples struggle against far more powerful states than ever before existed, transnational corporations and financial institutions, international organizations, so-called “free trade” agreements and the global ‘marketplace.’ In an increasingly interconnected and globalized world, the struggle for Indigenous peoples to maintain their identity and indeed, even their existence itself, has been increasingly globalizing, but has also been driven by localized actions and movements.

Focusing upon Indigenous peoples in Canada, I hope to briefly analyze how Indigenous groups are repressed, segregated and exploited by the dominant institutions of an incredibly wealthy, developed, resource-rich and ‘democratic’ nation with a comparably ‘good’ international reputation. Further, by examining Indigenous resistance within Canada to the destruction of the natural environment, I hope to encourage scientists and other activists and segments of society who are interested in environmental protection to reach out to Indigenous communities, to share knowledge, organizing, activism, and objectives.

A LEGACY OF COLONIALISM

Historically, the Canadian government pursued a policy of ‘assimilation’ of Indigenous peoples for over a century through ‘Indian residential schools,’ in what ultimately amounted to an effective policy of “cultural genocide.” In 1920, Canada’s Deputy Minister of Indian Affairs Duncan Campbell Scott bluntly explained: “I want to get rid of the Indian problem [...] Our object is to continue until there is not a single Indian in Canada that has not been absorbed into the body politics and there is no Indian question, and no Indian Department[40].”

The segregation, repression and exploitation of Indigenous communities within Canada is not a mere historical reality, it continues to present day. Part of the institutional repression of Indigenous peoples is the prevalence of what could be described as ‘Third World’ conditions within a ‘First World’ nation. Indigenous communities within Canada lack access to safe drinking water at a much higher rate than the general population[41]. Indigenous people and communities in Canada also face much higher levels of food insecurity, poverty, unemployment, poor housing and infant mortality than the rest of the population[42]. Accounting for roughly 4% of the population of Canada (approximately 1.2 million people as of 2006), Indigenous peoples also face higher rates of substance abuse, addiction, and suicide[43].

Indigenous people – and especially women – make up a disproportionate percentage of the prison population[44]. Further, as Amnesty International noted, “Indigenous women [in Canada] are five to seven times more likely than other women to die as a result of violence[45].” The Native Women’s Association of Canada has documented roughly 600 cases of missing or murdered indigenous women in Canada, more than half of which have occurred since 2000, while Human Rights Watch reported that the Royal Canadian Mounted Police (RCMP) in northern British Columbia had “failed to properly investigate the disappearance and apparent murders of [indigenous] women and girls in their jurisdiction[46].”

RESOURCE EXTRACTION, ENVIRONMENTAL DEGRADATION, AND INDIGENOUS PEOPLES

Industries seeking to develop land and extract resources are increasingly turning to Indigenous territories to develop and seek profits on the land and environment upon which such communities are so often dependent for survival. At the point of interaction with the environment, Indigenous peoples are left to struggle with the damaging environmental and health consequences caused by state and corporate interests extracting resources and wealth from the land and environment.

The Alberta tar sands (or oil sands) is a primary example of this process. Many environmental, indigenous and human rights organizations consider the tar sands development as perhaps “the most destructive industrial project on earth.” The United Nations Environmental Programme identified the project as “one of the world’s top 100 hotspots of environmental degradation.” The dense oil in the tar sands (diluted bitumen) has to be extracted through strip mining, and requires enormous amounts of resources and energy simply to extract the reserves. It has been documented that for every one barrel of oil processed, three barrels of water are used, resulting in the creation of small lakes (called ‘tailing ponds’), where “over 480 million gallons of contaminated toxic waste water are dumped daily.” These lakes collectively “cover more than 50 square kilometres (12,000 acres) and are so extensive that they can be seen from space.” The processing of the oil sands creates 37% more greenhouse gas emissions than the extraction and processing of conventional oil[47].

While the United States consumes more oil than anywhere else on earth, Canada is the main supplier of foreign oil to the United States, exporting roughly 1.5 million barrels per day to the US (in 2005), approximately 7% of the daily consumption of oil in the US. The crude bitumen contained in the tar sands has been estimated at 1.7 trillion barrels, lying underneath an area within Alberta which is larger than the entire state of Florida and contains over 140,000 square km of boreal forest. In 2003, the United States Department of Energy officially acknowledged the reserves of crude bitumen in the Alberta tar sands, and elevated Canada’s standing in world oil markets from the 21st most oil-rich nation on earth to the 2nd, with only Saudi Arabia surpassing[48].

Alberta’s tar sands have attracted the largest oil companies on earth, including Royal Dutch Shell, ExxonMobil, BP, and Total S.A. Local indigenous communities thus not only have to struggle against the devastating environmental, health and social consequences caused by the tar sands development, but they also have to struggle against the federal and provincial governments, and the largest corporations on earth. The Athabasca River (located near the tar sands development) has been depleted and polluted to significant degrees, transforming the region “from a pristine environment rich in cultural and biological diversity to a landscape resembling a war zone marked with 200-foot-deep pits and thousands of acres of destroyed boreal forests.” Indigenous peoples have been raising concerns over this project for years[49].

Disproportionate levels of cancers and other deadly diseases have been discovered among a local Indigenous band, the Fort Chipewyan in Athabasca. These high levels of cancers and diseases are largely the result of the enormous amounts of land, air, and water pollution caused by the tar sands mining[50]. One Indigenous leader in Fort Chipewyan has referred to the tar sands development as a “slow industrial genocide[51].” As pipelines are planned to be expanded across Canada and the United States to carry tar sands oil, this will have devastating impacts for “indigenous communities not only in Canada, but across the continent[52].”

Between 2002 and 2010, the pipeline network through Alberta experienced a rate of oil spills roughly sixteen times higher than in the United States, likely the result of transporting diluted bitumen (DilBit), which has not been commonly transported through the pipelines until recent years. In spite of the greater risks associated with transporting DilBit, the US agency responsible for overseeing the country’s pipelines decided – in October of 2009 – to relax safety regulations regarding the strength of pipelines. In July of 2010, a ruptured Enbridge pipeline in Michigan spilled 800,000 gallons of DilBit, devastating the local communities in what the government referred to as the “worst oil spill in Midwestern history.” In July of 2011, an Exxon pipeline spilled 42,000 gallons of DilBit into the Yellowstone River in Montana[53].

IDLE NO MORE: THE RISE OF INDIGENOUS RESISTANCE

In 2009, the Canadian Ministry of Indian Affairs and Northern Development announced the Federal Framework for Aboriginal Economic Development which sought to “improve the participation” of Indigenous people “in the Canadian economy,” primarily by seeking “to unlock the full economic potential of Aboriginal Canadians, their communities, and their businesses[54].” An updated report on the Framework in 2012 reaffirmed the intent “to modernize the lands and resource management regimes on reserve land in order to increase and unlock the value of Aboriginal assets[55].” As John Ibbitson wrote in the Globe and Mail, “businesses that want to unlock the potential of reserves, from real estate development to forestry and mining, need the legal certainty that a property regime makes possible[56].”

In late 2012, Canadian Prime Minister Stephen Harper’s Conservative Party introduced an omnibus Budget Bill (C-45) which amended several aspects of the Indian Act (without proper consultations with Indigenous groups). Bill C-45 also moved forward to “unlock” barriers to resource extraction, environmental degradation, and corporate profits with an amendment to the Navigable Waters Act, which dramatically reduced the number of protected lakes and rivers in Canada from 40,000 to 97 lakes, and from 2.5 million to 63 rivers[57].

Following the introduction of Bill C-45 to the Canadian Parliament, a group of four Indigenous women in the province of Saskatchewan held a “teach-in” to help increase awareness about the Bill, quickly followed by a series of rallies, protests and flash mobs where Indigenous activists and supporters engaged in ‘round dances’ in shopping malls, organized through social media networks like Twitter and Facebook. This sparked what became known as the ‘Idle No More’ movement, and on December 10, 2012, a National Day of Action took place, holding multiple rallies across the country. The immediate objectives of the Idle No More movement were to have the government “repeal all legislation that violates treaties [with Indigenous peoples], including those that affect environmental regulations,” such as Bill C-45 and the previous omnibus Bill C-38. The longer-term objectives of the movement were to “educate and revitalize aboriginal peoples, empower them and regain sovereignty and independence[58].”

Pamela Palmater, a spokesperson for Idle No More and a Ryerson University professor noted that Indigenous people in Canada were opposing Bill C-45 “not just because it impacts their rights, but also because we know that it impacts the future generations of both treaty partners,” referring to both Indigenous and non-Indigenous Canadians. “The question,” she added, “really should be whether Canadians will rise to protect their children’s futures alongside First Nations[59].”

Theresa Spence, an Indigenous chief from a northern Ontario community (Attawapiskat) went on a hunger strike for 44 days to support Idle No More and raise awareness about a serious housing crisis in her community. Spence only ended her hunger strike upon being hospitalized and placed on an IV drip[60]. Her community of Attawapiskat had been experiencing a major housing crisis for a number of years, and in 2011, a state of emergency was declared in response to the fact that for over two years, many of the community’s 1,800 residents were “living in makeshift tents and shacks without heat, electricity or indoor plumbing.” James Anaya, a United Nations human rights expert expressed his “deep concern about the dire social and economic condition” of the Attawapiskat community to the Canadian government, which reflected a situation “akin to third world conditions[61].” The Conservative government of Stephen Harper (which came to power in 2006) blamed the crisis on the internal handling of funds within Attawapiskat, claiming that the government provided CAD 90 million in funding for the community since 2006. However, analysis of the funds revealed that only CAD 5.8 million in funding had gone toward housing over the course of five years. Meanwhile, estimates put the necessary funds to resolve the housing crisis alone at CAD 84 million[62]. The former Minister for Aboriginal Affairs acknowledged that the government had known about the housing crisis for years, saying that it “has been a slow-moving train wreck for a long time[63].”

In 2005, the community of Attawapiskat had signed a contract with the international mining conglomerate De Beers to develop a diamond mine 90 km near their community. The mine officially opened in 2008, projecting a 12-year contribution to the Ontario economy of CAD 6.7 billion[64]. In 2005, De Beers dumped its sewage sludge into the Attawapiskat community’s lift station, causing a sewage backup which flooded many homes and exacerbated an already-developing housing crisis, followed by another sewage backup potentially caused by De Beers in 2008[65]. Afterward, the company donated trailers to the community to serve as “short-term emergency shelters,” yet they remained in place even four years later[66].

As the Idle No More movement took off in late 2012 and early 2013, members of the Attawapiskat community undertook road blockades leading to the De Beers mine. The company sought a legal injunction against the protesters, and the blockade was ended just as a large number of police were headed to the community to “remove the barricades.” After successfully blocking the mine from properly functioning for nearly twenty days, the company announced that it was considering taking legal action against the protesters[67].

The Idle No More mission statement called “on all people to join in a revolution which honors and fulfills Indigenous sovereignty which protects the land and water [...] Colonization continues through attacks to Indigenous rights and damage to the land and water. We must repair these violations, live the spirit and intent of the treaty relationship, work towards justice in action, and protect Mother Earth.” The movement’s manifesto further declared that, “the state of Canada has become one of the wealthiest countries in the world by using the land and resources. Canadian mining, logging, oil and fishing companies are the most powerful in the world due to land and resources. Some of the poorest First Nations communities (such as Attawapiskat) have mines or other developments on their land but do not get a share of the profit[68].” As Pamela Palmater noted, Idle No More was unique, “because it is purposefully distances from political and corporate influence. There is no elected leader, no paid Executive Director, and no bureaucracy or hierarchy which determines what any person or First Nation can and can’t do [...] This movement is inclusive of all our peoples[69].”

The Athabasca Chipewyan Indigenous band which had been struggling for years against the tar sands development were further mobilized with the eruption of Idle No More onto the national scene, including by establishing a blockade on Highway 63 leading to the tar sands development[70]. As Chipewyan chief Allan Adam noted, “The way I look at it, the First Nations people are going to cripple this country if things don’t turn out [...] Industry is going to be the target.” He also added: “We know for a fact that industry was the one that lobbied government to make this regulatory reform[71].” Indeed, this was no hyperbole.

THE STATE IN SERVICE TO CORPORATIONS

Greenpeace obtained – through access to information laws – a letter sent to the Canadian government’s Environment minister and Natural Resources minister dated December of 2011, written by a group called the Energy Framework Initiative (EFI), representing the Canadian Association of Petroleum Producers, the Canadian Energy Pipeline Association, the Canadian Fuels Association, and the Canadian Gas Association. The letter sought “to address regulatory reform for major energy industries in Canada” in order to advance “both economic growth and environmental performance.” It specifically referenced six laws that it wanted amended, including the National Energy Board Act, the Canadian Environmental Assessment Act, the Fisheries Act, the Species at Risk Act, Migratory Birds Convention Act, and the Navigable Waters Protection Act. Referring to many of these laws as “outdated,” the letter criticized environmental legislation as “almost entirely focused on preventing bad things from happening rather than enabling responsible outcomes[72].”

Less than a month after receiving the letter, the Canadian Natural Resources Minister Joe Oliver lashed out at activists opposing the construction of Enbridge’s Northern Gateway pipeline shipping oil from Alberta’s tar sands to the B.C. coast for shipment to Asia, stating, “Unfortunately, there are environmental and other radical groups that would seek to block this opportunity to diversify our trade… Their goal is to stop any major project no matter what the cost to Canadian families in lost jobs and economic growth. No forestry. No mining. No oil. No gas. No more hydro-electric dams.” Oliver went on, saying that such “radical groups” were threatening “to hijack our regulatory system to achieve their radical ideological agenda,” and accused them of using funding from “foreign special interest groups[73].”

Documents from the energy industry revealed that big corporations advised the Harper government not to amend the many environmentally related acts separately, but to employ “a more strategic omnibus legislative approach,” which resulted in the two omnibus bills over 2012, Bills C-38 and C-45, which included “hundreds of pages of changes to environmental protection laws [...] weakening rules that protect water and species at risk, introducing new tools to authorize water pollution, as well as restricting public participation in environmental hearings and eliminating thousands of reviews to examine and mitigate environmental impacts of industrial projects[74].” The energy industry got virtually everything it asked for in the two omnibus bills, including – as their letter to the Harper government suggested – reforming “issues associated with Aboriginal consultation[75].”

Documents from Environment Canada showed how the minister informed a group of energy industry representatives that the development of pipelines were “top-of-mind” as the government pursued “the modernization of our regulatory system.” When the new legislation passed, the Canadian Environmental Assessment Agency announced that it has cancelled roughly 3,000 environmental assessments, including 250 reviews related to pipeline projects[76]. Other documents showed that at the same time the minister was informing energy corporations that he was serving their interests, he was to inform Indigenous leaders that any “changes to the government’s environmental assessment or project approvals regime” were “speculative at this point” and that they would “respect our duties toward Aboriginal peoples[77].”

As the Harper government became the primary lobbyist for the Alberta tar sands, documents showed how the government compiled a list of “allies” and “adversaries” in its public relations campaign, referring to energy companies, Environment Canada and the National Energy Board as “allies,” and the media, environmental and Indigenous groups as “adversaries[78].” The Canadian government even ran an “outreach program” where diplomats would attempt to secure support among American journalists for the Keystone XL pipeline project – taking oil from the Alberta tar sands to the Gulf Coast in the United States[79].

As the Canadian government revised its anti-terrorism strategy in early 2012, it listed “eco-extremists” alongside white supremacists as a threat to national security[80]. A review of Canadian security documents from the national police force (RCMP) and the Canadian intelligence agency (CSIS) revealed that the government saw environmental activism such as blockades of roads or buildings as “forms of attack” and “national security threats.” Greenpeace was identified as “potentially violent,” as it had become “the new normal now for Canada’s security agencies to watch the activities of environmental organizations,” noted one analyst[81].

IDLE NO MORE AND OIL PIPELINES

The government of Canada acknowledged in early 2013 that it expected – over the following decade – that there would be “a huge boom in Canadian natural resource projects,” potentially worth CAD 600 billion, which is foreseen to be taking place “on or near” Indigenous lands. One Indigenous chief in Manitoba warned that the Idle No More movement “can stop Prime Minister Harper’s resource development plan and his billion-dollar plan to develop resources on our ancestral territory. We have the warriors that are standing up now, that are willing to go that far[82].”

In an official meeting between the Harper government and the Assembly of First Nations in January of 2013, Indigenous ‘leaders’ presented a list of demands which included ensuring there was a school in every indigenous community, a public inquiry into the missing and murdered Indigenous women, as well as several other very ‘moderate’ reforms. For the government, the objectives were much more specific, as internal documents revealed, written in preparation for Harper’s meeting with Indigenous leaders. As one briefing memo stated, the government was working towards “removing obstacles to major economic development opportunities[83].”

For the Idle No More movement, which does not consider itself to be ‘represented’ by the Assembly of First Nations leaders, the objective is largely “to put more obstacles up,” as Martin Lukacs wrote in the Guardian. Indigenous peoples, he noted, “are the best and last defense against this fossil fuel scramble,” specifically in mobilizing opposition to “the three-fold expansion of one of the world’s most carbon-intensive projects, the Alberta tar sands[84].”

In March of 2013, an alliance of Indigenous leaders from across Canada and the United States announced that they were “preparing to fight proposed new pipelines in the courts and through unspecified direct action,” specifically referring to the Northern Gateway, Keystone XL and Kinder Morgan pipeline projects. One Indigenous leader at the formation of the alliance warned, “We’re going to stop these pipelines one way or another.” Another Indigenous leader commented: “We, as a nation, have to wake up [...] We have to wake up to the crazy decision that this government’s making to change the world in a negative way[85].”

The territories of the ten allied Indigenous groups “are either in the crude-rich tar sands or on the proposed pipeline routes.” One Indigenous leader from northern British Columbia referred to the Canadian government, stating, “They’ve been stealing from us for the last 200 years [...] now they’re going to destroy our land? We’re not going to let that happen [...] If we have to go to court, if we have to stand in front of any of their machines that are going to take the oil through, we are going to do that. We’re up against a wall here. We have nowhere else to go[86].”

Roughly one week after the Indigenous alliance was formed, an ExxonMobil pipeline carrying Alberta tar sands oil through the United States ruptured in the town of Mayflower, Arkansas, spilling thousands of barrels of oil into residential neighbourhoods and the surrounding environment. Exxon quickly moved in with roughly 600 workers to manage the cleanup and sign checks “to try to win over the townsfolk and seek to limit the fallout[87].” The United States Federal Aviation Administration (FAA) put in place a “no fly zone” over Mayflower, Arkansas, within days following the oil spill. The ‘no fly zone’ was being overseen by ExxonMobil itself, thus, as Steven Horn commented, “any media or independent observers who want to witness the tar sands spill disaster have to ask Exxon’s permission[88].”

Between March 11 and April 9 of 2013 (in a span of roughly thirty days), there were 13 reported oil spills on three separate continents, with more than a million gallons of oil and other toxic chemicals spilled in North and South America alone. The oil spills included an Enbridge pipeline leak in the Northwest Territories in Canada (March 19), a tar sands ‘tailing pond’ belonging to Suncor leaking into the Athabasca River in Alberta (March 25), a Canadian Pacific Railway train derailment spilling tar sands oil in Minnesota (March 27), the Exxon spill in Mayflower (March 29), oil-based hydraulic fluid spilling into the Grand River from a power plant in Michigan (March 31), a CN Rail train derailment in Ontario (April 3), a drilling leak in Newfoundland (April 3), the Shell pipeline leak in Texas (April 3), a condensate spill at an Exxon refinery in Louisiana (April 4), and a pump station ‘error’ in Alaska (April 9)[89]. Another spill took place in June on Kinder Morgan’s Trans Mountain pipeline in British Columbia, one of the pipeline extensions being opposed by Indigenous groups[90].

Meanwhile, Stephen Harper was in New York in May, speaking to the highly influential US think tank, the Council on Foreign Relations, where he explained that the proposed Keystone XL pipeline “absolutely needs to go ahead,” adding that it was “an enormous benefit to the US in terms of long-term energy security[91].” TransCanada, the company aiming to build the Keystone XL pipeline, along with the government of Alberta, hired a team of lobbyists with connections to the Obama administration and Secretary of State John Kerry in particular to pressure the US government to approve the pipeline[92]. In late April, the president of the American Petroleum Institute confidently declared, “When it’s all said and done, the president will approve the pipeline[93].” In late May, the CEO of TransCanada said, “I remain extremely confident that we’ll get the green light to build this pipeline[94].”

Leaders from 11 different Indigenous bands in the United States “stormed out” of a meeting in May being held with federal government officials in South Dakota in protest against the Keystone XL pipeline. The leaders criticized both the project and the Obama administration, with one leader commenting, “We find ourselves victims of another form of genocide, and it’s environmental genocide, and it’s caused by extractive industries.” Another Indigenous leader who walked out of the meeting warned, “What the State Department, what President Obama needs to hear from us, is that we are going to be taking direct action[95].” TransCanada has even been supplying US police agencies with information about environmental activists and recommendations to pursue charges of “terrorism” against them, noting that the company feared such “potential security concerns” as protests, blockades, court challenges, and even “public meetings[96].”

While Indigenous communities in Canada and elsewhere are among the most repressed and exploited within our society, they are also on the front lines of resistance against environmentally destructive practices undertaken by the most powerful institutions in the world. As such, Indigenous groups are not only standing up for environmental issues, but for the future of the species as a whole. With the rapidly accelerating ‘development’ of the tar sands, and the increasing environmental danger of huge new pipelines projects, resistance to how our modern society treats the environment is reaching new heights. Indigenous organizing – much of which is done along anarchistic ideas (such as with the Idle No More movement) – is presenting an unprecedented challenge to institutional power structures. Thus, there is an increased need for environmentalists, scientists, and others who are interested in joining forces with Indigenous groups in the struggle against environmental degradation and the potential extinction of the species. In Canada, there is an even greater impetus for scientists to join forces with Indigenous communities, for there is a state-sponsored assault upon environmental sciences that threaten to devastate the scientific community in the very near term.

THE CANADIAN GOVERNMENT’S ATTACK ON ENVIRONMENTAL SCIENCE

Since Stephen Harper’s Conservative government came to power in 2006, there has been a steady attack upon the sciences, particularly those related to environmental issues, as the government cut funding for major programs and implemented layoffs. One major facet of this attack has been the ‘muzzling’ of Canadian scientists at international conferences, discussions with the media, and the publication of research. At one conference hosted in Canada, scientists working for Environment Canada were forced to direct all media inquiries through the public relations department in an effort “to intimidate government scientists[97].” Under new government guidelines, scientists working for the Department of Fisheries and Oceans (DFO) cannot publish material until it is reviewed by the department “for any concerns/impacts to DFO policy.” The Canadian Association of University Teachers (CAUT) expressed in a letter to Stephen Harper their “deep dismay and anger at your government’s attack on the independence, integrity and academic freedom of scientific researchers[98].” Hundreds of Canadian scientists marched on Parliament Hill in July of 2012 in what they called a “funeral procession” against the government’s “systematic attack on science[99].”

