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	<title>Red Pepper &#187; Andrew Bowman</title>
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		<title>Radicals at the table &#8211; Natalie Bennett interview</title>
		<link>http://www.redpepper.org.uk/radicals-at-the-table-natalie-bennett-interview/</link>
		<comments>http://www.redpepper.org.uk/radicals-at-the-table-natalie-bennett-interview/#comments</comments>
		<pubDate>Sat, 22 Dec 2012 10:00:11 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Green Party]]></category>
		<category><![CDATA[Andrew Bowman]]></category>
		<category><![CDATA[Michael Calderbank]]></category>
		<category><![CDATA[Natalie Bennett]]></category>

		<guid isPermaLink="false">http://www.redpepper.org.uk/?p=9128</guid>
		<description><![CDATA[Natalie Bennett, the new Green Party leader, speaks to Andrew Bowman and Michael Calderbank]]></description>
				<content:encoded><![CDATA[<p><b>Michael</b> How are you finding the job, now you’re a few weeks into it?<br />
<b>Natalie</b> Oh, it’s very exciting, very busy. One of the things I’ll enjoy is going round the country. Pretty much everywhere I go there’s this real feeling of a democratic deficit, people saying, ‘They’ve come up with this enormously grand scheme to redevelop the area, but no one spoke to us until they just dumped it in our lap, then thought “we have to consult” and asked, “would you like a tree over there or over here instead, or this yellow or that green?”‘<br />
<b>Andrew</b> With two days to respond . . .<br />
<b>Natalie</b> That’s right, exactly. There’s so many things that are bringing democracy into disrepute at the moment, but that’s one thing that really struck me. The word consultation is just becoming a joke.<br />
<b>Michael</b> We’re now seeing the experience of Britain’s first Green-led council in Brighton and Hove, albeit without a majority, so to what extent can the Greens make different choices in power compared to the main parties? Can the Greens offer an anti-cuts alternative at local level?<br />
<b>Natalie</b> Brighton actually is a really good example, because what they did was to come up with a plan that would have ameliorated lots of the cuts with a 3.5 per cent council tax rise. We said, ‘No, we can’t have these cuts, we’ll need to claim more in council tax’, but because we’re in a minority on the council, we couldn’t put that through ourselves as we didn’t have the power to do that, and sadly Labour voted with the Tories. So actually it was Labour and the Tories who made the cuts happen that we were trying to stop as a minority administration. Had we been able to make that council tax rise we would have been able to save lots of things.<br />
<b>Michael</b> Well, your critics on that, including some members of the Green Party, would say there is an alternative. You could have refused point-blank to implement the cuts and set a needs budget, ultimately even pulled out of leading the council to campaign on a very clear anti-cuts basis.<br />
<b>Natalie</b> What you would have done there is to hand over to a Tory council. You have to make a decision in terms of: are you able to ameliorate things? I was only reading this morning about the things the Green council is trying to do in terms of creatively finding ways to raise money – renewable energy projects and the like. We are not just doing things how others would do them. We might not be able to do all the things we’d like, but until we get a Green government in Westminster we have to work within the framework we have. And what I hear on the ground, not just from Green Party people, is that people in Brighton are finding we are making a positive difference.<br />
<b>Michael</b> People will give their verdict on the council in 2015, and given that cuts to central government grants are going to mean things are only going to get more difficult, are you worried that Caroline Lucas, the first Green MP in Britain, is up for re-election at the same time?<br />
<b>Natalie</b> It’s a big challenge, but I think Brighton Greens are making a good fist of it. From what I can see, because we are being very open and very honest and very democratic and saying to people ‘These are what the choices are, help us make the best choices’, people will acknowledge that and respect that.<br />
<b>Michael</b> How closely is the national leadership of the party involved in the local issues of places like Brighton?<br />
<b>Natalie</b> We’re here as a support mechanism any time they want it, but we believe in localism and local parties are sovereign. We don’t tell them what to do, they make their own decisions.<br />
<b>Andrew</b> In terms of coming after Caroline Lucas as leader, who is a very high profile figure, do you think you’ll be able to generate the same kind of awareness, and to what extent do you plan any change of direction?<br />
