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I have recently launched a Kickstarter campaign to try to raise money to support my efforts to finish the first book of what will likely be a series on ‘Power Politics and the Empire of Economics’.
What I am asking of my readers is not only to consider donating to the project, but more importantly, to share and promote it through social media, by sending it to others who you think may be interested, and to help get the word out in any way you can!
Every bit helps, and a great deal of help is needed if this is to be successful!
I have collected below links to the campaign, as well as a video I made to promote it, and links to the sample introduction chapter that I published online so that potential patrons could read the kind of material that they would be supporting.
About the Project:
This book will tell the stories of the rich and powerful oligarchs and family dynasties who collectively rule our world: the global Mafiocracy, operating behind-the-scenes playing their games of power politics, globalization’s Game of Thrones where rich and influential families play their games, balancing collusion and cooperation with fierce competition to rule the world Empire of Economics.
In 1975, Henry Kissinger told President Ford: “The trick in the world now is to use economics to build a world political structure.”
This book is that story.
A small network of banks and other financial institutions dominate the global economy, its wealth and resources. This small network of corporate power functions as a global financial Mafia, complete with excessive criminal behaviour in laundering drug money, funding terrorists, rigging interest rates and manipulating markets.
Name a nation, and there are rich dynasties that rule behind the scenes. The Rockefellers in the United States, the Rothschilds in France and Britain, the Agnelli family in Italy, the Wallenbergs in Sweden, the Tata family of India and Oppenheimers of South Africa, the Koc and Sabanci families of Turkey, the Gulf Arab monarchs and the rich industrial families of Germany with dark Nazi pasts.
Germany once again rules Europe, with the European Union’s institutions of unelected technocrats undertaking a process of internal colonization as they impose their economic empire upon Greece, Spain, Italy, Ireland, Portugal and Cyprus. Finance ministers and central bankers are the agents of empire, cooperating closely with bankers, oligarchs and dynasties to create a world which best serves their interests. The global financial Mafia mingles with political leaders at forums and secret meetings like the Bilderberg group, the Trilateral Commission and the World Economic Forum.
From the streets of Athens, to Egypt, Turkey, Brazil, Spain, China, South Africa, Chile, Canada, and in the streets of Ferguson and Baltimore, people are rising up against exploitation, repression and domination.
This book is not simply a collection of stories of the ruling Mafiocracy; it is designed to encourage strategy among popular and revolutionary movements capable of creating something altogether new. It is time to do away with a world ruled by oligarchs, and save the species from itself. But first, we must know our world better.
Help me to complete the first book in a series on ‘Power Politics and the Empire of Economics’. For four years I have been doing my own research, scouring the archives of the New York Times, Wall Street Journal, Financial Times, government documents, official reports and corporate strategies, studying the world of power and empire, translating the political language of ‘economics’ into plain and simple English.
I have been published in multiple news sources, online and in print, interviewed by radio and television networks, and now I am asking for your help to raise $10,000 so that I can finish the first book in this series, to expose the Empire for all to see, its strengths as well as the weaknesses left exposed for us to exploit. Let us bring true democracy and an end to Mafiocracy. Help me to write this book, and together, let’s help each other to end the Empire.
Donate today. Thank you.
Andrew Gavin Marshall
World Economic Forum 2015: Global Governance In a World of Resistance
By: Andrew Gavin Marshall
26 January 2015
This article and its accompanying infographic have been jointly published by the Transnational Institute and Occupy.com.
The annual meetings of the World Economic Forum (WEF) in Davos, Switzerland, bring together thousands of the world’s top corporate executives, bankers and financiers with leading heads of state, finance and trade ministers, central bankers and policymakers from dozens of the world’s largest economies; the heads of all major international organizations including the IMF, World Bank, World Trade Organization, Bank for International Settlements, UN, OECD and others, as well as hundreds of academics, economists, political scientists, journalists, cultural elites and occasional celebrities.
The WEF states that it is “committed to improving the state of the world through public-private cooperation,” collaborating with corporate, political, academic and other influential groups and sectors “to shape global, regional and industry agendas” and to “define challenges, solutions and actions.” Apart from the annual forum meeting in Davos, the WEF hosts regional and sometimes even country-specific meetings multiple times a year in Asia, Latin America, Africa and elsewhere. The Forum is host to dozens of different projects bringing together academics with corporate representatives and policy-makers to promote particular issues and positions on a wide array of subjects, from investment to the environment, employment, technology and inequality. From these projects and others, the Forum publishes dozens of reports annually, identifying key issues of importance, risks, opportunities, investments and reforms.
The WEF has survived by adapting to the times. Following the surge of so-called anti-globalization protests in 1999, the Forum began to invite non-governmental organizations representing constituencies that were more frequently found in the streets protesting against meetings of the WTO, IMF and Group of Seven. In the 2000 meeting at Davos, the Forum invited leaders from 15 NGOs to debate the heads of the WTO and the President of Mexico on the subject of globalization. The participation of NGOs and non-profit organizations has increased over time, and not without reason. According to a poll conducted on behalf of the WEF just prior to the 2011 meeting, while global trust in bankers, governments and business was significantly low, NGOs had the highest rate of trust among the public.
In an interview with the Wall Street Journal last September, the founder and executive chairman of the WEF, Klaus Schwab, was asked about the prospects of “youth frustration over high levels of underemployment and unemployment” as expressed in the Arab Spring and Occupy Wall Street movements, noting that the Forum was frequently criticized for promoting policies and ideologies that contribute to those very problems. Schwab replied that the Forum tries “to have everybody in the boat.” Davos, he explained, “is about heads of state and big corporations, but it’s also civil society – so all of the heads of the major NGOs are at the table in Davos.” In reaction to the Occupy Wall Street movement, Schwab said, “We also try… to put more emphasis on integrating the youth into what we are doing.”
So, what exactly has the World Economic Forum been doing, and how did it emerge in the first place?
It began in 1971 as the European Management Forum, inviting roughly 400 of Europe’s top CEOs to promote American forms of business management. Created by Schwab, a Swiss national who studied in the U.S. and who still heads the event today, the Forum changed its name in 1987 to the World Economic Forum after growing into an annual get together of global elites who promoted and profited off of the expansion of “global markets.” It is the gathering place for the titans of corporate and financial power.
Despite the globalizing economy, politics at the Forum have remained surprisingly national. The annual meetings are a means to promote social connections between key global power players and national leaders along with the plutocratic class of corporate and financial oligarchs. The WEF has been a consistent forum for advanced “networking” and deal-making between companies, occasional geopolitical announcements and agreements, and for the promotion of “global governance” in a world governed of global markets.
Writing in the Financial Times, Gideon Rachman noted that more than anything else, “the true significance of the World Economic Forum lies in the realm of ideas and ideology,” noting that it was where the world’s leaders gathered “to set aside their differences and to speak a common language… they restate their commitment to a single, global economy and to the capitalist values that underpin it.” This reflected the “globalization consensus” which was embraced not simply by the powerful Group of Seven nations, but by many of the prominent emerging markets such as China, Russia, India and Brazil.
Indeed, the World Economic Forum’s main purpose is to function as a socializing institution for the emerging global elite, globalization’s “Mafiocracy” of bankers, industrialists, oligarchs, technocrats and politicians. They promote common ideas, and serve common interests: their own.
Geopolitics, Global Governance and the Arrival of the “Davos Class”
The World Economic Forum has been shaped by – and has in turn, shaped – the course and changes in geopolitics, or “world order,” over the past several decades. Created amidst the rise of West Germany and Japan as prominent economic powers competing with the United States, the oil shocks of the 1970s also produced immense new powers for the Arab oil dictatorships and the large global banks that recycled that oil money, loaning it to Third World countries.
New forums for “global governance” began to emerge, such as the meetings of the Group of Seven: the heads of state, finance ministers and central bank governors of the seven leading industrial powers including the U.S., West Germany, Japan, U.K., France, Italy and Canada, starting in 1975. When the debt crisis of the 1980s hit, the International Monetary Fund and the World Bank achieved immense new powers over entire economies and regions, reshaping the structure of societies to promote “market economies” and advance the interests of domestic and international corporate and financial oligarchs.
Between 1989 and 1991, the global power structure changed dramatically with the fall of the Berlin Wall and the collapse of the Soviet Union. With that came President George H.W. Bush’s announcement of a “New World Order” in which America claimed “victory” in the Cold War, and a unipolar world took shape under the hegemony of the United States. The ideological war between the West and the Soviet Union was declared victorious in favor of Western Capitalist Democracy. The “market system” was to become globalized as never before, especially under the presidency of Bill Clinton who led the U.S. during its largest ever economic expansion between 1993 and 2001.
During this time, the annual meetings of the World Economic Forum became more important than ever, and the role of the WEF in establishing a “Davos Class” became widely acknowledged. At the 1990 meeting, the focus was on Eastern Europe and the Soviet Union’s transition to “market-oriented economies.” Political leaders from Eastern Europe and Western Europe met in private meetings, with West German Chancellor Helmut Kohl articulating his desire to reunify Germany and cement Germany’s growing power within the European Community and NATO.
Helmut Kohl laid out his strategy for shaping the “security and economic structure of Europe” within a unified Germany. Kohl’s “grand design” for Europe envisioned a unified Germany as being “firmly anchored” in the expanding European Community, the main objective of which was to establish an “internal market” by 1992 and to advance toward an economic and monetary union, with potential to expand eastward. Kohl presented this as a peaceful way for German power to grow while assuaging fears of Eastern Europeans and others about the economically resurgent country at the heart of Europe.
At the 1992 WEF meeting, the United States and reunified Germany encouraged “drastic steps to insure a liberalization of world trade,” and furthered efforts to support the growth of market economies in Eastern Europe. The German Economics Minister called for the Group of Seven to meet and restart global trade talks through the 105-nation General Agreement on Tariffs and Trade (GATT). At that same meeting, the Chinese delegation included Prime Minister Li Peng, who was the highest-level Chinese official to travel internationally since the 1989 Tiananmen Square crackdown.
Of great significance also was the attendance of Nelson Mandela, the new president of South Africa. When Mandela was released from prison in 1990, he declared the policy of the African National Congress (ANC) was to implement “the nationalization of the mines, banks and monopoly industries.” When Mandela attended the January 1992 meeting of the WEF just after becoming president, he changed his views and embraced “capitalism and globalization.” Mandela attended the meeting alongside the governor of the central bank of South Africa, Tito Mboweni, who explained that Mandela arrived with a speech written by ANC officials focusing on nationalization. As the week’s meetings continued, Mandela met with leaders from Communist Parties in China and Vietnam, who told him, “We are currently striving to privatize state enterprises and invite private enterprise into our economies. We are Communist Party governments, and you are a leader of a national liberation movement. Why are you talking about nationalization?”
As a result, Mandela changed his views, telling the Davos crowd that he would open South Africa up as a market economy and encourage investment. South Africa subsequently became the continent’s fastest growing economy, though inequality today is greater than it was during apartheid. As Mandela explained to his official biographer, he came home from the 1992 WEF meeting and told other top officials that they had to choose: “We either keep nationalization and get no investment, or we modify our own attitude and get investment.”
At the 1993 meeting, the main consensus that had emerged called for the U.S. to maintain its position as a global economic and military power, and for it to take the lead encouraging greater “co-operation” between powerful nations. The major fear among Davos participants was that while economies were becoming globalized, politics was turning inward and becoming “renationalized.”
Later that year, Anthony Lake, Bill Clinton’s National Security Adviser, articulated the “Clinton Doctrine” for the world, explaining: “The successor to a doctrine of containment must be a strategy of enlargement – enlargement of the world’s free community of market democracies.” Lake explained that the United States “must combine our broad goals of fostering democracy and markets with our more traditional geostrategic interests.” No doubt, the Davos crowd welcomed such news.
At the 1994 meeting, the director-general of GATT, Peter D. Sutherland, declared that world leaders needed to establish “a new high-level forum for international economic co-operation,” moving beyond the Group of Seven to become more inclusive of the major “emerging market” economies. Sutherland told the assembled plutocrats that “we cannot continue with the majority of the world’s people excluded from participation in global economic management.” Eventually, the organization Sutherland described was formed, as the Group of 20, bringing the leading 20 industrial and economic powers together in one setting. Formed in 1999, the G20 didn’t become a major forum for global governance until the 2008 financial crisis.
In 1995, the Financial Times noted that the new “buzzword” for international policymakers was “global governance,” articulating a desire and strategy for updating and expanding the institutions and efforts of international co-operation. The January 1995 World Economic Forum meeting was the venue for the presentation of an official UN report on global governance. President Clinton addressed the Davos crowd by satellite, stressing that he would continue to push for the construction of a new “economic architecture,” notably at meetings of the Group of Seven.
In 1997, the highly influential U.S. political scientist Samuel Huntington coined the term “Davos Man,” which he described as a group of elite individuals who “have little need for national loyalty, view national boundaries as obstacles that are thankfully vanishing, and see national governments as residues from the past whose only useful function is to facilitate the elite’s global operations.” An article that year in The Economist came to the defense of the “Davos Man,” declaring that he was replacing traditional diplomacy which was “more likely to bring peoples together than to force them apart,” noting that the WEF was “paid for by companies and run in their interests.”
Samuel Huntington presented a thesis, summarized in a 1997 Financial Times article, that outlined a world that “would be divided into spheres of influence,” within which “one or two core states would rule the roost.” Huntington noted that the “Davos culture people,” while extremely powerful, were only a tiny fraction of the world’s population, and the leaders of this faction “do not necessarily have a secure grip on power in their own societies.” The Financial Times, however, noted that while the “Davos culture people” did not constitute a “universal civilization” being such a tiny minority of the world’s population, “they could be the vanguard of one.”
Russian Oligarchs and the Rise of China
In fact, at the previous year’s meeting in Davos, the World Economic Forum functioned precisely as the vanguard for seven Russian oligarchs to take control of Russia and shape its future. At the 1996 meeting of the WEF, the Russian delegation was made up largely of the country’s new oligarchs who had amassed great fortunes in the transition to a market economy. Their great worry was that Russian President Boris Yeltsin would lose his re-election later that year to the resurgence of the Communists. At the WEF meeting, seven Russian oligarchs, led by Boris Berezovsky, formed an alliance during private meetings, where they decided to fund Yeltsin’s re-election and work together to “reshape their country’s future.” This alliance (or cartel, as some may refer to it), was the key to Yeltsin’s re-election victory later that year, as they held weekly meetings with Yeltsin’s chief of staff, Anatoly Chubais, the architect of Russia’s privatization program that made them all so rich.
Berezovsky explained that if the oligarchs did not work together to promote common ends, it would be impossible to have a transition to a market economy “automatically.” Instead, he explained, “We need to use all our power to realize this transformation.” As the Financial Times noted, the oligarchs “assembled a remarkable political machine to entrench and promote the market economy – as well as their own financial interests,” as the seven men collectively controlled roughly half the entire Russian economy.
Anatoly Chubais commented on this development and the role of the oligarchs, saying: “They steal and steal and steal. They are stealing absolutely everything and it is impossible to stop them… But let them steal and take their property. They will then become owners and decent administrators of this property.”
In the 1990s, with the spread of global markets came the spread of major financial crises: in Mexico, across Africa, East Asia, Russia and then back to Latin America. At the WEF meeting in 1999, the key issue was “reform of the international financial system.” As the economic crises spread, the Group of Seven nations, and the Davos Class, told the countries in crisis that in order “to restore confidence [of the markets], they should adopt politically unpopular policies of radical structural reform,” promoting further liberalization and deregulation of markets to open themselves up to Western corporate and financial interests and ‘investment.’
The major emerging markets have been frequent participants in annual Davos meetings, providing a forum in which national elites may become acquainted with the global ruling class, with whom they then cooperate and do business. China has been a major feature at Davos meetings. China started sending more high-level delegations to the WEF in the mid-1980s. During the 2009 meeting, two prominent speakers were President Putin of Russia and the Chinese Prime Minister Wen Jiabao. Both leaders painted a picture of the crisis as emanating from the centers of finance and globalization in the United States and elsewhere, with the “blind pursuit of profit” and “the failure of financial supervision” – in Wen’s words – and bringing about what Putin described as a “perfect storm.” Both Wen and Putin, however, declared their intentions to work with the major industrial powers “on solving common economic problems.”
In 2010, China’s presence at Davos was a significant one. Prime Minister Wen Jiabao, who attended the previous year, was not to return. In his stead, his chosen successor, Li Keqiang, attended. China’s economy was performing better than expected as its government was coming under increases pressure from major global corporations.
Kristin Forbes, a former member of the White House Council of Economic Advisers and an attendee at Davos, commented, “China is the West’s greatest hope and greatest fear… No one was quite ready for how fast China has emerged… Now everyone is trying to understand what sort of China they will be dealing with.” China sent its largest delegation to date to the World Economic Forum, with a total of 54 executives and government officials, many of whom were intending to “go shopping” for clients among the world’s elite.
Li Keqiang, the future Chinese prime minister, told the Davos audience that China was going to shift from its previous focus on exports and turn to “boosting domestic demand,” which would “not only drive growth in China but also provide greater markets for the world.” Li explained that China would “allow the market to play a primary role in the allocation of resources.”