One of the world’s leading science journals, Nature, published an editorial in March of 2012 calling on the Canadian government to stop muzzling and “set its scientists free[100].” Journalists requesting interviews with Canadian government scientists on issues related to the Arctic or climate change have had to go through public relations officials, provide questions in advance, adhere to “boundaries for what subjects the interview could touch upon,” and have a PR staffer “listen in on the interviews[101].”

Dozens of government agencies and programs related to environmental sciences have had their budgets slashed, scientists fired, or were discontinued altogether[102]. The Environmental Law Centre at the University of Victoria lodged a formal complaint with Canada’s Federal Information Commissioner about the muzzling of scientists, outlining multiple examples “of taxpayer-funded science being suppressed or limited to prepackaged media lines across six different government departments and agencies.” Natural Resources Canada now requires “pre-approval” from the government before any scientists give interviews on topics such as “climate change” or the “oilsands[103].”

The attack upon the sciences is part of the Harper government’s 2007 strategy, Mobilizing Science and Technology to Canada’s Advantage, which directed “a major shift away from scientific goals to economic and labour-market priorities,” aiming to focus on science and research which would be directly useful to industry and for commercial purposes. The Natural Sciences and Engineering Research Council of Canada (NSERC) has been steered by the government “toward industry-related research and away from environmental science.” The government’s minister of state for science and technology noted that the focus for research was to be on “getting those ideas out to our factory floors, if you will, making the product or process or somehow putting that into the marketplace and creating jobs[104].” Further, the National Research Council (NRC) was “to focus more on practical, commercial science and less on fundamental science” which wouldn’t be as beneficial to corporate interests. The minister of state for science and technology, Gary Goodyear, announced it as “an exciting, new journey – a re-direction that will strengthen Canada’s research and innovation ecosystem for many years to come.” The president of the NRC noted that, “We have shifted the primary focus of our work at NRC from the traditional emphasis of basic research and discovery science in favour of a more targeted approach to research and development[105].”

As Stephen Harper said, “Science powers commerce,” but apparently to Harper, that is all it should do, even though many scientists and academics disagree[106]. The implications should be obvious: just as society’s interaction with the environment is unsustainable, so too is the dependency of the sciences upon those institutions which are destroying the environment.

MOVING FORWARD

Regardless of one’s position in society – as a member of an Indigenous group, an activist group, or within the scientific community – all of human society is facing the threat of extinction, accelerated by our destruction of the environment sourced at the point of interaction (the location of extraction) between the dominant institutions of our world and the natural world itself. Roughly half the world’s population lives in extreme poverty, with billions living in hunger, with poor access to safe drinking water, medicine and shelter, monumental disparities in wealth and inequality, the production and maintenance of unprecedented weapons of death and destruction, we are witnessing an exponentially accelerating plundering of resources and destruction of the environment upon which all life on Earth depends. If there has ever been a time in human history to begin asking big questions about the nature of our society and the legitimacy of the institutions and ideologies which dominate it, this is it.

An anarchistic understanding of the institutions and ideologies which control the world order reveals a society blinded by apathy as it nears extinction. The institutions which dictate the political, economic and social direction of our world are the very same ones destroying the environment to such an extent that the fate of the species is put at extreme risk. To not only continue – but to accelerate – down this path is no longer an acceptable course of action for humanity. It is time that socially segregated populations begin reaching out and working together, to share knowledge, organizational capacity, and engage in mutual action for shared objectives. With that in mind, it would appear to be beneficial not only for those involved – but for humanity as a whole – if Indigenous peoples and segments of the scientific community pursued the objective of protecting the environment together. Acknowledging this is easy enough, the hard part is figuring out the means and methods of turning that acknowledgement into action.

This is again where anarchist principles can become useful, emphasizing the creative capacity of many to contribute new ideas and undertake new initiatives working together as free individuals in collective organizations to achieve shared objectives. This is not an easy task, but it is a necessary one. The very future of humanity may depend upon it.

For notes and sources, download the paper here.

Andrew Gavin Marshall is a 26-year old researcher and writer based in Montreal, Canada. He is Project Manager of The People’s Book Project, chair of the Geopolitics Division of The Hampton Institute, research director for Occupy.com‘s Global Power Pro-ject, and hosts a weekly podcast show with BoilingFrogsPost.

Meet the Next Country That Might Explode into Protests Against Corporate Plunder and Slave Labor Working Conditions

Meet the Next Country That Might Explode into Protests Against Corporate Plunder and Slave Labor Working Conditions

Will the wave of global unrest crash on Indonesia next?

By: Andrew Gavin Marshall

Originally published on AlterNet

indonesia

Indonesia – a Southeast Asian archipelago that is home to the largest Muslim population on Earth – is a key global hot spot for corporate plundering, worker exploitation, land grabs and environmental devastation. Simultaneously, the country is becoming a tinderbox for militant labour unrest, peasant rebellion and indigenous resistance. After 500 years of domination by imperial powers, the population of Indonesia is organizing and resisting the ‘new order’ of global corporate colonization. Much like Brazil and Turkey, Indonesia has been praised by the imperial powers as a “model democracy” and the IMF hails its progress as an “emerging economy.” The illusions of Turkish and Brazilian state-capitalist ‘democracy’ have been revealed by massive urban uprisings. The conditions are present for Indonesia to become home to its own national uprising, the only question may be: what will be the spark?

Indonesia: A “Model Democracy” and “Emerging Economy”

Indonesia has been roundly praised by the major imperial powers as a “model democracy” – assuming they have any legitimacy to judge what that may be, with former World Bank president and Pentagon official in the Bush administration, Paul Wolfowitz, having written that Indonesia was “an example for other aspiring democracies,” having shown a “remarkable” achievement in “building democratic institutions.” Then-Secretary of State Hillary Clinton praised the “great transformation” of Indonesia since the dictatorship of Suharto, stating: “If you want to know if Islam, democracy, modernity and women’s rights can coexist, go to Indonesia.”

President Obama even praised Indonesia’s “extraordinary democratic transformation” which demonstrated “that democracy and development reinforce one another.” British Prime Minister David Cameron proclaimed that Indonesia could “inspire” young Muslims around the world “to choose democracy as their future.” German Chancellor Angela Merkel said that Germans “view Indonesia as a model of peaceful and tolerant development,” and even suggested that the way in which Indonesia tackled its debt was “an example of what can be achieved and what Europe has to achieve.” Perhaps, Greece and Spain – in time – could become what Merkel views as “model democracies” along the lines of Indonesia.

Indonesia is the largest economy in Southeast Asia and one of the top 20 economies in the world – listed among the major “emerging economies” – with one of the cheapest labour forces in Asia, which the New York Times explained was “a main reason [corporations] are attracted to Indonesia.” In 2013, Indonesia was listed as the world’s 12th largest exporter of textile products, with the minimum wage averaging $80-160 per month (as determined by local governments), compared with $75 in Cambodia and $37 in Bangladesh.

In a country of 240 million people, roughly 120 million live on less than $2 per day, though the government maintains that only 12% of the population – 30 million – live in poverty (which it defines as less than 86 cents U.S. per day), while 40% of children under the age of five suffer from moderate to severe ‘stunting’ due to malnutrition.

Despite the mass poverty and increasing growth of slums, a small section of Indonesian society has witnessed a remarkable growth in wealth, with the explosion of shopping malls, luxury cars and goods, and high-rise buildings. For Indonesia, “wealth and poverty are both on the rise.” The combined wealth of the country’s 40 richest individuals equaled that of its 60 million poorest citizens. Standard Chartered Bank noted that, “despite the rhetoric about middle classes contributing to growth in Indonesia, 82 percent of the population is living on less than four dollars a day.” Further, most of the economic ‘growth’ was experienced only by the consumer elite within the country.

A Pew Research Poll released in 2013 noted that only 37% of Indonesians felt their economy was “doing well,” with the number one concern needing to be addressed was that of rising prices, ranked above economic disparity, unemployment and sovereign debt. Roughly 75% of Indonesians felt that the economic system “generally favors the wealthy,” with 60% saying inequality had increased in recent years.

A Human Rights Watch researcher noted that with the “routine” trampling of rights for religious and ethnic minorities in Indonesia, along with brutal repression of peaceful protests, the imprisoning of political prisoners, along with torture and denial of medical care for prisoners, “the country is by no means a bastion of tolerance.” A former Indonesian economic minister recently noted that “the outlook for Indonesia becoming a well-functioning democracy is fast deteriorating,” with a tiny elite controlling the country while most people “have few prospects for improving their lives.” A former Indonesian foreign minister suggested that the country was fast in need of “a second wave of democratic reforms,” as when economic conditions worsen, “we will have a reaction on the street” since there existed within the country, a “dissatisfaction at a deeper level with the current state of democracy.” Even the Wall Street Journal noted that with the country’s continuous economic growth, “underneath lies a restlessness for real change that would affect the common person.”

But let’s not let facts get in the way of further praise; the IMF certainly doesn’t.

The Rising “Restlessness” from “Underneath”

The IMF has written in glowing terms of the success of Indonesia’s “structural reforms” which have led to “healthy” balance sheets for corporations and financial institutions. Growth forecasts remained above 6%, though more work could be done, noted the IMF: ending fuel subsidies, investing in infrastructure (meeting the demands of corporations), and to continue with “reforms” to labour laws, allowing for reduced wages, less benefits and protections for workers, and thus, attracting “foreign investment.”

In April of 2013, the IMF warned that “emerging Asia” needed to be careful about asset bubbles – like those that helped plunge the U.S. economy into crisis – and recommended the countries of the region “liberalize rigid labour and product markets,” thus allowing for cheaper labour in what is already a region for some of the cheapest labour on Earth.

Being the 12th largest exporter of textile products in the world, Indonesia is home to a significant sweatshop economy, marred by pervasive exploitation of labour. One Taiwanese-owned sweatshop employs nearly 10,000 people, mostly women, who work for 50 cents per hour making shoes for Nike, where the employees were verbally and physically abused. Indonesia is home to Nike’s third largest manufacturing base, following China and Vietnam, exploiting roughly 140,000 workers.

Indonesia’s ‘labour law’ – which was passed several years earlier – provided for slightly increased wages and severance pay in the event that a company decides to ‘downsize’ its workforce. Corporations have gotten around this law by hiring labour as ‘contract workers’ and firing them without benefits (what Indonesians call “outsourcing”). While corporations have been able to find legal loopholes – or simply ignore the law altogether – they have been facing increased pressure from labour unrest in recent years, and not merely in the textiles sector.

As the economy boomed in recent years, the labour force wanted a greater share of the benefits. Strikes had been increasing with demands for higher wages by mine workers, supermarket clerks, pilots and others who have “disrupted business operations – and could potentially deter foreign dollars.” The country had 53 strikes in the first seven months of 2010 alone, and they were continuing through subsequent years.

A strike took place at a plant owned by the French retail giant Carrefour in 2011 in protests against the company’s avoidance of adhering to Indonesia’s labour laws and in demand of higher wages. The strike was organized by one of the country’s largest trade unions – Kasbi – which represents 130,000 workers and has as its slogan, “Young, brave, militant.” Increasingly, labour organizers and workers have been connecting through social media, gaining access to more information than ever before and facilitating new ways to organize.

During the strike wave of 2011, Indonesia’s investment chief complained about the labour unrest in his country in an interview with the New York Timeswhere he expressed his fears that it would “reduce profit margins and competitiveness,” adding: “My concern is this will trigger a domino effect … it may trigger pressure for a rise in wages that not all companies can afford.” In May of 2013, Basri would go on to be appointed as the country’s finance minister.

In early 2012, Nike paid a $1 million out-of-court settlement for not having paid 4,500 workers at a factory for over 600,000 hours of overtime over the course of two years. The chairman of Indonesia’s trade union Serikat Pekerja National noted, “This has the potential to send shockwaves through the Indonesian labour movement… We have only just begun.”

In October of 2012, roughly 2.8 million factory workers across the country went on a one-day strike supported by several unions in 24 cities. In the capital of Jakarta, more than 700 companies were shut down for the day, while the government deployed 11,000 police officers and 4,000 military personnel to “secure” the rallies throughout the city. The mass protests were in opposition to companies hiring labour as “contract workers” and in demand of higher wages. Rallies were held across Jakarta and the country, where trade union leaders gave what the Financial Times referred to as “fiery speeches,” while the managing director of the American Chamber of Commerce in Indonesia complained that corporations viewed the existing labour laws as “counter-productive.”

The mass protests continued into November, at which point the government announced it was considering a minimum wage increase of up to 50%, though corporations were warning they would move their factories elsewhere. Following continued agitation over the course of the month, which saw demonstrators entering factories, urging workers to join them and shutting down production, the new governor of Jakarta approved a 44% increase in the province’s minimum wage. Tens of thousands of workers continued to protest, while business leaders complained that, “the minimum wage should be lower.” As the protests threatened the President’s major infrastructure development plans, one large corporate group warned: “The frequent protests are obstructive… They are getting to be too much and must be stopped.”

As the Asian Development Bank (ADB) warned earlier in 2012, while many governments in Asia had been experiencing rapid economic growth, rising inequality had become a major problem that could lead to social unrest and create “pressure to take on populist policies that are economically not very wise.” It advised Asian countries “to do something about it.”

In December, President Susilo Bambang Yudhoyono (commonly known as SBY) declared an end to the “era of cheap labour,” noting that wages were set to increase in a few provinces, though added that the government could not tolerate “disturbances in the production process.” A government economic minister stated in a speech that, “We should also take sides with businesses. Companies unable to comply with the minimum wage increases should immediately file a report with the government to demand a wage freeze. We will definitely facilitate them.” The threat of unrest and resistance had prompted several Asian countries – including Indonesia, Thailand, Vietnam, Malaysia and China – to begin increasing their minimum wages by the end of the year.

As 2013 arrived and the wage increases were set to take effect, companies were finding their way around the new laws. Several Nike plants hired police and military officials to intimidate workers into signing away their rights to higher wages. Even before the New Year, roughly a thousand companies were seeking exemptions from the government in paying the higher wages. By mid-January, 941 companies had sought exemptions, by which time the government had granted 47. Thousands of workers took to the streets in protest, often met with police brutality or violence from “organized thugs.”

By early February, the government announced that of the total of 941 companies wanting exemptions, “we will grant about 80 percent of them.” Instead, 500 companies were given a “delay” in paying higher wages, with more expected. Labour groups were increasingly threatening action and agitation in response. Tens of thousands of workers continued to take to the streets in protest, demanding companies adhere to the law, that the government enforce it, and requesting a health insurance and pension system. Business groups were threatening to layoff up to a million workers and close 1,300 factories if they were forced to follow the law. One business group complained that companies were “facing tough times.”

On May 1 – the international labour day known as ‘May Day’ – tens of thousands of workers in Jakarta went on a one-day strike and march, bringing the city to a “standstill.” Roughly 50,000 people protested outside the Presidential Palace, not only demanding better wages and conditions, but also opposing the government’s new plan to raise fuel prices (by cutting subsidies). The Indonesia press reported that roughly 135,000 workers joined the May Day marches, as business groups complained such protests were a threat to “economic growth.”

Like any good state-capitalist ‘democracy,’ Indonesia went on to ignore the will of the people and bow to the will of the IMF. Following the advice of the IMF and World Bank, the government of Indonesia passed a law in mid-June to reduce fuel subsidies and increase the cost of fuel by 44% over the coming weeks. Thousands of protesters took to the streets over several days, met with tens of thousands of police and security personnel. Students and other groups joined demonstrations across the country, noting that increased costs of fuel raise the prices of other goods and services, such as food, clothing and public transportation. The cut to subsidies was designed to “ease investor concerns” about Indonesia’s finances. During the protests, the police used excessive force – as well as hiring “local thugs” – to attack protesters, and arrested 229 students in 62 cities, with roughly 118 students injured during protests, often by being fired upon with rubber bullets.

Can it really be said that Indonesia is a “model democracy” when so much of its economic “growth” is built on the backs of the mass exploitation of workers, and for the benefit of undemocratic global corporations? Indonesia is a model, perhaps, but not of democracy: it is a model for the global corporate plutocracy.

Though it has been fifteen years since the end of dictatorship, Indonesia’s transition to democracy has barely begun. The democratic aspirations of Indonesians are not seen in the luxury cars, shopping malls or high-rises that span the cityscapes – as the idolatries of economic ‘growth’ – but rather, it is seen in the workers who emerge from the factory sweatshops and take to the streets en masse, demanding the promises of democracy and economic growth be realized at long last.

Extractive Industries and Exploited Communities

Suharto’s ‘New Order’ witnessed the carving up of much of Indonesia’s wealth for American, British, French, German, Japanese and other corporations from the powerful countries of the world. The neoliberal era – from the 1980s onward – witnessed an exponential increase in corporate colonization, a process that accelerated with Indonesia’s transition from dictatorship to ‘democracy.’

In the early 1970s, the American oil company Mobil Oil discovered one of the world’s largest natural gas fields at Arun, located in Aceh province. For three decades, the Indonesian military waged a battle against the Free Aceh Movement (GAM), which sought autonomy from the country, leaving 10-30,000 people killed. When Mobil merged with Exxon in 1999, it retained control of the Arun project, and the military continued to attack local villages with the direct support of ExxonMobil. A lawsuit against Exxon alleges that the company “supervised, controlled and directed” military personnel who committed major human rights abuses between 1999 and 2001.

The region of West Papua was not part of Indonesia, but was a separate Dutch colony struggling for independence in the early 1960s. The U.S. and U.N. negotiated an agreement in 1962 where West Papua would be under the “interim control” of Indonesia for six years, at which point the country would vote for independence or to be part of Indonesia. When Suharto took full power in 1967, he negotiated an agreement with Freeport to grant a mining concession in the region. When the election in 1969 saw overwhelming support for independence, Suharto declared the area “a military operation zone” and sent in the military to crush the people’s local movement. Repression was rampant for decades, with up to 100,000 West Papuans having been murdered since 1969 in what some have referred to as a “slow-motion genocide.” Despite the region’s immense natural wealth, it remains as Indonesia’s poorest province. The Freeport mine itself has created “irreversible ecological devastation” to the region, with hundreds of thousands of tons of waste dumped into waterways and valleys daily.

The U.S.-based Freeport mine in West Papua – the largest copper and gold reserves in the world – experienced a three-month strike in 2011, where workers were demanding higher wages. Workers were paid as low as $1.50 per hour, while the mine made the company $5 billion in 2010 alone. Eventually, after a great deal of violence and injuries, including one death, the workers agreed to a 37% wage increase (far from their demands for a five-fold increase), but one union official noted, “This is not the end of our struggle.” Freeport had been paying millions of dollars directly to the police which guard its facilities, who had – on occasion – opened fire on the workers as they were protesting against the mine. In the ten years between 2001 and 2011, Freeport had given $79.1 million to Indonesian police and military forces.

As Amnesty International has noted, the police and security forces in Indonesia were often implicated in “torture, excessive use of force and unlawful killings.” Freeport’s chairman in 2005 explained: “There is no alternative to our reliance on the Indonesian military and police… The need for this security… as well as the decisions regarding our relationships with the Indonesian government and its security institutions, are ordinary business activities.”

Tin mining on the Indonesian island of Bangka has been popular among imperialists since the Dutch colonized the country in the early 19th century. Combined with the neighbouring island, Belitung, tin mining on these islands accounts for 90% of Indonesia’s tin, with the country being the second-largest exporter of tin in the world, used largely for consumer electronics. Indonesia supplies companies such as Samsung, Foxconn, Apple, Sony and LG with tin from these islands. The miners get paid low wages and workplace injuries (and deaths) have been on the rise in recent years. Further, the “lucrative but destructive trade… has scarred the island’s landscape, bulldozed its farms and forests, [and] killed off its fish stocks and coral reefs.” This destruction has often resulted in protests, some numbering over tens of thousands of locals.

In November of 2012, the U.S. Undersecretary of Commerce for International Trade Francisco Sanchez, stated that the United States hoped to “double its trade with Indonesia over the next five years,” as U.S. corporations were getting “excited about the opportunities” in the country for ‘growth.’ Sanchez traveled to Indonesia to encourage more trade between the countries, and he was accompanied by a delegation of corporate leaders from Cisco Systems, General Electric, and Honeywell International, among others.

Among the “opportunities” for growth – inspiring the ‘excitement’ of multinational corporate plunderers – is the profit that can be extracted from partaking in major land grabs and the destruction of the environment, with the added bonus of displacing thousands of peasant and indigenous communities in the process.

Land Grabs Lay Waste to Indonesia

Massive land grabs have been accelerating around the world since 2009, driving Indigenous peoples and farming communities off the land as foreign investors lay waste to the environment and create cash crops for export to rich countries. Oxfam noted in 2011 that the global land grabs were “already leading to conflict, hunger and human rights abuses,” since the ‘investment’ deals ignore the rights of those who live on the land, “leaving them homeless and without land to grow enough food to eat and make a living.” Land grabbing has been encouraged by the World Bank and IMF, most aggressively in Africa, but have spread across the world, from Central America to Indonesia.

In April of 2013, a Canadian mining company – East Asia Minerals Corporation – announced that it was working with the Indonesian government to “re-zone” nearly 2 million hectares of protected forest in Aceh for “industrial activities,” including mining, logging, and palm oil plantations. The company announced in a press release that they were working with the government to reclassify zones from “protected forest” to “production forest.”

Environmental groups warned that the reclassification could put biodiversity at risk, including endangered rhinos, elephants, orangutans, and tigers. Scientists from the Asia chapter of the Association for Tropical Biology and Conservation released a declaration stating: “Aceh forests are essential for food security, regulating water flows in both the monsoon and drought seasons to irrigate rice fields and other cash crops… Forest disruption in Aceh’s upland areas will increase the risk of destructive flooding for people living downstream in the coastal lowlands.” Despite opposition from environmental groups, scientists, human rights groups and local communities, the “model democracy” government said it hoped to approve the plan “as soon as possible,” which the mining company said was “positive news.”

This “positive news” has the effect of not only destroying what’s left of the third largest rainforest on Earth – and causing irreversible harm to its biodiversity – but it is also displacing the Indigenous and small farmer communities that live off the land and forests, most of whom are not compensated and forced to either migrate to urban slums or work for minimal wages at the companies that stole their land. Many communities resist, but are met with the “heavy-handed security and paramilitary forces.” In the previous ten years, more than 10 million hectares of land was “given away and converted to plantations,” destroying thousands of communities and laying waste to the environment in the process.

Over 600 conflicts over land in Indonesia were reported in 2011, including 22 deaths and hundreds of injuries. A national human rights commission in Indonesia reported over 5,000 human rights violations in 2012, largely linked to companies involved in deforestation. The founder of the Indonesian Peasant Union – with a membership of 700,000 – noted that the rapid expansion of palm oil plantations “has spawned  a new poverty and is triggering a crisis of landlessness and hunger,” marred by forced evictions, violence, torture and even death.

A director of Friends of the Earth in Indonesia noted: “Who controls the land in Indonesia controls the politics. Corruption is massive around natural resources. We are seeing a new corporate colonialism. In the Suharto era you were sent to prison for talking about the government. Now you can be sent there for talking about corporations.” The police presence around plantations has been increasing, as has violent repression as the government “is trying to clamp down on mass protests.”