<b>Natalie</b> It’s not a change of direction. What I will have is the practical possibility of doing more travelling round the country, a lot more than Caroline has chance to do given the role of an MP is so tied to Westminster a lot of the time. And it’s really not a replacement or an exchange, it’s an addition – there’s two faces now instead of one, almost as though we’ve just doubled our number of MPs.<br />
<b>Andrew</b> How far would you say the coalition has lived up to its claim to be the ‘greenest government ever’?<br />
<b>Natalie</b> [Coughs and splutters] You can put that down as ‘<b>Natalie</b> has a little laugh!’ It’s demonstrated that it totally doesn’t get that we are in the middle of a huge environmental crisis, and we desperately need to act fast. They’re both failing to take the whole problem seriously, and also utterly failing at a level of basic competence.<br />
The feed-in tariff is the obvious example of this, where they just made a total balls-up of it. They’re not providing any certainty for the industry to go forward and invest in things, do all of the things we could have in terms of green jobs in onshore or offshore wind, or where you had the insulation industry saying the number of jobs was going to plunge. And that’s a tragedy, because that’s both good jobs lost, and people left in cold homes, elderly people in ill-health who might die this winter, which are problems that Scandinavian countries with worse weather than us don’t have. Government isn’t doing anything right – it doesn’t take the environment seriously and it’s not competent.<br />
<b>Michael</b> Playing devil’s advocate now, how would you respond to the argument that in times of economic hardship and austerity, concern for the environment has to take a backseat to restoring competitiveness?<br />
<b>Natalie</b> The fact is that we have to act. The effect of food price rises is one example where we’re seeing an economic impact of climate change. It’s not an either/or situation. If we invest in renewable energy, insulation, public transport, what we’re doing is creating jobs, reducing people’s fuel bills, reducing fuel poverty. So doing things to deal with their environment can help us tackle our overall economic problems. The whole cuts agenda ignores that we need to invest in our houses, our infrastructure, all of which are economically positive.<br />
<b>Andrew</b> On the climate, to put it starkly, after Copenhagen and Durban, it looks like the momentum on a binding international limit on emissions has gone; opinion polls show that people seem less concerned on climate change than they were previously; and then with the growth of India, China, and now even Germany building coal-fired power stations – how does climate change get put back on the agenda? Or, perhaps alternatively, should the Green Party not put climate so high on the agenda and focus instead more on economic issues along with the apparent mood of the voters?<br />
<b>Natalie</b> As I said these aren’t either/or. Often we will talk about the Arctic sea-ice and say that greater action is needed. Or we can say that to reduce air pollution we need fewer vehicles on the roads. Now, that is fitting with the climate change agenda but it needn’t necessarily always be front and centre. There are many ways of coming at these things and they are all interrelated. That’s what can be difficult about promoting a Green message – all these things are tied up together.<br />
You can go [instead] for the fact we have the longest working hours in Europe. [People] are exhausted, they fall into Tesco Metro on the way home and buy a ready meal, with loads of packaging attached to it; they get home exhausted and don’t take their children out for a walk to get some exercise. So the long-hours culture fits with people feeling they have to use supermarkets, which then push out the local shops, so people find themselves driving more, which means that children get less exercise because the roads are too full of traffic to walk safely . . .<br />
All of these things fit together, and to cure them we need a new kind of society. And the kind of society we need to build to avoid climate change is also a better society to live in, offering a better quality of life.<br />
<b>Andrew</b> I think the kind of economic system you’re talking about there is one with steady or low rates of growth, because you can have a less carbon-intensive lifestyle but if the economy is growing at 3 per cent per year it’s going to be incredibly difficult to bring down the overall emissions level barring some kind of miracle.<br />
<b>Natalie</b> Yes, I’m not a believer in some miracle solution.<br />
<b>Andrew</b> Okay, but making a transition to a zero-growth economy is a hard argument to make, at a time when all the other parties are competing to put forward policies that will drive forward growth, and the media wants to know where growth is going to come from.<br />
<b>Natalie</b> Well, I think most of the other parties are adjusting to the fact we’re heading into a low-growth world, no matter what its environmental and economic framework. We’ve hit economic and environmental limits all around the world. But we’ve argued that GDP is a very poor measure on all kinds of levels, so then basing all your arguments around the very question of growth in GDP makes no intellectual sense.<br />