In 2011, The New York Times declared that the World Economic Forum represented “the emergence of an international economic elite” that took place at the same time as unprecedented increases in inequality between the rich and poor, particularly in the powerful countries but also in the fast-emerging economies. Chrystia Freeland wrote that “the rise of government-connected plutocrats is not just a phenomenon in places like Russia, India and China,” but that the major Western bailouts reflected what the former chief economist at the IMF, Simon Johnson, referred to as a “quiet coup” by bankers in the United States and elsewhere.
Davos and the Financial Oligarchy
The power of global finance – and in particular, banks and oligarchs – has grown with each successive financial crisis. As the financial crisis tore through the world in 2008, the January 2009 meeting of the World Economic Forum featured less of the Wall Street titans and more top politicians. Schwab declared, “The pendulum has swung and power has moved back to governments,” adding that “this is the biggest economic crisis since Davos began.” Goldman Sachs, which in past years was “renowned for hosting one of the hottest parties at the World Economic Forum’s glittering annual meeting in Davos,” had cancelled its 2009 party. Nonetheless, Jamie Dimon, CEO of JPMorgan Chase, decided to continue with his plans to host a Davos party.
In 2010, thousands of delegates assembled to discuss the “important’ issues of the day. And despite the reputation of banks and bankers being at all-time lows, top executives of the world’s largest financial institutions showed up in full force. The week before the meeting, President Obama called for the establishment of laws to deal with the “too big to fail” banks, and European leaders were responding to the anger of their domestic populations for having to pay for the massive bailouts of financial institutions during the financial crisis.
Britain and France were discussing the prospect of taxing banker bonuses, and Mervyn King, governor of the Bank of England, suggested the possibility of breaking up the big banks. Several panels at the WEF meeting were devoted to discussing the financial system and its possible regulation, as bankers like Josef Ackermann of Deutsche Bank suggested that they would agree to limited regulations (at least on “capital requirements”).
More important, however, were plans for a series of private meetings of government representatives and bank chiefs, who would meet separately, and then together, in Davos. Roughly 235 bankers were to attend the summit – a 23% increase from the previous year. Global bankers and other corporate leaders were worried, and warned the major governments in attendance against the financial repercussions of pursuing “a populist crackdown” against banks and financial markets. French President Nicolas Sarkozy spoke to the Forum’s guests about a need for a “revolution” in global financial regulation, and for “reform of the international monetary system.”
The heads of roughly 30 of the world’s largest banks held a private meeting at Davos “to plot how to reassert their influence with regulators and governments,” noted a report on Bloomberg. The “private meeting” was a precursor to a later meeting at Davos involving top policymakers and regulators. Brian Moynihan, CEO of Bank of America, said of the assembled bankers, “We’re trying to figure out ways that we can be more engaged.” According to Moynihan, a good deal of the closed-door discussion “was about tactics, such as who the executives should approach and when.” The CEO of UBS, a major Swiss bank, commented that “it was a positive meeting, we’re in consensus.” The bankers said they were aware that some new rules were inevitable, but they wanted to encourage regulators and countries to coordinate the rules through the Group of 20, revived in 2009 as the premier forum for international cooperation and “global governance.”
Josef Ackermann, CEO of Deutsche Bank, suggested that “we should stop the bank bashing,” and affirmed that banks had a “noble role” to play in managing the economic recovery. Christine Lagarde, France’s Finance Minister and current Managing Director of the IMF, encouraged a “dialogue” between governments and banks, saying, “That’s the only way we’re going to get out of it.” Later that week, the bankers met “behind closed doors with finance ministers, central bankers and regulators from major economies.”
The key message from finance ministers, regulators and central bankers was a political one: “They [the banks] should accept more stringent regulation, or face more draconian curbs from politicians responding to an angry public.” Guillermo Ortiz, who had just left his post as governor of the central bank of Mexico, said, “I think banks have misjudged the deep feelings of the public regarding the devastating effects of the crisis.” French President Sarkozy stated that “there is indecent behavior that will no longer be tolerated by public opinion in any country of the world,” and that bankers giving themselves excessive bonuses as they were “destroying jobs and wealth” was “morally indefensible.”
As the 2011 Davos meeting began, Edelman, a major communications consultancy, released a report that revealed a poll conducted among 5,000 wealthy and educated individuals in 23 countries, considered to be “well-informed.” The results of the poll showed there to be a massive decline in trust for major institutions, with banks taking the biggest hit. Prior to the financial crisis in 2007, 71% of those polled expressed trust in banks compared with a new low of 25 percent in 2011.
Despite the lack of public trust in banks and financial institutions, Davos remains devoted to protecting and expanding the interests of the financial elite. In fact, the Foundation Board of the World Economic Forum (its top governing body) includes many representatives of the world of finance and global financial governance. Among them are Mukesh Ambani, who sits on advisory boards to Citigroup, Bank of America and the National Bank of Kuwait; and Herman Gref, the CEO of Sberbank, a large Russian bank. Ernesto Zedillo, the former President of Mexico who is also a member of the board, currently serves as a director on the boards of Rolls Royce and JPMorgan Chase, international advisory boards to BP and Credit Suisse, an adviser to the Bill & Melinda Gates Foundation, and is a member of the Group of Thirty and the Trilateral Commission as well as sitting on the board of one of the world’s most influential economic think tanks, the Peterson Institute for International Economics.
Also notable, Mark Carney, the governor of the Bank of England, is a member of the Foundation Board of the World Economic Forum. Carney started his career working for Goldman Sachs for 13 years, after which he was appointed as Deputy Governor of the Bank of Canada. After a subsequent stint in Canada’s Ministry of Finance, Carney returned to the Bank of Canada as governor from 2008 to 2013, when he became the first non-Briton to be appointed as head of the Bank of England in its 330-year history. From 2011 to present, Carney has also been the Chairman of the Financial Stability Board, run out of the Bank for International Settlements in Basel, Switzerland.
Apart from heading the FSB, Mark Carney is also a board member of the BIS, which serves as the central bank for the world’s major central banks. He is also a member of the Group of Thirty, a private and highly influential think tank and lobby group that brings together dozens of the most influential economists, central bankers, commercial bankers and finance ministers. Carney has also been a regular attendee at annual meetings of the Bilderberg Group, an even more-exclusive “invite only” global conference than the WEF.
Though there are few women among the WEF’s membership – let alone its leadership – Christine Lagarde has made the list, while simultaneously serving as the managing director of the IMF. She previously served as the French finance minister throughout the course of the financial crisis. Lagarde also attends occasional Bilderberg meetings, and is one of the most powerful technocrats in the world. Min Zhu, the deputy managing director of the IMF, also sits on the WEF’s board.
Further, the World Economic Forum has another governing body, the International Business Council, first established in 2002 and composed of 100 “highly respected and influential chief executives from all industries,” which “acts as an advisory body providing intellectual stewardship to the World Economic Forum and makes active contributions to the Annual Meeting agenda.”
The membership of the WEF is divided into three categories: Regional Partners, Industry Partner Groups, and the most esteemed, the Strategic Partners. Membership fees paid by corporations and industry groups finance the Forum and its activities and provide the member company with extra access to meet delegates, hold private meetings and set the agenda. In 2015, the cost of an annual Strategic Partner status with the WEF had increased to nearly $700,000. Among the WEF’s current strategic partners are Bank of America, Barclays, BlackRock, BP, Chevron, Citi, Coca-Cola, Credit Suisse, Deutsche Bank, Dow Chemical, Facebook, GE, Goldman Sachs, Google, HSBC, JPMorgan Chase, Morgan Stanley, PepsiCo, Siemens, Total, and UBS, among others.
Depending on its finances from these sources, as well as being governed by individuals from these and others institutions, it is no surprise that Davos promotes the interests of financial and corporate power above all else. This is further evident on matters related to trade.
Davos and “Trade”
Trade has been another consistent, major issue at Davos meetings – which is to say, the promotion of powerful corporate and financial interests has been central to the functions of the WEF. As the Wall Street Journal noted, “it is pretty much a tradition that trade ministers meet at Davos with an informal meeting.” At the 2013 meeting, U.S. Trade Representative Ron Kirk explained at Davos that the Obama administration was “committed to reaching an agreement to smooth trade with the European Union,” saying in an interview that “we greatly value the trans-Atlantic relationship.” The week’s meetings suggested that there “were signs of progress toward a trade accord.” Thomas J. Donohue, the president of the U.S. Chamber of Commerce, who was present at Davos, commented that “half a dozen senior leaders in Europe are ready to move forward.”
In fact, at the previous Davos meeting in January 2012, high level U.S. and EU officials met behind closed doors with the Transatlantic Business Dialogue (TABD), a major corporate grouping that promotes a U.S.-E.U. “free trade” agreement. The TABD was represented at the meeting by 21 top corporate executives, and was attended by U.S. Trade Representative Kirk, WTO Director-General Pascal Lamy, the European Commissioner for Trade, Karel De Gucht, other top technocrats, and Obama’s Deputy National Security Adviser for International Economic Affairs, Michael Froman (who is now the U.S. Trade Representative). The result of the meeting was the release of a report on a “Vision for the Future of EU-US Economic Relations,” which called “to press for urgent action on a visionary and ambitious agenda.” The meeting also recommended the establishment of a “CEO Task Force” to work directly with the “High Level Working Group” of trade ministers and technocrats to chart a way forward.
Just prior to the 2013 meeting in Davos, the TABD corporate group merged with another corporate network to form the Transatlantic Business Council (TBC), a group of top CEOs and chairmen of major corporations, representing roughly 70 major corporations. The purpose of the TBC was to hold “semi-annual meetings with U.S. Cabinet Secretaries and European Commissioners (in Davos and elsewhere).” At the Davos 2013 meeting, the TBC met behind closed doors with high level officials from the U.S. and EU. Michael Froman, who would replace Ron Kirk as the U.S. Trade Rep, spoke at the meeting, declaring that “the transatlantic economy is to become the global benchmark for standards in a globalized world.”
The following month, the U.S. and EU “High Level Working Group” released its final report in which it recommended “a comprehensive trade and investment agreement” between the two regions. Two days after the publication of this report, President Obama issued a joint statement with European Council President Herman Van Rompuy and European Commission President José Manuel Barroso, in which they announced that “the United States and the European Union will each initiate the internal procedures necessary to launch negotiations on a Transatlantic Trade and Investment Partnership,” or TTIP. At the announcement, Kirk declared the sectors that will fall under the proposed agreement, stating that, “for us, everything is on the table, across all sectors, including the agricultural sector.”
The World Economic Forum in a World of Unrest
Perhaps most interestingly, the World Economic Forum has been consistently interested in the prospects of social unrest, protests and resistance movements, particularly those that directly confront the interests of corporate and financial power. This became particularly true following the mass protests in 1999 against the World Trade Organization, which disrupted the major trade talks taking place in Seattle and marked the ascendency of what Davos called the “anti-globalization movement.”
These issues were foremost on the minds of the Davos Class as they met less than two months later in Switzerland for the annual WEF meeting in 2000. The New York Times noted that as President Clinton attempted to address the issue of restoring “confidence in trade and globalization” at the WEF, global leaders – particularly those assembled at Davos – were increasingly aware of the new reality that “popular impressions of globalization seem to have shifted” with growing numbers of people, including the protesters in Seattle, voicing criticism of the growing inequality between rich and poor, environmental degradation and financial instability. The head of the WTO declared that “globalism is the new ‘ism’ that everyone loves to hate… There is nothing that our critics will not blame on globalization and, yes, it is hurting us.”
The guests included President Clinton, British Prime Minister Tony Blair and Mexican President Ernesto Zedillo, along with the leaders of South Africa, Indonesia, Malaysia and Finland, among others. The head of the WTO and many of the world’s trade ministers were also set to attend, hoping to try to re-start negotiations, though protesters were also declaring their intention to disrupt the Forum’s meeting. With these worries in mind, the Swiss Army was deployed to protect the 2,000 members of the Davos Class from being confronted by protesters.
As the World Economic Forum met again in January of 2001 in Davos, “unprecedented security measures” were taken to prevent “hooligans” from disrupting the meeting. On the other side of the world, in Porto Alegre, Brazil, roughly 10,000 activists were expected to converge for the newly-formed World Social Forum, a counter-forum to Davos that represented the interests of activist groups and the Third World. As the Davos Class met quietly behind closed doors, comforted by the concrete blocks and razor wire that surrounded the small town, police on the other side of the fence beat back protesters.
In the wake of the financial crisis, the WEF meeting in 2009 drew hundreds of protesters to Davos and Geneva where they were met by riot police using tear gas and water cannons. Inside the Forum meeting, French Finance Minister Christine Lagarde warned the assembled leaders, “We’re facing two major risks: one is social unrest and the second is protectionism.” She noted that the task before the Davos Class was “to restore confidence in the systems and confidence at large.” Protesters assembled outside held signs reading, “You are the Crisis.”
The January 2012 WEF meeting took place following a year of tumultuous and violent upheavals across the Arab world, large anti-austerity movements across much of Europe, notably with the Indignados in Spain, and the Occupy Wall Street movement just months prior in the United States and across much of the world. As the meeting approached, the WEF announced in a report that the top two risks facing business leaders and policy makers were “severe income disparity and chronic fiscal imbalances.” The report warned that if these issues were not addressed it could result in a “dystopian future for much of humanity.” The Occupy Movement had taken the issue of inequality directly to Davos, and there was even a small Occupy protest camp constructed at Davos.
As the Financial Times noted, “Until this year  the issue of inequality never appeared on the risk list at all, let alone topped it.” At the heart of it was “the question of social stability,” with many Davos attendees wondering “where else unrest might appear.” Beth Brooke, the global vice chair of Ernst & Young, noted that “countries which have disappearing middle classes face risks – history shows that.”
With citizens taking to city streets and protesting in public squares from Cairo to Athens and New York, the Financial Times noted that discontent was “rampant,” and that “the only consistent messages seem to be that leaders around the world are failing to deliver on their citizens’ expectations and that Facebook and Twitter allows crowds to coalesce in an instant to let them know it.” For the 40 government leaders assembling in Davos, “this is not a comforting picture.”
In Europe, democratically elected leaders in Italy and Greece had been removed and replaced with economists and central bankers in a technocratic coup only months earlier, largely at the behest of Germany. Mario Draghi, the head of the European Central Bank (ECB), was perhaps “the most powerful leader in Europe,” though an Occupy movement had sprung up at the headquarters of the ECB in Frankfurt as well.
During the Forum, Occupy protesters outside clashed with police. Stephen Roach, a member of the faculty at Yale University and a chairman of Morgan Stanley Asia, wrote an article in the Financial Times describing his experiences as a panelist at the “Open Forum,” held on the last day of the Davos gathering, in which citizens from the local community could participate along with students and Occupy protesters. The topic he discussed was “remodeling capitalism,” which, Roach wrote, “was a chance to open up this debate to the seething masses.” But the results were “disturbing” as “chaos erupted immediately” with chants from Occupy protesters denouncing the forum and calling for more to join them. Roach wrote that it was “unruly and unsettling” and he “started thinking more about an escape route than opening comments.”
Once the discussions began, Roach found himself listening to the first panelist, a 24-year-old Occupy protester named Maria who expressed anger at “the system” and that there was a “need to construct a new one based on equality, dignity and respect.” Other panelists from the WEF included Ed Miliband from the U.K., a UN Commissioner, a Czech academic and a minister from the Jordanian dictatorship. Roach noted that compared to Maria from Occupy, “the rest of us on the panel spoke a different language.”
Having spent decades as a banker on Wall Street, Roach confessed that “it as unsettling to engage a hostile crowd whose main complaint is rooted in Occupy Wall Street,” explaining that he attempted to focus on his expertise as an economist, “speaking over hisses.” He explained that all of his “expert” insights on economics “hardly moved this crowd.” Maria from Occupy, Roach wrote, got the last word as she stated, “The aim of Occupy is to think for yourself. We don’t focus on solutions. We want to change the process of finding solutions.” As “the crowd roared its approval,” Roach “made a hasty exit through a secret door in the kitchen and out into the night.” Davos, he wrote, “will never again be the same for me. There can be no retreat in the battle for big ideas.”
In October of 2013, The Economist reported that “from anti-austerity movements to middle-class revolts, in rich countries and in poor, social unrest has been on the rise around the world.” A World Economic Forum report from November 2013 warned of the dangers of a “lost generation” that would “be more prone to populist politics,” and that “we will see an escalation in social unrest.” Over the course of 2013, major financial institutions such as JPMorgan Chase, UBS, HSBC, AXA and others were issuing reports warning of the dangers of social unrest and rebellion. JPMorgan Chase, in its May 2013 report, stated that Europe’s “adjustment” to its new economic order was only “halfway done on average,” warning of major challenges ahead. The report complained about laws hindering the advancement of its agenda, such as “constitutional protection of labor rights… and the right to protest if unwelcome changes are made to the political status quo.”
The 2014 meeting of the World Economic Forum drew more than 40 heads of state, including then-president of Ukraine, Viktor Yanukovich, as well as Mexico’s Enrique Pena Nieto, Japanese Prime Minister Shinzo Abe, British Prime Minister David Cameron, Brazilian Presient Dilma Rousseff, Iranian President Hassan Rouhani, Israeli Prime Minister Benjamin Netanyahu and Nigeria’s Goodluck Jonathan. U.S. Treasury Secretary Jacob Lew and prominent central bankers such as Mario Draghi and Mark Carney also attended alongside IMF Managing Director Christine Lagarde and World Bank president Jim Yong Kim.