In the span of thirty years, global agribusiness, pulp and paper companies have turned the islands of Sumatra and Borneo – the third and sixth largest islands in the world – into near wastelands, threatening the incredible biodiversity – including endangered tigers, rhinos and elephants – to develop biofuels, vegetable oil and toilet paper. Scientists and environmentalists recently warned that “one of the 21st century’s greatest ecological disasters is rapidly unfolding.” In a matter of years, more than half of the third largest rainforest on Earth has been destroyed, and 70% of what remains is marked for “transition” into plantations. Nearly one million hectares of rainforest are destroyed every year in Indonesia, with scientists suggesting the endangered wildlife on the region will be extinct within a couple decades.

One Greenpeace official in Indonesia explained: “This is the fastest, most comprehensive transformation of an entire landscape that has ever taken place anywhere in the world including the Amazon. If it continues at this rate all that will be left in 20 years is a few fragmented areas of natural forest surrounded by huge manmade plantations. There will be increased floods, fires and droughts but no animals.” A director of Indonesia’s largest environmental group, Walhi, noted, “The legacy of deforestation has been conflict, increased poverty, migration to the cities and erosion of habitat for animals. As the forests come down, social conflicts are exploding everywhere.” Coal, copper, and gold mining companies are moving into Sumatra and Kalimantan, causing widespread deforestation and violent conflicts with local communities. The rare of deforestation is also increasing rapidly in the poorest province of West Papua.

In May of 2013, the United Nations Development Program (UNDP) reported that Indonesia – with the third largest tropical forest coverage in the world – was “not doing enough to protect its forests.” While Indonesia passed a moratorium on deforestation in May of 2013, a number of loopholes make it almost meaningless.

Due to its rapid rate of deforestation and the draining of peatlands, Indonesia is one of the world’s largest emitters of greenhouse gasses, ahead of Saudi Arabia, Australia, Brazil and France. The large paper company – APRIL (Asia Pacific Resources International Holdings) – has come into conflict with multiple villages in Sumatra as it undertakes a project to destroy 450,000 hectares of rainforest, an area which holds roughly 1.5 billion tons of carbon. A local village leader noted: “We would die for this [forest] if necessary. This is a matter of life and death. The forest is our life. We depend on it when we want to build our houses or boats. We protect it. The permits were handed out illegally, but now we have no option but to work for the companies or hire ourselves out for pitiful wages.”

The devastation to rainforests has not merely been confined to Indonesia, but has spread at an alarming rate across much of Southeast Asia, including Vietnam, Thailand, Laos, Cambodia and Burma, largely being driven by export-led growth, monoculture plantations, and the construction of dams and other large-scale infrastructure projects. The increasing rates of deforestation are exacerbated by the global explosion in land grabs, with the World Bank and other financial institutions like Deutsche Bank funding land grabs across Southeast Asia in which Indigenous people “are bearing the brunt of the seizures.”

In late June, fires started on or near major palm oil plantations owned by large companies became so large that the pollution spread across Malaysia and Singapore, causing a “hazardous” pollution warning in Singapore in the “worst haze” the country ever faced. Soon after, the Indonesian government announced it was investigating eight companies that might have started the fires on Sumatra, though the companies immediately blamed small landholders. An official from the Rainforest Action Network noted, “This recent smog is just the most visible part of the serious deforestation and human rights crisis sweeping Indonesia… Widespread, illegal burning to clear rainforests and peatlands for palm oil and pulp and paper plantation expansion is unfortunately a well-established yearly ritual in Sumatra.”

Farmers, workers, Indigenous people, women, youth, students and NGOs have been forming groups in which they pledged “resistance” in an “alliance against land grabbing” by the government and international corporations. Police have been using excessive force against protesters and Indigenous communities, and several peaceful activists have been imprisoned for opposing land grabs, deforestation and the construction of plantations.

The Indonesian People’s Alliance (IPA) formed in 2013 as an alliance of dozens of civil society groups, seeking to unite forces across Indonesia and internationally to oppose trade “liberalization” and respect national sovereignty. An IPA coordinator declared: “We have been told to preserve our forests, but large industry continues to wreck our environment and marginalize our own people. We cannot continue washing their dirty laundry.”

In June, a “militant peasant organization” – the Alliance of Agrarian Reform Movement (AGRA) – protested in the thousands against land grabbing in Indonesia, stating that the land “needs to be distributed back to the peasantry through genuine agrarian reform.” An official from the Asian Peasant Coalition (APC) – a regional Asian alliance of peasant organizations – noted that resistance was growing not only within Indonesia, but across much of Asia, where peasants were working to launch an “anti land grabbing campaign.”

Is an Indonesian Revolution in the Making?

The circumstances certainly exist – with 120 million people living on less than $2 per day, mass exploitation of workers, labour unrest, violent state repression, land grabs and corporate plundering, peasant and indigenous resistance, environmental devastation, and political corruption – for Indonesia to potentially witness a mass uprising. Workers are organizing across the cities against labour exploitation, while peasants and indigenous communities are organizing across the countryside against land grabs and environmental degradation, and increasingly, they are organizing and working together.

While the leaders of the imperial powers and institutions of the world praise Indonesia as an “emerging economy” and “model democracy,” the population of Indonesia is rising up against the corrupt, plutocratic elites, violent repression, environmental devastation, widespread exploitation and plundering that comes with those buzzwords. In short, the people of Indonesia are struggling to turn their country into a real model for democracy, and for the economy to emerge in respect of that ideal, not against it.

The demolition of a park in Istanbul sparked the urban uprising in Turkey, and the plan to raise bus fare sparked the urban uprising in Brazil. So perhaps the question is not ifIndonesia will experience similar circumstances, but rather: when, and what will be the spark?

Only time will tell, and no doubt, the Indonesians will let us know when it has happened.

Andrew Gavin Marshall is an independent researcher and writer based in Montreal, Canada. He is Project Manager of The People’s Book Project, head of the Geopolitics Division of the Hampton Institute, the research director of Occupy.com’s Global Power Project, and has a weekly podcast with BoilingFrogsPost.

Turkey’s Urban Uprising: The Struggle for Democracy Against Inequality, Oligarchy, Oppression and Tyranny

Turkey’s Urban Uprising: The Struggle for Democracy Against Inequality, Oligarchy, Oppression and Tyranny

By: Andrew Gavin Marshall

2013-06-03t212806z_1965546367_gm1e9640e7001_rtrmadp_3_turkey-protests

It began innocently enough, it seemed, when a plan to turn Istanbul’s Gezi Park – located at Taksim Square – into a shopping mall spurred a small group of environmental activists to occupy the park in protest in late May of 2013. Within a week, a wave of urban uprisings had spread across the country, involving hundreds of thousands of protesters, in dozens of cities, met with massive state repression and violence, resulting in a few deaths and thousands of injuries and arrests. The world is now watching Turkey – the connecting landmass between Europe and Asia – once home to the Ottoman Empire, and now home to a profound lesson for the world’s people in a struggle for democracy against inequality, oligarchy, oppression and tyranny.

The Spark in the Park

Small protests began on May 26 attempting to prevent bulldozers from destroying Gezi park in Istanbul after plans were announced to turn the small park – one of Istanbul’s lone green areas – into a shopping center. As Bloomberg explained:

Gezi Park itself is small. Imagine if Manhattan had no Central Park, and authorities decided to cut down the few trees in Union Square to build a mall on it. New Yorkers might have something to say. They might even protest and try to stop construction. And they would probably be upset if President Barack Obama told them that what they thought was irrelevant and sent in riot police to clear them.

Turkish Prime Minister Recep Tayyip Erdogan, head of the ruling Justice and Development Party (AKP), has led the country since he was elected in 2003, and is himself a former mayor of Istanbul. As the occupation and protests about the planned destruction of the park continued, Erdogan expressed his sentiment toward the actions and ideas of the protesters, saying on May 29 that, “Whatever you do, we’ve made our decision and we will implement it.”

That day, protesters at Taksim Gezi Park set up tents and engaged in a sit-in, even getting support from opposition politicians in the Turkish government, braving the advances of riot police and tear gas. On top of the plans to build a shopping center, the government was proposing plans to rebuild an old Ottoman barracks on the land. As protesters entered their third night of occupying the park on May 30, riot police were sent in with tear gas to disperse the crowds, removing tents and sleeping bags. The number of people in the park had swelled to thousands.

The courage of the occupiers inspired more to come down to support them, as one Turkish citizen stated, “I saw it on TV last night, saw that there were people, young people taking ownership of the environment. I wanted to support them, because I think not supporting them is inhumane.” A 21-year old architecture student commented on the government response to the protests, “Gas, gas, gas, it is the only way they deal with problems.” Demonstrators in the park began chanting, “this is only the beginning, our struggle will continue,” and Michelle Demishevich, an activist member of Turkey’s Green Party commented: “This is an uprising, a protest against the increasing bans,” referring to the recent upsurge of restrictions imposed by the government, “Perhaps just like we saw the Arab Spring, this will be the Turkish Spring.”

A week prior to the protests, the Turkish parliament rushed through legislation that would place restrictions on alcohol sale and consumption in the country, worrying many retailers and small business owners, among many others. As one resident of Istanbul’s busy Beyoglu district (largely known for its night life) commented, “If Turkey really is a secular state, then the government should not have the right to tell me when and where to drink alcohol… As long as I don’t harm others, drinking is a matter of my own personal freedom.”

Haydar Tas, the owner of a bar in the district commented: “The AKP government wants to control what Beyoglu looks like, and who can be here. In the future, there will be no room for alternative places like ours. All leftist opposition groups, associations and cultural spaces will be rooted out, and the only place to get a drink will be expensive luxury hotels and restaurants. It will be the end of Beyoglu as we know it.” His bar is not merely a place to drink, but also serves an interesting social function, with postings and flyers supporting LBGT rights and environmental issues scattered on tables next to a stack of feminist magazines. Tas stated, “Places like ours do not fit in the AKP’s vision of Istanbul… And restrictions on alcohol consumption will make things harder for us.”

On May 30, as police dispersed protesters at the park with tear gas and water cannons, they even began setting fire to the tents put in place to facilitate the popular occupation. Construction workers immediately moved in to begin work, tearing down trees – some of which were torn down a few days prior, but re-planted by the protesters. One protester even stood in front of a bulldozer to prevent its advancement into the park.

On Friday 31 May, the protests reached a new level, with thousands of people coming out into the streets as Gezi Park sparked a wider general opposition to the government. Thousands of people protested in Istanbul’s main Taksim Square, where there was “an assortment of tear gas canisters everywhere.” As police moved in and began arresting dozens of people, an Al-Jazeera reported stated that, “the protesters are saying that this is not about trees anymore.” As protests continued throughout the day, several people were hospitalized with head injuries, over 100 more were subjected to other injuries, some even lying unconscious on the ground.

In the Turkish capital of Ankara, solidarity protests erupted with over 5,000 people gathering in a park only to be met with riot police and tear gas. Many of the protesters chanted, “Everywhere is resistance, Everywhere is Taksim,” referring to Taksim Square in Istanbul as the main center of protest. One reporter noted that in Istanbul, “We saw a lot of tourists running to different directions. People are trying to take refuge at coffee shops and the homes around the area. Police have been firing tear gas in different directions,” also adding that several protesters were throwing rocks back at the police, though, “the predominant complaint here is that police are firing teargas indiscriminately.”

At Taksim, police used tear gas and chemical spray to disperse the thousands of protesters. What was just days prior an environmental protest had “become a lightning conductor for all the grievances accumulated against the government.” Protesters brought home-made gas masks and called for solidarity protests across the country, while police surrounded the park and enclosed it “under clouds of gas.” The ruling AKP party with Islamist roots represents a “conservative Muslim bourgeoisie” which rose to prominence since the continued neoliberal economic reforms of the 1980s onwards. After having spent more than a decade in power, the AKP has accelerated neoliberal reforms and privatizations which have “led to accelerated inequality, accompanied by repression.”

turkey-protest-25-630x420

One protester who attended the 31 May demonstrations in Istanbul commented, “I’ve been in the protests since yesterday afternoon, it has been a long couple of days for us. Now we’re protesting not because of some trees, but because we’re sick of this oppression and this police brutality against people.” Critics began to compare the Taksim Square protests to those that took place in Egypt’s Tahrir Square in 2011 leading to the fall of long-time dictator Hosni Mubarak.

A former Turkish diplomat who is now with the American think tank, the Carnegie Endowment for International Peace stated, “The movement in Tahrir targeted removal of the regime, whereas the reaction in Turkey is against the government’s ruling method. The similarity is the sense of self-empowerment. Until today, ruling as it wished didn’t have any consequences for the government because it kept thinking it can override the opposition, but these protests might be a turning point.” Thousands continued to call for Erdogan to resign in what the Wall Street Journal called the “fiercest antigovernment protests for years.”

Koray Caliskan, a political scientist at Bosphorus University stated, “We do not have a government, we have Tayyip Erdogan… Even AK Party supporters are saying they have lost their mind, they are not listening to us,” and added: “This is the beginning of a summer of discontent.”

A local court in Istanbul suspended the project to uproot the trees of Taksim’s Gezi Park, but as images and word reached wider Turkish society regarding the use of excessive police force, thousands more poured into the streets to protest the increasingly authoritarian nature of the government. The protests spread to over a dozen cities across the country. The U.S. State Department issued a statement declaring: “We believe that Turkey’s long-term stability, security and prosperity is best guaranteed by upholding the fundamental freedoms of expression, assembly and association, which is what it seems these individuals were doing.”

Within Turkey, there was very little television media coverage of the protests, reflecting the “self censorship” exercised by the media, with journalists also being targeted by riot police at the protests. The head of Turkey’s lawyers’ association, Metin Feyzioglu, stated: “The people are demonstrating against the government’s intolerance toward demonstrations… The government must display understanding and immediately stop the violence against the demonstrators.”

--2

As many Turkish journalists complained that they were being pressured to censor the news, one local journalist stated, “Gezi Park is the new Tahrir of the region.” Another journalist tweeted, “Occupy Gezi is the explosion of anger against the hubris of one man whose ambitions for power are unmeasured.” Adding to the anti-government anger were plans announced in the same week to build a new $3 billion bridge over the Bosphorus named after the 15th century Ottoman Sultan Selim. Erdogan stated, “There might be some petty unpleasantness but our security forces act proportionately.”

36

An architecture historian participating in the protests told the media, “The real problem is not Taksim, and not the park, but the lack of any form of democratic decision-making process and the utter lack of consensus. We now have a PM who does whatever he wants.” Sparking further anger on Friday, one politician from the ruling AK Party tweeted, “It looks like some people needed gas… If you go away, you will have a nice day. One has to obey the system.”

Amnesty International issued a press release which demanded that the “Turkish authorities must order police to stop using excessive force against peaceful protesters in Istanbul and immediately investigate alleged abuses.” Observers from Amnesty International who were at the protests were even gassed and hit with truncheons, prompting an Amnesty director to state: “The use of violence by police on this scale appears designed to deny the right to peaceful protest altogether and to discourage others from taking part… The use of tear gas against peaceful protestors and in confined spaces where it may constitute a serious danger to health is unacceptable, breaches international human rights standards and must be stopped immediately.”

Turkey: The World’s Worst Jailer of Journalists

In December of 2012, the Committee to Protect Journalists (CPJ) released a report which accused Turkey of being “the world’s worst jailer” of journalists, with 49 behind bars for writing or publishing pieces the government dislikes. Turkey was ahead of both Iran and China, with worldwide imprisonment of journalists reaching a record high in 2012, “driven in part by the widespread use of charges of terrorism and other anti-state offenses against critical reporters and editors,” tallied at 232, an increase of 53 from 2011. An Istanbul-based editor commented that, “the government does not differentiate between these two major things: freedom of expression and terrorism.”

A special CPJ report on Turkey noted: “Authorities have imprisoned journalists on a mass scale on terrorism or anti-state charges, launched thousands of other criminal prosecutions on charges such as denigrating Turkishness or influencing court proceedings, and used pressure tactics to sow self-censorship.” As the Guardian commented in 2012, “modern, secular, western-oriented Turkey, with its democratically elected government, has locked away more members of the press than China and Iran combined,” with nearly 100 journalists behind bars, according to numbers from the Organisation for Security and Co-operation in Europe (OSCE). And it wasn’t just the press which was a major target: “students, academics, artists and opposition MPs have all recently been targeted for daring to speak out against the government of prime minister Recep Tayyip Erdogan and his mildly Islamist Justice and Development Party.” An Al-Jazeera journalist visiting Turkey was harassed and detained by police, who went through his possessions and, while reading a news transcript, voiced their objections to describing Turkey as having an “increasingly authoritarian government.” As the journalist later wrote: “Who says that Turks don’t do irony?”

Press freedom continued to decline into 2013, and despite rhetoric from the government years earlier to allow for a more “open” society, Turkey’s respect for freedom of the press and freedom of expression has declined under the rule of Erdogan. Internet freedom under Erdogan has also “largely disappeared,” with the government passing legislation to facilitate “mandatory filtering of content.”

In an interview with the German publication Deutsche Welle in early May 2013, Turkish journalist Ragip Duran commented on the decline of press freedom in his country: “In the past, our colleagues were killed, newspaper offices were bombed out, the military used repression, there was censorship. Today, journalists are no longer killed. But while in the past we had to go to our colleagues’ funerals, we now have to visit them in prison or attend trials in court. There is a lot more censorship, self-censorship and pressure on media outlets and on journalists in comparison to 20 or 30 years ago.”

Students, Scholars and Dissidents

Scholars and academics have also come under extensive repression. As one journalist noted: “the number of people charged, mostly under anti-terrorism legislation, for some ‘crime’ that has a political angle, be they journalists, elected deputies, protesting students, human rights activists or environmentalists — with many languishing in prison — almost matches the number of people in a similar situation under military rule in Turkey in the past.” One Amnesty International researcher referred to the number of intellectuals imprisoned in Turkey as “staggering.

In December of 2010, hundreds of students protested Prime Minister Erdogan as he met in Ankara with officials at the Middle East Technical University. Turkish police used batons and tear gas to disperse the student protesters, arresting roughly 50 students at the demonstration. As students then protested against the excessive use of force by police, the police responded by pepper spraying them. One female student who threw an egg at a State Minister during a protest in Ankara was facing up to two years and four months in prison as “an attack on a public official’s honor, pride and prestige.” Among her immense crimes was that she apparently ruined the left shoulder of the minister’s jacket.

In 2010, when three students attended a public meeting help by Prime Minister Erdogan, they unveiled a banner reading, “We want free education, we will get it.” Two of those students were then sentenced to two years and eight months in prison for “membership of a terrorist organization” while the third was sentenced to two years and two months in prison for “spreading terrorist propaganda.”

Source: DHA

Source: DHA

In 2013, an internationally renowned Turkish pianist was sentenced to ten months in prison for a Tweet which the government considered a violation of the law against “publicly insulting religious values that are adopted by a part of the nation.”

In August of 2012, the Turkish Ministry of Justice revealed that there were 2,824 students who had been arrested since the beginning of the year, with over 1,700 of them charged with a crime, and over 600 of which were charged with “being a member of an armed terrorist organization.” A month earlier, the Solidarity with Arrested Students Platform reported that there were 771 students in prison across the country. As one university academic commented: “None of the students have exerted violence against anyone. Most of them are not members of any illegal organization, although they are charged with making propaganda for them. The issues they are charged with are asking for free education or education in Kurdish. According to a decision by the Supreme Court in 2008, one can be charged with making illegal propaganda for participating a protest held by an organization.”

Politically active students had been subjected to dramatically increased state repression under Erdogan. The Turkish Minister of Education reported that in 2010 and 2011, “a total of 7,043 college students have been subjected to disciplinary investigations at their colleges. 4,602 of them have received suspensions while 55 have been expelled.” A group of university faculty even set up a white board outside a prison in Northwestern Turkey as a symbolic lesson to the students held captive inside, with one participating professor beginning the lecture by saying, “We came here for our students under arrest. This is not their place, they should be at their classrooms.” As students were increasingly detained under draconian anti-terror laws put in place by the Erdogan government, students and other members of society held solidarity protests with the imprisoned youth.

As Erdogan was advancing his program for the privatization of university education, over a thousand students protested in the streets in late December of 2012, met with over 3,000 police officers using tear gas, water cannons, and rubber bullets.

In recent years, Turkey has imprisoned thousands of political prisoners for associating with the pro-Kurdish Peace and Democratic Party (BDP), which the Turkish government considers to be a terrorist organization because it advocates for the rights of Kurdish citizens. Among the thousands arrested under anti-terrorism measures for associating with the BDP were writers, academics, parliamentarians, mayors, and students. Some academics were arrested simply for delivering speeches to the BDP, prompting Amnesty International to condemn the government.

In January of 2013, the Turkish government arrested 15 human rights lawyers “known for defending individuals’ right to freedom of speech and victims of police violence.” Amnesty International’s researcher on Turkey, Andrew Gardner, noted: “The detention of prominent human rights lawyers and the apparent illegal search of their offices add to a pattern of prosecutions apparently cracking down on dissenting voices.” Gardner added: “Human rights lawyers have been just some of the victims in the widespread abuse of anti-terrorism laws in Turkey. The question to ask is: who will be left to defend the victims of alleged human rights violations?

Human Rights Watch also spoke out against the arrests, with the lead researcher on Turkey commenting, “Police raids against lawyers at 4 a.m., their arrest and imprisonment are part of a wider clampdown on those who oppose the government.” The researcher, Emma Sinclair-Webb, added: “What makes the latest arrests particularly disturbing is that these lawyers are well-known for acting on behalf of those whose rights have been violated by the state.” Official figures revealed in May of 2012, Sinclair-Webb said, “suggest that many thousands are in prison for terrorism offenses, many of them political activists, students, journalists, and human rights defenders… Most have committed no offense that could or should be described as terrorism under international law.”

Turkey: A “Model Democracy”?

When Barack Obama spoke to the Turkish parliament in 2009, he referred to Turkey as a “strong and secular democracy,” and that the country was “a critical ally” of the United States, emphasizing his “commitment to our strong and enduring friendship.”

In an article for Christian Science Monitor, Reza Aslan, a member of the Council on Foreign Relations, wrote that following several constitutional reforms in 2010, Turkey had taken “another step toward solidifying its position as the new superpower of the Middle East: the shining model of what a modern, Muslim-majority democracy can achieve if given the opportunity.”

As Hosni Mubarak, the military dictator of Egypt, was facing immense opposition in the streets of Tahrir Square and elsewhere across the country in February of 2011 – as the Arab Spring was spreading across the region – Turkish Prime Minister Erdogan stated, “No government can remain oblivious to the democratic demands of its people… There isn’t a government in history that has survived through oppression. Know that governments that turn a blind eye to their people cannot last long.”

As Time Magazine noted, with the unrest spreading across the region in early 2011, many commentators were pointing to Turkey’s “successful melding of a largely Muslim population with an officially secular and working democracy as a role model for what might come next.” In September of 2012, Erdogan declared that, “We called ourselves conservative democrats. We focused our change on basic rights and freedom… This stance has gone beyond our country’s borders and has become an example for all Muslim countries.”