What I’d rather do is ask what is it that we need in our society and how do need to change the distribution of income and wealth in order to achieve those things? We have to keep reminding ourselves of these things as people have very short historical memories: historically, we now have enormously high levels of inequality in our societies. It’s a question of reshaping the debate, since GDP is a nonsense measure. It’s better to focus on what you’re doing and what you’re achieving, like ‘are you shortening people’s working hours?’, ‘are you improving the distribution of wealth across society?’ These are the things that matter, not focusing on one figure.<br />
<b>Andrew</b> I’d be interested to know if you have an industrial policy, if you have specific policies that would lead to more localisation and more socially useful manufacturing?<br />
<b>Natalie</b> Very much so. In terms of the big picture, what we have to do environmentally is to shorten our supply chains, and stop having huge freighters shipping thousands of tonnes of stuff from China that we could make here. So I’d like to see the boots on my feet made here, the t-shirt made down the road, the jacket made in a little tailor’s shop on the corner, all that kind of thing. We need to relocalise and bring manufacturing back to Britain, and we also need to address the issue of skills, as we’ve almost lost the skills needed for that.<br />
In terms of the framework you need to create, the price of goods that is charged in the shops doesn’t include a huge number of externalised costs, like the environmental damage of getting them here, the fact they are made by some poor woman in a Sri Lankan factory working 12 hours a day, seven days a week. So what the Green Party wants to do is get to a system where all of those costs are re-included in the price of those goods, so you then re-balance.<br />
Some of this is going to happen anyway. I was reading this report about production going back to the US from China, because Chinese wages are going to be going up all the time, as there is pressure for standards to rise, plus the costs of air freight and sea freight is rising all the time. So we’re at the turning point of the whole globalisation super-tanker and it’s starting to turn around anyway. We have to make it turn around much faster to reduce carbon emissions, create jobs here and reshape our economy. <br />
The other important thing is food production. It’s not that long ago that all our major towns and cities were surrounded by a ring of market gardens and orchards, and there were local dairies too. So we need to get back to that in order to secure our local food supply. Only 23 per cent of our fruit and veg comes from the UK, although we have good land, good weather conditions, it’s all perfectly doable. I can’t see we’ll be wanting to ship over beans from Kenya and peas from Peru for much longer anyway. But we’ll need to set up the infrastructure to help that to happen.<br />
<b>Michael</b> How far do you think the green vision, the big picture you’re talking about, is compatible with the vision of a more responsible capitalism, perhaps even compatible with the ‘one nation’ politics Ed Milliband is talking about?<br />
<b>Natalie</b> I think it’s very different, because we’re rejecting neoliberalism and globalisation; we’re rejecting an economic system dominated by multinational companies. Whereas the banking sector has been a large part of Britain’s economy, we’re advocating a localised economy built around cooperatives and small local businesses, not giant multinationals, banking that is based around credit unions and small local banks, and making an economy where, as with the Bristol pound, you see money circulating within local economies. I don’t think that is what Ed Milliband is imagining.<br />
<b>Michael</b> If you got one or more MPs at the next election, could you imagine supporting, formally or informally, a Lib-Lab coalition?<br />
<b>Natalie</b> We have learnt from the experience of previous Greens in this situation, and we’d be extremely unlikely to join a formal coalition. But certainly a confidence and supply type agreement is the kind of thing which gives us the ability to ensure we keep the Tories out but allows us to vote on individual issues according to our beliefs.<br />
<b>Michael</b> Well, people will look at the experiences of the Greens in Ireland, Germany, the Czech Republic, people might look at you and think when you get in power you’ll conform to a very narrow, mainstream pro-austerity model. You’re in oppositional mode now, but how do we know the Green Party won’t let people down in a similar way to the Lib Dems?<br />
<b>Natalie</b> Those are very different circumstances. We occupy a very different political space to many other Green parties. There are lots of things we have in common with them, but we are very much the radicals at the table at any meeting of European Greens. We have a very democratic structure. Conferences decide national Green Party policies, and our members would never have voted for the kind of deal the Irish Greens took.<br />