As the meeting began, a major report by the World Economic Forum was published, declaring that the “single biggest risk to the world in 2014” was the widening “gap between rich and poor.” Thus, income inequality and “social unrest are the issue[s] most likely to have a big impact on the world economy in the next decade.” The report warned that the world was witnessing the “lost generation” of youth around the world who lack jobs and opportunities, which “could easily boil over into social upheaval,” citing recent examples in Brazil and Thailand.
Brazilian President Dilma Rousseff is due to attend the annual Davos meeting this week. But just prior to that meeting, violent protests erupted in the streets of Brazil in opposition to austerity measures imposed by President Rousseff, recalling “the beginnings of the mass street demonstrations that rocked Brazil in June 2013.” One wonders whether Rousseff will be attending next year’s meeting of the WEF, or whether she will still even be president.
Indeed, the growth and power of the Davos Class has grown with – and spurred – the development of global unrest, protests, resistance movements and revolution. As Davos welcomes the global plutocrats to 2015, no doubt they’ll be reminded of the repercussions of the “market system” as populations around the world remind their leaders of the power of people.
It’s Not Easy Being Young in This World: Help the “Lost Generation” Find its Way
17 March 2014
By: Andrew Gavin Marshall
It’s not easy being young in this world. And I live in Canada; what does that say? I am 26-years old, in debt, a university dropout – in “the only nation in the world where more than half its residents can proudly hang college degrees up on their walls” – according to a 2012 study by the OECD; a position Canada has held as the “most educated country” in the world since 2000. Yet, I am not among those who are officially deemed ‘educated’ and so my job prospects are glimmer, still.
In 2011, one of Canada’s leading newspapers – the Globe and Mail – reported that 78 million young people were without work around the world, “well above pre-recession levels.” The head of the International Labour Organization warned that the “world economy” was unable “to secure a future for all youth,” which “undermines families, social cohesion and the credibility of policies.” Noting that there was “already revolution in the air in some countries,” unemployment and poverty were “fuel for the fire.” The head of the International Monetary Fund (IMF) had previously warned that youth unemployment in poor nations was “a kind of time bomb.” It is the threat of a “lost generation” of youth that is radically altering the lives of youth – and everyone else – in the world today.
Beyond the Arab Spring uprisings of the Middle East – and the counterrevolutions, coups, civil and imperial wars that have accompanied them, seeking to co-opt, control or crush them – has been the massive unrest spreading across much of Europe, notably in south, central, and eastern Europe. This great unrest has accompanied the economic, financial, and debt crises which have gripped Europe in recent years, with countries imposing ruthless economic policies that impoverish the populations and make them ripe for exploitation by multinational corporations, while keeping them under the harsh boot of militarized police and increasingly authoritarian states, where fascism is once again on the rise.
But in Canada – the world’s most “polite” nation – where more than half of the population have degrees, roughly one in three university graduates (of 25 to 29 years old) “ends up in a low-skilled job,” low paid and part-time, while 60% of these graduates leave school with an average debt of $27,000. This, noted CBC’s Doc Zone, “is a ticking time bomb with serious consequences for everyone.” Young Canadians are “overeducated and underemployed.” We “are entering an economy in the throes of a seismic shift where globalization and technology are transforming the workplace.” An added challenge is that, “for the first time in history youth are facing… competition with their parents’ generation for the small pool of jobs that do exist.”
Canada’s youth have continued to be referred to as a “lost generation” whose future is of “people without jobs and jobs without people.” But this is not merely a Canadian phenomenon. The OECD – the Organisation for Economic Cooperation and Development, an economic think tank representing the world’s 34-or-so richest nations – noted that the threat of a “lost generation” was global. Canada’s youth unemployment rate was at around 15% – for 15-24 year-olds – while in Spain and Greece it had risen above 50%, as was reflected in the increasing social unrest.
Canadian youth are unemployed at a rate double the national jobless rate of 7.2%, the “biggest gap between youth and adult unemployment rates since 1977.” Youth are – due to lack of experience – twice as likely to be laid off as older, more experienced workers. A July 2013 report by one of Canada’s largest banks – CIBC – stated that there were 420,000 youth (15-24) who were “neither employed nor enrolled in school… basically on the sidelines doing nothing.”
The CIBC report more-or-less bluntly stated – that is, blunt for bankers – that: “The current environment of part-time work, temporary jobs, corporate and government restructuring and downsizing is especially tough on young people whose lack of experience and seniority make them much more vulnerable to labour market changes.” In other words, we’re fucked. As the bankers continued to explain, while youth may be enrolling in schools more, staying in schools for longer, degrees are “no longer enough.” Schools must more and more become “training grounds” for corporate employment. Education will also have to become more expensive, require more debt, and thus, become increasingly privatized and specialized, so as to ensure that fewer people gain access to it. Instead of going to school, the bank suggested, “Do whatever it takes to make you different.”
I thought it would be a cold day in Hell before I followed advice from a banker, but here I am (cold it may be), trying to do what makes me “different.” So what the hell do I do? This is a question that has plagued many of my friends, my family, and indeed, myself.
My general cookie-cutter answer to the question of ‘what it is I do’ sounds something like this: I research and write about ideas, institutions and individuals of power, and methods and movements of resistance. That is, at least, the most succinct way that I know how to explain it. But perhaps it is time to go into a little more detail about what I do, and what I have done thus far.
I started doing research and submitting my writing to various alternative news websites back when I was about 19-years-old, still a university student in Vancouver, studying Political Economy and History. After a year or so of submitting articles, I received a job offer from one of the sites I was submitting to – Global Research – and began working as a Research Associate. I eventually moved to Montreal to be closer to my work, and when I was 22, we published a book on the economic crisis that I co-edited with my boss and in which I contributed three of my own chapters, covering issues related to central banks, think tanks and global governance.
When I was 24, I decided to move on, in part to protect the autonomy of a book I had started working on, and in part due to personality differences (and clashes). While I valued my newfound freedom, I chose a risky path. I was left as a 24-year-old unemployed non-French-speaking Anglophone in the French-speaking province of Quebec. My options were limited. At the time, it seemed that it came down to working at a call center, as a dishwasher, or going on welfare. Instead, I chose to try to chart my own way, to try to find a way to make money and survive doing what I love, and what I had developed skills for: research and writing. It was at this time that I decided to re-imagine my plan for writing my book, and I launched The People’s Book Project in the fall of 2011.
The objective was – as it remains – to crowd-fund my efforts to research and write one – and what later became a series of books undertaking an institutional analysis of power structures, to dissect and expose the ideologies, institutions and individuals that wield enormous power over the world.
From the time that I began The People’s Book Project until today, it has been a whirlwind of challenges, opportunities and growth. There were several people who, from the early days of the Project, contributed financial resources to allow me to continue with my work. It is never easy trying to live off of the kindness of strangers, from donations sent from around the globe. It’s not exactly a stable source of finances, and while one month may seem to be worry-free, the next month I could be broke. My family also stepped in to help me along my way, often subsidizing my efforts to a large degree as well. Thanks to my family, friends and strangers from around the world who have donated, The People’s Book Project is still continuing to this day, with thousands of pages of written research, rough drafts of chapters, and various edits compiled. One book became many, and with the growth of research, the analysis and understanding changes with time.
But circumstances also had a way of changing my focus. In early 2012, I decided to return to university, this time in Montreal. I enrolled and only signed up for one class (History of Haiti), since I wanted to continue devoting most of my time to my work. Within a month or so of returning to school, students from across the province of Quebec went on strike against the government’s plan to dramatically increase tuition costs (and in effect, to double the debt load most students would have to take on).
Suddenly, so much of what I had been writing about was happening right outside my window, on the streets, at my school, in the city where I lived. Hundreds of thousands of students protested, riot cops called into my school, charged by riot police for peacefully assembling, thousands of students were arrested, as police shot protesters with rubber bullets, tear-gas, ran them over with cars, vans and horses, until the government itself declared protests themselves to be illegal. The whole city rose up in response, and it was perhaps the most inspiring thing I have ever been personally witness to.
At that time, I chose to contribute to the student movement in the only way I knew how: to research and write. I was reading the English-language coverage of the student movement from within Quebec and across the rest of the country. What I was reading was about how “spoiled little brats” in Canada’s most “entitled” province were complaining and rioting about our government raising tuition when the rest of Canada had higher tuition (and debt to go with it). What I was reading was a world away from what I was seeing, hearing and experiencing. I decided that I would write about that story.
Very quickly, my writing was being picked up by multiple news sites like never before, as people hungry for more than the usual banality of the Canadian media were taking in new perspectives and seeking new sources of information. My article – “Ten Points Everyone Should Know About the Quebec Student Movement” – surprised me by going viral (by my standards), especially when it was picked up by CounterPunch and the Media Co-op, and thereafter I was consumed with writing about developments during the strike, as well as giving interviews with radio and even television stations. I was being quoted by a CBC blog, as well as in mainstream newspapers in British Columbia and Manitoba. Everything had been moving so quickly, and after months of working and writing about the student uprising, as it began to wind down, so did I. Ultimately, I had a bit of a ‘crash’ from over-exhaustion, but was soon back to writing.
In terms of the evolution of The People’s Book Project, the Quebec student movement was evidence to me that I could not simply focus on studying and writing about the institutions and ideologies of repression and domination, but that I had to place an equal focus on movements and methods of resistance, understanding that one cannot exist without the other, and that together, they provided a more coherent view of reality, this began to place increased focus on the issue of resistance being included within my research for the Book Project. After all, it is through resistance, rebellion, revolt, and creativity that we are able to find hope in this world and the situation we find ourselves in. It would simply not be enough to provide an examination of the structures that dominate our world without allowing for some hope to be understood and seen in those forces that resist these institutions and circumstances.
From here, my work on the Book Project began to rapidly expand. I turned my focus to Europe, and specifically the European debt crisis, examining the causes and consequences of the debt crisis, as well as the mass unrest, protests and social movements that have emerged as a result. In the span of a few months, I compiled over 350 pages of writing and research on the European debt crisis to contribute to the Book Project, samples of which I have since published online, notably on the debt crisis in Italy, focusing on the issue of austerity, and have also written on the uses of ‘political language’ throughout the debt crisis and all economic crises as a means of obscuring reality and, as Orwell wrote, “making lies sound truthful, murder respectable, and to give a feeling of solidity to pure wind.”
Studying the debt crises in Europe pushed me to try to better understand the uses and abuses of language by power structures and ideologies, and notably, in the fields of economics and finance, where the language appears very technical and specialized, to the point where it seems incapable of being understood by anyone without a degree in those fields.
By this time, I had also decided to drop out of school. I wanted to focus exclusively on my work, and school had seemed to become more a hindrance than a help. So, for the time being, I have given up on any goals regarding degrees and diplomas, instead, I have chosen to let my work speak for itself as opposed to getting any officially-recognized ‘credentials’.
I have, however, learned a great deal from the years I spent in school, namely, on an evolving quality of research. I don’t really look (or like looking) back at things I have previously written and published, especially those from several years ago. I rarely agree with any views I then-held, I find my quality of research seriously lacking, my analysis halfway incoherent, and my own understanding to be rather superficial. I am sure I will view my current work in a similar way several years from now, but I feel that this is a good thing. It is a sign that I am continually evolving in understanding and approach, and that I have still have a great deal to learn. This has been both a strength and a weakness for my Book Project. It has been a strength in the sense that the quality of research and analysis for the book increases over time, but a weakness in the sense that it extends the time that it takes to do the research and writing. The trade-off, I hope, is a worthy one. At least, I feel that it is. For readers, they may decide in due time.
For the past two years I have also been doing almost-weekly podcast episodes for BoilingFrogsPost, founded by Sibel Edmonds. The format has been wonderful, as I have been given an incredible amount of freedom to discuss whatever issues I want for whatever length of time I want, and it has connected me with a host of researchers, writers, activists and others from across the spectrum.
The past year has also been an especially busy one. I began getting offers to do an occasional commissioned article for various websites. This, again, has been both a strength and weakness for the Book Project. While it has helped in terms of being paid work (a rarity for any writer, it seems), as well as allowing my to work on subjects which are related to those of the Book Project, it has often torn me away from working specifically on the book, as most of my time had to be turned into writing articles for other sites, as well as working on several other projects which I took on.
My writing has been increasingly picked up by TruthOut and AlterNet, writing about the major think tanks that have been used to advance corporate and elite interests around the world, massive unrest in Indonesia, the world’s largest ‘free-trade’ agreement between the EU and US, and the development of the modern propaganda system, as well continuing to write about banks and “financial markets” (and their relationship to drug money laundering). Indeed, some of these articles have resulted in me being contacted by a big bank or two inquiring as to my sources for mentioning their name in relation to laundering drug money (which I promptly provided!).
I have also been working on an ongoing project for Occupy.com, called the Global Power Project, which focuses around institutional analysis of individual organizations, examining their history and evolution, as well as compiling the CVs of all the individuals who lead the organizations in order to chart a network of influence wielded by these various groups. My focus for this series has been primarily on studying banks and financial organizations. I have done a series of exposés on JPMorgan Chase, Goldman Sachs, Bank of America, Citigroup, Wells Fargo, and Morgan Stanley. I have also examined various organizations which bring together large groups of bankers with finance ministers and central bankers, such as the Institute of International Finance – the world’s largest banking lobby group – and the Group of Thirty, which resulted in me being contacted by the executive director of the G30 expressing his disappointment that I did not contact him or the group’s members for comment in my article series.
I have also authored an essay in cooperation with Occupy.com and the Transnational Institute for the TNI’s yearly ‘State of Power’ report, where I focused on analyzing the European Round Table of Industrialists – a group of Europe’s top CEOs – in shaping the evolution of the European Union. I have also been published in an academic journal published by the Spanda Foundation, where I contributed an article on environmental degradation and indigenous resistance to the social order. On top of all this, I also recently began another ongoing series for Occupy.com, the World of Resistance [WoR] Report, discussing issues related to the spread of global protests, uprisings, rebellions and revolutions.
One of my previous articles on the Trans-Pacific Partnership was also cited in Project Censored’s “Most Censored Stories” for their 2014 edition. I have also appeared on CBC Radio’s The Current to discuss evolving events in Tunisia’s revolution, as well as having had an op-ed published in a mainstream newspaper in British Columbia, The Province, where I countered an argument put forward by a regular columnist for the newspaper chain, discussing indigenous issues in Canada, a topic I have also discussed on APTN (Aboriginal Peoples Television Network).
I am also the chair of the Geopolitics Division of The Hampton Institute, a new U.S.-based “working class” think tank where I focus on discussing foreign policy and empire. I have written pieces for the Hampton Institute discussing the use of political language in modern imperialism, President Obama’s global drone terror campaign, the “secret wars” that America is waging in over one hundred countries around the world, U.S. support for death squads, the history of U.S. support for Arab dictatorships, notably in Egypt, where the struggle continues today, and I also wrote a large report on the American institutions and “intellectuals” that promote global empire.
So why did I go through a list of the various things I have written and am working on? Well, the answer is simple: I am asking for a ‘public subsidy’ for my writing and research, by you – the public – and so it seemed necessary to let you know a little bit more about where I’m coming from, what I’m doing, and what I’ve done, so that you can determine for yourself if my work is worth continued support.
My aim is to raise enough funds so that I can put aside a good deal of time from my various other time-consuming projects so that I can focus exclusively on the book and get the first edition done as soon as possible. But this requires actual funds, and I am far from having anything close to the amount necessary to dedicate meaningful time to this project. I hate asking for money, but I have come to terms with being an intellectual prostitute for the time being. However, I would rather prostitute my mind for the benefit of the wider public – and most especially the youth of the current “lost generation” to which I belong – as opposed to whoring my mind and efforts out to some various institution. At this point, however, I am essentially unemployable in almost every field, and so my options are rather limited. But I think that through my work, I can help others see that as a species, we do have other options, but that requires us to come to a common understanding, and to engage in common action. We cannot change the world, or steer humanity off the course of seemingly-inevitable extinction, alone. We need each other.
The People’s Book Project is the primary means through which I think I can contribute to this endeavor, to help give the “lost generation” a little bit of guidance. But just like the larger work and efforts that this world will require (and notably, require of the “lost generation”), I cannot do this alone. I require the support of readers and others. So please consider making a contribution to The People’s Book Project, and help the “lost generation” try to find its way.
Andrew Gavin Marshall
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
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. 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. 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.
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.”
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.
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. 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. 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.” 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. 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.”
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. 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. 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. 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).
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.”
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.”
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.” 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.
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.
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. 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. 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. This process has been termed ecological unequal exchange.
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.
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. 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.
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. 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.
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.”
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.” 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.
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.” 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.” The combination of US tanks, planes and ships consume roughly 340,000 barrels of oil per day (as of 2007). Most of the oil is consumed by the Air Force, as jet fuel accounted for roughly 71% of the entire military’s oil consumption.
Nations with large militaries also use their violent capabilities “to gain disproportionate access to natural resources.” 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.”
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.” 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.
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.”
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. 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. 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.
Indigenous people – and especially women – make up a disproportionate percentage of the prison population. 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.” 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.”
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.
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.
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.
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. One Indigenous leader in Fort Chipewyan has referred to the tar sands development as a “slow industrial genocide.” 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.”
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.
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.” 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.” 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.”
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.
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.”
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.”