In light of the Arab Spring, Hugh Pope of the International Crisis Group stated that, “Turkey is the envy of the Arab world… It has moved to a robust democracy, has a genuinely elected leader who seems to speak for the popular mood, has products that are popular from Afghanistan to Morocco — including dozens of sitcoms dubbed into Arabic that are on TV sets everywhere — and an economy that is worth about half of the whole Arab world put together.”

On May 24, 2013, a few days prior to the current protests and police repression erupting across the country, the Deputy Prime Minister of Turkey, Besir Atalay, spoke at the 38th Congress of the International Federation of Human Rights (FIDH), declaring: “We enhanced suspect and defendant rights and custody conditions. We based our solutions for all problems, including terror, on more democracy, freedom and pluralism. We have lifted the legal barriers on free expression of non-violent and non-threatening thoughts. We have made great efforts to normalize Turkey.” He also explained that Turkey “used to have problems” in regards to human rights problems, but the country has “changed a lot.

Apparently, two days later, it changed back.

No Stranger to Atrocities

Turkey’s horrific human rights record is most revealed by its treatment of the large Kurdish ethnic minority, with a 30-year war between the Turkish government and the Kurdistan Workers’ Party (PKK), which killed upwards of 40,000 people. Those within Turkey – whether academics, journalists, or politicians – who support nonviolent Kurdish resistance are considered by the government to be “terrorists” and are often jailed.

As the Turkish government undertook a massive counterinsurgency program against the PKK specifically and the Kurdish population of Turkey more generally, tens of thousands were murdered, tortured and imprisoned. At the height of Turkish state atrocities, the country was a major recipient of U.S. military aid. A 1995 report from Human Rights Watch concluded that: “the U.S. is deeply implicated in the Turkish government’s counterinsurgency policy and practices through its provision of arms and political support, and is aware of the abuses being committed, but has chosen to downplay Turkish violations for strategic reasons.”

In the decade between 1985 and 1995, the United States had supplied Turkey with nearly $8 billion in military aid, putting the country just behind Israel and Egypt as the largest recipients of American military subsidies. In a civil war that began between the PKK and the Turkish government in 1984, atrocities were committed on both sides, however, with U.S.-supplied F-16 fighter jets, the Turkish government was able to destroy entire Kurdish villages, displace millions of people, and killed tens of thousands of Kurds. As the Turkish war against the Kurds escalated in 1992, “American military aid to Turkey…  escalated as well.” As the New York Times reported in 1995, the United States “provide[d] 85 percent of Turkey’s arms imports and 90 percent of its military aid.”

Between 1984 and 1999, the Turkish war against the Kurds claimed upwards of 37,000 lives, mostly Kurdish, as well as the destruction of roughly 3,000 Kurdish villages. In that same amount of time, the United States supplied Turkey with roughly $10.5 billion in U.S. weapons, according to a 1999 joint report from the World Policy Institute and the Federation of American Scientists.

A 1999 report from the U.S. State Department read: “Turkey is vitally important to U.S. interests. Its position athwart the Bosporus – at the strategic nexus of Europe, the Middle East, the Caucasus and the Caspian – makes it an essential player on a wide range of issues vital to U.S. security, political, and economic interests. In a region of generally weak economies and shaky democratic traditions, political instability, terrorism, and ethnic strife, Turkey is a democratic secular nation that draws its political models from Western Europe and the United States. Turkey has cooperated intensively with the U.S. as a NATO ally and is also vigorously seeking to deepen its political and economic ties with Europe.”

In 1992, President Bill Clinton pledged “to reduce the proliferation of weapons of destruction in the hands of people who might use them in very destructive ways.” In the first six years of the Clinton administration, the United States supplied Turkey with $4.9 billion in U.S. weapons, “more than four times as large as the entire value of U.S. arms transfers to Turkey during the 34 years from 1950 to 1983.”

Even in 2007, the United States continued to help Turkey in providing intelligence and other support for attacks against Kurdish separatists. In early 2009, the government of Turkey announced a “Kurdish Opening,” relaxing restrictions on rights to Kurds and allowing for amnesty for PKK fighters. Later that year, when Kurds held a parade for returning PKK militants, the government changed its mind and in October of 2009, the Kurdish “opening” was closed. In 2010, an American journalist was arrested and deported for writing about the plight of the Kurds.

In March of 2011, inspired by events taking place in Egypt, Tunisia and elsewhere, the pro-Kurdish Peace and Democracy Party (BDP) called for a “civil disobedience” campaign against the Turkish government in support of Kurdish rights. Beginning with a 20,000 strong sit-in strike, a BDP representative stated, “The government will not solve this problem… We want the process to be intervened in through civil politics, the democratic power of the people and civil-disobedience actions.” The demands they were asking for included “education in mother tongue, the release of political prisoners, an end to military and political operations [against Kurds] and the elimination of the 10 percent [election] threshold.” They further emphasized that all their actions would be “democratic and peaceful.

As the Kurdish protests continued through April, one BDP representative stated, “Our struggle is not just for our rights, but to bring democracy to Turkey.” In May of 2011, Erdogan declared that, “There is no longer a Kurdish question in this country. I do not accept this. There are problems of my Kurdish brothers, but no longer a Kurdish question.” By late May, it was reported that more than 2,500 activists engaging in civil disobedience for Kurdish rights had been “taken into custody” over the previous 50 days.

ALINAphoto

As Erdogan won another national election in June of 2011, the BDP threatened further civil disobedience if their rights were not recognized in a new constitution. As pro-Kurdish protesters marched in Istanbul in late June, they were met with riot police and tear gas. Protests sparked up once again in December of 2011 following the government killing 35 Kurdish civilians in an airstrike, mistaking them for militants. In early January of 2012, the government said it would compensate the families of the 35 Kurdish victims for killing the wrong people.

In November of 2012, roughly 700 prisoners in Turkey had gone on hunger strike in support of Kurdish rights. However, a few weeks later the hunger strike ended after a jailed Kurdish PKK leader called for an end to it. In February of 2013, Kurdish protesters clashed with Turkish riot police once again. By March of 2013, a ceasefire was announced between the government and the PKK. However, major issues remain, as Turkish law “still equates Kurdish identity politics with abetting terrorism,” and there exist “8,000 or so pro-Kurdish political activists held in pretrial detention under Turkey’s sweeping antiterrorism laws.” In the previous year and a half, violence between the Kurds and Turkish government had been the worst in more than a decade with over 900 people killed, and it was in that same amount of time that roughly 8,000 Kurdish journalists, politicians, and activists were imprisoned, and remained so by May of 2013.

Clearly, the struggle for democracy in Turkey has to include the Kurds front and center.

Neoliberalism and the Economic Oligarchy in Turkey

The grievances in Turkey are not simply the result of the plans to demolish a park, or the lack of democracy and heavy-handed police repression, but also of the economic reforms which often go hand-in-hand with democratic decline. Indeed, Turkey’s economy is dominated – like most countries – by a very small oligarchy, which is itself highly integrated with the global state-capitalist oligarchy of bankers, corporations and policy-makers.

Following the decline and demise of the Ottoman Empire, the modern Turkish republic was founded by Mustafa Kemal Ataturk in 1923, establishing the ideology of ‘Kemalism,’ which sought to modernize Turkey along the same lines as the Western European powers. Nationalist elites arose through the 1920s and 30s, directing Turkey’s state capitalist order, where “the state bureaucracy operated as the original source of capitalist accumulation.”[1]

The Turkish state then “literally created big private businesses within a society where a self-developed business class had been absent.” With the onset of the Great Depression, “Turkish industrial and commercial entrepreneurs rushed to engage in speculative activities that adversely affected the national economy,” leading to increased hostility toward business interests. Corruption and profiteering became rampant within Turkish industry, especially during World War II. Legislation was even introduced in 1942 to punish war profiteers.[2]

The Kemalist state pursued a state monopoly from the 1920s onward largely by nationalizing major sectors of the economy, including “the railways, telecommunications, port facilities, and mining and textile corporations, most of which had been in the hands of foreigners.” Following World War II, the capitalists revolted against the one-party rule of the Kemalist People’s Party and installed “a pseudo-democracy under the leadership of the Democratic Party (DP), which represented landlords and capitalists.”[3] With some outside pressure coming from the United States to allow for “multi-party politics,” the government caved to the U.S. and the Democratic Party came to power in 1950, with the party and Prime Minister Adnan Menderes “committed to the demands of private business.”[4]

At that point, the country began a process of economic development through import substitution industrialization (ISI), whereby the aim was to reduce dependency on foreign imports by focusing on domestic production of industrial goods. This helped facilitate an export boom, “and triggered the explosive growth of urban industrial centres.” As John Lovering and Hade Türkmen wrote in the journal International Planning Studies, this process “lead to the consolidation of a set of protected industrial corporations, a new state-industrial managerial elite, the growth and urbanization of an industrial working class, and the institutionalization of one-way rural-urban migration.”[5]

The major Turkish conglomerates which arose maintained family ownership of the firms and their subsidiaries through the formation of large holding companies, the first ones of which were established in 1955, the Deva Holding and the Sinai & Mali Yatirim Holding. The political instability which resulted from the “state-business collusion under pseudo-democracy” led to the May 1960 military coup. The military arrested the prime minister, president, cabinet members, and took control of key government posts. These original holdings collapsed without the support of the DP. As Ingyu Oh and Recep Varcin wrote in the journal Third World Quarterly, “the new top-down Mafioso state bred and protected new holdings,” much larger than those established under the DP government. Notably, in 1963, the Koc Holding was established, owned by the Koc family.[6]

In 1971, another military coup took place, though the major holdings remained, “mainly because of their sheer size and market power in the Turkish economy.” These holdings then formed an interest group called the Association of Turkish Industrialists and Employers (TUSIAD), which consisted of the membership of the large holding companies of Koc, Sabanci, Tekfen, Eczacibasi and Yasar.[7]

Founded in the same year as the military coup (1971), TUSIAD’s “members sought to increase the legitimacy of private enterprise as an acceptable endeavor and path towards development.” The members of TUSIAD “owed the success and even existence of their firms to state contracts and subsidies that they had managed to obtain through informal access to officials and government.”[8]

Throughout the 1970s, squatter areas in the cities – in large part created by the massive urban migration of the rural poor in previous decades – had led to increased tensions and conflicts, as these “areas of the cities became battlegrounds fought over by nationalist, fascist, Maoist, Guevarist, anarchist, socialist and Islamist factions.”[9] These “antagonistic class relations” had begun “to undermine corporatist state-labor relations and to weaken the position of the oligarchs.”[10]

In 1979, as Turkey was in economic trouble – along with much of the rest of the ‘Third World’ – the TUSIAD flexed its political muscle and published newspaper ads “criticizing the reluctance of the then Prime Minister Ecevit in the full adoption of the International Monetary Fund (IMF) measures.” Some observers credit this letter with leading to the military coup that took place in 1980.[11]

When the new military government came to power, TUSIAD openly endorsed it, rather than supporting the previous democratically-elected government which the business organization had criticized. In fact, the owner of Koc Holding – the largest Turkish conglomerate – Vehbi Koc, “sent a letter to the new military leaders to publicize his support.” Other major holdings even appointed military generals to their boars of directors. In Turkey, “frequent military coups further reduced the military’s grip on the economy, while the Holdings could cash in on political instability by continuing to expand through co-opting each new set of military leaders.”[12]

Immediately following the coup, the military government attempted to restore order to Turkey “by dissolving the parliament, the political parties, trade unions, and civil society organizations and by banning the party leaders from re-entering politics.” The only major organization which was not dissolved or co-opted by the military dictatorship was TUSIAD.[13] The process not only involved “dissolving” the groups, but also purging them of membership, as the army “imprisoned and killed activists and trade unionists, replaced suspect academics with complaint ‘Pyjama Professors’ appointed overnight, and drew up a new and less permissive constitution.”[14]

The overthrow of the democratic government and its replacement with a military dictatorship in 1980 marked the beginning of the neoliberal era in Turkey. One of the most influential figures during this period – Turkey’s equivalent of Thatcher or Reagan – was Turgut Ozal. Having risen through the state bureaucracy responsible for economic management in the 1960s and 1970s, he then went to go work for the World Bank. Between 1973 and 1979, Ozal returned to Turkey to work in the private sector, including holding a top position at the Sabanci Corporation, one of Turkey’s largest family holdings. As the government began negotiations with the IMF in 1979, Ozal was appointed as the main figure responsible for implementing the IMF’s demanded reforms in 1980. When the civilian government that appointed him was overthrown by the military, the new government kept Ozal on, and the interim government elevated him to the position of Deputy Prime Minister in charge of Economic Affairs.[15]

Ozal had to resign from his post in 1982 due to a scandal, but at that time, he began to organize a new political party, the Motherland Party (ANAP). When the military government held elections in 1983, the ANAP won a majority and Ozal became Prime Minister. He would later be re-elected in 1987, and would become President in 1989 until his death in 1993. Thus, “from January 1980 to November 1989, albeit with the interruption of a brief period, Turkey experienced extraordinary continuity in economic leadership.”[16]

As Prime Minister, Ozal implemented policies of trade liberalization, opening up Turkey to foreign markets, and even made steps toward encouraging the privatization of state owned enterprises (though this would not accelerate until later). Ozal also implemented austerity measures, reducing public spending and increasing various taxes on the population. At the same time, his government provided tax rebates and major subsidies to Turkey’s large holding conglomerates, providing “incentives” for the companies to export more, and to establish subsidiary “foreign trade companies” with the purpose of transitioning Turkey into “an export-led economic order.” Thus, in 1980, Turkey’s exports were valued at $2.9 billion (U.S.), and in 1989 this increased to $12.9 billion. Ozal was able to implement these neoliberal reforms precisely because the military government prior to his administration had already banned the opposition parties and political elites, and “the armed forces violently suppressed trade unions and leftist groups in order to safeguard the unpopular reform measures in the face of bottom-up pressures.”[17]

In the late 1980s, Ozal had to bow to popular pressure and allow other political elites and parties to return to the process, and following the 1989 election, he became president of the republic. His policies over the previous decade “disproportionately benefitted the established family business oligarchs.”[18]

At the same time Ozal became President of the Turkish Republic, leadership changed within the business organization TUSIAD, where in the 1980s its focus was almost exclusively on economic issues, under the direction of Cem Boyner in 1989 it “began to focus on political issues again,” publishing reports into the 1990s promoting various rights and local government privileges. In 1997, TUSIAD published the report Perspectives on Democracy, promoting various democratic reforms within the country. Many within TUSIAD were interested in advancing their relationship with the European Union, which would require specific reforms to join, and throughout the 1990s many of the big conglomerates were “becoming increasingly international and were moving towards more capital-intensive sectors of industry.” Thus, they needed access to new technologies and foreign investment, as well as the creation of a qualified labour force and domestic market. These interests “required the kinds of institutions found in democracies, such as the rule of law, and also went hand-in-hand with the more social aspects of democracy.”[19] Though, of course, there are limitations to how far oligarchs are willing to reform.

The post-Ozal governments through the 1990s, however, failed to advance the neoliberal agenda as well as their predecessor, reverting to more familiar patterns of corruption (and not to mention, waging a massive war against the Kurds). This led to the emergence of new Islamist parties “that were able to present themselves as comparatively untainted by corruption,” as well as being “pro-market.” In the mid-1990s, many Islamist governments were taking control of local governments and cities.[20]

With the concentration of economic power in so few hands, and with an increased focus on financialization instead of industrialization, Turkey experienced an economic crisis in 1994. At this point, the IMF was called in and established a program with Turkey calling for austerity measures and various other structural reforms.[21] The result was predictable: income distribution accelerated its shift from industrial sectors and labour/wages toward financial sectors, controlled by the large conglomerates. In the aftermath of the crisis, wages for workers in manufacturing sectors declined by 30% in the private sector and 18% in the public sector. In 1995, “growth” was restored to Turkey in the form of more financial speculation, leading to the next economic crisis from 2000-2001, which again forced labour markets to suffer in response to the crisis.[22]

With the 2000/2001 crisis, the IMF came to the “rescue” once again, and this time, the Turkish technocrat responsible for implementing the ‘reforms’ was Kemal Dervis, who had a long career at the World Bank. Many segments of the population, however, “identified him as an agent of the IMF, transplanted to Turkish politics by external forces… a representative of the transnational capital and narrowly-based Istanbul elites.”[23] Dervis went on to head the United Nations Development Programme (UNDP), and is currently a vice president at the Brookings Institution, a major American think tank. He is also a senior adviser to Sabanci University and is on the international advisory board of Akbank, one of Turkey’s largest banks.

The international advisory board of Akbank is made up of a collection of prominent global plutocrats, including Josef Ackermann, former chairman and CEO of Deutsche Bank, currently the chairman of Zurich Insurance Group who sits on the boards of Siemens, Royal Dutch Shell, and Investor AB, as well as holding leadership positions with the World Economic Forum and the Bilderberg Group.

In 2002, a new political party was formed by the former mayor of Istanbul, Recep Tayyip Erdogan, and the main representative of the ‘Muslim business class,’ Abdullah Gul. The new party, the Justice and Development Party (AKP), “was able to present itself as fresh, democratic and economically rational, especially to global audiences.” After winning the election that year and coming to power in 2003, Erdogan and the AKP “picked up the neo-liberalizing agenda begun two decades previously, at the same time tightening control over the media and educational appointments.”[24]

Erdogan’s AKP government was the first Turkish government to successfully and rapidly advance the privatization agenda. Since the creation of the privatization agency under Ozal in 1985 until 2002, privatizations had only generated $9.5 billion. Yet, between 2002 and 2012, with Erdogan at the helm, privatizations generated over $34 billion, “with most sales occurring in the fields of energy, telecommunications, mining, sugar and tobacco.” The levels of foreign direct investment (foreign corporations entering the Turkish market) also increased, reaching $20 billion in 2007.[25]

The AKP government actively sought the support and participation of the major family conglomerate holdings represented by TUSIAD. The government pursued reforms which were demanded in order to gain possibly entry into the EU, as well as initially continuing to implement the reforms demanded by the IMF. TUSIAD lobbied for support to join the EU, organizing visits with European leaders, and in the first few years of the AKP in power, “both Erdogan and TUSIAD made conscientious efforts to establish direct contact with each other,” and one TUSIAD member even served as an economic adviser to Erdogan.[26]

As Ziya Onis wrote in Third World Quarterly, Erdogan’s AKP party “proved to be highly committed to extend the path of Turkey’s neo-liberal integration to the global economy with a new wave of economic reforms.” Among them were efforts – in the early years of AKP rule – to pass legislation which protected the ‘rights’ of foreign investors, such as the 2003 Foreign Investment Law. Domestic conglomerates were also better positioned “to participate in Turkey’s privatization experiment,” since many of these firms had transnationalized, and were often able to form “strategic partnerships with foreign firms [which] rendered the job of the government easier for legitimizing a large-scale privatization program to the public.”[27] One such strategic partnership was established between the world’s largest corporation – Shell – and Turkey’s largest conglomerate – Koc Holding – in the privatization of TÜRPAS, a major Turkish oil refining complex.[28]

TUSIAD has increased its membership from 140 in 1975 to roughly 600 in 2008, but “it still remains the voice of the few families who own the largest holdings in Turkey,” and the way in which it is structured and managed by its High Advisory Council and board of directors “reflects an attempt to safeguard the control of key families.” As Devrum Yavuz wrote in the journal Government and Opposition, “in a context where a pro-business party is lacking, business associations can work to give members of capital a more legitimate and less reactionary way of participating in debates,” and thus, “TUSIAD works as the bourgeoisie’s ‘party’ and its more informed members help formulate its ideology.”[29]

TUSIAD’s High Advisory Council was chaired by Vehbi Koc from the organization’s founding in 1971 until 1979. His son, Rahmi Koc, joined the High Advisory Council in 1989, and was chairman from 1990 until 1994. His eldest son, Mustafa Koc, chaired the council from 2005 to 2010. The Koc family have also been fairly consistent members of the board of TUSIAD, as well as honourary chairmen.

In 2010, the Koc family had a wealth valued at more than $10 billion, making them Turkey’s richest family, with Koc Holding being active in the automotive, energy, petrochemical, retail, food and finance sectors. Other prominent Turkish dynasties, such as the Sahenk and Sabanci families also topped the list of the country’s wealthiest people. These families have been able to dramatically increase their wealth through directly or jointly owning large banks, with the Sahenk family partnering with Garanti Bank, the Sanbaci’s with Akbank, and the Koc family with Yapı Kredi Bank, of which Mustafa Koc is chairman.

As Tayyip Erdogan became Prime Minister of Turkey in 2003, Koc Holding’s then-chairman Rahmi Koc handed his position over to the eldest of his three sons, Mustafa Koc. As he took up his new position, Mustafa Koc expressed confidence in the newly-elected AKP government, explaining, “the people who propelled Mr Erdogan to power were voting against the old guard of corrupt politicians. If he deviates from secularism, they will bring him down.” Mustafa added: “We have excellent relations with the prime minister… and he listens to what we have to say.”

Rahmi Koc (left) and PM Erdogan (right)

Rahmi Koc (left) and PM Erdogan (right)

As of early 2013, Koc Holding “owns all of Turkey’s oil refining capacity,” and like the Rockefeller family in the United States, they have imprinted their name and influence across all sectors of society, with five museums and galleries established by family members, “and hospitals, schools and universities all bear their name.”

Today, Mustafa Koc is the quintessential example of a top representative of a national oligarchy who is deeply integrated with the global oligarchy. Not only is he chairman of the board of Turkey’s largest conglomerate and honorary chairman of TUSIAD, but he is also a member of the international advisory council of the world’s largest bank, JPMorgan Chase, as well as sitting on the international advisory board of Rolls Royce. Mustafa sits on the Global Advisory Board of the most influential think tank in the United States, the Council on Foreign Relations; he is a member of the Steering Committee of one of the world’s most influential international think tanks, the Bilderberg Group, and is on the advisory board of Monument Capital Group. He is also a former member of the international advisory board of the National Bank of Kuwait.

Mustafa Koc

Mustafa Koc

At the June 2013 Bilderberg Meeting, taking place in the midst of the mass protests in Turkey, Mustafa Koc participated alongside several other Turkish members, including a columnist for Milliyet Newspaper, as well as Ali Babacan, the Deputy Prime Minister for Economic and Financial Affairs; the president of the Retail and Insurance Group of Sabanci Holdings; Soli Ozel, a lecturer at Kadir Has University and columnist with Habertürk Newspaper and Safak Pavey, a member of the Turkish parliament for the main opposition Republican People’s Party (CHP). Koc and the other Turkish participants met at Bilderberg with prominent members of the global plutocracy, including top executives and board members of Deutsche Bank, Zurich Insurance Group, Barclays, BP, Investor AB, Goldman Sachs, HSBC, Royal Dutch Shell, as well as top European Union officials, heads of state, elite academics, think tanks, media conglomerates, and the heads of international organizations like the IMF.