<b>Michael</b> Which of your policies do you particularly want to prioritise in getting across to the voters?<br />
<b>Natalie</b> It’s seems obvious but things like the minimum wage being a living wage. If you work 40 hours a week you should have enough to live on. And it is obscene that people have to work two or three jobs and find roundabout ways to get to work because they can’t afford the tube, living in incredibly overcrowded housing.<br />
We are never going to compete on low wages. That is not what we’re competing on. In terms of manufacturing we want to produce things for local markets and for broader markets where we have some kind of specialist skill or competitive advantage.<br />
In terms of the broader issue, if the street cleaner out on the road is on the national minimum wage, they can’t afford to go into the café and buy a cup of tea. If they are paid decently, more money circulates in the economy.</p>
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		<title>The who, what and where of work</title>
		<link>http://www.redpepper.org.uk/the-who-what-and-where-of-work/</link>
		<comments>http://www.redpepper.org.uk/the-who-what-and-where-of-work/#comments</comments>
		<pubDate>Mon, 15 Oct 2012 10:00:23 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Economics]]></category>
		<category><![CDATA[Andrew Bowman]]></category>
		<category><![CDATA[Karel Williams]]></category>
		<category><![CDATA[Sukhdev Johal]]></category>

		<guid isPermaLink="false">http://www.redpepper.org.uk/?p=8651</guid>
		<description><![CDATA[Karel Williams, Sukhdev Johal and Andrew Bowman introduce our 'The future isn't working' theme by looking at industrial strategy]]></description>
				<content:encoded><![CDATA[<p><img src="http://www.redpepper.org.uk/wp-content/uploads/whowhatwhere.jpg" alt="" title="" width="460" height="300" class="alignnone size-full wp-image-8677" /><br />
How to create new jobs in a flat-lining economy that has suffered structural unemployment for decades? George Osborne has called for a ‘march of the makers’, Ed Miliband talks about his preference for ‘producers’ over ‘predators’, and just about everyone says the UK must ‘rebalance the economy’ back towards manufacturing. On one level, it’s just more sound bites from a political class short of ideas. On another, something more significant is happening: industrial strategy is back.<br />
The two words became taboo over the past 30 years, associated, in the victor’s history of neoliberalism, with discredited efforts at national planning during the 1960s and 70s.<br />
As Britain changed course, manufacturing employment fell from 7 million in the 1970s to just over 5 million in the mid‑1980s. North Sea oil covered the macro-economic shock, but the decline continued through the 1990s and 2000s to reach just 2.8 million employed in manufacturing by 2008. Financial services never compensated, creating just 85,000 net new jobs between 1997 and 2008, concentrating its benefits in London. In the ex‑industrial regions, state-backed service industry jobs were created to plug the gap – an undisclosed strategy of Thatcher as well as New Labour.<br />
With a mainstream political consensus now entrenched around the need for major public sector cuts – if not over the pace of cutting – many policymakers’ hopes for avoiding a worsening unemployment crisis are pinned on a manufacturing revival.<br />
Banks have been gently encouraged to lend more to productive business, most recently via the Bank of England’s £80 billion ‘funding for lending’. Some state money has also been directed towards high tech industries, and a ‘green investment bank’ is also to be established, with £3 billion capital. However, these efforts have been tokenistic and disjointed, and are diminished further by slack demand in the economy as a result of austerity.<br />
There is also a new interest in infrastructure. But much of this is fixated on grand projects like a third runway or HS2 rail, and there is no sign of the export-led revival that the coalition’s Office for Budget Responsibility predicted would save us from austerity.<br />
<strong>Surveying strategies</strong><br />
So what are the progressive alternatives for job creation in manufacturing, and what are their limits? Proposals for a Green New Deal surfaced in 2008, proposing a Roosevelt-esque stimulus for green-tech, and the decarbonisation of housing and infrastructure to create an army of ‘green collar’ workers. This continues to provide the main source of inspiration, backed by economists like Mariana Mazzucato, who are urging an increased role for the state in industry.<br />