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. 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.” 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. 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.”
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. 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. Afterward, the company donated trailers to the community to serve as “short-term emergency shelters,” yet they remained in place even four years later.
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.
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.” 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.”
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. 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.” 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.”
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.”
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.” 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.”
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. 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.”
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.” 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.
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. 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.
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.”
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.”
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.”
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.”
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.”
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.” 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.”
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). 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.
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.” 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. 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.” In late May, the CEO of TransCanada said, “I remain extremely confident that we’ll get the green light to build this pipeline.”
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.” 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.”
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.” 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.” 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.”
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.” 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.”
Dozens of government agencies and programs related to environmental sciences have had their budgets slashed, scientists fired, or were discontinued altogether. 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.”
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.” 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.”
As Stephen Harper said, “Science powers commerce,” but apparently to Harper, that is all it should do, even though many scientists and academics disagree. 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.
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.
Large Corporations Seek U.S.–European ‘Free Trade Agreement’ to Further Global Dominance
The Transatlantic Trade and Investment Partnership is the latest plan of conglomerates to strengthen their grip over the planet.
By: Andrew Gavin Marshall
Originally posted at: AlterNet
The Transatlantic Trade and Investment Partnership (TTIP) is the latest corporate-driven agenda in what is commonly called a “free trade agreement,” but which really amounts to ‘cosmopolitical corporate consolidation’: large corporations dictating and directing the policies of states – both nationally and internationally – into constructing structures which facilitate regional and global consolidation of financial, economic, and political power into the hands of relatively few large corporations.
Such agreements have little to do with actual ‘trade,’ and everything to do with expanding the rights and powers of large corporations. Corporations have become powerful economic and political entities – competing in size and wealth with the world’s largest national economies – and thus have taken on a distinctly ‘cosmopolitical’ nature. Acting through industry associations, lobby groups, think tanks and foundations, cosmopolitical corporations are engineering large projects aimed at transnational economic and political consolidation of power… into their hands. With the construction of “a European-American free-trade zone” as “an ambitious project,” we are witnessing the advancement of a new and unprecedented global project of transatlantic corporate colonization.
The Atlantic Fortress as “Grand Strategy”
In a 2006 article for Der Spiegel, Gabor Steingart suggested that, “to combat the rise of China and Asia,” the “role NATO played in an age of military threat could be played by a trans-Atlantic free-trade zone in today’s age of economic confrontation.” With the possible “addition of Canada,” the US and EU “could stem the dwindling of Western market power by joining forces… [which] would inevitably lead to a convergence of the two economic systems.” In a process that would likely take decades, “a mega-merger of markets” would send a “new message” to the East, to “serve as a fortress.”
During the worst of the initial financial and economic crisis in January of 2009, Henry Kissinger wrote an article for the New York Times in which he noted that America’s “prescription for a world financial order has generally been unchallenged,” though the crisis had changed this, as “disillusionment” became “widespread.” Nations now wanted to protect themselves from the global markets and thus, become more independent. Kissinger warned against this, proclaiming: “An international order will emerge if a system of compatible priorities comes into being. It will fragment disastrously if the various priorities cannot be reconciled… The alternative to a new international order is chaos.”
Kissinger noted that the economic world was “globalized,” yet the political world was not, and in the midst of “political crises around the world” accelerated by “instantaneous communication,” the political and economic systems had to become “harmonized in only one of two ways: by creating an international political regulatory system with the same reach as that of the economic world; or by shrinking the economic units to a size manageable by existing political structures, which is likely to lead to a new mercantilism, perhaps of regional units.” President Obama’s election victory was an “opportunity” in “shaping a new world order.” But that opportunity had to become “a policy” as manifested through “a grand strategy.” A central facet to that grand strategy would include the strengthening of the “Atlantic partnership,” which “will depend much more on common policies.”
Some four years later, former U.S. National Security Advisor Zbigniew Brzezinski praised the “enormous promise” in the new transatlantic agreement, “It can shape a new balance between the Pacific and the Atlantic oceanic regions, while at the same time generating in the West a new vitality, more security and greater cohesion.” Not worth mentioning, apparently, was that this was all about “cohesion” of power interests. In the same speech where Brzezinski endorsed “greater cohesion” between the U.S. and the European Union, he criticized the EU for being “a Europe more of banks than of people, more of commercial convenience than an emotional commitment of the European peoples.”
It’s the type of “cohesion” that only bankers, corporations, and “grand strategists” like Kissinger and Brzezinski could like. So naturally, such an agreement has a great deal of support, encouragement, and organized planning. While the idea of ‘transatlantic integration’ has long been on the lips and in the documents of grand strategists and corporate-financed think tanks, it kept its distance from formal policy. In 2007, the EU-US summit meeting of leaders – US President Bush, German Chancellor Angela Merkel, and European Commission President José Manuel Barroso – established the Transatlantic Economic Council (TEC) to promote economic cooperation between the two regions.
The economic crisis itself delayed any progress from taking place, as countries focused on rescuing their banks and imposing austerity measures in order to punish their populations into poverty, privatize society, and create the conditions ripe for unhindered plundering of resources and exploitation of labour. This is called “structural reform.” But structural reforms only show “success” when corporations begin profiting from them. That’s called an “economic recovery.” There is an entire language to the European debt crisis – and to political economy in general – which, when translated, helps to elucidate the rationality of policy choices.
Political Language: Words or Weapons?
As George Orwell once wrote: “Political language… is designed to make lies sound truthful and murder respectable, and to give an appearance of solidity to pure wind.”
In a world undergoing radical transformations in political, economic, and social structures and relations – from the Arab Spring, the global economic crisis, food crisis and land grabs, to the global spread of protest movements – political language becomes weaponized. Hiding behind seemingly meaningless words, obscured by over-used rhetoric and abstract, undefined terms and concepts, political and economic language function by preventing the population from understanding the true meaning and implications of the policies pursued.
Take, for example, the word ‘austerity.’ It has been used endlessly – in rhetoric and policies – as the ‘solution’ to the economic, financial, and debt crises, but it’s meaning is obscured as an abstract notion of cutting public spending in order to decrease the debt, and thus, increase investor confidence in the country. This is supposed to lead to an economic “recovery.” The problem is that it doesn’t: it leads to a very deep depression. Yet, the policies continue to be promoted and pursued.
What can one deduct from this? If the rhetoric promotes specific policies for a desired effect, and the desired effect is never met, yet the rhetoric and policies continue to be promoted, we can assume one of two things: either, as Einstein defined it, the world’s decision-makers are all insane (“doing the same thing over again, expecting different results”); or, they are simply speaking a different language, and we lack an understanding of it. In such circumstances, it is helpful to attempt translating this language.
The policies of ‘austerity’ include firing public sector workers, cutting spending on health care, education, welfare, social services, pensions, increasing the retirement age, increasing taxes and decreasing wages. The results, inevitably, is impoverishment of the general population, increased unemployment, the elimination of health and social services when needed most, increased cost of living and decreased standards of living. Thus, we can loosely translate ‘austerity’ as impoverishment, since that is what the actual effects of the policies have.
In March 2010, the OECD (Organisation for Economic Co-operation and Development) suggested Europe undertake a program of austerity lasting for no less than six years from 2011 to 2017, which the Financial Times referred to as “highly sensible.” In April of 2010, the Bank for International Settlements (BIS) – the central bank to the world’s central banks – called for European nations to begin implementing austerity measures. In June of 2010, the G20 finance ministers agreed: it was time to enter the age of austerity! German Chancellor Angela Merkel, the European midwife of austerity, set an example for the EU by imposing austerity measures at home in Germany. The G20 leaders met and agreed that the time for stimulus had come to an end, and the time for austerity poverty was at hand. This was of course endorsed by the unelected technocratic president of the European Commission, José Manuel Barroso.
The unelected president of the European Council, Herman Van Rompuy, also agreed, explaining in his unrelenting economic wisdom that austerity “has no real effect on economic growth.” Jean-Claude Trichet, president of the European Central Bank (ECB), also hopped on the austerity train, writing in the Financial Times that, “now is the time to restore fiscal sustainability.” Jaime Caruana, General Manager of the Bank for International Settlements (BIS) stated in June of 2011 that the need for austerity was “more urgent” than ever, while BIS chairman, Christian Noyer, also the governor of the Bank of France (and board member of the ECB), stated that apart from austerity, “there’s no solution possible” for Greece.
But of course, austerity is not complete without its sister-program of ‘structural reform’ (or ‘structural adjustment’), which includes policies aimed at privatizing all state-owned assets, resources, and services, the dismantling of labour and environmental protections and regulations, the opening of new ‘markets,’ and enormous subsidies and protections for multinational banks and corporations.
Why is this done? To promote investment, competition, and growth. Privatizing everything in sight – including airports, land, water management, roads and resources – encourages investment because corporations can come in and purchase national assets for pennies on the dollars. Indeed, most privatization programs include enormous subsidies and protections for corporations in order to provide an incentive for them to invest. And competition is best promoted by allowing just a handful of transnational conglomerates to cheaply acquire a nation’s wealth and resources, and then by promoting what’s called “labour flexibility.” These ‘reforms’ mean that workers’ rights are to be dismantled, cutting wages, benefits, protections, the ability to unionize and make demands, to make the labour force flexible to the demand of big business, who demand little more than a cheap labour force (as well as absolute control of the global economy). Thus, across markets – Europe for the EU, North America for NAFTA – and indeed, across the world, labour forces are put into competition with one another in a race to the bottom of who can be the best, and therefore, cheapest labour available – in order to attract investment and jobs.
Thus, the effect of ‘structural reforms’ is to facilitate the exploitation of resources and people and to consolidate economic and political power into corporate hands. Austerity thus serves the purpose of impoverishing the population to make them ready and willing to accept the structural reforms (or “adjustment”) which adjust them to a situation of social devastation by making them into an employable – and cheap – labour force. Unhindered corporate plundering is facilitated by dismantling all “barriers” to investment, and thus, control of the entire economy. Austerity and structural reform create the conditions for investment, competition, and growth. Investment essentially means subsidized acquisition/control over the economy by corporations, competition implies protection for corporate interests, and growth means that corporations are making massive profits. The effect of all these policies and programs is to consolidate regional and global economic and political power into the hands of cosmopolitical corporations.
Austerity is impoverishment for populations.
Structural reform is exploitation of people/resources, and consolidation of political power in corporate hands.
Investment is corporate control of the economy.
Competition is protectionism for corporations.
Growth is corporate profits.
Mario Draghi is the president of the European Central Bank (ECB) – one of the three institutions of the ‘Troika’ with the European Commission and IMF – imposing austerity and structural reform measures across Europe in return for bailing out bankers. In February of 2012, he gave an interview with the Wall Street Journalin which he explained that, “there was no alternative to fiscal consolidation,” meaning austerity, and that Europe’s social contract was “obsolete” and the social model was “already gone.” However, Draghi explained, it was now necessary to promote “growth,” adding, “and that’s why structural reforms are so important.”
In addition to austerity and structural reforms, new markets are required, and thus, “free trade” must be promoted. This is all part of the road to ‘recovery.’ Free trade also has a technical definition: its policies dismantle environmental, labour, and other social protections, increase privatization, deregulation, and include large subsidies and protections for corporations. And today’s ‘free trade’ agreements grant unprecedented rights to corporations to sue governments directly for having laws or regulations which corporations view as “barriers to investment.” Free trade thus promotes competition between populations – in a race to the bottom – and protection for the powerful, for corporations and banks. What we call free trade agreements essentially function as a process of corporate colonialism: the regional and global consolidation of financial, economic, political and social power into relatively few corporate hands.
With the onset of the global economic crisis in 2008, countries turned to bailouts to rescue the large banks that destroyed their economies. In doing this, they accumulated large debts, handing the bill to the populations. The people pay for the debts through austerity, and thus, poverty, which in turn necessitates structural reform, and thus, exploitation. Free trade agreements like the Trans-Pacific Partnership (TPP), being negotiated between 12 Pacific-rim countries, facilitate transnational corporate colonialism.
A new corporate world is emerging, and the transatlantic partnership is a centerpiece in constructing this ‘new world order.’ While the crisis had initially stalled the process, it was revived at the EU-US summit meeting in November of 2011, when political leaders ordered the Transatlantic Economic Council (TEC) to create a High-Level Working Group on Jobs and Growth, led by U.S. Trade Representative Ron Kirk and EU Trade Commissioner Karel De Gucht, “tasked to identify policies and measures to increase U.S.-E.U. trade and investment to support mutually beneficial job creation, economic growth, and international competitiveness,” by working closely with both public and private sector/corporate groups.
The Transatlantic Corporate Complex
The impetus for the Transatlantic Trade and Investment Partnership was provided by a plethora of corporate-dominated think tanks and big business organizations, including the Atlantic Council, Brookings Institution, the German Marshall Fund, BusinessEurope, the Business Roundtable, the U.S. Chamber of Commerce, and the European Round Table of Industrialists, among several others. These institutions collectively form a transatlantic corporate complex, uniting elites from major corporations, banks, think tanks, foundations, academia and policy circles in order to establish consensus on elite agendas and to provide the strategies and objectives to be implemented.
The Atlantic Council was founded in 1961 by former U.S. Secretary of State Dean Acheson and several other prominent citizens in the United States in order to help consolidate support for the ‘Atlantic Alliance.’ The Atlantic Council’s first published volume, Building the American-European Market: Planning for the 1970s, was published in 1967, and the Council continued to publish policy papers, books, monographs and other reports throughout the 1970s.
The Atlantic Council’s leadership and direction is provided by the members of its boards, consisting of the foreign policy elite of the United States as well as major cosmopolitical corporations, including the likes of Henry Kissinger, Zbigniew Brzezinski and Madeleine Albright along with executives from corporations such as Deutsche Bank, BAE, and Lockheed Martin. [For a look at some of the other names of directors and advisors, see Appendix 1]
The Atlantic Council thus represents the interests of trans-Atlantic corporate and financial interests and the foreign policy elite within the United States. Thus, what issues and agendas they promote tend to wield significant influence behind them, with extensive access to policy-makers and processes. Back in 2004, the Atlantic Council published a report, The Transatlantic Economy in 2020: A Partnership for the Future? in which they recommended increasing integration between the two economies and regions, the joint management of the world economy, and more “transgovernmental cooperation.”
The German Marshall Fund of the United States was founded in 1972 with a donation from the German government to Harvard University, where 25-years prior U.S. Secretary of State George Marshall announced the Marshall Plan for Europe’s economic recovery after World War II. The German Marshall Fund (GMF) “is dedicated to the promotion of greater understanding and common action between Europe and the United States,” and includes a number of corporate executives, news commentators and other elites on its leadership boards [See Appendix 2].
The Business Roundtable (BRT) is an organization of CEOs from major U.S. corporations “with more than $7.3 trillion in annual revenues,” according to its website. The BRT was founded in 1972 “on the belief that… businesses should play an active and effective role in the formation of public policy.” The Chairman of the Executive Committee of the BRT is W. James McNerney, the president and CEO of Boeing. The Executive Committee includes the CEOs of a number of other major cosmopolitical corporations [see Appendix 3].
The European Round Table of Industrialists (ERT), founded in 1983, is an organization of several dozens CEOs of major European corporations. As Bastiaan van Apeldoorn wrote in the journal New Political Economy(Vol. 5, No. 2, 2000), the ERT “developed into an elite platform for an emergent European transnational capitalist class from which it can formulate a common strategy and – on the basis of that strategy – seek to shape European socioeconomic governance through its privileged access to the European institutions.” Wisse Dekker, former Chairman of the ERT, once stated: “I would consider the Round Table to be more than a lobby group as it helps to shape policies. The Round Table’s relationship with Brussels [the EU] is one of strong co-operation. It is a dialogue which often begins at a very early stage in the development of policies and directives.”
The ERT was a central institution in the re-launching of European integration from the 1980s onward, and as former European Commissioner (and former ERT member) Peter Sutherland stated, “one can argue that the whole completion of the internal market project was initiated not by governments but by the Round Table, and by members of it… And I think it played a fairly consistent role subsequently in dialoguing with the Commission on practical steps to implement market liberalization.” Sutherland also explained that the ERT and its members “have to be at the highest levels of companies and virtually all of them have unimpeded access to government leaders because of the position of their companies… So, by definition, each member of the ERT has access at the highest level to government.” [For a list of other corporations represented on the board of the ERT, see Appendix 4]
BusinessEurope is Europe’s main business group, representing 41 business federations in 35 countries with its “main task” – according to its website – being “to ensure that companies’ interests are represented and defended vis-à-vis the European institutions with the principal aim of preserving and strengthening corporate competitiveness.” [For a look at some of the companies that made up the Corporate Advisory and Support Group, see Appendix 5]
The U.S. Chamber of Commerce was founded in 1912 as an umbrella organization representing the voice of business throughout the United States. According to its website, the Chamber “works with more than 1,500 volunteers from member corporations, organizations, and the academic community who serve on committees, subcommittees, task forces, and councils to develop and implement policy on major issues affecting business.” Their “overarching mission” is “to strengthen the competitiveness of the U.S. economy.” [For a look at some of the companies represented on the board of directors of the Chamber, see Appendix 6]
The Transatlantic Business Dialogue (TABD) was formed in 1995 by the U.S. Department of Commerce and the European Commission in an effort to “serve as the official dialogue between American and European business leaders and U.S. cabinet secretaries and EU commissioners,” composed of CEOs of U.S. and European transnational corporations.