In 2006, Prime Minister Erdogan attended the 80th anniversary celebration of Koc Holding, shortly following honourary president Rahmi Koc having made a statement about Turkey’s “stable” economic environment as being owed largely “to the success of a one-party government.” Sources informed the Turkish media that “the cordial relations between the most powerful company in Turkey, Koç Holding, and the government were continuing.”

As Bloomberg reported in 2010, Erdogan’s economic policies had helped fuel the rise of a “new elite” in Turkey, which potentially “threaten to overshadow the business dynasties that have dominated Turkey for decades,” though the “old guard” still managed to do very well under Erdogan. In just four years, the Sabanci family’s Sabanci Holding saw revenue rise by 86% to $12.6 billion in 2009, while revenue for Koc Holding doubled between 2004 and 2006. Nahit Kiler, one of Erdogan’s “new elite” and owner of Kiler Holding, whose personal wealth reaches between $500-750 million, credits his success story in construction and energy markets to Erdogan’s government: “We have started these investments with confidence in the government’s decisions… A single-party government without opposition speeds things up.”

In December of 2011, Erdogan met privately in a meeting closed to the press with Rahmi Koc at the president’s palace less than two weeks after Koc publicly complained about the “strain” some economic policies were putting on his business. The meeting also reportedly discussed the possibility of producing a national automobile. Mustafa Koc later publicly came out against the government’s idea of creating a distinctly Turkish car, claiming it would be “commercial suicide.” Koc Holding, which is the largest automaker in Turkey, primarily works through joint ventures with major international automakers such as Ford, Fiat and Renault. With resistance to the government’s idea coming from members of TUSIAD, as well as various criticisms from the members toward Erdogan’s increasingly authoritarian government, relations between the organization and the government grew tense. Erdogan has even threatened in late 2012 to boycott TUSIAD, and in April of 2013, TUSIAD’s new chairman complained that they had been unable to have a meeting with the prime minister, “We demanded an appointment with the prime minister… We are the party that has demanded the rendezvous.”

TUSIAD, however, met with several other government officials, including President Abdullah Gül, Deputy Prime Minister Besir Atalay, Deputy Prime Minister Ali Babacan, and several opposition figures. TUSIAD was recommending that the government consider three primary measures to add to the constitution: “judicial freedoms, universal rights and freedoms and a change in the democratic representation system.” With these reforms, TUSIAD stated, “then we can be more hopeful about the future of the country.”

Finally, in early May 2013, Erdogan met with TUSIAD leaders in a closed session. Following the meeting, the TUSIAD president Yilmaz stated, “We are on the even of making a quantum leap in prosperity, bringing peace to the country and society.” When Erdogan went to the US in mid-May to meet with President Obama, TUSIAD members also went to meet with their American counterpart business organizations.

TUSIAD’s criticism of the Erdogan government and its advocacy for ‘democratic rights’ should not be mistaken for an interest in genuine democracy. Remember, when it has suited their interests, TUSIAD and the major family conglomerates have always supported coups and dictatorships, so why would they suddenly become strong advocates of ‘democracy’? This is derived from their advocacy of a narrowly defined concept of democracy and democratic rights, one which grants the rule of law and private property rights and thus, prevents governmental interference in their privileges, and out of an interest to join and integrate with their plutocratic counterparts in the European Union, which demands certain democratic rights as a pre-requisite.

Further, in the midst of popular protests and urban rebellions, plutocrats and oligarchs are interested in the maintenance of ‘stability’ and ‘order.’ It is well understood that societies which allow for dissent – even if it remains marginalized and ignored – achieve longer-term stability, for it creates a release valve through which discontent at the social order could reduce its pressure, somewhat akin to opening the flood gates of a dam so as to prevent the dam from breaking. Thus, in the midst of the mass protests against the Erdogan government, TUSIAD issued a public statement declaring: “The disproportionate force used against… the protests have not only harmed the public conscience, they have had demoralizing effect on any efforts over reconciliation.”

So plutocrats may come into conflict with politicians in petty squabbles for power, but ultimately they are playing a game between and with each other – in competition or cooperation – but the main consistency is that power is exercised above and over the actual population as a whole. Erdogan’s government has even run into conflict with the Koc family and Koc Holding.

In December of 2012, as part of the government’s ambitious privatization agenda, Koc Holding won a bid for a 25-year highway concession, the country’s second largest ever privatization, in cooperation with another Turkish conglomerate, Yildiz Holding and a state-owned Malaysian engineering company, UEM. The concession would grant this consortium of three companies to “operate and maintain a network of 1,975km of highways, including the toll roads on two bridges that cross the Bosphorus.” In February of 2013, the Turkish government cancelled the $5.7 billion deal “because the price tag was not high enough.” However, all was not lost for Koc Holding, as in a meeting chaired by Erdogan the previous month, the Turkish defense procurement body agreed to begin talks with the Koc Holding over a $2.5 billion contract for the company to build six warships.

Is Turkey an “Economic Miracle”?

While Turkey’s power politics between plutocrats and politicians may grab headlines, the reality is, as economics professor Sumru Altug of Koc University in Istanbul noted, “When it comes to economy, Erdogan’s politics have always been pragmatic and progressive and that’s what is being acknowledged by all business people, regardless of their political or religious attitudes… At the end of the day, money is money and business is business.” Indeed, under Erdogan’s government, both old and new conglomerates have profited immensely from what is termed “Turkey’s economic miracle.”

Like all self-proclaimed economic “miracles,” it’s only miraculous for a very small minority within society, and it tends to be increasingly difficult for most of the rest of the population. The Istinye Park shopping mall “is an emblem of Turkey’s economic boom,” drawing in the Istanbul elite “with its valet parking and chic boutiques.” Just behind this high-end establishment is a large Istanbul slum housing migrants from the countryside who came to the city in search of work. According to Sinan Ulgen of the Centre for Economic and Foreign Policy Studies, based in Istanbul, the wide disparity in Turkish society has been fuelling “alienation and disenfranchisement.” Among the 34 rich countries of the world which comprise the Organisation of Economic Cooperation and Development (OECD), Turkey has the third highest levels of income inequality (that is, the third highest divides between the rich and poor), even though the country had been experiencing annual economic growth of 3.5% between 2007 and 2011.

Turkish economist Mustafa Sonmez stated: “The social state is missing in Turkey. The highest amount of taxes is collected from the middle and lower classes… For the equal distribution of income you need strong labour unions, but this right has been scaled back since Sept. 12, 1980,” when the military overthrew the government and dissolved unions and killed union activists. Sonmez added: “Workers don’t have a say in income distribution.” Women are especially vulnerable, with restrained access to higher education and where many are encouraged not to work. As of 2011, roughly 30% of Turkish women and 40% of Turks aged 15-24 were employed or actively looking for work. An opposition politician in charge of economic policy for the Republican People’s Party warned: “If the hope of the young to reach the desired living standard gradually fades… Turkey may face serious social issues.”

Turkey has an extremely unequal tax system, as most countries do, whereby “the rich pay only a tiny fraction of their income,” as distinct from their overall wealth, while “about 60-70 percent of the employed and especially poor people’s incomes go to the state as taxes.” According to the most recent stats from the OECD, the top five most unequal countries on earth – in descending order – were Chile, Mexico, Turkey, the United States and Israel, all of which are major examples of neoliberal “success stories” rooted in deeply violent and militaristic societies run by small oligarchies.

The “economic success story” of Turkey, which has tripled the size of its economy over the last decade of Erdogan’s rule, has also featured “a deepening income gap and crimped workers’ rights,” according to a report in EruasiaNet. The Ministry of Family and Social Rights revealed in 2012 that “nearly 40 percent of Turkey’s population of over 75.6 million lives at or below the monthly minimum wage of 773 liras, or about $415.19,” while roughly 6.4% “live below the designated hunger line” at $237.95 per month (or 430 liras). At the same time, according to the Banking Regulation and Supervision Agency, “63 percent of the country’s bank deposits belong to a mere one-half of a percent of all account holders.”

In other words, while 40% of Turkey’s population lives in poverty and 6.4% live in hunger, a tiny 0.5% of the population control 63% of the country’s wealth (in bank deposits). Even a columnist at a pro-government newspaper warned in late May of 2013 that, “There is [a] big social gap between rich and poor. Poverty is getting deep[er] every day.” An official with the United Metal Workers Union stated that: “Prices are going up every day, the cost of living is becoming very expensive and workers are in no position to demand extra pay.” Thus, he explained, “what they have to do is work longer and longer hours… It is not even considered overtime anymore.” The OECD even noted that roughly 46% of Turkish employees work “very long hours” compared to the average for OECD countries, where roughly 9% of employees across the 34 OECD countries work ‘very long hours.’ Since the AKP came to power with Erdogan in 2002, “labor union membership has fallen from 9.5 percent of the country’s workforce of 28.9 million to 5.9 percent.”

As Human Rights Watch noted, while the government of Turkey lifted a ban on state workers joining unions in 2004 (under pressure from the EU), the government has continued to persecute union activists under its anti-terror laws, with 67 labour unionists in prison in 2012. Emma Sinclair-Webb of Human Rights Watch warned: “In all of these kind of operations, when you go after labor unionists as terrorists, although you have no evidence of them committing violent activities or inciting violence, it essentially has a chilling effect for the workforce more widely.” Sharan Burrow of the International Labor Union Confederation (ITUC) warned that “the situation is getting worse,” noting: “Workers can’t operate openly, they can’t hold [a] public assembly, and major companies can use laws against workers to choose which unions operate.”

On 1 May 2013 – internationally known as ‘May Day’ marking labour protests – Turkish protests in Istanbul turned violent when riot police used water cannons and tear gas on workers and supporters who defied a ban on protests to demonstrate in the streets. Thousands of police were dispersed into the streets, while government officials refused to give trade unions the right to protest in Taksim Square, “saying construction work there would make any gathering of protesters there too dangerous.” Roughly 72 arrests were made and at least 28 people were injured by the police. May Day protests had been banned for decades in Turkey, though they were officially reinstated in 2010. While tens of thousands of protesters defied the ban and attempted to breach the barriers on the streets established by police forces to prevent entrance to Taksim, heavy-handed repression was used to keep them away, with some protesters reacting by throwing rocks. Several protesters were admitted to hospitals with head traumas and respiratory problems brought on by the tear gas and police assaults.

Erdogan: Barack Obama’s “Outstanding Friend”

Roughly two weeks after Erdogan’s government violently crushed the May Day protests at Taksim, and less than two weeks before he would begin crushing the much larger mass protests across the country, Prime Minister Erdogan went on an official state visit to the United States to meet President Obama on May 16.

Following their meeting, the two heads of state gave a joint press conference, where Obama stated, “It is a great pleasure to welcome my friend, Prime Minister Erdogan, back to the White House,” adding that the U.S. values its relationship with Turkey as being of great importance, “and I value so much the partnership that I’ve been able to develop with Prime Minister Erdogan.” Further, explained Obama, “I want to make sure that we also keep deepening our economic ties with Turkey,” adding: “the progress that Turkey’s economy has made over the last several years I think has been remarkable and the Prime Minister deserves much credit for some of the reforms that are already taking place.” Noting that the United States “has stood with you in your long search for security” (leaving out the part about supplying tens of billions in arms while Turkey killed tens of thousands of Kurds), Obama then said, “we will support efforts in Turkey to uphold the rule of law and good governance and human rights for all.” Presumably, Obama forgot about the thousands of imprisoned journalists, union activists, intellectuals, politicians, students, Kurds, lawyers and human rights activists.

Source: AFP

Source: AFP

At the same press conference, Erdogan stated that, “I am here with close to a hundred business people, and they are holding meetings with their counterparts in the United States,” noting that in the previous ten years, trade between Turkey and the United States had increased from $8-20 billion, but that, “this amount is still not sufficient. We have to increase the amount of trade between our two countries.” Erdogan suggested, “we need to strengthen this relationship with free trade agreements and other agreements.”

In January of 2012, President Obama explained to Time’s Fareed Zakaria that, “the friendships and the bonds of trust that I’ve been able to forge with a whole range of leaders is precisely – or is a big part of what has allowed us to execute effective diplomacy.” Obama then went on to identify five world leaders with whom he has established especially ‘friendly’ and ‘trusting’ relationships: “I mean, I think that if you ask them – Angela Merkel [in Germany], or Prime Minister Singh [in India], or President Lee [in South Korea], or Prime Minister Erdogan [in Turkey], or David Cameron [in the UK] would say, we have a lot of trust and confidence in the President. We believe what he says. We believe that he’ll follow through on his commitments. We think he’s paying attention to our concerns and our interests.” Of course, that’s not to be confused with the ‘interests’ of the people of those countries, but rather the ‘interests’ of the political and economic elites of those countries: oligarchic interests (precisely the same interests Obama serves within the United States itself).

obama-erdogan-300x240

On June 3, several days into the mass protests and state repression and violence, White House spokesman Jay Carney told reporters that the United States “supports full freedom of expression and assembly, including the right to protest,” and added that the administration believes “that the vast majority of the protesters have been peaceful, law-abiding, ordinary citizens exercising their rights.” Carney then urged “all parties to refrain from provoking violence.” Carney said that Obama had not spoken to Erdogan since the protests began, but when asked how important stability in Turkey was to Obama, Carney replied: “Turkey is a very important ally. And look, all democracies have issues that they need to work through and we would expect the government to work through this in a way that respects the rights of their citizens.”

On the same day, Secretary of State John Kerry took the same talking points, saying that, “the United States supports full freedom of expression and assembly, including the right of people to peaceful protest,” but that “we are concerned by the reports of excessive use of force by police,” and added that, “we urge all people involved, those demonstrating and expressing their freedom of expression and those in the government, to avoid any provocations of violence.” Vice President Joe Biden, speaking to the American-Turkish Council, said that, “Turkey’s future belongs to the people of Turkey and no one else. But the United States does not pretend to be indifferent to the outcome.”

The Urban Uprisings Accelerate

Following the first week of protests at Gezi Park and the massive police response which took place in May 31, the protest movement rapidly accelerated and spread across the country, followed closely by massive state repression.

On May 31, the protests had spread to the cities of Izmir and Ankara, while police used water cannons, tear gas and pepper spray to attempt to suppress the crowds, arresting dozens and even sending people to the hospital. Overnight, police had begun to use helicopters to drop tear gas canisters on the protesters below, and at half past one in the morning of June 1, the city of Istanbul was wide awake with people banging pots and bans, blowing whistles, and flashing their lights on and off in solidarity with the protesters.

In the capital of Ankara, protesters lit fires to counter the immense levels of tear gas used by police, and in Istanbul large bonfires were lit alongside overturned vehicles as protesters battled with riot cops. In more than 90 separate protests across the country that day, roughly 1,000 people were arrested. More than a thousand protesters were injured in Istanbul alone, along with several hundred more in Ankara. Helicopters continued to launch tear gas into residential neighbourhoods, and one protester was hit by an armored police truck as it drove through a barricade. One protester stated, “It’s about democracy, and it’s going to get bigger,” while a 60-year old participant explained, “All dictators use the same methods, oppressing their people.” Erdogan arrogantly proclaimed: “If this is about holding meetings, if this is a social movement, where they gather 20, I will get up and gather 200,000 people. Where they gather 100,000, I will bring together one million from my party.”

On June 2, as the protests continued, Erdogan stated, “I am not going to seek the permission of the [opposition] or a handful of plunderers,” referring to his plans to demolish Gezi Park, adding: “If they call someone who has served the people a ‘dictator,’ I have nothing to say.” Erdogan also claimed the protesters were being “manipulated by the opposition,” calling them “marauders and extremists,” adding that he suspected “foreign powers” were behind the protests.

Most of the protests were organized and publicized through social media, as Turkey’s media failed to cover the protests at all, or downplayed their significance. In the early days of the major protests and clashes with police, CNN Turk was playing “a three-part documentary about penguins rather than cover what is arguably the biggest news story inside Turkey for decades.” Nina Oginanova of the Committee to Protect Journalists (CPJ) – which has been highly critical of Erdogan’s jailing of journalists in recent years – commented: “What we’re seeing now is really the product of what has come to be seen as a timid local media, a repressed local media that has made everyone unhappy in Turkey. This is the product of the government’s policy toward the press, particularly the high hostility from the very top toward critical media, toward individual journalists and columnists who have criticized the policies of the AKP.”

cnn-turkey-protests

As the protests continued for days, NTV, one of the country’s largest television networks (and a partner of MSNBC), officially apologized for its failure to cover the protests. Other media outlets began following in step, increasing their coverage of events. One student protester explained, “There has been too much blood shed and they’ve only just now apologized. It’s too late… I’m done with them.” Asli Tunc, professor and head of the Media School at Istanbul Bilgi University commented: “I think there is pressure coming from the grassroots level now, especially from young people who don’t buy newspapers or watch TV news now. They’re just looking at Twitter or blogs. Things are changing rapidly. The way people consume media, especially young people is changing so the media has to adjust, otherwise it will lose all of its advertising revenue.”

It’s no surprise then, that Erdogan stated on June 2 that, “Now we have a menace that is called Twitter… The best examples of lies can be found there. To me, social media is the worst menace to society.” Erdogan has thus joined the list of Arab and Middle East dictators who have lashed out against social media, and specifically the use of Twitter, Facebook and Youtube in organizing and documenting protests and revolutions. As Erdogan declared he didn’t need “permission” from “marauders” and lashed out against the “menace” of social media, Turkish protesters using social media reacted. One tweet declared, “He’s a dictator… He sounds like Mubarak,” and another in response said, “He’ll end up like him, too.”

Source: EPA

Source: EPA

On Sunday 3 June, the third major day of protests across the country drew tens of thousands of people into the streets, with more than 200 demonstrations in 67 cities, with hundreds of injuries reported. Erdogan referred to the protesters as “a few looters.” It was reported that over the course of the weekend, more than one thousand protesters in Istanbul and 700 in Ankara had been injured, according to the Turkish Doctors’ Association, while roughly 2000 people had been arrested. Barack Obama’s White House called for “calm” and for the Turkish security forces to “exercise restraint” in crushing the protests.

Exercise “Restraint”: The Softer Side of State Repression

While U.S. statements called for “calm” and “restraint” – including urging restraint among the tens of thousands who are being repressed by the security forces – the U.S. has been a leading supplier of Turkish arms and various “crowd control” equipment to Turkey. In 2009 alone, Turkey purchased $1.5 billion in U.S. arms.

At a major international arms dealer convention in Abu Dhabi in February of 2013, several companies from the US, Europe and around the world were encouraging Middle East and North African countries to increase their purchases of arms, especially in light of the Arab uprisings in recent years. A representative from Paramount Group, a major South African defense and security corporation stated, “Every country must invest in the correct equipment for crowd control.” He continued: “The riot catastrophe in Egypt, for example, was greatly exacerbated because police were using inappropriate equipment,” he said, referring to the Egyptian uprising as a “riot catastrophe.” Paramount Group was displaying its new riot control equipment at the arms dealer bonanza, alongside a prominent Turkish company, Otokar, which was displaying the latest in riot control vehicles. The Paramount Group representative went on, explaining: “Appropriate and better-quality anti-riot vehicles and equipment increases police safety, thus reducing the pressure they feel in conflict situations.”

Source: Reuters

Source: Reuters

Steven Adragna of the US-based Arcanum defense firm stated, “If a given state lacks the means, the doctrines, and the training for homeland defense and internal security missions, that government is more likely to use lethal means that are disproportionate.” Thus, he suggested that anti-riot gear could “maintain order,” adding: “If an individual policeman is trained on how to use those devices,” such as batons, shields, shotguns, rubber bullets, tear gas and stun grenades, “I think they are perfectly legitimate.” A Brazilian arms dealer noted, “Rubber bullets come with instructions.” An Italian arms dealer proudly explained, “Egypt is a big customer. Egyptian police have several thousands of this” M3 shotgun, used for “crowd control.” He added: “In the past two years, we had a big increase in purchase orders from the Middle East.”

The Turkish-based Otokar defense firm received a contract from the Turkish government in April of 2013 “to provide tactical armored vehicles to the security forces.” The company has also been seeking to increase exports of its armored vehicles to countries around the world. Incidentally, the largest shareholder in Otokar is Turkey’s largest conglomerate, Koc Holding, which owns almost 50% of the company’s shares.

Over the past 12 years, Turkey has purchased $21 million in tear gas and pepper spray, primarily from firms in the United States and Brazil, including 628 tons of tear gas imported between 2000 and 2012. This is hardly surprising, considering that in 2013 alone, the government of Egypt purchased $2.5 million worth of teargas from the United States, consisting of roughly 140,000 teargas canisters. The U.S. is a major exporter of various “crowd control” and “riot control” devices to dictatorships and repressive regimes around the world, including the sale of high-tech “sonic weapons” to the repressive regime in Azerbaijan.

In 2012, the Obama administration decided to resume arms sales to the dictatorship of Bahrain as it continued to crush its domestic popular uprising, leading to serious human rights violations. In recent years, the U.S. has been increasing its sale of arms, armored vehicles, as well as chemical and riot control equipment (including teargas) to countries such as Algeria, Egypt, and Peru, all of which have been increasingly repressing demonstrations within their countries. However, the United States isn’t the only major power doing so, as the UK has been selling ‘crowd control’ equipment to ruthless and repressive regimes as well. Still, the United States remains – by far – as the world’s largest arms dealer.

On June 3, as Turkish police continued to use excessive force and even fired teargas into apartment buildings, protesters managed to set fire to the AKP headquarters building in the city of Izmir. Police were firing teargas canisters at unarmed protesters from close distances, as images and videos of indiscriminate police violence against protesters were increasingly making their way through social media networks. For the hundreds and thousands of protesters arrested, many were denied access to lawyers, with their photographs and fingerprints taken, while some were denied medical access for up to 12 hours. Many protesters were beaten while in detention, and police also attacked NGO-run infirmaries used to treat wounded protesters.

Source: Reuters

Source: Reuters

The hacktivist group Anonymous announced that it would launch attacks against specific Turkish websites in what was called ‘#opTurkey’ in reaction to the government response to the protests. The group released a statement declaring: “We have watched for days with horror as our brothers and sisters in Turkey who are peacefully rising up against their tyrannical government [have been] brutalized, beaten, run over by riot vehicles, shot with water cannons and gassed in the streets.”

Workers Join the Struggle for Democracy

On June 4, the Turkish Public Workers Unions Confederation – with an estimated 240,000 members – joined the protests for a two-day strike in response to “state terror implemented against mass protests across the country,” as Erdogan’s government had “shown once again… enmity to democracy.” An Al-Jazeera reporter in Istanbul noted: “They are trying to send a message, that this is not just youth on the streets, this is not just about a park or individual demands – this is about something bigger.” However, she added, “It has to be said that unions are not that strong in Turkey. This is going to be a test to show that they are able to deliver on what they say.”

The protests had by that time resulted in the deaths of two demonstrators, as Turkey’s Human Rights Foundation reported that more than one thousand protesters had been subjected “to ill-treatment and torture” by the police forces. Erdogan had left the country the previous day to go on an official visit to Morocco where he claimed the situation in Turkey was “calming down,” rejecting any discussion of a “Turkish Spring” and calling the demonstrators “vandals.” He added: “On my return from this visit, the problems will be solved.”