In high tech industries like software and biotech, commonly perceived as the offspring of a risk-taking private sector, Mazzucato argues that the state is often the key innovator, with private companies joining in at a later stage once the opportunity for profit is clear. Three-quarters of new molecular bio-pharmaceutical entities come from publicly-funded laboratories. The real danger is not market failure, Mazzucato claims, but ‘opportunity failure’ as major transformative technologies are passed by because the private sector won’t bear the risk.<br />
The TUC follows a similar line, urging government to ‘pick sectors’ – like clean energy – which can drive the next industrial ‘mega trend’. Proposals for a state investment bank created from RBS, as articulated in the Compass Plan B report, have gathered much support – indeed, as Red Pepper goes to press Vince Cable has announced that the government will establish a ‘business bank’. It seems likely that this institution will, like the green investment bank, be too small and not even a bank in the true sense. But it could – if operated in the manner Compass and others suggest – target lending towards socially-useful industries against the economic cycle and into areas the private sector neglects.<br />
<strong>The limits of planning</strong><br />
These efforts have expanded the realm of what’s thinkable in the UK and have proposed worthwhile changes, but there are other areas industrial strategists should be focusing on. Industrial strategy needs to engage with the pervasive problem of dysfunctional business models. Making shareholder value central to the strategies of large firms has created a culture of short-termism, focused on the next set of financial results rather than investments in research and development or the workforce. Since the mid-1990s investments in fixed capital (machinery, equipment and the like) have declined by a third among UK companies.<br />
Recognition of the problem has grown in elite circles, and featured in a government study led by the economist John Kay earlier this year, but goes nowhere near far enough.<br />
Worse still, UK manufacturing suffers from problems of broken supply chains. Large firms which sustain chains of small and medium sized companies have disappeared. The UK has less than 2,000 factories employing more than 200 workers, while the number of companies employing 10 or fewer has doubled over the last 25 years. So when a factory like Vauxhall’s Ellesmere Port is assembling kits of imported components, expansion of output increases imports as much as exports.<br />
A foie-gras industrial policy of pumping credit into the economy will achieve little, as it will be forcing funds into manufacturers with these organisational problems.<br />
<strong>The absence of geography</strong><br />
The striking thing about most industrial policy discussions is the absence of geography. Most pitch at ‘the UK economy’, but this is an abstraction, given the divergence in needs and capabilities between London and the south and east, and the ex-industrial regions of the north and west.<br />
The abolition of Regional Development Agencies continues a pattern of centralisation. Efforts to revitalise manufacturing should be implicitly regional, because while over half the value produced by financial services comes from London and the south east, manufacturing is spread almost evenly. However even during the pre-crisis boom, only London and the south created a significant proportion of new jobs in the private sector, and they stand better placed to benefit from most new industrial strategies – particularly those focusing on ‘industries of the future’, as Cameron calls them.<br />
The business parks of Cambridge and tech startups of east London may provide export success in software or pharmaceuticals, but they have little to do with the West Midlands’ broken supply chains or the north’s structural unemployment.<br />
A geographically sensitive industrial policy would pay attention to the more mundane industries of everyday life, which are broadly distributed according to population and could still generate mass employment. Food manufacturing, for example, is the UK’s largest industrial sector by employment with more than 400,000 workers.<br />
Tax breaks should be targeted at companies producing regional employment increases (rather than relocations), and socially-useful products.<br />
More than this though, economic regionalism should focus less on attracting firms and more on stopping funds leaving: redirecting state pension fund investments to local needs, regionalising supply chains wherever possible and rolling back damaging privatisations.<br />
There are existing possibilities then for a new kind of industrial policy which creates employment all around the UK, but also recognises that job creation is not an end in itself, but part of an economic system which provides for social and environmental necessities and spreads its benefits more evenly.<br />
<small>The article draws upon research on industrial policy carried out at the Centre for Research on Socio-Cultural Change (CRESC), where the authors are based. Research reports are freely available at <a href="http://www.cresc.ac.uk">www.cresc.ac.uk</a></small></p>