Transatlantic Corporate Colonialism in Action: Shaping the Agenda
As with any “free trade” agreement (read: cosmopolitical corporate consolidation agreement), corporations must be consulted throughout the entire process to allow them to shape the agenda and encourage specific policies, to ensure that their interests are met. Think tanks employ academics and foreign policy elites to undertake studies and produce reports which advocate policies beneficial to western political and economic domination of the world. Big business groups organize the corporate community around agendas and provide a direct “voice” to the corporate world. The boards of think tanks are dominated by political and corporate elites, and once think tanks begin to establish consensus on agendas, academics and other officials from the organizations write articles or are interviewed frequently in the media (which is owned by the same corporations), to ensure that what little is said in public about such agreements is indeed, positive and encouraging.
When the Transatlantic Economic Council (TEC) created the High-Level Working Group on Jobs and Growth in November of 2011, it announced its intent to ‘consult’ with private sector organizations on the process of transatlantic integration.
The Transatlantic Business Dialogue (TABD) was one of the first major corporate organizations to support the announcement of the High-Level Working Group. In January of 2012, the TABD met with high level EU and US officials at the annual World Economic Forum meeting in Davos, Switzerland. They released a report, Vision for the Future of EU-US Economic Relations, which established a consensus “to press for urgent action on an visionary and ambitious agenda,” as well as for the creation of a “CEO Task Force” which would “provide direct input and support the High Level Working Group.”
The meeting was attended not only by the 21 members of the executive board of the TABD (all corporate executives), but officials representing the Atlantic Council, the Canadian Council of Chief Executives (CCCE), the US Chamber of Commerce, World Trade Organization Director-General Pascal Lamy, US Trade Representative Ron Kirk, European Commissioner for Trade Karel De Gucht, European Commissioner for Competition, Joaquin Almunia; Jon Leibowitz, chairman of the Federal Trade Commission, and Michael Froman, Obama’s Deputy National Security Advisor for International Economic Affairs.
That same month, the TABD and the Business Roundtable (BRT) released a joint statement outlining their “vision” of a Transatlantic Partnership (TAP) – modeled along similar lines as the Trans-Pacific Partnership (TPP) – which would require a further “opening” of the trans-Atlantic market, being able to “compete” with other major economies (such as China), and “deepening the multilateral commitment to open markets.” As major CEOs and executives, the statement wrote, “we need nothing less” than a “strategic vision and structure [which] will need to serve as a global template.”
In February of 2012, the German Marshall Fund released a report from the Transatlantic Task Force on Trade and Investment entitled, A New Era for Transatlantic Trade Leadership. The task force was co-chaired by Ewa Bjorling, the Swedish Minister for Trade, and Jim Kolbe, a former U.S. Congressman and Senior Transatlantic Fellow at the GMF. [For other members of the Task Force, see Appendix 7] The Task Force was launched as a cooperative effort between the German Marshall Fund and the European Centre for International Political Economy (ECIPE) in May of 2011.
The report called for the EU and US to pursue “deeper transatlantic economic integration” as “essential for recovery from the current economic crisis.” The report called for “high-level commitment from political leaders on both sides of the Atlantic” and “it will require active involvement of private sector stakeholders,” or in other words, corporations.
In March of 2012, BusinessEurope released a report to contribute to the EU-US High Level Working Group entitled, Jobs and Growth: Through a Transatlantic Economic and Trade Partnership, in which it was recommended to eliminate tariffs and barriers, to trade in services, ensure access and protection for investments, “opening markets,” to establish “global standards” for intellectual property rights, and to build on the Transatlantic Economic Council (TEC) for regulatory cooperation.
That same month, the U.S. Chamber of Commerce sent a letter to Congress in which the U.S. Chamber, BusinessEurope, American Chamber of Commerce to the European Union, the Business Roundtable, European-American Business Council, the Trans-Atlantic Business Dialogue, and several other big business associations called upon political leaders “to move swiftly to deepen the transatlantic economic and commercial relationship through ambitious trade, investment, and regulatory policy initiatives.” Thus, in the midst of an economic and social crisis created by the very corporations and banks these associations represent, and with the emergence of new economic giants like China and India, “we believe now is the time to create a barrier-free transatlantic market to drive the job creation and growth” that Europe and America “urgently need.”
The High Level Working Group – chaired by USTR Ron Kirk and EU Trade Commissioner Karel De Gucht – should have a “far-reaching” agenda, the statement wrote, which would cover: “tariff and non-tariff barriers to trade in goods and services, investment, regulatory cooperation, intellectual property protection and innovation, public procurement, cross-border data flows, and business mobility.” The statement noted that they had received “support” from Angela Merkel, David Cameron, and then-President of France Nicolas Sarkozy, as well as from the European Council (presided over by Herman van Rompuy). From the American side, support was given by Hillary Clinton.
In May of 2012, the Business Roundtable, European Round Table of Industrialists and the Trans Atlantic Business Dialogue sent a joint letter to President Obama, French President Francois Hollande, German Chancellor Merkel, Italian PM Mario Monti, UK prime minister David Cameron, European Commission president José Manuel Barroso, European Council president Herman Van Rompuy, EU Trade Commissioner De Gucht and USTR Ron Kirk. The letter noted that the three organizations of corporate executives from across the Atlantic “have come together to lay out a strategic vision for a new Transatlantic Partnership (TAP),” and they together produced the report, Forging a Transatlantic Partnership for the 21st Century, to do just that. The report called for US and EU officials to launch “ambitious and comprehensive transatlantic trade, investment and regulatory negotiations by the end of this year.”
That same month, just to press the message, the presidents of the US Chamber of Commerce, the Business Roundtable, and the National Association of Manufacturers sent a joint letter to Obama urging him to launch negotiations to “trail blaze a true 21st century trade, investment, and regulatory cooperation initiative,” which apart from further integrating the economies, would also “have important benefits for defense and military cooperation as well.”
In June of 2012, Obama’s Export Council sent him a letter applauding the president for establishing the High Level Working Group the previous year, but urged him to “take the critical next step, in consultation with the private sector, to move forward quickly to define and launch a comprehensive and ambitious Transatlantic Partnership (TAP) negotiation.” They recommended the usual protections for intellectual property rights, liberalization of services, “elimination of industrial and agricultural goods tariffs,” among many things. The letter was signed by Export Council chairman Jim McNerney, the president and CEO of the Boeing Company.
The U.S. President’s Export Council (PEC) “is the principal national advisory committee on international trade,” founded in 1973, consisting of 28 private sector members, as well as Congress members and cabinet secretaries. The PEC reports to the president through the U.S. Secretary of Commerce. [For a list of corporations represented by the PEC, see Appendix 8]
Not wasting any time, the High Level Working Group on Jobs and Growth released their interim report to their leaders in June of 2012 from the co-chairs, De Gucht and Kirk. Among other things, they recommended the “elimination” of “barriers to trade” in goods, services, and investment. They recommended a “comprehensive agreement” which “could promote a forward-looking agenda for multilateral trade liberalization.” The “aim” of the negotiations, they wrote, would be to “bind” the EU and US “at the highest level of liberalization” and “achieve new market access.” They were taking the recommendations from corporate groups seriously, and pushing those words into policies.
Paula Dobriansky, a prominent academic at the Atlantic Institute, co-authored an article for the Wall Street Journal in which she called for “a trans-Atlantic free-trade agreement” between the EU and US in order to “strengthen American and European leadership for decades to come.” Frances Burwell, Atlantic Council vice president and director of the Program on Transatlantic Relations published an article for US News & World Report in November of 2012 in which she wrote that “creating a single transatlantic market… makes a great deal of sense.”
In November of 2012, then-Secretary of State Hillary Clinton gave a speech to the Brookings Institution entitled, U.S. and Europe: A Revitalized Global Partnership, in which she noted: “we have to realize the untapped potential of the transatlantic market… is as much a strategic imperative as an economic one.” Informing the audience that the Obama administration was “discussing possible negotiations” with the EU on such an agreement, Clinton said it “would shore up our global competitiveness for the next century.”
Also in November, Atlantic Council board member James L. Jones (former U.S. National Security Advisor to Barack Obama) and Thomas J. Donohue (President and CEO of the US Chamber of Commerce) co-authored an article for Investor’s Business Dailyin which they suggested that the simultaneous economic crises in Europe and the U.S. – which they defined as “flagging competitiveness, unsustainable entitlement spending, and the ticking time bomb of oversize sovereign debt” – were a threat to the future of NATO’s ability to “tackle urgent security threats” and that this poses “the greatest challenge to the future of the trans-Atlantic community since the Cold War.”
Sustainable growth, they wrote, “only comes from one place – the private sector.” Governments have a “responsibility… to create conditions in which the private sector can drive economic expansion, investment and job creation.” An “ambitious trans-Atlantic economic and trade pact” would certainly fit this prescription of increasing “growth” and “competitiveness.” It was time, they wrote, “to move decisively to the next level of trans-Atlantic economic integration.”
Within days of Obama winning his re-election, European leaders such as David Cameron and Angela Merkel urged him to move forward with the agreement, and the New York Times even noted that “corporations and business groups on both sides of the Atlantic are also pushing hard for a pact.” Former deputy U.S. trade representative and current vice president at General Electric, Karan Bhatia, noted: “This could be the biggest, most valuable free-trade agreement by far, even if it produces only a marginal increase in trade.”
The Financial Times said that a “transatlantic partnership” would yield “geostrategic benefits,” since the EU and US account for half the world’s economy, and thus, they will “possess the leverage to set the global standards that others, including China, are likely to follow.” Since “both the EU and US are desperate for new growth,” wrote Edward Luce, the “only realistic route is via higher productivity,” implying cheaper costs and larger profits for corporations. It would be “an ambitious agenda for transatlantic market integration” including harmonizing regulations and product standards. In other words, wrote Luce: “if a drug were approved by the European Medicines Agency, the Food and Drug Administration would accept it too.” The same would apply for “financial regulation” (or lack thereof), as well as agricultural (GMO) standards, a key issue, since the EU has a ban on such products. The EU had recently shown its enthusiasm for change when it “dropped its objections to imports of US meat from abattoirs [slaughterhouses] decontaminated with lactic acid.” In the EU, “the climate of austerity ought to work in their favour” for reducing protections to do with agriculture.
In January of 2013, the Brookings Institution sent a ‘memorandum to the president’ to Barack Obama entitled, Free Trade Game Changer, in which the authors recommended pursuing both the Trans Pacific Partnership (TPP) and the Trans-Atlantic Free Trade Agreement (TAFTA) as “the most realistic way to reclaim U.S. economic leadership.” The agreements have “deep strategic implications” since they would provide the US with a leading “role in setting the global rules of the road.” While the TPP “would help define the standard for economic integration in Asia,” the TAFTA “would give American and European businesses an edge in setting industrial standards for tomorrow’s global economy.” While “the erosion of support for FTAs [free trade agreements] in Congress and among the public is likely to hamper this effort,” the memo reminded Obama that public opinion must be disregarded in the corporate interest: “the time has come to launch new initiatives in these spheres.”
In early 2013, the Trans-Atlantic Business Dialogue merged with the European-American Business Council to become the Transatlantic Business Council (TBC), a group consisting of corporate executives who hold “semi-annual meetings with U.S. Cabinet Secretaries and European Commissioners (in Davos and elsewhere),” acting as the “business advisor to the Transatlantic Economic Council (TEC).” It represents some 70 major corporations, including: AIG, AT&T, BASF, BP, Deutsche Bank, EADS, ENI, Ford, GE, IBM, Intel, Merck, Pfizer, Siemens, TOTAL, Verizon, and Xerox, among others.
In January of 2013, the Transatlantic Business Council (TBC) met in Davos, Switzerland during the annual World Economic Forum, holding a meeting with high level officials in the U.S. and E.U. Michael Froman, President Obama’s Deputy National Security Advisor for International Economic Affairs, spoke at the TBC meeting, declaring that “the transatlantic economy is to become the global benchmark for standards in a globalized world.” Froman and the leaders of the TBC “agreed that support from corporations operating on both sides of the Atlantic is crucial to advance transatlantic trade.”
Tim Bennett, the Director General of the TBC, stated that the structure of the TBC “allows for a combination of strong business message to policy makers as well as substantive input through working groups,” referring to high level meetings in Washington and Brussels. Other participants at the TBC meeting included the Secretary General of the OECD, Angel Gurria, Irish Prime Minister Enda Kenny, European Commission Director-General for Trade, Jean-Luc Demarty, European Commission for Trade official, Marc Vanheukelen, and a former Citigroup executive.
On the Transnational Business Council (TBC)’s website, they promote specific think tanks as providing “resources”: the Atlantic Council, Bertelsmann Foundation, Brookings Institution, Center for Transatlantic Relations, Chatham House, the German Marshall Fund, and the Peterson Institute for International Relations.
The Final Report: Time to Do What the Corporations Demand!
On February 11, 2013, the U.S.-EU High Level Working Group (HLWG) on Jobs and Growth released their final report in which they predictably recommended harmonizing standards and regulations in “a comprehensive trade and investment agreement.” The report recommended “a further deepening of economic integration… to achieve a market access package that goes beyond what the United States and the EU have achieve in previous agreements.” The report further recommended increasing “government procurement,” a euphemism for privatization and state subsidies for corporations, noting: “the goal of negotiations should be to enhance business opportunities through substantially improved access to government procurement opportunities at all levels of government.”
Two days following the publication of this report, on 13 February 2013, a joint statement was issued by Barack Obama, European Council President Herman Van Rompuy and European Commission President José Manuel Barroso, stating: “We, the Leaders of the United States and the European Union, are pleased to announce that… the United States and the European Union will each initiate the internal procedures necessary to launch negotiations on a Transatlantic Trade and Investment Partnership.”
With the announcement of the TTIP in February, then-U.S. Trade representative Ron Kirk stated that, “[f]or us, everything is on the table, across all sectors, including across the agricultural sector, whether it is GMOs or other issues.” He explained that “we should be ambitious and we should deal with all of these issues.” João Vale de Almeida, the European Union ambassador to the United States, wrote in an article that “an ambitious economic agreement between us would send a powerful message to the rest of the world about our leadership in shaping global economic governance in line with our values,” which is to say, corporate “values.”
The German media – and government officials – erupted in admiration of the potential for this “economic NATO” in creating “the world’s largest free trade zone.” One German publication noted that “a new economic alliance” between NATO powers was appropriate, since “the old industrialized nations fear they are falling behind the emerging economic power of China.” Another German publication noted that not only would a “trans-Atlantic free-trade zone” have major economic “benefits” and implications, “but it also makes clear that only an ever-closer West can succeed in decisively helping to determine global policy.”
The corporate world expressed immediate admiration for the announced negotiations, with the chairman and CEO of Caterpillar “commending” US and EU leaders and the High-Level Working Group “for promoting much needed economic growth and job creation.” The president of the Business Roundtable (BRT), John Engler, noted that the Roundtable itself “was an early advocate” for such an agreement, and that “negotiations should launch as soon as possible.”
C. Boyden Gray, a member of the Atlantic Council’s board of directors and former U.S. ambassador to the European Union, published a report for the Atlantic Council in February of 2013 entitled, An Economic NATO: A New Alliance for a New Global Order. Gray warned that unless the Atlantic powers “rise to the challenge… of the post-recession era together… they risk ceding to rising powers their economic and political influence.” This must not be simply a “free trade agreement,” but rather, the US and EU “must put economic cooperation on the same robust footing as military security… we need to create an ‘economic NATO’.”
The Wall Street Journal noted that the announcement “represents a nod to business interests by Mr. Obama,” noting that it was less about ‘trade’ and more about establishing global standards. European Commission president Barroso expressed as much when he said, “this is going to be the biggest free-trade agreement ever done, [and] it will certainly have an impact on global standards.” Obama’s international economic policy adviser Michael Froman noted that the agreement would “further integrate our economies and help set global rules.” EU trade commissioner Karel de Gucht added: “What we want to do is make an internal market between the US and EU.”
The Financial Times noted that while it was “commonplace” to imagine that the future belonged to the emerging economies, “the old economic powers can still pack a punch.” The agreement “promises a prize whose political value is even greater than its considerable economic benefits.” Hence, we must understand these “free trade agreements” as, in actuality, cosmopolitical corporate consolidation agreements.
While U.S. Secretary of State John Kerry traveled to Berlin in late February, he endorsed the agreement, suggesting that it “can lift the economy of Europe, strengthen our economy, create jobs for Americans, for Germans, for all Europeans and create one of the largest allied markets in the world.”
The German press warned that Internet activists, environmental, labour and consumer groups were “preparing to fight the treaty with all means at their disposal,” as they feared that “bad compromises will be made at the expense of consumers in secret negotiations between the European Commission and the Obama administration.” Enforcing equal standards for food products worries many in the EU regarding American-produced genetically engineered food products, such as corn, soybeans and beets; while intellectual property rights issues increasingly threaten the freedom of the Internet for the benefit of corporate and financial interests, such as through the failed Anti-Counterfeiting Trade Agreement (ACTA), which was overcome by a large Internet campaign and protests against it. One of the organizers for the anti-ACTA movement, Jérémie Zimmermann, stated: “Millions of citizens can be mobilized if their freedoms are threatened.” Still, despite the growing unease and opposition to such an agreement, which would be based primarily around these highly contentious issues as opposed to actual “trade” or tariffs, German Chancellor Angela Merkel declared the deal as “by far our most important project for the future.”