In the midst of the protests, Turkey’s stock market experienced its largest fall in a decade, plunging 10.47% “over investor concerns the unrest could damage the country’s economy,” with Turkish finance minister Mehmet Simsek commenting, “This mischief making naturally affects financial markets. Their aim is to make our country weaker but the macro fundamentals are solid.” Erdogan added, “It’s the stock market, it goes down and it goes up. It can’t always be stable.”

More unions quickly announced that they were joining the protest for a public sector strike on June 5, with the Confederation of Progressive Trade Unions (DISK) announcing, “The power stemming from production will take its place in the struggle.” The Turkish Doctors’ Union (TTB) and the Union of Chambers of Turkish Engineers and Architects (TMMOB) also announced they would join the strike, along with left wing parties and civil society groups, who converged for a mass peaceful protest in Ankara’s Kizilay Square. The government announced that security forces were urged to use restraint, and so demonstrators didn’t hesitate to join the protest with families and children, but in the early evening the government undertook a “rapid and sudden intervention” and began using water cannons and tear gas on the crowds, clearing the square and calling on the rest of the protesters to “disperse.”

Source: CNN

Source: CNN

As Erdogan was due to return to Turkey on June 6 from his trip to North Africa, protesters gathered in mass numbers the night before. In the previous six days of protesters, two people had been killed and more than 4,000 had been injured across roughly a dozen cities. While Istanbul was relatively quiet that night, while police kept their distance, the government crackdown accelerated in other cities across the country. With more unions having joined the protests, hundreds of thousands of workers filled the streets, banging drums, holding banners and chanting for Erdogan to resign.

Democracy and Diversity

The protests were drawing an increasingly diverse group of people together, with groups convening in Gezi Park to discuss what the nature of their movement was: not yet a revolution, but was it “an awakening, a renaissance or a citizen’s revolt?” United in their opposition to Erdogan above all else, the diversity of the protesters was impressive. One young demonstrator commented on how Erdogan sparked a much larger movement: “His understanding of democracy is you vote and that’s it. But that’s not how democracy works… There was a protest by a few tree-huggers not wanting another shopping mall being built. The police met this with huge force. Suddenly these pent-up tensions building for a long time exploded.” Some complained about the increasing turn to legislating Islam in a secular country, “In the past, the army would step in if the government abandoned secular values,” said one demonstrator. “They can’t do it any more. Most of the generals are in jail. So people have realized they have to voice their own concerns. There is no other way to change [things] than ourselves.” Some spoke out against Erdogan’s foreign policy, notably in reference to his active support and arming of certain rebel groups in neighbouring Syria. Many chants and posters depicted Erdogan as an “American stooge” or “as a puppet held by Barack Obama.”

One report in the Globe and Mail commented on the diversity of the protesters taking to the streets:

Office workers in business suits chant anti-government slogans alongside pious women wearing Muslim headscarves. Schoolchildren and bearded anarchists rub shoulders with football fans, well-heeled women in designer sunglasses and elderly couples donating food.

With 3,300 people have been arrested in the previous six days, what began as an environmental protest had “burgeoned into the most widespread unrest Turkey has seen in decades.” A representative from the group Anti-Capitalist Muslims commented, “We were in Taksim Square to resist against the authoritarian governance, police violence and to protect our park.” One businessman commented, “I saw the awful images on the Internet,” referring to the violence at Gezi Park, noting that the protesters “were there having a picnic, protecting the trees, but their tents were burnt and they were forced out with pressurized water, which can be lethal… My conscience was hurt.”

An online survey conducted by two academics from Istanbul Bilgi University over June 3 and 4 noted that the majority of protesters who convened at Taksim, “do not feel close to any political party and have said the prime minister’s authoritarian attitude caused the ongoing protests across the country.” Only 15.3% of those who took the survey said they identified with a specific political party, with 7% saying “the political party they were a member of influenced them in joining the protests.” A large percentage – 92.4% – credited Erdogan’s “authoritarian attitude” as the most influential reason to join the protests, and 91.3% also credited “the police’s disproportionate use of force” as influential. The violation of democratic rights was viewed as influential by 91.1% of respondents, and the silence of the media was seen as a significant motivator by 84.2%, while just over half – 56.2% – said the plan to cut down Gezi Park’s trees was a significant motivator.

The primary demands of protesters, according to the survey, were to bring “an end to police violence” (with 96.7%) and “respect of liberties from now on” (from 96.1% of respondents). Only 37% of survey respondents demanded a new political party be formed, and 79.5% said they did not want a military coup to intervene, with 6.6% wanting a military coup. A majority of the protesters – approximately 81.2% of the survey respondents – described themselves as “libertarian” (not to be confused with the American brand of ‘libertarianism’). Roughly 64.5% of protesters described themselves as “secular,” with 75% saying they were not “conservative.” Approximately 63.6% of the 3000 survey respondents were between the ages of 19 and 30.

While some right-leaning libertarian forums in the United States have happily endorsed the report of 81% of protesters describing themselves in Turkey as “libertarian,” the reality is that the type of libertarian identified in Turkey is more in line with how the term used to be defined and is better understood elsewhere in the world (outside the United States), referring more to left-libertarian, libertarian socialist or anarchist. American libertarians kept the anti-state rhetoric of original libertarianism, but in recent decades adopted the pro-market rhetoric of neoliberalism, a radically different form of what libertarians tend to identify themselves as in the rest of the world.

The French media more correctly interpreted the term as ‘liberal.’ Again, it is important to note that while 81% of survey respondents identified themselves as ‘libertarian,’ almost an equal percentage (75%) indicated that they were “not conservative,” while libertarians in the US tend to identify as conservative.

As some Middle Eastern reporters covering the protests in Turkey noted, the month of May “will go down in Turkish history as a truly memorable chapter,” beginning with the May Day protests of workers, union activists and leftist groups, and ending with the current unrest. The reporter noted that those who went into the streets “were predominantly the young – with a mixture of seculars, socialists, Marxists, Kemalists, anarchists, nationalists, Alevis and Kurds – who manifested high emotions and resolve against what they saw as an insufferably authoritarian way of managing affairs.”

Source: Huffington Post

Source: Huffington Post

While some Western media – such as the New York Times – framed the protests as a struggle between secularism and Islam, this “misses the point completely,” noted one demonstrator, who explained: “Sure, there are hardcore secularists in the crowds. But there are also feminists, LGBT activists, anarchists, socialists of various stripes, Kurdish movements leaders, unionized workers, architects and urban planners, soccer hooligans, environmentalists, and people who are protesting for the firs time!” A reporter with the Turkish publication Radikal noted, “Demonstrators all want different things from this protest… But right now all have united against police violence. Most importantly, they all want to practice their rights to assemble in the streets and squares, to assemble and to protest in peace.”

A reporter with Vice Magazine noted that at the protests one would see “Turkish nationalists next to Muslim anti-capitalists and even Kurds,” as well as “women in head scarves, football hooligans, and anarchists.” Like at any protest, the reporter added, “you see socialist flags and anarchist flags, but… this is clearly not a protest with [a] specific political agenda. Above all, this is a protest about human right, freedom of speech, and democracy.”

A first-person account from the protests in Istanbul noted that the AK Party “is strongest in rural parts of Turkey and resistance to the government has been strongest in the traditionally socially liberal, left-leaning, and more European cities of Istanbul, Ankara and Izmir.” Further, the author noted, “[t]he Turkish Left is larger than anything I’ve ever experienced in the [United] States or the UK and appears to be dominated by Leninists. An anarchist presence seems negligible at best.”

Uprising Turns ‘Markets’ Against Erdogan

By Thursday, June 6, the day of Erdogan’s return to Turkey, over 4000 protesters had been injured and three killed. Erdogan blamed “terror groups” for manipulating the protesters, adding, “We are against the majority dominating the minority and we cannot tolerate the opposite.”

In the city of Izmir, 33 protesters had been arrested for posting what the government defined as “misinformation” on Twitter, though the government decided to release them after the news spread. Protesters, meanwhile, demanded that governors, senior police officials and others “responsible for the violent crackdown be removed from office,” as well as demanding the cancellation of the plan to level Gezi Park. The “Taksim Solidarity Platform” was formed as a leaderless group of academics, architects and environmentalists in order “to protect Taksim Square from development.”

The New York Times reported that the middle class population whom Erdogan’s government “created” is now challenging the government, as they are “committed to individual freedoms.” Thus, college students, primarily of middle class backgrounds, were a major “organizing force in the demonstrations,” as they “set up makeshift clinics, provided legal counsel for those demonstrators arrested and established hot lines for injured people.” The New York Times presented this as “proof” that “economic development leads to more democracy,” ignoring the fact that the most rapid declines in democratic rights and liberties occurred as the economic boom accelerated. If anything, it’s evidence that the Turkish people are simply no longer willing to accept living under military dictatorships, or inauthentic ‘pseudo-democracies’ directed by and for economic oligarchs, or seeking to reverse the declines imposed by the acceleration of neoliberalism, among many other motivating factors. The New York Times article went on to praise Erdogan’s “free-market economics, successfully privatizing Turkey’s moribund public-sector companies,” though unmentioned was the repression of workers’ rights and increases in income inequality and poverty that went with that process.

Indeed, much of the Western media has been confused about how such massive protests could be experienced in the country given the credit of being an “economic miracle.” As one CNN headline declared, “Despite economic boom, Erdogan targeted by protests.”

The growth of the middle class in Turkey was largely facilitated by increasing reliance upon “dependency on external debt, which, at a moment of crisis can leave a country dangerously exposed to market volatility and the whims of investors.” In short, Erdogan’s “Turkish economic miracle” – like most self-proclaimed ‘economic miracles’ – are miraculous illusions, concentrating economic power in a few hands, creating debt-fuelled consumption booms and exposing the country to the diktats of international banks and investors (what a former US Treasury official referred to in the Financial Times as the “global supra-government”). Thus, Turkey’s prosperity “relied on speculative investors from abroad,” with its external debt standing at $413 billion (or 51% of GDP), leading Goldman Sachs analysts to describe it as one of the most indebted economies “in the emerging-market universe.” A Turkish columnist noted: “The influx of foreign capital and growth gave the perception of stability. Now that stability is under question, which puts the influx under question, and throws the ‘economic miracle’ in doubt.”

While the protests have been increasingly drawing out people who are dissatisfied with Erdogan’s economic policies, including a Muslim anti-capitalist group, international investors also expressed worry at Erdogan’s stance toward the protesters, with the chief economist at Finansbank in Istanbul telling the Wall Street Journal that Erdogan’s “combative tone has disappointed the markets,” as the “possible resumption of heavy-handed police response could undermine lira-denominated assets.” In short, as investors note that the protest movement is largely directed against Erdogan himself, they were increasingly wary of continuing support for him and critical of his response to the protests. A managing director with a New York political risk advisory firm, Teneo Intelligence, noted: “Usually Erdogan takes very pragmatic steps and the market likes that. But these protests are unprecedented, he has been cornered like never before and he also faces a different opposition, a weird coalition without leaders… Politics is potentially entering a new phase. It remains to be seen if it will be a phase where political stability is affected and as strong as we have enjoyed in the last six years.”

The Financial Times noted that, “European equity markets fell as investors sold off stocks with exposure to Turkey after a sharp fall on the Istanbul Stock Exchange.” European companies with large exposures in Turkey were experiencing declines in stock value, such as ING, UniCredit, Allianz, and Fiat, which is partnered with Koc Holding. As the New York Times noted, it was “not often that the rock-throwing street protester and the seasoned bond investor see eye to eye.” Fears were mounting among some investors that the “economic boom” in Turkey, which was “built on a mountain of debt… would reach a painful end.” While these warnings “were ignored” in the recent past, the massive protest movement has prompted ‘markets’ to react nervously. Indeed, as London and New York traders look at the scenes of protests and police repression, they do not see a struggle for democracy among repressed peoples – something to be hopeful and encouraging of – but rather, they view them as “scenes of mayhem” which may prompt them to begin “redirecting their money to safer havens.”

Erdogan remained defiant on June 6, declaring: “Public property was damaged during the Gezi Park protests. The Taksim [Square] project is a project that will make Istanbul more beautiful,” referring to the destruction of a park and replacing it with a shopping center (apparently, more beautiful than nature).

Amnesty International again called on the Turkish government “to end the use of excessive force on peaceful protestors which has seen at least one protestor die and over 4,300 people injured.”

The Turkish People Teach the World a Lesson in Democracy

Protests have been held across the world in solidarity with the demonstrators in Turkey, including 150 people in Chicago, further demonstrations in San Diego, hundreds of people gathered in New York at Zuccotti Park (home of the Occupy Wall Street protests), another rally took place outside the White House in Washington, D.C., with other protests in Paris, in Toronto, Vancouver, Montreal, Ottawa, as well as in Geneva, and with significant Turkish populations drawing larger crowds in Berlin and as many as 300 in Amsterdam, Tel Aviv, and significantly, roughly a thousand Greeks marched in support of Turkish protesters, chanting slogans such as, “Authoritarianism is broken on the street, solidarity with the Turkish people,” and “From Taksim Square to Athens, we fight poverty and hunger.” Roughly 500 people showed up to a solidarity protest in Boston with people championing the neologism “Resistanbul!

Erdogan called for an immediate end to the protests, having arrived back in Turkey only to be met by a pro-government rally of supporters chanting slogans such as, “We will die for you, Erdogan” and “Let’s go crush them all.” As he spoke to the crowd of supporters, he declared, “I call for an immediate end to the demonstrations, which have turned into unlawfulness and vandalism.” He further added, “Among the protesters, there are extremists, some of them implicated in terrorism.” As one protester told the media, “It’s all up to Erdogan and what he says right now. He will decide the fate of the resistance, whether it will calm or escalate.”

As an observer from across the other side of the world, I can only say that I hope the fate of the resistance will be – and remain – in the hands of those resisting. There is a great deal to resist against, and the struggle for democracy is not a short one. It is yet to be seen if this will be the ‘Turkish Spring’ or a true uprising or even revolution, but what is clear is this: the Turkish people have arisen en masse like never before, years of isolated struggles for rights and freedoms have come to the center stage of Turkish society, have inspired much of the population, the youth, and the world.

The people are raising their voices and expressing their frustrations, and the world is listening, even if their ‘leaders’ aren’t. The world watches as Turks teach the rest of the world a valuable lesson, a lesson in what democracy really is. Democracy is not voting in occasional elections for competing factions of political elites who serve the same economic oligarchy – both nationally and globally – but rather, democracy and freedom is in the action. In a country with so many jailed journalists, intellectuals, hundreds of imprisoned students, and now thousands of protesters having been injured and arrested, they continue to go out into the streets and struggle for the rights that the state denies them.

Turks are teaching the world that liberty and democracy is not something the state can give – it is something the state takes away – but the only way to gain those rights, liberties, and achieve democracy is to use those very rights you are denied, and thereby, expropriate your freedom from the state. Turks are denied rights to freedom of expression, speech, and assembly, and they express their dissatisfaction with those policies by assembling and speaking, and even though they are met with massive state repression… they continue.

Erdogan has learned his lessons from those he has criticized in the past, from Mubarak and the other Arab dictators. Back in 2011, Erdogan referred to Mubarak in Egypt, stating: “No government can remain oblivious to the democratic demands of its people… There isn’t a government in history that has survived through oppression. Know that governments that turn a blind eye to their people cannot last long.” Erdogan would do well to take his own advice.

For the people of the Western world where our nations are responsible for arming and supporting the brutal tyrants in the rest of the world, providing the equipment and diplomatic support for them to repress their own populations, we would do well to learn some lessons from the Turkish people. The best thing we can do to help the Turkish people in their struggle for liberty and democracy is to take that struggle home, to take it to the beating, pulsing heart of empire.

Let us learn a profound lesson about what liberty and democracy really is, and the type of courage and perseverance it takes to be and act freely and democratically.

Thank you to the people of Turkey for teaching the rest of the world about democracy.

484671_10151683443221271_374055355_n

Andrew Gavin Marshall is an independent researcher and writer based in Montreal, Canada. He is Project Manager of The People’s Book Project, head of the Geopolitics Division of the Hampton Institute, Research Director for Occupy.com’s Global Power Project and hosts a weekly podcast show at BoilingFrogsPost.

Please consider making a donation to help support more independent writing and research.

Notes

[1]       Roy Karadag, “Neoliberal Restructuring in Turkey: From State to Oligarchic Capitalism,” Max Planck Institute for the Study of Societies, Discussion Paper 10/7, page 6.

[2]       Sükrü Ozen and K. Ali Akkemik, “Does Illegitimate Corporate Behaviour Follow the Forms of Polity? The Turkish Experience,” Journal of Management Studies (Vol. 49, No. 3, May 2012), pages 523-524.

[3]       Ingyu Oh and Recep Varcin, “The Mafioso State: state-led market bypassing in South Korea and Turkey,” Third World Quarterly (Vol. 23, No. 4, August 2002), page 719.

[4]       Roy Karadag, op cit., page 12.

[5]       John Lovering and Hade Türkmen, “Bulldozer Neo-liberalism in Istanbul: The State-led Construction of Property Markets, and the Displacement of the Urban Poor,” International Planning Studies (Vol. 16, No. 1, February 2011), page 80.

[6]       Ingyu Oh and Recep Varcin, op cit., pages 718-719.

[7]       Ibid, page 720.

[8]       Devrim Yavuz, “Testing Large Business’s Commitment to Democracy: Business Organizations and the Secular-Muslim Conflict in Turkey,” Government and Opposition (Vol. 45, No. 1, 2010), pages 73, 80-81.

[9]       John Lovering and Hade Türkmen, op cit., page 77.

[10]     Roy Karadag, op cit., page 13.

[11]     Devrim Yavuz, op cit., page 81.

[12]     Ingyu Oh and Recep Varcin, op cit., pages 720-721.

[13]     Roy Karadag, op cit., page 13.

[14]     John Lovering and Hade Türkmen, op cit., page 77.

[15]     Ziya Onis, “Turgat Ozal and his Economic Legacy: Turkish Neo-Liberalism in Critical Perspective,” Middle Eastern Studies (Vol. 40, No. 4, July 2004), pages 115-116.

[16]     Ibid, pages 116-117.

[17]     Roy Karadag, op cit., pages 14-15.

[18]     Ibid, pages 16-17.

[19]     Devrim Yavuz, op cit., pages 81-83.

[20]     John Lovering and Hade Türkmen, op cit., page 78.

[21]     Roy Karadag, op cit., page 18.

[22]     Erinc Yeldan, “Neoliberal Global Remedies: From Speculative-Led Growth to IMF-Led Crisis in Turkey,” Review of Radical Political Economics (Vol. 38, No. 2, Spring 2006), pages 199-200.

[23]     Ziya Onis, op cit., page 117.

[24]     John Lovering and Hade Türkmen, op cit., page 78.

[25]     André Bank and Roy Karadag, “The ‘Ankara Moment’: the politics of Turkey’s regional power in the Middle East, 2007-2011,” Third World Quarterly (Vol. 34, No. 2, 2013), page 293.

[26]     Devrim Yavuz, op cit., pages 84-85.

[27]     Ziya Onis, “Power, Interests and Coalitions: the political economy of mass privatisation in Turkey,” Third World Quarterly (Vol. 32, No. 4, May 2011), pages 12-13.

[28]     Ibid, pages 15-16.

[29]     Devrim Yavuz, op cit., pages 89-91.

Tunisia’s Unfinished Revolution: From Dictatorship to Democracy?

Tunisia’s Unfinished Revolution: From Dictatorship to Democracy?

By: Andrew Gavin Marshall

From the Guardian, 10 February 2013

From the Guardian, 10 February 2013

On January 14, 2011, Tunisia’s 23-year long dictator Ben Ali fled the country he ruled over in the face of a popular uprising which began the previous month. Tunisia represented the spark of what became known as the ‘Arab Spring.’ Over two years later, Tunisians are back in the streets protesting against the new government, elected in October of 2011, now on the verge of collapse as ministers resign, protests increase, clashes erupt, violence flares, and the future remains unknown.

So the question lingers: what went wrong? What happened? Why are Tunisians back in the streets? Is this Tunisia’s “unfinished revolution”?

The Spark

Tunisia had been ruled by President Zine El Abidine Ben Ali from 1987 until the revolution in 2011, a regime marred by corruption, despotism, and repression. While the revolution itself is generally traced to the self immolation of Mohamed Bouazizi, a 26-year old street vendor in the city of Sidi Bouzid, on December 17, 2010, leading to protests and clashes which spread across the country, there was a longer timeline – and other profound changes – which led to the actual revolutionary potential.

Tunisia’s revolution was largely driven by economic reasons, though political and social issues should not be underestimated. Tunisia has a recent history of labour unrest in the country, with the General Union of Tunisian Workers – UGTT – having led protests which were violently repressed in 1978, bread riots in 1984, and more labour unrest in the mining region of Gafsa in 2008. There were also a number of political clashes from the 1990s onward, between the state and the Islamic movement an-Nahda (Ennahda). After the UGTT was repressed in 1978, it was permitted to exist in co-operation with the state, following along the lines of labour and union history within the West itself. While the state felt it had a firm control of Tunisian society, there were growing divides with the youth, who for years would lead their own protests against the state through human rights organizations, the General Union of Tunisian Students (UGET), or other associations.[1]

Within Tunisia, a crisis had emerged among young graduates in higher education from the mid-1990s onward, with a serious lack of employment opportunities for an increasingly educated youth. From this period up until the revolution, most protests in Tunisia were organized by youth in university organizations and student unions, using tactics such as sit-ins, chaining themselves to buildings, or hunger strikes, which were often met with state violence. Suicide had become another tactic of protest, “a political manifesto to highlight a political demand and to underline the social fragility it implies,” in the words of Mehdi Mabrouk from the University of Tunis. This was understood as the “emergence of a culture of suicide,” identified in a study by the United Nations Development Programme (UNDP) as “a culture which disdained the value of life, finding death an easier alternative because of a lack of values and a sense of anomie,” which was “particularly true of unemployed and marginal youth, so that death was more attractive than life under such conditions.”[2] It was within this context that Mohamed Bouazizi’s suicide became the spark for the wider protests, first in Sidi Bouzid, and quickly spreading across the country, with youth leading the way.

With the help of social media, like Facebook and Twitter, the youth activists in Sidi Bouzid were able to share their revolt with the rest of the country and the world, encouraging the spread of the uprising across Tunisia and the Arab world at large. A relative of Bouazizi described the protesters as having “a rock in one hand, a cell phone in the other.” Thus, while Tunisian media ignored the protests in Sidi Bouzid, international media and social media became increasingly involved. Tunisia had 3.6 million internet users, roughly a third of the population, who had access to live news about what was taking place within their country, even though the official national news media did not mention the events until 29 December 2010, twelve days after the protests had begun. The government began to arrest bloggers and web activists in the hopes that the protests would fade or diminish in fear, yet it only motivated the protests further. From the first day, the Sidi Bouzid branch of the General Union of Tunisian Workers (UGTT) was engaged in the protests, while the national leadership of the UGTT was considered to be too close to the regime and national ruling class to act independently. However, the regional branches of the UGTT had “a reputation for gutsy engagement,” wrote Yasmine Ryan in Al-Jazeera. The Sidi Bouzid branch of UGTT was one of the main organizing forces behind the protests, and when protesters were killed in neighbouring regions, it erupted nation-wide. Thus, students, teachers, lawyers, and the unemployed joined together in protest first in Sidi Bouzid, and then across the country.[3]

Dictatorship or Democracy?