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		<title>Austerity for the people, welfare for the banks</title>
		<link>http://www.redpepper.org.uk/austerity-for-the-people-welfare-for-the-banks/</link>
		<comments>http://www.redpepper.org.uk/austerity-for-the-people-welfare-for-the-banks/#comments</comments>
		<pubDate>Fri, 24 Aug 2012 10:00:48 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Essay]]></category>
		<category><![CDATA[Andrew Bowman]]></category>
		<category><![CDATA[Leigh Phillips]]></category>

		<guid isPermaLink="false">http://www.redpepper.org.uk/?p=8328</guid>
		<description><![CDATA[Andrew Bowman and Leigh Phillips look at how central banks have used the crisis to carve out a new role – from propping up bankers to toppling governments]]></description>
				<content:encoded><![CDATA[<p><img src="http://www.redpepper.org.uk/wp-content/uploads/krauze-cbanks.jpg" alt="" title="" width="460" height="292" class="alignnone size-full wp-image-8331" /><small>Illustration: Andrzej Krauze</small><br />
While the eurozone teeters on the brink, construction work is underway in Frankfurt’s financial district on new headquarters for the European Central Bank (ECB). Due for completion in 2014, the 185 metre tall, futuristically designed skyscraper will have double the office space of the ECB’s current residence, the Eurotower. It embodies the expectations for the future of the single currency from the one institution that has no future without it.<br />
As the drama of the financial crisis has unfolded over the past five years, press coverage and political debate has tended to focus predominantly on the actions of national political leaders. At many points, however, the back-stage central bank officials have been the most influential actors.<br />
Nowhere is this truer than with the ECB. With EU decision-making processes incapable of reconciling national and pan-European interests, and in the absence of a fiscal policy for the eurozone, the ECB has filled the gap.<br />
Prime ministers struggling to control their countries’ borrowing costs, banks struggling to remain liquid during the prolonged credit crunch, and that most elusive of entities, ‘the markets’ seeking a ‘return to confidence’, have all turned to the ECB. Along with the US Federal Reserve and the Bank of England, it has acted as a life support system for the west’s bloated financial sector.<br />
Central banks are the most politically powerful yet under-examined institutions in contemporary capitalism. This is because central banks are not expected to be powerful in the political sense. Modern central banking is premised upon the assumption that central banks are politically neutral technocrats, that their activities are primarily limited to controlling price inflation via simple mechanisms, and that as such they can operate independent of formal political controls.<br />
The crisis has seen this script torn up, as central banks, the ECB in particular, have stepped out of their agreed roles to fulfil various controversial functions: a provider of indefinite, no-strings-attached welfare for the banking system, the key arbitrator in disputes over the sustainability of sovereign debt with the power to topple governments, and, in the case of the ECB, the most forthright proponent of fiscal austerity and further undemocratic European integration. It’s time we took a closer look.<br />
<strong>History </strong><br />
Since the first central banks were established in the 17th century, they have always had a fraught relationship with politics. Their duties, methods and independence have all been periodically renegotiated: from an original role helping the state raise war funds, to an independent ‘bank for the banks’ during the pre-1914 gold standard, to a servant of state growth and employment policies post‑war. The stagflation crisis of the 1970s and the political triumph of neoliberalism brought a narrower ‘monetarist’ focus, targeting inflation through control of the money supply and later short term interest rates.<br />
Formal independence from the corrupting influences of democratic politics – blamed for the central banks’ inability to control 1970s inflation – became the ideal. The historical role as a guardian of financial stability became a lesser priority because risk-spreading financial innovation and advances in the ‘science’ of monetary policy were assumed to have made financial crises less likely.<br />
The ECB bears these influences, but is best understood as the progeny of the German Bundesbank. Monetary stability is a sensitive topic in German history. Hyperinflation paved the way for the far right in the 1930s, and Hitler’s initial economic successes involved forcing the Reichsbank to fund re-armament. Post-war, the Reichsbank was abolished, most of Germany’s gigantic debt was written off in the Marshall Plan, and the independent Bundesbank was established to ensure there would be no repeat.<br />