Max Baucus, the chairman of the U.S. Senate finance committee, wrote an article for the Financial Times in which he stated that the agreement was “a deal that must be done, it must be done now, and it must be done right… As chairman of the committee overseeing US trade, I will support a deal only if it gives America’s producers the opportunity to compete in the world’s biggest market.”
Speaking at Harvard in early March, Karel de Gucht referred to the agreement as “the cheapest stimulus package you can imagine,” adding that it was “a policy laboratory for the new trade rules we need – on issues like regulatory barriers, competition policy, localization requirements, raw materials and energy.”
Barack Obama stated that he was “modestly optimistic” about the agreement, as the US was moving “aggressively” while the EU was “hungrier for a deal than they have been in the past.” Speaking to the President’s Export Council, composed of executives from major corporations acting as ‘advisors,’ Obama reaffirmed that, “we want our Fortune 500 companies to be selling as much as possible.” John Kerry told a group of French business leaders that, “if we move rapidly… [the agreement] can have a profound impact on the rest of the world.”
Robert Zoellick, former president of the World Bank, strongly endorsed the agreement, noting that it could “set a precedent” in setting standards for the global economy, adding: “We need to create a new structure for the global system.” However, he warned, agriculture was “going to be one of the most difficult issues,” due to the concern over genetically modified organisms. Barroso warned that, “the EU will only go so far.” Lori Wallach, the director of Public Citizen’s Global Trade Watch observed: “This whole negotiation is about eliminating ‘trade irritants’ but in the US consumer movement we envy and admire and seek to emulate the European food safety standards, while industry is seeking to kill them.”
In April of 2013, a “coalition” was launched to promote the Transatlantic Trade and Investment Partnership called the Business Coalition for Transatlantic Trade (BCTT), which “seeks to promote growth, jobs, and competitiveness on both sides of the Atlantic through an ambitious, comprehensive and high-standard trade and investment agreement.” The Steering Committee for the BCTT consists of a number of multinational corporations and business associations, and the secretariat is the U.S. Chamber of Commerce. The corporate co-chairs for the coalition include Amway, Chrysler, Citi, Dow, FedEx, Ford, GE, IBM, Intel, Johnson & Johnson, Lilly, MetLife, UPS, and JPMorgan Chase. Partner associations of the BCTT include the Business Roundtable, Coalition of Service Industries, the Emergency Committee for American Trade, the National Association of Manufacturers, the National Foreign Trade Council, the Transatlantic Business Council (TBC), the U.S. Chamber of Commerce and the U.S. Council for International Business. The initial objective of the BCTT was to urge the formal launching of negotiations by June or July of 2013, as well as “sustaining broad bipartisan support and on providing detailed inputs once negotiations are underway.”
At the launch of the BCTT, the U.S. Chamber of Commerce’s vice president and head of international affairs, Myron Brilliant, noted that there was “vast support” for the agreement “both in the government and the private sector.” The business community, he explained, “is committed to assisting with the negotiation of a transatlantic agreement… and we will continue our efforts to encourage both governments to get this deal done quickly.” The Business Roundtable, a member of the BCTT, endorsed the new coalition in a statement from John Engler, who explained, “we look forward to working with Congress and the Administration to ensure a comprehensive and ambitious agreement.” While speaking to an American business group, the British ambassador to the United States said that financial services would also be “covered by these negotiations,” noting that the U.S. and U.K. are home to “the two most significant international financial centres, on either side of the Atlantic,” on Wall Street and the City of London.
According to an Obama administration official involved in the talks, the agreement “would grant corporations new political power to challenge an array of regulations both at home and abroad.” Environmental, consumer, and other interest groups fear that the agreement “will lead to a rollback of important rules and put multinational companies on the same political plane as sovereign nations.” This would be facilitated by an “investor-state dispute resolution” mechanism, which means that corporations could directly sue governments over what they perceive as “barriers to investment” – possibly through an international tribunal (perhaps even through the World Bank). Such a tribunal “would be given authority to impose economic sanctions against any country that violated its verdict.”
Such provisions, noted a trade specialist with the Sierra Club, “elevate corporations to the level of nation states and allow them to sue governments over nearly any law or policy which reduces their future profits.” These mechanisms are “terribly risky for communities, the environment, and our climate.” The “dirty little secret,” noted Public Citizen’s Lori Wallach, “is that it is not mainly about trade, but rather would target for elimination the strongest consumer, health, safety, privacy, environmental and other public interest policies on either side of the Atlantic.”
Thomas Donohue, the president of the US Chamber of Commerce, couldn’t be happier. “If they made a deal tomorrow,” he said in April of 2013, “US and European companies are sitting on a boatload of cash and they’d be moving this thing up as fast as they can move.” Corporations would be able to make a profit faster than anticipated, he noted: “You open a door and say there’s money on the other side, there’s opportunity to expand, to export, to sell their products, to make partnerships… You think they’re going to wait around till 2027? They’ll be through the door before you know it.” Donohue encouraged negotiations to begin as soon as possible, “they must, they need to,” adding: “We don’t need to take our time.”
A Transatlantic Agenda for Austerity, Exploitation and Corporate Consolidation
On April 22, 2013, there was a conference hosted at the Federal Reserve Bank of New York in co-operation with the European Commission’s Directorate General for Economic and Financial Affairs, “bring[ing] together US-and Europe-based policy makers, regulators, market analysts and academics.” The aim of the conference was to “evaluate the prospects for sustainable economic growth and financial stability, and discuss challenges to transatlantic economic relations posed by the recent episodes of the economic crisis.” Speakers included New York Fed president William Dudley and Vice President of the European Commission, Olli Rehn. [For a list of other participants, see Appendix 9]
William Dudley has been president of the New York Fed since 2009, when the previous president – Timothy Geithner – became Obama’s Treasury Secretary. Prior to his new position, Dudley was a partner and managing director at Goldman Sachs; and currently he also serves as chairman of the Committee on the Global Financial System at the Bank for International Settlements (BIS), and is vice chairman of the Economic Club of New York.
Dudley opened the ‘invitation only’ event by suggesting, “in a global economy with a global financial system… regulation and supervision have a decidedly national orientation.” Thus, he explained, “we [must] seek to balance our domestic needs against the benefits from having a harmonized and integrated global system.” What is needed, said Dudley, is “growth.” But there was “good news” in the U.S., the housing sector was re-inflating – what’s called “recovering,” the middle class “household sector” was struggling under a heavy debt burden (called “deleveraging”), but the banking sector was “healthier” (meaning more profitable), and “the corporate sector is highly profitable and awash in cash.” That’s the “good news.”
A Bloomberg article from 2010 referred to the Federal Reserve Bank of New York as “a black-ops outfit for the nation’s central bank,” noting that it was in fact a “quasi-governmental institution,” whose leadership is appointed by the major banks of Wall Street to represent their interests, and was “the preferred vehicle for many of the Fed’s bailout programs.” The New York Fed is actually a private bank with a great deal of public authority, and is subject to a “culture of secrecy” which was described as “pervasive.” On the board of directors of the New York Fed is Jamie Dimon, the CEO of JPMorgan Chase, as well as several other bankers.
In his speech, Dudley explained that he has guided the New York Fed to purchase long-term U.S. Treasuries (U.S. government debt) and mortgage-backed securities (the same purchases which helped create the previous housing bubble) to the tune of $85 billion “each month.” Noting that the United States has begun down the path of national austerity – “fiscal consolidation” – and must continue deeper, there was a “tug of war” between having a good economy and having austerity, which is a delicate way of saying that the austerity measures will destroy the economy (something the Europeans already know very well). Thus, as Dudley explained, with immense corporate and bank profits, an asset bubble, and a coming austerity-driven economic nose-dive, “the level of uncertainty about the near-term outlook in the United States remains quite high.” But the United States was not geared “toward a growth path” based upon “business investment” and “trade,” instead having only focused on debt-based consumption.
In Europe, however, the outlook was “less bright.” But again, there was “good news,” since the “peripheral countries” such as Greece, Spain, Italy, Portugal, Ireland, and others, were successfully imposing harsh austerity measures, despite resistance from the population being impoverished. This, Dudley calls, “substantial efforts to bring down their structural budget deficits.” There was also progress on improving their “international competitiveness,” which is to say they are opening up to exploitation and plundering, though there was still “an opportunity for further structural reforms in labor and product markets.” Though of course this shouldn’t be done “just in the periphery,” that type of “opportunity” exists everywhere, in order to bring efficiency in exploitation, and thus, more profits: “to increase productivity and strengthen long term growth prospects.”
Sadly, noted Dudley, there was also “bad news” in the EU, since the economy was “still in a recession” – or what could more accurately be described as a deep depression in the so-called “periphery” countries – where it was becoming harder to impose austerity measures and impoverish populations: “the political support for further rounds of budget-tightening has clearly lessened.” Without “growth” – meaning, without corporate and financial profits – “then the political support for continued fiscal and structural adjustment could further erode.” Europe also needed to pursue “deeper integration” at the governance level, and the development of a “pan-European banking union with the ECB [European Central Bank] as the primary overseer” was a “critically important next step.” This will of course demand each country in the EU “to give up a small amount of sovereignty with respect to banking oversight,” and hand it to the ECB, which is unaccountable and remains a driving force behind the austerity and adjustment programs. Dudley referred to this as the “one money, one market” concept.
Olli Rehn, European Commission Vice President and Commissioner for Economic and Monetary Affairs – a major driving force behind the austerity and adjustment programs – gave the keynote speech at the New York Fed conference. He began by welcoming the newly announced Transatlantic Trade and Investment Partnership, explaining that they must work hard to make it “a reality.” Europe, however, is “deleveraging” – which is to say the continent is being crushed by a heavy debt burden whose owners demand ‘austerity’ and ‘adjustment’ in addition to bailouts – and this “deleveraging process is going to take time, and we need to find new sources of growth to ease the burden of adjustment.” Thus, Rehn explained, “opening up global trade opportunities is so very important.” While many EU countries were continuing with harsh austerity measures, “structural reforms” – which facilitate exploitation of labour and resources – “are the key to raising the growth potential of the European economy.”
He finished his speech, stating: “we must stay the reform course. We need to deliver in terms of free trade, financial sector reform, structural reforms that boost growth potential, and consistent consolidation of public finances. We must do so in order to create the foundations for sustainable growth and job creation. Facing these challenges, we are indeed partners on both sides of the Atlantic.”
A Call for Trans-Atlantic Resistance to Corporate Tyranny
Europe is eating itself through austerity, plunging its population into poverty while simultaneously undertaking “structural reforms” designed to facilitate the unhindered exploitation of resources, markets and labour by transnational corporations. The United States has also been implementing austerity measures, though opting instead to create fallacious ‘debt dramas’ involving the pompous parading of meaningless words – ‘fiscal cliff’ and ‘sequester’ – to avoid the blatant promotion of ‘austerity,’ which might encourage people to correctly think of Greece as an example.
So-called “free trade” agreements function as transnational austerity and ‘structural reform’ treaties: they grant corporations unlimited access to markets, protect them from competition, heavily subsidize them, privatize anything and everything, deregulate as much as possible, destroy the environment, and facilitate the unimpeded plundering of resources and exploitation of labour.
Make no mistake: the Transatlantic Trade and Investment Partnership (TTIP) is little more than a transatlantic corporate coup. Corporations created the demand for the agreement, lobbied and promoted the agenda with political elites, and direct the entire process, ensuring that their interests are met.
It would seem, then, that it is time for activists, intellectuals, and communities and organizations of people to reach out across the Atlantic in an effort to create an organized resistance to transatlantic corporate tyranny, consolidation and colonization.
Corporations are undertaking unprecedented drives for the accumulation of profit and power, promoting agendas and projects which re-shape the world in their image, treating governments as toys, the environment as an enemy, and impoverishing populations around the world. We are witnessing a transnational social engineering project, driven by large corporations, aimed at facilitating economic, financial, political and social consolidation into their hands.
Welcome to the era of Cosmopolitical Corporate Consolidation and Colonization.
Will you accept that as legitimate? Will you accept such an agreement? Who agreed to it? Did you? Were you consulted? Have you even heard of it before?
The real question is: will we sit passively as we are led to Extinction Inc., or will we actually stand up, organize, and do something about it?
Appendix 1: Leadership of the Atlantic Council
Among the leadership on the board of directors of the Atlantic Council are Brent Scowcroft, former U.S. National Security Adviser (to presidents Ford and Bush, Sr.), Richard Armitage, James E. Cartwright, Wesley Clark, Paula Dobriansky, Christopher Dodd, Stephen Hadley, Michael Hayden, James L. Jones, Henry Kissinger, Thomas Pickering, Anne-Marie Slaughter, James Steinberg, John C. Whitehead, and with a group of honorary directors including: Madeleine Albright, James Baker, Harold Brown, Frank Carlucci, Robert Gates, Michael Mullen, William Perry, Colin Powell, Condoleezza Rice, James Schlesinger, George Shultz, and John Warner, among others.
On the Business and Economics Advisors Group to the Atlantic Council, there are executives and management from the following companies and institutions: Deutsche Bank, Institute of International Finance, Center for Global Development, AIG, BNP-Paribas, Rock Creek Global Advisors, the Stern Group, Harvard, and the Peterson Institute for International Economics. The International Advisory Board of the Atlantic Council includes Josef Ackermann (Chairman of Zurich Insurance), Shaukat Aziz (former prime minister of Pakistan), Jose Maria Aznar (former PM of Spain), Zbigniew Brzezinski (former US National Security Advisor), and with top executives from: Occidental Petroleum, SAIC, the Coca-Cola Company, PwC, News Corporation, Royal Bank of Canada, BAE Systems, the Blackstone Group, Thomson Reuters, Lockheed Martin, Bertelsmann, Novartis, and Investor AB, among others.
Appendix 2: Leadership of the German Marshall Fund
The board of trustees of the GMF includes a host of corporate executives and news commentators, and their funding also comes from a coterie of governments, major foundations, and multinational corporations including: Bank of America Foundation, BP, Daimler, Eli Lilly & Company, General Dynamics, IBM, NATO, Rockefeller Brothers Fund, and USAID, among many others.
Appendix 3: Leadership of the Business Roundtable
Other members of the executive committee include the CEOs of Honeywell, Dow Chemical, Procter & Gamble, MasterCard, Xerox, American Express, Eaton, JPMorgan Chase, Wal-Mart, General Electric, Caesars Entertainment, Caterpillar, McGraw-Hill, State Farm Insurance, AT&T, Frontier Communications, and ExxonMobil.
Appendix 4: Leadership of the ERT
As of 2013, members of the ERT included the CEOs of Ericsson, Siemens, Telecom Italia, BASF, Nestlé, Repsol, ThyssenKrupp, TOTAL, Rio Tinto, Fiat, Nokia, EADS, ABB, Lafarge, GDF SUEZ, BMW, Eni, BP, Royal Dutch Shell and Investor AB, among many others.
Appendix 5: Corporate Partners of BusinessEurope
BusinessEurope counts among its “partner companies,” notable multinational conglomerates that make up the Corporate Advisory and Support Group who “enjoy an important status within BUSINESSEUROPE,” including: Accenture, Alcoa, BASF, Bayer, BMW, BP, Caterpillar, Diamler, DuPont, ExxonMobil, GDF Suez, GE, IBM, Microsoft, Pfizer, Shell, Siemens, Total, and Unilever, among many others.
Appendix 6: Companies Represented on the Board of the US Chamber of Commerce
The board of directors of the Chamber includes top executives and representatives from the following institutions and corporations: Accenture, Allianz of America, AT&T, Pfizer, FedEx, The Charles Schwab Corporation, Xerox, Rolls-Royce North America, Dow Chemical, Alcoa, UPS, Caterpillar, New York Life Insurance Company, Deloitte, the Carlyle Group, 3M, Duke Energy, Siemens, Verizon, IBM, and Allstate Insurance, among many others.
Appendix 7: Task Force Members
Other task force members represented such institutions as: Tufts University, Foreign Policy magazine, Standard Chartered Bank, the Business and Industry Advisory Committee to the OECD, Facebook, a former EU Ambassador to the US, a former senior VP of the World Bank, Deloitte Touche, and Susan Schwab, a former United States Trade Representative.
Appendix 8: Corporate Representatives on the PEC
Obama’s PEC includes CEOs and executives from Boeing, Xerox, Dow Chemical, UPS, Walt Disney Company, Warburg Pincus, Caesars Entertainment, Ford, Verizon, JPMorgan Chase, Ernst & Young, and Archer Daniels Midland, among others.
Appendix 9: Participants in New York Fed Conference
The program for the event was to include opening remarks from the president of the New York Fed, William Dudley, and would also include the EU’s ambassador to the United States, Joao Vale de Almdeida; the European Commission’s director-general for Economic and Financial Affairs, Marco Buti; and individuals from Columbia University, Johns Hopkins School of Advanced International Studies, MIT, the Brookings Institution, University of Cambridge, the EU-based think tank Bruegel, Morgan Stanley, European Banking Authority, former Federal Reserve Chairman Paul Volcker was chair of the panel on ‘Transatlantic Dimensions of Financial Reform,’ and with Olli Rehn, Vice President of the European Commission and Commissioner for Economic and Monetary Affairs (a central figure of the ‘austerity’ hierarchy) as the ‘keynote’ speaker.