Tunisia happened to be a “model US client” in the words of Richard Falk: “a blend of neoliberalism that is open to foreign investment, cooperation with American anti-terrorism by way of extreme rendition of suspects, and strict secularism that translates into the repression of political expression.”[4]

Just in line with the closest of American and Western allies – and ‘clients’ – in the region, the strategy for the West is one of unyielding support for the dictatorship, so long as “stability” and “prosperity” and ensured. The term “security” is a euphemism for control of the population, while “prosperity” is a euphemism for economic exploitation and profit for the rich few, domestically and globally.

American attitudes toward Tunisia were often reflected in diplomatic cables released by Wikileaks, in which as early as 2006 the U.S. Embassy in Tunis reported that the issue of succession from Ben Ali was important, but concluded that, “none of the options suggest Tunisia will become more democratic,” however, despite US rhetoric for support of democracy, the cable noted, “the US-Tunisian bilateral relationship is likely to remain unaffected by the departure of Ben Ali,” that is, assuming the departure does not include a transition to democratic government. If problems arose for Ben Ali, and he became “temporarily incapacitated,” reported the U.S. Embassy, “he could turn over a measure of presidential authority to Prime Minister Mohammed Ghannouchi,” who had close ties to the West and Americans, in particular.[5] Ghannounchi, incidentally, was implanted as the interim president following Ben Ali’s escape to Saudi Arabia in January 2011, though shortly thereafter had to resign due to popular opposition, since he was a high official in Ben Ali’s government.

In July of 2009, a diplomatic cable from the American Embassy in Tunis noted that Tunisia is “troubled,” and that, “many Tunisians are frustrated by the lack of political freedom and angered by First Family corruption, high unemployment and regional inequities.” The Ambassador noted that while America seeks to enhance ties with Tunisia commercially and militarily, there are also major setbacks, as “we have been blocked, in part, by a Foreign Ministry that seeks to control all our contacts in the government and many other organizations.” America had successfully accomplished a number of goals, such as “increasing substantially US assistance to the military,” and “strengthening commercial ties,” yet, “we have also had too many failures.” The same cable noted: “Tunisia is a police state, with little freedom of expression or association, and serious human rights problems.” Ben Ali’s regime relies “on the police for control and focus[es] on preserving power,” while “corruption in the inner circle is growing.” The Embassy noted, however, that with “high unemployment and regional inequalities” in the country, “the risks to the regime’s long-term stability are increasing.”[6]

So how did the United States seek to preserve “stability”? Imperial powers do what they do best: provide the means to continue repression and control. Between 1987, when Ben Ali came to power and 2009, the United States provided the government of Tunisia with a total of $349 million in military aid.[7] In 2010, the United States provided Tunisia with $13.7 million in military aid alone.[8]

Tunisia, which was a former French colony, also had strong relations with France. During the outbreak of the crisis in December of 2010, the French suggested they would help Ben Ali by sending security forces to Tunisia to “resolve the situation” in a show of “friendship” to the regime.[9] The French foreign minister suggested that France could provide better training to Tunisian police to restore order since the French were adept in “security situations of this type.” Jacques Lanxade, a retired French admiral, former military chief of staff and former French ambassador to Tunis noted that the French had “continued public support of this regime because of economic interests,” and added: “We didn’t take account of Tunisian public opinion and thought Ben Ali would re-establish his position.”[10]

This imperial logic has been given terms and justifications from establishment intellectuals and academics in the United States and other Western powers. Academics with the Brookings Institution, an influential U.S. think tank, suggested in 2009 that this was the logic of “authoritarian bargains,” in which dictatorships in the region were able to maintain power through a type of “bargain,” where “citizens relinquish political influence in exchange for public spending,” suggesting that: “non-democratic rulers secure regime support through the allocation of two substitutable ‘goods’ to the public: economic transfers and the ability to influence policy making.”[11]

In 2011, those same academics wrote an article for the Brookings Institution in which they asked if the “Arab authoritarian bargain” was collapsing, noting that as economic conditions deteriorated and unemployment rose, with neoliberal reforms failing to provide economic opportunities for the majority of the populations, the bargain – or “contract” – between dictators and the populations was “now collapsing,” adding that, “the strategies used by Arab leaders to maintain power may have run their course,” noting: “Partial political liberalization may not be enough at this point to make up for the current inability to deliver economic security and prosperity, spelling the final demise of Arab authoritarian bargain.”[12]

F. Gregory Gause III, writing in Foreign Affairs, the establishment journal of the Council on Foreign Relations, the most prominent foreign policy think tank in the United States, referred to this as “authoritarian stability” theory. Following the initial Arab Spring uprisings, he wrote about the “myth” of authoritarian stability, noting that many academics had focused on trying to understand “the persistence of undemocratic rulers” in the region, though implicitly without questioning the imperial relations between the local governments and the dominant Western powers. Gause himself acknowledged that he had written an article for Foreign Affairs in 2005 in which he argued that, “the United States should not encourage democracy in the Arab world because Washington’s authoritarian Arab allies represented stable bets for the future,” and that, “democratic Arab governments would prove much less likely to cooperate with U.S. foreign policy goals in the region.” Gause then reflected in 2011 that, “I was spectacularly wrong.”[13]

Marwan Muasher is vice president for studies at the Carnegie Endowment, a prominent American think tank, and was previously foreign minister and deputy prime minister in the Jordanian dictatorship. Following events in Tunisia, Muasher wrote an article for the Carnegie Endowment in which he explained why the events were not foreseen, noting that: “The traditional argument put forward in and out of the Arab world is that there is nothing wrong, everything is under control.” Thus, wrote Muasher, “entrenched forces argue that opponents and outsiders calling for reform are exaggerating the conditions on the ground,” an argument which he noted, “has been fundamentally undermined by the unfolding events in Tunisia.” Because Tunisia had comparably low economic problems, a small opposition, and a “strong security establishment,” it was thought that “the risk of revolt was considered low.” Muasher wrote: “It wasn’t supposed to happen in Tunisia and the fact that it did proves that fundamental political reforms – widening the decision-making process and combating corruption – are needed around the entire Arab world.”[14]

This concept of “there is nothing wrong, everything is under control,” has been referred to by Noam Chomsky as the “Muasher doctrine,” noting that this has been consistent U.S. policy in the region since at least 1958, when Eisenhower’s National Security Council acknowledged that the US supported dictators and opposed democracy, and that this was a rational policy to serve American interests in the region.[15]

The National Security Council document stated that the Middle East was “of great strategic, political, and economic importance to the Free World,” meaning the West, and United States in particular, and this was largely due to the fact that the region “contains the greatest petroleum resources in the world.” Thus, the National Security Council stated, “it is in the security interest of the United States to make every effort to insure that these resources will be available and will be used for strengthening the Free World.” The document further wrote that: “In the eyes of the majority of Arabs the United States appears to be opposed to the realization of the goals of Arab nationalism,” and that the people in that part of the world “believe the United States is seeking to protect its interest in Near East oil by supporting the status quo and opposing political or economic progress,” which included US support for “reactionary” regimes and America’s “colonial” allies in Europe, notably France and Great Britain. These beliefs, the report noted, were indeed accurate, that “our economic and cultural interests in the area have led… to close U.S. relations with elements in the Arab world whose primary interest lies in the maintenance of relations with the West and the status quo in their countries.”[16]

Acknowledging this, the NSC document stated that instead of “attempting merely to preserve the status quo,” the United States should “seek to guide the revolutionary and nationalistic pressures throughout the area into orderly channels which will not be antagonistic to the West and which will contribute to solving the internal social, political and economic problems of the area.” Though this would of course include providing “military aid to friendly countries to enhance their internal security and governmental stability,” which essentially amounted to maintaining the status quo. The same document also added that, “we cannot exclude the possibility of having to use force in an attempt to maintain our position in the area.”[17]

And so then we come up to present day, where the United States maintains the same policy, as Chomsky suggested, “the Muasher doctrine” of “there is nothing wrong, everything is under control.” But everything is clearly no longer under control, and there are many things that clearly are wrong. Just as the 1958 National Security Council document suggested guiding “revolutionary and nationalistic pressures” into “orderly channels which will not be antagonistic to the West,” so too were US planners in recent years seeking to do the same.

Top US policy planners at the Council on Foreign Relations produced a report – and strategic blueprint – for the United States to follow in 2005, entitled, In Support of Arab Democracy: Why and How, co-chaired by former Clinton-era Secretary of State Madeleine Albright, who sits on the board of the Council on Foreign Relations, the Aspen Institute, and chair of the National Democratic Institute for International Affairs. The other co-chair of the Task Force report was Vin Weber, former Congressman and member of the board of the National Endowment for Democracy (NED), a US-government-supported organization promoting state-capitalist “liberal” democracy around the world, so long as it aligns with U.S. strategic interests. Other members of the Task Force which produced the report held previous or present affiliations with First National Bank of Chicago, Occidental Petroleum, the Carnegie Endowment, the World Bank, Brookings Institution, Hoover Institution, the U.S. State Department, National Security Council, National Intelligence Council, the American Enterprise Institute, the IMF, AOL-Time Warner, and Goldman Sachs.[18] In short, the report was produced by no less than a select group of America’s strategic and intellectual elite.

Published in 2005, the report suggested that “democracy and freedom have become a priority” for the United States in the Middle East, though there are conditions to Washington’s ability and interest in promoting these concepts: “First, does a policy of promoting democracy serve U.S. interests and foreign policy goals? Second, if so, how should the United States implement such a policy, taking into account the full range of its interests?” To the first question, the report suggested that it was in the U.S. interest to promote democracy in the Arab world, noting: “Although democracy entails certain inherent risks, the denial of freedom carries much more significant long-term dangers. If Arab citizens are able to express grievances freely and peacefully, they will be less likely to turn to more extreme measures.”[19] However, as the report noted: “the United States should promote the development of democratic institutions and practices over the long term, mindful that democracy cannot be imposed from the outside and that sudden, traumatic change is neither necessary nor desirable.” Most importantly, the report suggested: “America’s goal in the Middle East should be to encourage democratic evolution, not revolution.”[20]

The United States was not interested in rapid change, since, the report argued, “if Washington pushes Arab leaders too hard on reform, contributing to the collapse of friendly Arab governments, this would likely have a deleterious effect on regional stability, peace, and counterterrorism operations.” The report itself concluded: “While transitions to democracy can lead to instability in the short term, the Task Force finds that a policy geared toward maintaining the authoritarian status quo in the Middle East poses greater risks to U.S. interests and foreign policy goals.”[21]

Thus, when it comes to the issue of choosing between supporting a “dictatorship” or “democracy,” the issue is one of interest: which regime supports U.S. and Western interests better? In the short-term, dictatorships provide “authoritarian stability” and maintain control, however, in the long-term, a transition to a Western-style democratic system allows for less pressure built up against the system, and against the West itself. Dictatorships provide short-term “stability” (i.e., control), while top-down democracies provide long-term “stability.” The question, then, is merely of managing a transition from one to the other, no small task for an imperial power: how to maintain support for a dictator while encouraging the slow evolution of democratic governance.

The issue of “democracy” is further complicated by how it is defined or pursued. For the United States and its Western allies, “democracy” is not the goal, but rather a means to a goal. The goal is, always has been, and always will be, “stability and prosperity,” control and profit. When the dictatorships fail to bring about stability and prosperity, “democracy” – so long as it is constructed along Western liberal state-capitalist lines – will be the preferred option. The European Union, when reporting on its own efforts to promote democracy in the Mediterranean region, noted that, “we believe that democracy, good governance, rule of law, and gender equality are essential for stability and prosperity.”[22] In other words, democracy is not the goal: control and profit is the goal. The means are merely incidental, whether they be through dictatorships, or top-down democratic structures.

The problem in the Arab world is deepened for the United States when one looks at public opinion polls from the region. Just prior to the outbreak of protests in Tunisia, a major Western poll on Arab public opinion was conducted by the University of Maryland and Zogby International, published in the summer of 2010. The results were very interesting, noting that only 5% and 6% of respondents in 2010 believed that “promoting democracy” and “spreading human rights” were the two factors (respectively) which were most important in America’s foreign policy in the region. At the top of the list of priorities, with 49% and 45% respectively, were “protecting Israel” and “controlling oil,” followed by 33% each for “weakening the Muslim world” and “preserving regional and global dominance.” Further, 92% of respondents felt that Iran has a right to its nuclear program if it is peaceful, and 70% feel that right remains even if Iran is seeking nuclear weapons. Roughly 57% of respondents felt that if Iran acquired nuclear weapons, things would be “more positive” for the region, compared to 21% who thought it would be “more negative.” The poll asked which two countries posed the largest threat to the region, with Israel at 88% and the United States at 77%, while Iran was viewed as one of the two major threats to the region by only 10% of respondents, just above China and equal to Algeria.[23]

In other words, if truly representative – or genuine – democracies emerged in the region, they would be completely counter to U.S. strategic interests in the region, and thus, real democracy in the Arab world is not in the American interest. This makes the American strategic interests in the transitions of the ‘Arab Spring’ all the more important to attempt to manage and control. Genuine democracy would bring an end to American and Western hegemony, yet, the “Muasher doctrine” of “everything is under control” has failed in the case of both Tunisia and Egypt. What then, is left for Western interests?

Tunisia’s Transition to “Democracy”

Immediately following Ben Ali’s departure from Tunisia to Saudi Arabia, the land of exiled dictators, a “caretaker” government was quickly established in order to “lead the transition to democracy.” Mohamed Ghannouchi, Ben Ali’s prime minister (and the American favourite to replace him), helped to form a “unity” government, but after one day of existence, four opposition members quit the government, including three ministers from the UGTT trade union, saying they had “no confidence” in a government full of members from Ben Ali’s regime. Hundreds of people, led by trade unionists, took to the streets in protest against the transitional government.[24]

Six members from Ben Ali’s regime appeared in the “unity” government, presided over by the former Parliamentary Speaker Fouad Mebazaa. Ghannouchi stepped down in late February following popular opposition to his participation in the “unity” government, though he was replaced by Ben Ali’s former foreign minister.[25] In February of 2011, the United States offered “military training” to Tunisia in the follow-up to the planned elections for later in the year, to make Tunisia a “model” revolution for the Arab world.[26]

A public opinion poll conducted in Tunisia in May of 2011 revealed that there had been “a steep decline in confidence for the transition period,” noting that in March, a poll revealed that 79% of Tunisians believed the country was headed in the right direction, compared to only 46% who thought so in May. Roughly 73% of Tunisian’s felt that the economic situation was “somewhat bad or very bad,” and 93% of respondents said they were “very likely” to vote in coming elections.[27]

In October of 2011, Tunisians went to the polls for their first democratic election, “the first vote of the Arab spring.” The election was designed to elect an assembly which would be tasked with one mission: to draft a constitution before parliamentary elections. The An-Nadha (Ennahda) party, an Islamist party which was banned under Ben Ali, was expected to receive most of the votes, though most Tunisians felt guarded in terms of seeking to protect their “unfinished revolution.” Lawyers lodged complaints that in the nine months since Ben Ali fled Tunisia, torture and police brutality continued, while human rights activists noted that cronies from Ben Ali’s regime continued to dominate the corrupt judicial system. One human rights activist noted, “We are overwhelmed with cases of human rights abuses. You wouldn’t believe there had been a revolution… Torture is the way things are done, it’s systematic. They have not changed their practices at all,” referring to the police.[28]

On October 23, 2011, the Tunisian elections took place, with the Islamist party Ennahda winning 89 out of 217 seats, after which it joined with two secular parties to form a ruling coalition known as the ‘Troika.’ A year after the Troika had been in power, by October of 2012, Tunisians felt disheartened by the pace of the revolution. One young activist stated that, “They are failing on security, they are failing on the economy, and they are failing when it comes to liberties and rights… They have nothing to do with the revolution. They are completely disconnected.” Amnesty International even noted in October of 2012 that: “The authorities need to seize this historic opportunity and confront the painful legacy of abuse and violations of the pasty and enshrine in law and in practice universal human rights with the aim of making the rule of law a reality in the new Tunisia.”[29]

Rachid Ghannouchi, the party’s chairman (no relation to Mohammed Ghannouchi), said that Ennahda “pledges to continue working with our national partners towards building a national consensus that takes Tunisians forward towards the protection of their revolution and achievement of its aims.” Over the previous year, the opposition within Tunisia had time to develop better than it did prior to the October 2011 elections, with new parties and organizations emerging. One, a decidedly non-mainstream party, the Tunisian Pirate Party, advocates direct democracy and freedom of expression, with its leader stating, “The classic political parties are trying to buy and sell people. The youth of Tunisia, we refuse this masquerade, this system… All they want is power, they don’t listen to us. They have betrayed the people.” On the other hand, the government was facing increasing pressure not only from the left opposition, but from the more conservative Salafists, ultra-conservative Islamists, who reject democracy and want Ennahda to take a firm grip on power.[30]

At the time of Ben Ali’s overthrow, Tunisia had an unemployment rate of 13%, but by the end of 2011 it had risen to 18%, where it remains to this day, and was as high as 44% among young university graduates. Strikes, sit-ins, and protests had continued throughout 2012, and with 800,000 unemployed Tunisians, some were looking to new avenues for answers. The Salafists were providing poor young people with a different path. A former director at Tunisia’s UGTT trade union noted, “Salafism taps its social base into a pool of often deprived people inhabiting the so-called poverty belts surrounding inner cities… The rise of salafism is a socio-economic phenomenon before being a religious one.” Salafists call for a strict enforcement of religious law, and have taken part in protests which shout anti-Semitic and homophobic chants at times, leading many to fear the potential for women’s rights as well as those of various minority groups.[31]

Salafists have also been linked to attacks on individuals and groups, opposition meetings and organizations. When complaints are made to the Ennahda government’s police forces, little is done to address the issues to persecute crimes. Human Rights Watch noted: “There is an unwillingness or an inability to arrest individuals… People have been attacked by people they identify as Salafis; they file a complaint to the judicial police, and in many cases the guy is never arrested.”[32]

The Obama administration sought to contribute to the “stability” of the new regime in Tunisia by providing $32 million in military aid from January of 2011 to spring of 2012.[33] An American General and head of the U.S. Africom (Africa Command) noted that on top of the military aid, the United States was continuing to train Tunisian soldiers, having already trained 4,000 in the previous decade.[34] It would appear to be no less than the Muasher Doctrine with a difference face.

Clashes have increased between opposition parties and trade unionists with pro-government supporters as well as Salafists. In October of 2012, an opposition figure died after clashes between his supporters and pro-government forces calling themselves the League for the Protection of the Revolution.[35] On December 17, 2012, at an event commemorating the two-year anniversary of the protests that began the revolution, angry protesters hurled rocks at the Tunisian president Moncef Marzouki and the parliamentary speaker in Sidi Bouzid. As the president and speaker were hustled away by security forces, protesters chanted, “the people want the fall of the government.”[36]

By December of 2012, it was clear that the frustration of Tunisians unsatisfied with the failure of the subsequent governments to meet their demands was “starting to overflow again.” In late November, the government had even sent troops to Siliana following four days of protests spurred on by demands for jobs and government investment. President Moncef Marzouki stated that, “Tunisia today is at a crossroads,” though admitted that the government had not “met the expectations of the people.” With unemployment remaining at 18%, a third of the unemployed being college graduates, one publishing company owner noted that, “Ben Ali ignored the blinking red lights on the economy, and that is what got him thrown out… The unemployed are an army in a country the size of Tunisia.” Since the revolution, the United States had provided Tunisia with $300 million, with the European Union providing $400 million, and the World Bank approving a $500 million loan, all in an attempt to prop up the new government, though it remained incapable of meeting the demands of its population.[37]

A poll conducted by the International Republic Institute was published in October of 2012, revealing that for Tunisians, “employment, economic development, and living standards were chosen most often as top priorities for the current government,” though 67% of respondents felt the country was moving in the “wrong direction.”[38] In another survey from late 2012, nearly half of Tunisians reported that they were “worse off” since prior to the revolution, with only 14% who felt their personal situation had improved. For Tunisians, the success of the revolution was defined more in terms of economic issues, with 32% stating that democracy “means the distribution of basic necessities – food, clothing, and shelter – to all citizens,” while 27% define democracy as the right to criticize leaders, compared to only 25% who defined it “as alteration of leaders through elections.”[39]

The Second Spark?