Staunchly anti-inflation and viewing expansionist fiscal policies as dangerous, the Bundesbank was integral to the German ‘Ordoliberalism’. It claimed responsibility for the wirtschaftswunder of post-war Germany, frustrated successive German chancellors, and turned the Deutschmark into Europe’s ‘hard currency’. Monetary policy across the continent followed the Bundesbank’s lead in constant cycles of currency adjustment.<br />
The euro is usually portrayed either as a naive idealist or nefarious quasi-imperialist political project. However, it was also born out of unromantic monetary policy aims: to end exchange rate instability and currency speculation, to give Germany a weaker currency to boost its exports, to free France from subordinate status to the Bundesbank, and to reduce obstacles to investment.<br />
Leaving the Deutschmark was not easy for Germany. As Helmut Kohl is reported to have said to Mittterand while discussing the single currency: ‘The D-Mark is our flag. It is the fundament of our post war reconstruction. It is the essential part of our national pride; we don’t have much else.’<br />
To placate concerns, the ECB was located in Frankfurt, with a similar governing structure and remit to the Bundesbank, including a primary objective of price stability. The single currency would not work, it was suggested, should monetary policy be subject to bartering between different national governments. Therefore, while monetary operations would be implemented by national central banks (NCBs), the ECB would make decisions independently of government via a combination of a six-person executive board and representatives of the eurozone NCBs. Its decision‑making meetings would be secret. Constitutionally, it was made illegal for the ECB to take instructions from EC institutions or national governments, or to finance member states’ spending by directly purchasing their bonds. In the absence of a counterbalancing fiscal authority, this placed the ECB among the world’s most powerful and unaccountable central banks.<br />
<strong>Managing the crisis: enforcers of austerity</strong><br />
The euro initially posed none of the problems that detractors had foretold. The eurozone shared in the so-called ‘great moderation’ of the 2000s: steady growth, low inflation, low interest rates and light-touch financial regulation. The credibility of central bankers climbed and, like the Fed and Bank of England, the ECB became a cheerleader for financial services.<br />
Boom-time ECB president Jean-Claude Trichet assured doubters that integration would flatten out eurozone economic imbalances: capital would automatically move to wherever it could be most efficiently used, without any politically controversial fiscal redistribution. The higher growth rates of Ireland, Greece, Spain et al during the early 2000s appeared to confirm it. Major investment banks thrived, taking capital from north European nations running budget surpluses – particularly Germany – and investing it into credit bubbles in the eurozone periphery. Alongside the bubbles, widening differences in balance of payments, wages and inflation were largely ignored.<br />
The pre-crisis hubris of central bankers rested on confidence in the predictive capacity of monetary economics, which – as with economics in general – had become more esoteric and algebraically complex. This ‘scientisation’ also bolstered claims of political neutrality. Post-crisis, the facade crumbled.<br />
The ECB responded to the credit crunch in 2007 with bank liquidity provision that carried on over the following years. Unlike the Bank of England and the Fed, it did not engage in mass purchases of government bonds – quantitative easing (QE) – because of its mandate to not finance governments, the rationale being that it dis-incentivises budgetary prudence. The ECB followed Angela Merkel in denouncing ‘Anglo-Saxon’ QE as an inflationary risk.<br />
The eurozone debt crisis starting in Greece from May 2010 forced a reversal. The ECB had either to wade into the bond market and monetise peripheral government debt to lower borrowing costs and reduce the default risks to banks holding the debt (anathema to Bundesbank principles) or potentially see the currency union disintegrate.<br />
It waded in, buying up €74 billion of Greek, Portuguese and Irish government debt via the securities market programme (SMP) in the secondary bond market (buying bonds from existing bondholders rather than directly from the governments). With plummeting demand brought on by the disastrous austerity programmes, the calls for action on the part of the ECB have been unrelenting. When the SMP stopped in March 2011, bond yields began rising again. With Spain and Italy sucked into the crisis, and the European financial stability facility (the EU’s temporary bailout fund) proving inadequate, the ECB stepped in again, buying €210 billion of distressed sovereign debt in 2011, at a rate of around €14 billion per week that summer.<br />