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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.
The Great Corporate Colony: Welcome to Canada Inc., A Subsidiary of the American Empire & Co.
By: Andrew Gavin Marshall
The following is a sample from the first volume of The People’s Book Project, a crowd-funded initiative to produce a series of books studying the ideas, institutions, and individuals of power and resistance. Please consider donating to help the Project come to fruition.
As one of the most resource-rich countries on earth, and the largest single trading partner with the United States, Canada is strategically positioned to influence the changing nature of global power structures. Do we support – and siphon our resources for the benefit of – the American Empire, co-operating in the wholesale plundering of the world, the oppression and impoverishment of peoples, destruction of global ecology, all for the benefit of an increasingly small class of global corporations and banks… Or, do we become independent and free? Canada’s Prime Minister Stephen Harper once said, “You won’t recognize Canada when I get through with it.” With multiple “free trade” agreements under way, expanded corporate rights, expropriation of vast amounts of natural resources, Canada is becoming one of the world’s foremost corporate colonies, unrecognizable from what Canadians once imagined our nation to be.
The Plundering Potential of Resource Wealth
Canada is the second largest country by landmass in the world, after Russia, and with roughly 10% of the population of the United States, it is also one of the most resource rich countries on the entire planet. Looking at a list of the ten most resource-rich nations on earth (determined not by the multitude, but rather the ‘market value’ of the resources they contain) is rather revealing. At number ten, and in descending order is: Venezuela, Iraq, Australia, Brazil, China, Iran, Canada, Saudi Arabia, the United States, and Russia. Canada has one of the largest oil reserves in the world after Saudi Arabia and Iran (though these are largely located in the difficult-to-extract Alberta tar sands), as well as having some of the largest mineral resource deposits in the world, with the second-largest proven reserves of uranium and the third largest amount of timber. According to Statistics Canada, the nation’s natural wealth tripled in value between 1990 and 2009, then valued at $3 trillion, largely due to the increased price of oil.
In June of 2012, the United Nations released a major report in which it established a new index to account for and define ‘wealth’ beyond mere reports of GDP. Termed the “Inclusive Wealth Index” (IWI), it determines national wealth based upon three types of assets: “manufactured” (machinery, buildings, infrastructure, etc.), “human capital” (the population’s education and skills), and “natural capital” (land, forests, fossil fuels, minerals, etc.). The study, Inclusive Wealth Report 2012, analyzed 20 different countries, and was intended to take into account depleting resources and sustainability for future generations when determining a nation’s real wealth. While GDP growth has taken place in China, the U.S., South Africa and Brazil, these nations have significantly reduced their natural capital. Between 1990 and 2008, the “natural capital” of the United States declined by 20%, 17% for China, 25% for Brazil, and 33% for South Africa. In fact, 19 out of the 20 countries studied showed a decline in natural capital, offset only by an increase in human capital (education and skills).
Human capital is based upon the average years of schooling, wages that the country’s workers can demand, and how many years they are expected to work before they retire or die. With this measurement, human capital amounts to the largest percentage of a nation’s wealth (except for Nigeria, Russia, and Saudi Arabia), accounting for 88% of Britain’s wealth and 75% of America’s. Canada is of course included among the 19 countries with rapidly declining natural capital.
Canada’s Minister of Natural Resources Joe Oliver spoke to a gathering of Canaccord Genuity Corporation (a financial services conglomerate) in Toronto in September of 2012, where he explained that Canada’s “tremendous natural wealth” included “huge capacities and reserves of energy, including the third-largest proven oil reserves in the world,” as well as “tremendous hydroelectric capacity, massive tracts of forests and an abundance of minerals and metals.” He added, however: “it’s not enough to have the resources… You have to do something with them.” Oliver listed some of the many resources which Canada has and produces in abundance: oil, natural gas, hydroelectricity, uranium (second largest producer in the world), more than 200 mines turning out more than 60 minerals, “including more potash than anyone else,” as well as aluminum, cobalt, diamonds, nickel, platinum group metals, titanium concentrate, tungsten, chromite, the second-largest exporter of primary forest products, and is the “biggest exporter of wood pulp, newsprint and softwood lumber.” The resource sector, explained Oliver, “is the cornerstone of our economy, our long-term prosperity and our quality of life.”
Oliver explained that the energy, forestry, metals and minerals industries accounted for roughly 15% of Canada’s nominal GDP, the “direct contribution” to the Canadian economy, while the indirect GDP (taking into account “goods and services purchased from other sectors – construction, machinery and equipment, business and professional services”) takes the number up to roughly 20%. The key areas and industries are oil in Alberta, forestry in British Columbia, potash and uranium in Saskatchewan, mining in Ontario and hydro-power in Quebec. Oliver told the assembled crowd in the heart of Toronto’s finance industry that there was “about $650 billion invested in over 600 major resource projects currently underway in Canada or planned in the next 10 years.” He added: “Countries in the Asia-Pacific region are especially hungry for the energy and minerals and metals and forest products they need to fuel their growth and build a better quality of life for their citizens.” There were, he acknowledged, still inherent problems with the global economy which could effect this outlook, but suggested that what the Canadian government can – “and is doing – is establish a competitive business climate so the private sector can capitalize on our enormous potential.” In other words, the Canadian government will establish a highly protective and subsidized market for multinational corporations to more effectively plunder the natural resources. All for altruistic intentions, of course!
Canada’s highly influential big business dominated think tanks have not been far behind in promoting resource plundering by multinational corporations. The Conference Board of Canada published a report in June of 2012 arguing that “Canada’s trade strengths are concentrated in industries that extract natural resources and process raw materials,” including agricultural and food products, minerals and metals, forest products, and electricity exports. In the report, Adding Value to Trade: Moving Beyond Being Hewers of Wood, Michael Burt wrote: “These industries rely heavily on natural resource wealth such as land, water, forests, and mineral products. The abundance of these resources gives Canada a robust comparative advantage in the industries that extract and process them.” Thus, it would be desirable to promote the “development and use of our natural resources, and industries that support the primary sector are competitive with world standards.” The board of directors of the Conference Board of Canada includes executives and/or board members of the Business Development Bank of Canada, EPCOR Utilities, CGI Group, GE Canada, Canada Post Corporation, TransAlta Corporation, ICICI Bank Canada, Cisco Systems Canada, Desjardins Group, IBM Canada, Shell Canada, Xerox Canada, SaskTel, SaskPower, and John Manley, the President and CEO of the Canadian Council of Chief Executives (CCCE), the main business interest group in Canada, made up of the top 150 corporate CEOs in the country.
In October of 2012, the Canadian International Council (CIC) – the Canadian counterpart to the Council on Foreign Relations in the U.S. – published a report entitled, Becoming a Resource Superpower, in which the author, Madelaine Drohan (the Canada correspondent for The Economist) argued that, “without strong leadership and collaboration we risk losing an opportunity to become a real resource superpower.” A series of recommendations were laid out, including the possibility of establishing a sovereign wealth fund (SWF) to pool and invest money made from resources, encouraging the provincial and federal governments in Canada to “stop treating” revenue from resources “as income to be spent and start treating them as capital to be saved or invested.” In other words, the money made from resources should not go back to benefit Canadians, but rather be used to exclusively benefit the investor class.
Other recommendations focused on expanding the relationship between government, business, and academia (as if we don’t have enough of this already): “To do this, federal and provincial governments must concentrate their funding for research and development on collaborative projects between groups of companies and academic institutions.” Another recommendation focused on expanding “trade” networks and energy customers, specifically in the Asia-Pacific, noting: “Canada should focus on negotiations involving the largest possible number of countries, such as the Trans-Pacific Partnership, and look beyond China so we do not repeat the error of putting all our eggs in one basket.” The report then recommended the government to establish highly protectionist trade agreements for corporations, writing: “Government can help companies plug into global value chains by removing impediments and securing the right trade and investment deals.” By definition, that is the opposite of “free trade,” which is why it is important that we call it “free trade,” when in actuality, it is highly protectionist, involving state intervention designed to undermine the ‘market’ and give corporations a subsidized advantage, thus, undermining competition. The last major recommendation was for federal, provincial, and territorial governments to “collaborate on a national blueprint for resource development that identifies the gaps to be filled – including in infrastructure, environmental protection, trade diversification, education, immigration, technology, and supporting sectors – and sets out how to address them, with achievable goals and deadlines.” In other words, massive state-capitalist planning and plundering is required.
The board of directors of the Canadian International Council (CIC) includes the president and CEO of the Canadian Chamber of Commerce, Chair of the Atlantic Council of Canada, Raymond Chrétien (nephew of former Prime Minister Jean Chrétien), while the chief sponsors of the CIC include: Bennett Jones, Power Corporation of Canada (owned by the Desmarais family, Canada’s Rockefellers), the Royal Bank of Canada, AGF, Barrick Gold, BMO Financial Group, Sun Life Financial, Scotiabank, and TD Bank. So naturally, it has everyone’s interests at heart, and by ‘everyone’, I mean, everyone that matters to the investor class (i.e., the investor class).
So, as Canada increases production of oil from Alberta’s tar sands, the government is seeking to expand the major pipelines to the coast in the hopes of acquiring China as a major trading partner, instead of just the United States. Canada sits atop “unknown quantities” of natural gas reserves, what The Economist calls an “unconventional bonanza,” adding: “Just as the 20th century was the age of oil, the 21st could prove to be the century of gas.” However, in August of 2012, Canadian Prime Minister Stephen Harper declared that Canada’s future economic hopes depend upon the natural resources of the Arctic, which has been the focus of a new global grab for resources since the Arctic ice has begun to break up more rapidly. On a visit to the region, Harper stated, “Obviously, there is a tremendous economic opportunity here. The fact that we are attracting investment not just domestically, but from around the globe speaks very highly to the future.” As revealed by documents released to the press, in late 2011, the Mining Association of Canada was lobbying the Environment Minister Peter Kent “to change regulations and allow non-metal mines, such as diamonds, oilsands and coal, to discharge potentially polluted water under federal guidelines.”
In other words, now that the ice is breaking and resources are being readied for plunder, the major mining conglomerates want the government’s permission to treat the Canadian environment the way they treat the environment in the rest of the world, notably, in poor, conflict-ridden countries like Colombia and the Democratic Republic of Congo. After all, what is plundering without the added bonus of environmental devastation? It’s not just a matter of extracting and exploiting all available resources, from which to gain massive profits, but it’s also important for corporations to destroy the surrounding environment so that little, if anything, can flourish and replenish. That is plundering at its most profitable. In October of 2012, it was reported that Canada was going to claim ownership of a massive size of undersea territory in the Arctic, larger than the size of the province of Québec, and roughly equal to 20% of the country’s surface area.
In 2013, Canada will begin chairing a two-year term of the Arctic Council, a grouping of eight nations working together to manage the development of the Arctic as an economically and strategically important global region. With the opening of new and large opportunities for economic exploitation and resource plundering, the states with territory in the Arctic have become increasingly aggressive in their military posturing in the region, “increasingly designed for combat rather than policing,” according to a study by the Centre for Climate and Energy Solutions. The report noted: “Although the pursuit of co-operation is the stated priority, most of the Arctic states have begun to rebuild and modernize their military capabilities in the region.”
Canadian Prime Minister Stephen Harper had been publicly making aggressive statements about competition in the Arctic, particularly in relation to Russia. In private, however, Harper had been making different claims. As revealed by Wikileaks, Harper expressed the message to the Secretary-General of NATO that there was no real military threat in the Arctic, instead expressing the perspective that, “Canada has a good working relationship with Russia with respect to the Arctic, and a NATO presence could backfire by exacerbating tensions.” Harper added, according to the released cables, “that there is no likelihood of Arctic states going to war, but that some non-Arctic members favoured a NATO role in the Arctic because it would afford them influence in an area where ‘they don’t belong’.” All the public statements and aggressive military stances in the region have, however, helped to sway public opinion into believing that there is a “security or sovereignty threat to the northern border,” and thus justify increased expansion into the region for exploitation. The issue is not one of security, but of securing resources (for corporations, no doubt). One released cable from 2009 relayed this point accurately, noting that Canada’s defense plan to build six Arctic Patrol ships for the navy was “an example of a requirement driven by political rather than military imperatives, since the navy did not request these patrol ships. The Conservatives have nonetheless long found domestic political capital in asserting Canada’s ‘Arctic Sovereignty’.” By the summer of 2012, the aggressive rhetoric had essentially vanished, and Harper’s missions to the Arctic were entirely diplomatic and aimed at exploiting the region’s vast natural resources. The Obama administration has also identified the Arctic as “an area of key strategic interest.”
Canada For Sale: “Free Trade” Fanaticism
Canada has been pursuing a vast array of so-called “free trade” agreements with specific countries around the world, as part of the overall program of plundering resources and giving multinational corporations unprecedented control over society. Since the 1988 Canada-U.S. Free Trade Agreement and the 1994 North American Free Trade Agreement (NAFTA), Canada has pursued agreements with several countries, including Israel, Jordan, Chile, Costa Rica, Colombia, Honduras, Panama, Peru and is in talks with the European Union and Japan, as well as China and India.
On August 15, 2011, the Canada-Colombia Free Trade Agreement – a highly protectionist corporate-driven agreement (like all “free trade” agreements) – came into effect. The agreement was reached in 2008, receiving “royal assent” in 2010, and is sure to benefit major corporations and help finance a state which is responsible for the greatest human rights violations in the Western Hemisphere. Canada’s top five exports to Colombia include wheat, newsprint and paper, machinery and equipment, dump trucks as well as beans, peas, and lentils. Colombia’s top five exports to Canada include coal, coffee, bananas, fuel oil and cut flowers (note: this list excludes illicit trade products like cocaine, of which Colombia is a major global exporter).
As critics of the deal pointed to Colombia’s record on human rights abuses, Stephen Harper commented, “No good purpose is served in this country or in the United States by anybody who is standing in the way of the development of the prosperity of Colombia,” by which he means to say that human rights are irrelevant so long as multinational corporations are making large profits. And indeed, policies fit that paradigm very well. Harper added: “Colombia is a wonderful country with great possibility and great ambition. And we need to be encouraging that every step of the way. That’s why we have made this a priority to get this deal done. We can’t block the progress of a country like this for protectionist reasons.” In this sense, the word “protectionist” refers to any impediments, regulations, or barriers to the unhindered exploitation and plundering of a country by multinational corporations. When agreements are protectionist in favour of corporations, securing and enforcing their unhindered monopolization of markets and exploitation of resources, this is called “free trade.”
With more than 70 Canadian corporations in Colombia, from oil and mining to finance, the agreement will open up more access for major companies. For those who mention human rights abuses, Harper had this to say: “I think there are protectionist forces in our country and in the United States that don’t care about development and prosperity in this part of the world. And that’s unfortunate.” Chris Spaulding of Talisman Energy, a Canadian corporation doing business in Colombia, commented that, “It’s very business friendly. They want foreign investment. The labor force is very good. The resources are there.”
According to the Globe and Mail, Colombia has “near bullet-proof potential for rapid growth,” due to low wages, abundant resources, and with the return of “order” (a euphemism for state oppression and control), though the country still has a high murder rate, five times the rate of the United States. Colombia not only signed a free trade agreement with Canada, but also with the U.S., and has received top rates from the World Bank for fostering a good “business climate.” Scotiabank, one of Canada’s big five banks, made a $1 billion purchase of a 51% stake in Colombia’s fifth largest bank, Banco Colpatria. Rick Waugh, the CEO of Scotiabank, declared that, “Colombia is very important to us.”
Toronto-based mining company Gran Colombia Gold Corp has been seeking to remove an entire town, a 500-year old community, to make way for an open-pit mine. When the Colombian government was preparing to displace the town, villagers in the community formed a committee to defend themselves. One of the organizers, a local priest, Father José Reinel Restrepo, publicly denounced the plan to move the town for the benefit of a foreign corporation, even giving television interviews in which he denounced “Canadian imperialism.” He explained: “If they are going to drive me out of here, I would tell them they would have to expel me by way of bullets or machetes – but they can’t oblige me to leave.” Four days later, Father Restrepo was shot dead while traveling to visit his family.
Colombia has a long history with powerful business interests allying themselves with paramilitary outfits to “silence opponents and displace rural populations living atop natural resources.” Under the guise of the “war on drugs,” Colombia’s military, with billions in “aid” from the United States, has co-operated with big business interests and criminal paramilitary groups, purportedly to fight rebel groups (notably FARC), but mostly to clear rural communities to allow for corporate plundering of the resources upon which they sit. In recent decades, some four million people have been displaced by such actions, leaving the country with Latin America’s “most inequitable distribution of wealth.” On top of that, Colombia is a major narco-state, with state, paramilitary and rebel groups all participating in the massive cocaine trade. Many historians have described Colombia as “the world’s most enduringly violent country,” with over five decades of constant internal warfare. With over 20 major Canadian companies holding major investments in Colombia, it’s no wonder that the World Bank rated the country as the best investment climate in Latin America.