On February 6, 2013, a secular party leader and opposition figure, Chokri Belaid, a major critic of the Ennahda government, was assassinated outside of his home, shot in the head and neck, marking the first political assassination in Tunisia since the colonial period. Belaid was a major critic of the government’s failure to prosecute the criminal activities of violent religious groups linked to Salafists and pro-government forces.[40] His death triggered widespread protests, many of which turned violent as government forces dispersed them using tear gas, while Tunisia’s biggest union, the UGTT, called for a general strike. Many felt that Ennahda was responsible for his murder, if not directly then by failing to reign in the radical Islamists.[41]

On February 8, a general strike brought tens of thousands of Tunisians into the streets in protest and in mourning of Chokri Belaid. Belaid was a respected opposition figure, but also a prominent trade unionist and lawyer, and was “one of the most outspoken critics of the post-revolution coalition government led by the moderate Islamist Ennahda party.” The day before his assassination he had appeared on television criticizing the increased political violence in the country. One barrister noted during the protest, “not since colonial times in the early 1950s has Tunisia seen a clear political assassination in the street.” Many spoke out against the shadowy Leagues of the Protection of the Revolution, made up of small groups of men “who are accused of using thugs to stir clashes at opposition rallies and trade union gatherings.” Belaid was a prominent critic of these groups, which he had publicly condemned as being linked to the ruling Ennahda party, a claim the party denies.[42] The president of a Tunisian NGO, Jalila Hedhli-Peugnet, stated that Belaid “was not assassinated under the dictatorship of Ben Ali, now he is assassinated under the democracy of Ennahda.”[43]

Coincidentally, on the day of Belaid’s assassination, Human Rights Watch released a report raising concerns about Tunisia for “the slow pace in reforming security operations and the judiciary, the failure to investigate and prosecute physical assaults by people apparently affiliated with violent groups, and the prosecution of nonviolent speech offenses.” The worry for the region over two years since the Arab Spring began, reported HRW, was whether the new governments would respect human rights, which “will determine whether the Arab uprisings give birth to genuine democracy or simply spawn authoritarianism in new clothes.” Throughout 2012, the courts in Tunisia applied already-existing repressive laws of the Ben Ali dictatorship to persecute nonviolent speech which the government considered harmful to “values, morality, or the public order, or to defame the army.” Artists have been charged for sculpting artwork deemed “harmful to public order and morals,” while two bloggers received prison terms of seven-and-a-half years for writing posts considered “offensive to Islam.” Over 2012, “assaults were carried out against intellectuals, artists, human rights activists, and journalists by individuals or groups who appear to be motivated by a religious agenda.” After reports had been filed on multiple occasions, “the police proved unwilling or unable to find or arrest the alleged attackers.”[44]

In January of 2013, Amnesty International noted that after two years since Ben Ali fled Tunisia, the abuses of the police forces and judicial system had yet to be addressed, specifically in relation to the period of the uprising between 17 December 2010 and just after Ben Ali fled, when roughly 338 people were killed and over 2,000 injured in protests. While Ben Ali was tried in absentia for the killings, only a few members of the security forces had been convicted for killing protesters.[45]

Following the assassination of Belaid, Amnesty International immediately called for an “independent and impartial investigation” into his murder, noting that attacks against political opposition groups had been increasing, and that a meeting which Chokri Belaid had attended the Saturday before his murder was violently attacked and that Belaid had been receiving death threats. The Middle East and North Africa Deputy Director at Amnesty International noted: “Two years after the ousting of former President Ben Ali, there is an increasing mistrust in the institutions that are supposed to protect human rights and Tunisians will not be satisfied with a sham investigation.”[46]

Following the assassination, Tunisian Prime Minister Hamadi Jebali suggested that the coalition government should dissolve and form a non-partisan, technocratic government, though this was immediately rejected by members of his Ennahda party itself. All across Tunisia, a general strike was observed while tens of thousands took to the streets in multiple cities to mark the funeral of Belaid and to protest the government, often clashing with security forces.[47]

The Congress for the Republic (CPR), a secular party which was a member of the coalition government and whose leader, Moncef Marzouki, is president of Tunisia, said on Sunday February 10 that its party members would quit the government in protest against the handling of the political crisis, as tensions between the parties continued to accelerate. Meanwhile, pro-Ennadha government supporters also took to the streets, though in significantly less numbers than the opposition, to voice their support for the government.[48]

Thus, with the Tunisian government on the verge of collapse, with the people seemingly on the verge of another uprising, and with increasing tensions between secular and Islamist groups, Tunisia continues its unfinished revolution. It is tempting to draw the comparison to Egypt, where the Islamist Muslim Brotherhood party holds power, and where the population is again rising up against the government and in support of the revolutionary ideals which led them into the streets two years prior. As thousands again took to the streets in Egypt on February 8, they were met with riot police and tear gas.[49] It would appear that the Western-sponsored attempts to prop up Islamist governments to establish control over their populations is backfiring. Where the revolution goes, only posterity can say, but one thing is clear: the unfinished revolution in Tunisia – as elsewhere – is only finished, and democracy is only achieved, when the people themselves have made it and declared it to be so.

For those of us in the West, we must acknowledge that there is a stark contrast between the rhetoric and reality of our nations, as in, the difference between what our governments say and do. For all the blather and trumpeting about democracy we hear, the actions of our nations go to arming, training, and supporting repressive regimes, whether they take the form of secular authoritarian dictatorships, or Islamist “democratic” coalitions.

As we continue our own struggle for democracy at home, whether it is students in the streets of Quebec, Indignados in Spain, anarchists in Greece, Occupy Wall Street activists in New York, or the indigenous movement of Idle No More, we must realize that the same tax dollars which are used to have the police assault and repress protesters at home, are also used to assault, repress, and kill our brothers and sisters abroad in Tunisia, Egypt, Bahrain, and beyond. Their revolution is our revolution. Their democracy is our democracy. Their freedom is our freedom. And their future… is our future.

Andrew Gavin Marshall is an independent researcher and writer based in Montreal, Canada, with a focus on studying the ideas, institutions, and individuals of power and resistance across a wide spectrum of social, political, economic, and historical spheres. He has been published in AlterNet, CounterPunch, Occupy.com, Truth-Out, RoarMag, and a number of other alternative media groups, and regularly does radio, Internet, and television interviews with both alternative and mainstream news outlets. He is Project Manager of The People’s Book Project and has a weekly podcast show with BoilingFrogsPost.

 

Notes

[1]       Mehdi Mabrouk, “A Revolution for Dignity and Freedom: Preliminary Observations on the Social and Cultural Background to the Tunisian Revolution,” The Journal of North African Studies (Vol. 16, No. 4, December 2011), pages 626-627.

[2]       Ibid, pages 629-629.

[3]       Yasmine Ryan, “How Tunisia’s revolution began,” Al-Jazeera, 26 January 2011:

http://www.aljazeera.com/indepth/features/2011/01/2011126121815985483.html

[4]       Richard Falk, “Ben Ali Tunisia was model US client,” Al-Jazeera, 25 January 2011:

http://www.aljazeera.com/indepth/opinion/2011/01/201112314530411972.html

[5]       US Embassy Cables, “US embassy cables: Finding a successor to Ben Ali in Tunisia,” The Guardian, 17 January 2011:

http://www.guardian.co.uk/world/us-embassy-cables-documents/49401

[6]       The US Embassy Cables, “US embassy cables: Tunisia – a US foreign policy conundrum,” The Guardian, 7 December 2010:

http://www.guardian.co.uk/world/us-embassy-cables-documents/217138

[7]       Daya Gamage, “Massive U.S. Military Aid to Tunisia despite human rights abuses,” Asian Tribune, 18 January 2011:

http://www.asiantribune.com/news/2011/01/18/massive-us-military-aid-tunisia-despite-human-rights-abuses

[8]       NYT, “Challenges Facing Countries Across North Africa and the Middle East,” The New York Times, 17 February 2011:

http://www.nytimes.com/interactive/2011/02/17/world/middleeast/0217-mideast-region-graphic.html

[9]       Samer al-Atrush, “Tunisia: Why the Jasmine Revolution won’t bloom,” The Telegraph, 16 January 2011:

http://www.telegraph.co.uk/news/worldnews/africaandindianocean/tunisia/8261961/Tunisia-Why-the-Jasmine-Revolution-wont-bloom.html

[10]     Steven Erlanger, “France Seen Wary of Interfering in Tunisia Crisis,” The New York Times, 16 January 2011:

http://www.nytimes.com/2011/01/17/world/africa/17france.html

[11]     Raj M. Desai, Anders Olofsgard, and Tarik M. Yousef, “The Logic of Authoritarian Bargains,” Economics & Politics (Vol. 21, No. 1, March 2009), pages 93-94.

[12]     Raj M. Desai, Anders Olofsgard and Tarik Yousef, “Is the Arab Authoritarian Bargain Collapsing?,” The Brookings Institution, 9 February 2011:

http://www.brookings.edu/research/opinions/2011/02/09-arab-economies-desai-yousef

[13]     F. Gregory Gause III, “Why Middle East Studies Missed the Arab Spring: The Myth of Authoritarian Stability,” Foreign Affairs (Vol. 90, No. 4, July/August 2011), pages 81-82.

[14]     Marwan Muasher, “Tunisia’s Crisis and the Arab World,” the Carnegie Endowment for International Peace, 24 January 2011:

http://carnegieendowment.org/2011/01/24/tunisia-s-crisis-and-arab-world/1n0e

[15]     Noam Chomsky, “Is the world too big to fail?,” Al-Jazeera, 29 September 2011:

http://www.aljazeera.com/indepth/opinion/2011/09/201192514364490977.html

[16]     Document 5, “National Security Council Report,” Foreign Relations of the United States, 1958-1960, Vol. 12, Near East Region; Iraq; Iran; Arabian Peninsula, 24 January 1958.

[17]     Ibid.

[18]     Madeleine Albright and Vin Weber, In Support of Arab Democracy: Why and How (Council on Foreign Relations Task Force Report, 2005), pages 49-54.

[19]     Ibid, pages 3-4.

[20]     Ibid, page 4.

[21]     Ibid, pages 12-13.

[22]     Michelle Pace, “Paradoxes and contradictions in EU democracy promotion in the Mediterranean: the limits of EU normative power,” Democratization (Vol. 16, No. 1, February 2009), page 42.

[23]     Report, “2010 Arab Public Opinion Poll: Results of Arab Opinion Survey Conducted June 29-July 20, 2010,” The Brookings Institution, 5 August 2010:

http://www.brookings.edu/research/reports/2010/08/05-arab-opinion-poll-telhami

[24]     Angelique Chrisafis, “Tunisia’s caretaker government in peril as four ministers quit,” The Guardian, 18 January 2011:

http://www.guardian.co.uk/world/2011/jan/18/tunisia-caretaker-government-ministers-quit

[25]     “Tunisia: Key players,” BBC, 27 February 2011:

http://www.bbc.co.uk/news/world-africa-12214649

[26]     Tarek Amara, “US offers Tunisia security aid for ‘model’ revolution,” Reuters, 21 February 2011:

http://www.reuters.com/article/2011/02/21/tunisia-turkey-idAFLDE71K1P020110221

[27]     “IRI Releases Tunisia Poll,” International Republican Institute, 12 July 2011:

http://www.iri.org/news-events-press-center/news/iri-releases-tunisia-poll-0

[28]     Angelique Chrisafis, Katharine Viner, and Becky Gardiner, “Tunisians go to the polls still in the shadow of the old regime,” The Guardian, 22 October 2011:

http://www.guardian.co.uk/world/2011/oct/22/tunisian-elections-ben-ali

[29]     Yasmine Ryan, “Tunisian politicians struggle to deliver,” Al-Jazeera, 23 October 2012:

http://www.aljazeera.com/indepth/features/2012/10/20121023195656868113.html

[30]     Ibid.

[31]     Anne Wolf and Raphael Lefevre, “Tunisia: a revolution at risk,” The Guardian, 18 April 2012:

http://www.guardian.co.uk/commentisfree/2012/apr/18/tunisia-revolution-at-risk

[32]     Alice Fordham, “Tunisia’s revolution and the Salafi effect,” The National, 11 September 2012:

http://www.thenational.ae/news/world/africa/tunisias-revolution-and-the-salafi-effect#full

[33]     “Obama administration doubles military aid to Islamist-led Tunisia,” World Tribune, 27 April 2012:

http://www.worldtribune.com/2012/04/27/obama-administration-doubles-military-aid-to-islamist-led-tunisia/

[34]     AFP, “U.S. Gave Tunisia $32 million in Military Aid: General,” Defense News, 24 April 2012:

http://www.defensenews.com/article/20120424/DEFREG04/304240005/U-S-Gave-Tunisia-32-million-Military-Aid-General

[35]     “Tunisia clash leaves opposition official dead,” Al-Jazeera, 19 October 2012:

http://www.aljazeera.com/news/africa/2012/10/201210196219774432.html

[36]     Agencies, “Angry crowd hurls stones at Tunisian leaders,” Al-Jazeera, 17 December 2012:

http://www.aljazeera.com/news/africa/2012/12/20121217113425585914.html

[37]     Neil MacFarquhar, “Economic Frustration Simmers Again in Tunisia,” The New York Times, 1 December 2012:

http://www.nytimes.com/2012/12/02/world/africa/economic-frustration-simmers-again-in-tunisia.html?pagewanted=all&_r=0

[38]     “IRI Poll: Employment, Economy Most Important Priorities for Tunisians,” International Republican Institute, 3 October 2012:

http://www.iri.org/news-events-press-center/news/iri-poll-employment-economy-most-important-priorities-tunisians

[39]     Lindsay J. Benstead, Ellen Lust, and Dhafer Malouche, “Tunisian Revolution Is Work in Progress,” The Epoch Times, 27 December 2012:

http://www.theepochtimes.com/n2/opinion/tunisian-revolution-is-work-in-progress-328934.html

[40]     Editorial, “An Assassination in Tunisia,” The New York Times, 8 February 2013:

http://www.nytimes.com/2013/02/09/opinion/the-assassination-of-chokri-belaid-in-tunisia.html?_r=0

[41]     Eric Reguly, “Chaos in Tunisia tarnishes a revolution’s success story,” The Globe and Mail, 7 February 2013:

http://www.theglobeandmail.com/news/world/chaos-in-tunisia-tarnishes-a-revolutions-success-story/article8329058/

[42]     Angelique Chrisafis, “Tunisia gripped by general strike as assassinated Chokri Belaïd is buried,” The Guardian, 8 February 2013:

http://www.guardian.co.uk/world/2013/feb/08/tunisia-general-strike-belaid-buried

[43]     Rachel Shabi, “Tunisia is no longer a revolutionary poster-child,” The Guardian, 7 February 2013:

http://www.guardian.co.uk/commentisfree/2013/feb/07/tunisia-no-longer-revolutionary-poster-child

[44]     HRW, “Tunisia: Slow Reform Pace Undermines Rights,” Human Rights Watch, 6 February 2013:

http://www.hrw.org/news/2013/02/06/tunisia-slow-reform-pace-undermines-rights

[45]     “Document – Tunisia: Two years since the uprising, justice must be done and be seen to be done,” Amnesty International, 14 January 2013:

http://www.amnesty.org/en/library/asset/MDE30/002/2013/en/2788b8d3-9ef1-4f35-91ce-b07db7ac093c/mde300022013en.html

[46]     Press Releases, “Tunisia: Urgent need for investigation into Chokri Belaid’s killing,” Amnesty International, 6 February 2013:

http://www.amnesty.org/en/for-media/press-releases/tunisia-urgent-need-investigation-chokri-belaid-s-killing-2013-02-06

[47]     “Tunisia mourns murdered politician Chokri Belaid,” BBC, 8 February 2013:

http://www.bbc.co.uk/news/world-africa-21381617

[48]     Angelique Chrisafis, “Tunisian president’s party ‘to withdraw from coalition’,” The Guardian, 10 February 2013:

http://www.guardian.co.uk/world/2013/feb/10/tunisia-government-crisis

[49]     “Egypt protests turn violent,” Al-Jazeera, 8 February 2013:

http://www.aljazeera.com/news/middleeast/2013/02/201328173524471174.html

Cash Hoarding, Tax Evasion, and the Corporate Coup

Cash Hoarding, Tax Evasion, and the Corporate Coup

By: Andrew Gavin Marshall

The following is Part 3 of my three-part exclusive series for Occupy.com

Part 1: Welcome to the Network of Global Corporate Control

Part 2: The “Real” Recovery: Welcome to the Network of Global Corporate Control

mappemonde-article

Corporate profits are good, right? Low taxes on corporations are also good, right? With high profits and low taxes, corporations have large amounts of money to “invest” in new businesses and jobs, meaning everyone else benefits. This is what we are told by politicians, it is what the majority of economists are taught to think, and it’s what corporate executives and their spokespeople say constantly so therefore it must be true…right?

Let’s get a reality check.

With record-breaking profits and record-low taxes, the truth is that corporations around the world have been hoarding record-high amounts of cash while finding legal loopholes to pay less, or none, of their taxes.

Holding trillions of dollars in cash would, in theory, allow corporations to invest in new businesses and create jobs: the old promise of trickle down economics. Instead, corporations have decided to firmly hold on to their cash, perhaps in preparation for the next financial crisis (which their refusal to invest in new opportunities and jobs is helping to create).

Or perhaps the executives are only waiting for our standards of living to decline far enough that austerity and “adjustment” policies produce desirable “investment environments” like those in existence across the “Third World,” where unhindered corporate plundering and exploitation is the norm.

In 2010, Apple recorded roughly $13 billion in foreign profits but paid a negligible $130 million in taxes, par for the course for giant corporations. The result of Apple and other multinationals getting away with tax loopholes means disastrous consequences for governments. Google, for example, is able to move its billions in profits out of Europe, paying almost no taxes there as it deposits the revenues into the company’s administrative headquarters in Bermuda, where there is no corporate income tax.

Tax havens and loopholes allow corporations to move around globally, creating a problem for national governments that seek to tax corporations at higher rates by establishing a “race to the bottom” in competition for reduced corporate taxes. Belgium, for example, with one of the highest corporate tax rates in the world, at roughly 34%, collects far less from companies due to its own tax loopholes.

The average tax rate for the 50 most profitable companies in Belgium – which totaled some 27 billion euros in profits in 2010 – was a mere 1.04%. Thus, as the government considers establishing a “minimum tax rate” of 12.5% to ensure revenue for the debt-ridden country, others fear that establishing such a rule would simply lead to corporations leaving the country and migrating to other tax havens across Europe.

As reported in Der Spiegel, “[a]n international treaty could prevent corporations from outsmarting countries,” however, “so far not even the European Union has been able to harmonize the rules of its member states.” Obviously, such an endeavor is not high on the priority list for European and international decision makers, which is hardly surprising since their main interest is in serving global corporations and banks.

At the same time that reports emerged last fall about major European and international corporations avoiding taxes, the Wall Street Journal wrote in November of 2012 that the continent’s biggest banks were “continuing to stash more money at central banks” rather than investing it, hoarding a combined total of $1.43 trillion in cash on reserve at several central banks.

Since 2010, the major banks have increased their cash hoarding by 84%. French bank Société Générale reportedly held 81 billion euros ($103 billion) at central banks in the third quarter of 2012.

This hoarding frenzy is happening even as banks across Europe continue to receive national and international bailouts, while demanding that countries further impoverish their populations through austerity measures so as to pay back their bad debts. This is a year after the European Central Bank provided 1 trillion euros to the continent’s banks in short-term cheap loans, supposedly “to jump-start lending to the businesses, individuals and other financial institutions.”

As the Wall Street Journal stated bluntly: “Across Europe, corporations are sitting on a mountain of cash.” Despite their massive reserves of cash, major corporations aren’t spending, and thus “one possible way out of Europe’s economic crisis – a big boost in business investment – is closed off.” According to the Institute of International Finance, the principle international banking lobby, this is common practice across most “mature and emerging economies.” Collectively, corporations in the United States, the Eurozone, the U.K. and Japan held roughly $7.75 trillion in cash, “an unprecedented sum.”

The Centre for European Reform, a think tank in London, reported that the ratio of investment to gross domestic product is at a 60-year low as corporations hoard more cash than ever before — money which, in theory, could facilitate investment. In the Eurozone, corporate cash hoarding reached roughly 2 trillion euros (or $2.64 trillion). Meanwhile, austerity policies in European countries has led to a predictable retraction of growth, which in turn has led to more corporate hoarding.

Moving over to the U.S., it was reported in 2011 that corporations there had been hoarding cash to a larger degree than at any time in nearly half a century, with non-financial companies holding more than $2 trillion by the end of June 2011. This figure only acknowledged domestic cash hoarding by U.S. corporations, and didn’t include their foreign earnings. According to released IRS documents in 2009, major corporations, which held $1.7 trillion in cash from domestic operations, held a total of $5.13 trillion when including foreign cash assets.

As recently as 2008, the Government Accountability Office reported that despite trillions in earnings for corporations, the majority of U.S. and foreign-based corporations doing business in the United States managed to avoid paying any income taxes, with 72% of foreign and 57% of U.S. conglomerates successfully avoiding paying income tax for at least one year between 1998 and 2005.

Between 2008 and 2010, 30 large and profitable U.S. corporations paid no income taxes, even though the U.S. corporate tax rate was officially 35%. Among the companies that avoided paying any taxes were General Electric, PG&E and Boeing. Congress and state governments have encouraged the establishment of “pass-throughs,” allowing corporations to avoid paying any taxes by “passing” the profits along to investors.

This has been an exception given to businesses for decades, though the percentage of nontaxable corporations has rapidly grown, from 24% in 1986 to 69% in 2008, allowing private-equity giants like Blackstone Group and construction firms like Bechtel Group to avoid paying any taxes on their revenue.

In 2011, despite the 35% tax rate for corporations, the ten largest corporations in the United States paid an average federal tax rate of 9%, including companies like Exxon Mobil, Apple, Microsoft, JP Morgan Chase, and General Electric. Not surprisingly, the eight corporations that spent the most money on lobbying had lower tax rates, including Exxon Mobil, Verizon, GE, AT&T, Altria, Amgen, Northrop Grumman, and Boeing.

In 2010, when General Electric recorded worldwide profits of $14.2 billion, with $5.1 billion coming from operations within the United States, the company – one of the largest in the world – managed to pay no taxes at all, and, in fact, claimed a tax benefit of $3.2 billion. Between 2008 and 2011, 280 of the largest publicly traded American corporations paid an average tax rate of 18.5% on their profits, just slightly over half of what the actual tax rate is and less than most of their competitors in foreign industrialized countries.

Canadian companies have also been hoarding mountains of cash, not to be left on the sidelines by their American and Europe-based counterparts. In fact, it was reported that Canada’s corporations had hoarded more than half a trillion dollars in cash reserves, about $525 billion, by the end of 2011. This amounted to almost a third of the size of the entire economy, with at least 45% of Canada’s biggest corporations hoarding cash instead of investing or creating jobs.

Cash hoarding also allows companies to avoid paying taxes, giving companies further reason to not invest. In the U.K., corporate cash hoarding amounted to roughly $1.2 trillion, about half the size of the British economy — though small compared to the $5.1 trillion hoarded in the United States, an amount larger than the GDP of Germany. An analyst at Ernst & Young stated, “Until these companies stop stashing the cash and start increasing levels of investment and dividends, the economy will remain on the critical list.”

Over the previous 22 years, the biggest American banks created more than 10,000 subsidiaries around the world, “using legal structures to pay lower taxes and escape tighter regulation,” according to figures released from the Federal Reserve. JP Morgan Chase, the largest American lender, had 3,391 subsidiaries, followed closely by Goldman Sachs, Morgan Stanley, and Bank of America, each with over 2,000 subsidiaries. Citigroup maintained over 1,500 global subsidiaries.

Since the repeal of the Glass-Steagall Act in 1999 (which had been put in place in 1933 to avoid another Great Depression), the big banks got even bigger, with even the Federal Reserve admitting that the law’s repeal was the “main catalyst” for the growth in the size of banks, whose assets tripled since that time to $15 trillion.

The combined assets of the five largest banks in the United States in 2011 was roughly $8.5 trillion, equal to 56% of the U.S. economy, compared to five years earlier, before the financial crash, when the total assets of these banks equaled roughly 43% of the American economy. The five banks – JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and Goldman Sachs – are twice as large now as they were ten years ago.

The facts are in. The reality is this:

Big banks, corporations, and powerful states created the global economic crisis for which the people of the world are forced to pay, and suffer, with declining wages, decreased opportunities, increased debt and expanding poverty. Meanwhile, those who created the crisis make record profits, pay little or no taxes, hoard trillions in cash, and fail to “invest” their revenues.

The question is now, what are we going to do about it?

Andrew Gavin Marshall is an independent researcher and writer based in Montreal, Canada, with a focus on studying the ideas, institutions, and individuals of power and resistance across a wide spectrum of social, political, economic, and historical spheres. He has been published in AlterNet, CounterPunch, Occupy.com, Truth-Out, RoarMag, and a number of other alternative media groups, and regularly does radio, Internet, and television interviews with both alternative and mainstream news outlets. He is Project Manager of The People’s Book Project and has a weekly podcast show with BoilingFrogsPost.

Follow

Get every new post delivered to your Inbox.

Join 1,141 other followers