The brand of “order” that the government of Colombia has enforced in recent years represents a continuation of the policies of several administrations before it. The human rights and humanitarian crisis in Colombia is “staggering in scale,” with millions displaced, killed, tortured, raped, kidnapped or “disappeared,” more than 280,000 people had to flee their homes in 2010 alone. State, paramilitary and rebel groups have all routinely been accused of vast human rights abuses and war crimes. While the new government of President Santos promised to prioritize human rights when he came to power in 2010, the reality, according to Amnesty International, was that “threats against and killings of leaders of displaced communities and of those seeking the return of lands misappropriated during the conflict, mainly by paramilitary groups, have increased during the Santos government.” In criminal investigations of human rights abuses, witnesses, victims, lawyers, and judges have continuously been threatened or even killed. Threats and murders have also increased for human rights activists, trade unionists, and community leaders.
Canadian law demands that the government table a human rights report for Parliament on the impact of the Canada-Colombia Free Trade Agreement. Instead of submitting the report, the Canadian government decided, in May of 2012, that it would not even adhere to Canadian law, and refused to submit any such report, instead stating that it would produce a report for May of 2013. With more than 259,000 people displaced from their homes in Colombia in 2011 (on top of the 280,000 displaced in 2010), human rights abuses and war crimes will continue, with the tacit (and perhaps active) cooperation of Canadian corporations, notably mining companies. The Canadian government has effectively given the green light for such abuses to continue. While Colombia’s Constitutional Court identified 34 Indigenous nations in the country that were in “grave danger of extinction,” Canadian indifference continued. Alex Neve, the Secretary General of Amnesty International Canada declared that, “Canada must not turn its back on the human rights crisis in Colombia for yet another year… The crucial question that should not be postponed is what role is Canadian investment playing with regard to this emergency?” Neve added: “Failure to carry out a full impact assessment violates Canada’s responsibility of due diligence under international law and denies Canadian corporations working in Colombia the information they need to avoid implicating themselves in grave human rights violations.”
The website for the Canadian ministry for Foreign Affairs and International Trade declared that the Canada-Colombia FTA provided “a key boost for Canadian companies in five important sectors: agriculture, information and communication technologies, mining, oil and gas, and services.” Noting that Canada’s interest in the narco-state was “growing strongly,” the ministry website added that Colombia had “undergone important economic and legal reforms, spurring democracy and global direct investment.” The business climate, it declared, was “now stable and predictable, making Colombia a secure business partner and a solid investment destination.” With that in mind, Canada’s Defence Minister Peter MacKay signed an agreement with the Colombian military in November of 2012 to strengthen its “military relationship with Colombia,” which MacKay stated, “represents a natural evolution in our relationship… And we look forward to continuing to build our ties with the Colombian Armed Forces.” No doubt, as they continue to displace hundreds of thousands of innocent people in order to clear the land for foreign corporations, and of course, to help advance the profits of the international illicit drug trade.
Scotiabank decided to expand its operations further in Colombia, with the purchase of a majority stake in one of Colombia’s largest pension fund companies. Scotiabank has taken on a major role in “financing Colombia’s energy and mining sectors,” with the bank’s head of global wealth management stating, “We look to continue the growth and expansion of this business.” Another executive at Scotiabank stated, “We continue to invest in Colombia because we see this as a market with great potential for growth.” Interestingly, the Canadian Embassy in Colombia is located in the new Scotiabank Tower in Bogota.
Canada continues to pursue further “free trade agreements” with other countries as well, notably, Japan and China. In March of 2012, Canada and Japan agreed to begin free trade talks, already steadfast trading partners. On top of “free trade,” the Japanese Prime Minister Yoshihiko Noda announced that Canada and Japan would also be advancing defence and security “co-operation.” At the announcement, Harper declared that, “This is a truly historic step that will help create jobs and growth for both countries.” Jayson Myers, the president of the Canadian Manufacturers & Exporters association stated, “Japan is a strategic commercial partner… However, it is also a country with whom we’ve had a persistent trade deficit when it comes to manufacturing. These negotiations provide the appropriate forum to resolve ongoing concerns.”
As revealed by secret documents obtained by the media, the Canadian government had been lobbying the United States to join the Trans-Pacific Partnership agreement for the main reason of gaining more access to Japan, with one document noting that the TPP without Japan “does not excite us.” In November of 2012, it was reported that Japan was likely to follow Canada’s entrance into the TPP, the largest and most secretive trade agreement in history, involving 11 Pacific rim countries, and negotiated in cooperation with over 600 corporations. The TPP is highly controversial within Japan, since it could potentially – and likely would – lead to reduced protections and subsidies for the Japanese agriculture sector, an area long considered untouchable. A spokesperson for the Canadian department of Foreign Affairs and International Trade stated, “We welcome Japan’s interest in joining the TPP. Japan’s participation in the TPP would further strengthen Canada and Japan’s strong trade and investment relationship. We are already working closely with Japan towards a bilateral free trade agreement that will bring new jobs and increased prosperity to Canadians and we would welcome the opportunity to also work together in the TPP.”
(For more information on the TPP, please see my three-part series here: The Trans-Pacific Partnership)
Canada has also begun talks with India and hoped to sign a free trade deal with the country by the end of 2013, with Stephen Harper stating, upon a visit to India, “I think I am very clear that we need to go farther and faster.” Stephen Harper lamented against the fact that India has democratic institutions, and thus, undemocratic policies are harder to implement. He stated: “What we do have to realize when we deal with India, as opposed to some other countries that we’re dealing with in the developing world – this country is a democracy… And that means that governments cannot simply dictate a whole set of policy changes to happen the next day. That means governments must develop consensus behind policy changes. And that, in this country is not easy. We understand that.” Luckily for Harper, he doesn’t have to face any such problems at home, with a majority government, tearing the country to pieces day-by-day. Stephen Harper once boasted many years ago, that if he was given the chance to become Prime Minister, “You won’t recognize Canada when I get through with it.” Indeed, that turns out to be quite true. Indeed, back in 1997, Harper wrote an article in which he referred to Canada as “a benign dictatorship,” though there seems to be little ‘benign’ about his majority-government rule.
In September of 2012, Stephen Harper signed an investment treaty with China (as a precursor to a potential free trade agreement), called the Foreign Investment Promotion and Protection Agreement (FIPA). The details of the agreement were kept secret until the deal was tabled in the Canadian Parliament in late September, but the agreement is not to be debated in Parliament because treaty making “is a royal prerogative,” and can thus become law through the initiative of the Prime Minister’s cabinet alone, so long as the treaty is ‘tabled’ in Parliament. Canada already had roughly 24 FIPAs in operation, with roughly a dozen more in the works. FIPAs are not “free trade agreements,” but are designed to simply “protect and promote” foreign investment in legally-binding agreements. In essence, they are quicker and smaller versions of “free trade” agreements, and designed with a similar purpose: to advance corporate rights and the expense of democratic rights.
China’s ambassador to Canada stated that the two countries should move quickly toward a free-trade agreement within a decade, adding, “It’s time to open each other’s markets.” The comments came as a major Chinese state-owned corporation was seeking to take over a Canadian energy company, which would be the first direct foreign takeover of a major actor in Canada’s energy sector, a major concern for Canadians who fear Canada’s resource wealth will not benefit Canadians. On this issue, the Chinese ambassador noted, “Business is business. It should not be politicized… If we politicize all this, then we can’t do business.” The ambassador told a Canadian journalist, “We are not coming to control your resources.” No, of course not, they’re just coming to take the resources. Within a couple months, Prime Minister Harper approved of the Chinese takeover of the Canadian energy company Nexen, as well as another takeover by a Malaysian company in the Canadian energy sector. However, Harper then stated that there would be restrictions on foreign governments buying some of Canada’s largest energy conglomerates (just not these ones in particular). At a press conference, Harper stated, “When we say that Canada is open for business, we do not mean that Canada is for sale to foreign governments.” Except, of course, for all the exceptions to that rule.
Critics of the Canada-China FIPA warned that it would reduce Canada to little more than a “resource colony,” which would bind Canada to new investment rights with China for 30 years. Not only does it allow China to gain an increased foothold in Canada’s economy, and specifically, in purchasing Canadian resources, but it also acts “to protect Canadian capitalists when they go into China.” What more could someone ask for? The Council of Canadians, a public interest organization, referred to the Canada-China FIPA as a “corporate rights pact” that would have serious repercussions on Canadian environmental, energy, and financial policies. This is because the deal would allow for lawsuits against the Canadian federal and provincial governments for having “barriers” to investments, which could then be overturned.
Canada is also in the final stages of negotiating a trade agreement with the European Union, called the Comprehensive Economic Trade Agreement (CETA), designed to reduce tariffs and open up “new markets,” having major impacts upon agriculture, intellectual property rights (copyright and patent laws), with drug prices likely to increase “significantly,” as well as allowing for more “labour mobility,” a euphemism for increased labour exploitation. The agreement, which has been in negotiations for years, would “deal another blow to Canada’s already battered manufacturing sector,” with roughly 28,000 jobs under threat, deemed to be the “best-case scenario” by the Canadian Centre for Policy Alternatives. The “worst-case” scenario could see up to 152,000 jobs being “vaporized.”
As is typical, the negotiations are “behind closed doors” and barely deal with actual “trade.” CETA is, much like the TPP, termed a “next generation” free trade agreement, negotiated since May of 2009, and would further deregulate and privatize the Canadian economy, and of course, therefore, increase corporate power, and thus at the expense of democratic accountability. The agreement could restrict how local and provincial governments could spend money, even banning “buy local” policies, increase the cost of drugs by $3 billion, increase Canada’s trade deficit with the EU, allow for European corporations to attack environmental and health protections within Canada as “barriers to investment,” potentially even apply pressure to privatize water, transit, and energy, and even prevent farmers from saving their seeds, as a major gift to GMO manufacturers. Where corporate rights are advanced, democratic rights are dismantled.
A leaked document from the European Commission dated November 6, 2012, revealed that the practice of Canadian municipalities “buying locally” would disappear with the Canada-EU CETA, and that “provincial development programs could go with them.” Canadian municipalities were offering better terms for European access to municipal contracts that those which Canadian provinces give each other. The document, prepared for the European Commission’s Trade Policy Committee noted that the agreement is “the most ambitious and comprehensive offer Canada and its provinces have made to any partner, including the U.S.” EU negotiations will, however, continue to press for more access to energy sectors. Maude Barlow of the Council of Canadians noted: “The amount of room our provinces, municipalities and local communities have to support local farmers and otherwise create the jobs of tomorrow is threatened again by a Canada-European Union free trade deal that will forever prohibit these kinds of economic strategies.” The province of Ontario could alone lose between 13,000 and 70,000 jobs as a result of the agreement, according to the Canadian Centre for Policy Alternatives.
Openly acknowledged by European politicians was that Canada would be getting the short end of the stick in the CETA deal, as a Danish member of the European Parliament stated, “At the moment Europe will be able to export more than what Canada will be exporting.” Another European official closely linked to the negotiations stated, “We will gain a bit more.” Canadian Trade Minister Ed Fast said, “[t]he potential benefits to Canadians under a free trade agreement with the European Union are immense,” though he forgot to acknowledge that the ‘Canadians’ he was referring to are largely corporations, and the elite class that owns them. Michael Hart, a trade expert at Carleton University noted, “[t]rade agreements do not create jobs. Never have. Never will. But ministers have never accepted that economic insight.” And understandably so, after all, it’s rather challenging to sell a trade deal to the public if one openly declares it is for the singular purpose of advancing corporate rights, domination, and plundering. So instead, politicians must always mutter the magical word of “jobs,” which in political language, translates accurately into “profits,” as Noam Chomsky has suggested in the past. Thus, when politicians say that trade agreements will “create jobs,” which they never do, what they are actually saying is that such agreements will “create profits,” and exclusively for major multinational corporations, which they always do.
Canada’s trade agenda is of course driven by big business, whose interests will be served by such “free trade” agreements. In regards to CETA, the Canada Europe Roundtable for Business (CERT) was established in 1999 to contribute “recommendations on trade and investment to government officials and hosting thematic, high-level meeting focused on developing strategic relationships between company executives and with government officials,” according to the website for CERT. A declaration of support in 2008 for a Canada-EU trade agreement was signed by over 100 executives in Europe and Canada, urging Canadian and EU leaders to “design a new type of forward-looking, wide-ranging and binding bilateral trade and investment agreement.” Such an agreement, the document stated, “will provide European companies with a gateway into the vast North American free trade area, while increasing Canadian opportunities in the European Common Market,” serving as “a strategic and important step towards the eventual creation of a comprehensive transatlantic trade and investment area.” Among the signatories to the statement were top executives at the following companies: Anglo American plc, AstraZeneca, Barrick Gold Corporation, BASF, Bayer, Bertelsmann, BNP-Paribas, Bombardier, British Airways, Canadian Chamber of Commerce, Canadian Manufacturers & Exporters, CN, Commerzbank, Deutsche Bank, E.ON AG, Gaz de France, GlaxoSmithKline, Lafarge, Manulife Financial, Merck, Monsanto Canada, Munich Re, Pfizer Canada, Power Financial Corporation, Rio Tinto plc, Royal Dutch Shell, Siemens, SNC-Lavalin, Société Générale, SUEZ, Suncor, ThyssenKrupp, TOTAL SA., TSX Group, Ubisoft Entertainment, and Volkswagen, among many others.
In late October 2012, a number of European and Canadian big business lobbying groups, including BusinessEurope, the Canadian Chamber of Commerce, and the Canada Europe Roundtable for Business (CERT), sent a letter to the Canadian and European trade negotiators, Ed Fast and Karel de Gucht, respectively, urging them to push through on the CETA. The signatories called for Canada and the EU to reach “an ambitious and successful conclusion to the Comprehensive Economic and Trade Agreement (CETA) negotiations by the end of 2012.” The letter said it was “imperative” to “maintain a high level of ambition” in key areas which would benefit Canadian and European corporate interests. Among the many areas for which the letter suggested “a high level of ambition” were in recommending the “full and rapid dismantling of tariffs for all industrial goods,” and “[a]ccess to raw materials and energy products,” the removal of barriers and “discriminations” in service sectors, “full access” to the agricultural sector, including “a satisfactory path forward on the bio-tech issues that have caused trade impediments,” by which is meant to advance the interests of GMO manufacturers. Further recommendations included “access to government procurement” which removes all barriers and allows for increased privatization, and of course, “[r]obust protection and enforcement of intellectual property (IP) rights in both markets,” which would include “the targeting, seizing and destroying of counterfeit imports and exports,” so as to undermine competition and protect monopoly and oligopoly corporations. Finally, the letter stated that the Canada-EU agreement “must also ensure improved labour mobility,” which would allow for increased labour exploitation, enhancing competition between the labour forces of Europe and Canada, which always results in lost jobs, lower wages, and reduced protections and benefits. These are, of course, all very good things for multinational corporations. Since they are terrible things for the populations, they have to be coded in political and economic language, so instead of saying, “we want easily exploitable and cheap labour,” they suggest, “improved labour mobility,” which is also at times referred to as “labour flexibility” (i.e., making labour “flexible” to the interests of multinational corporations).
The Great Canadian Corporate Colony
Such letters from corporate leaders are necessary in order to remind political leaders whose interests they are in office to serve. The Canadian government ensured that it would serve big business interests through trade policy by appointing, in May of 2012, a new ‘advisory panel’ which would “help guide Canada’s ambitious, pro-trade plan in large, dynamic and fast-growing priority markets.” Speaking at the Canadian Chamber of Commerce, International Trade Minister Ed Fast stated: “Our government’s top priority is the economy – creating jobs, growth and long-term prosperity for Canadian workers, businesses and families… We understand the importance of trade to our economy… That is why we are deepening Canada’s trading relationships in priority markets around the world.”
Ed Fast announced the formation of the new advisory panel at the Canadian Chamber of Commerce. The members of the panel include: Murad Al-Katib, president and CEO of Alliance Grain Traders Inc.; Paul Reynolds, president and CEO of Canaccord Financial; Kathleen Sullivan, executive director of the Canadian Agri-Food Trade Alliance (CAFTA), representing 80% of Canada’s agri-food sector; Perrin Beatty, president and CEO of the Canadian Chamber of Commerce, former president and CEO of the Canadian Manufacturers & Exporters, former president and CEO of the Canadian Broadcasting Corporations (CBC), and former government minister; John Manley, former Deputy Prime Minister of Canada, former Foreign Affairs and Finance Minister, and currently president and CEO of the Canadian Council of Chief Executives (CCCE), a corporate interest group made up of Canada’s top 150 CEOs; Catherine Swift, president and CEO of the Canadian Federation of Independent Businesses; Jayson Myers, president and CEO of Canadian Manufacturers & Exporters; Brian Ferguson, president and CEO of Cenovus Energy Inc, a major Canadian oil company; Serge Godin, founder and executive chairman of the board of CGI Group Inc, one of the largest information technology businesses in the world; and Indira Samarasekera, president of the University of Alberta. Upon the announcement of this panel, Ed Fast stated: “I look forward to receiving advice from these knowledgeable Canadian leaders.”
So we return to the statement once made by Prime Minister Stephen Harper: “You won’t recognize Canada when I get through with it.” Sadly, this is quite true as Harper Inc. advance Canada to the status of one of the world’s premier corporate colonies, where plundering for profits, environmental degradation, mass privatization, deregulation, and democratic devastation are the rules of the day. A Canada once thought of as democratic, free, and peaceful, is ever-advancing toward a fully privatized outpost of global corporate tyranny: Canada Inc., a subsidiary of the American Empire & Co.
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.
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