The ECB has used its power selectively, though, while being attacked by Merkel for being too indulgent, and by Sarkozy and Cameron (who implored it to wield ‘the big bazooka’) for the opposite. Tussles over the size of the SMP created dissension within the ECB, with both Jürgen Stark, the German ECB chief economist, and Axel Weber of the Bundesbank quitting the organisation in protest.<br />
For the people of the eurozone periphery, ECB action has come at a price: austerity. The ECB is famously allergic to any hint of political interference in its affairs. But Frankfurt has no inhibitions about the reverse, intervening regularly in the affairs of democratically elected governments. Current ECB president Mario Draghi follows his predecessor in reiterating the fallacy that irresponsible government spending has caused the crisis – an analysis which conveniently exonerates them of their own shortcomings – and presses home the message in dealings with bailout recipients.<br />
Most citizens in ‘programme countries’, a euphemism for their diminished-sovereignty status in return for bailouts, will be familiar by now with the dreaded quarterly arrival of inspectors from the troika – austerity and structural adjustment monitors from the EC, IMF and ECB. After seeing this humiliating and almost total surrender of fiscal sovereignty, Portuguese PM Jose Socrates and more recently his Spanish counterpart Mariano Rajoy baulked at suffering a similar indignity. It took a financial coup d’etat by the ECB to bring Socrates to heel.<br />
‘I have seen what happened to Greece and Ireland and do not want the same happening to my country. Portugal will manage on its own, it will not require a bailout,’ he declared. A few days after he finally succumbed in April last year, it emerged that the ECB chief had forced his hand by pulling the plug on the state. When Portuguese banks announced they would no longer purchase bonds if Lisbon did not seek a bailout, Socrates had no choice but to request an external lifeline. Later in the week, the head of the country’s banking association, Antonio de Sousa, said that he had had ‘clear instructions’ from the ECB and the Bank of Portugal to turn off the tap. Even hardened cynics in Lisbon and Brussels were staggered, privately saying the ECB had crossed a line.<br />
In August last year, the ECB swooped in to rescue Italy and Spain in a massive bond-buying programme after yields reached levels approaching those faced by Greece and Ireland when they applied for aid from international lenders. A secret letter made public by Italian daily Corriere della sera from then ECB chief Jean-Claude Trichet and his successor Mario Draghi delineated the quid pro quo for this assistance: still further austerity and labour market deregulation. The letter told the Italian government exactly what measures had to be instituted, on what schedule and using which legislative mechanisms. The ECB, unelected and unaccountable, was now directing Italian fiscal and labour policy. In secret. Even Silvio Berlusconi said at the time: ‘They made us look like an occupied government.’<br />
When Greek PM George Papandreou announced last October he would hold a referendum before his government could agree to a second bailout and still deeper austerity, markets threw conniptions. On 2 November, the ‘Frankfurt Group’ (GdF for short, as per the letters on their lapel badges identifying them to security) – an unelected, self-selected octet established last October, reportedly in the backroom of the old Frankfurt opera house during the leaving do for Jean‑Claude Trichet –  called him in for a dressing down.<br />
The GdF at the time comprised IMF chief Christine Lagarde; German chancellor Angela Merkel; French president Nicolas Sarkozy; newly installed ECB chief Mario Draghi; EC president José Manuel Barroso; Jean‑Claude Juncker, chairman of the Eurogroup (the group of states that use the euro); Herman van Rompuy, the president of the European Council; and Olli Rehn, EU commissioner for economic and monetary affairs. They had decided that they had had enough of this man who was incapable of forcing through the level of cuts and deregulation they demanded.<br />
Days later, Papandreou pulled his referendum and resigned to be replaced by unelected technocrat Lucas Papademous, former ECB vice president and negotiator when Greece applied for its first bailout. The troika had gone one step further than the manoeuvre that forced the Portuguese leader to sign up to a bailout against his will: they had for the first time toppled a government and suspended Greek democracy, installing one of their own. Days later, they would do the same in Italy.<br />
If the toppling of Greece’s prime minister was more of a European-politburo group effort, albeit with the ECB at its heart, most analysts are clear that the overthrow of Berlusconi, untouchable even after 18 years of court cases, bunga-bunga sex parties and corruption scandals, was effected directly by the ECB. As Italian bond yields soared to 6.5 per cent, near the danger zone at which Athens, Dublin and Lisbon signed up to bailouts, it was widely reported that ECB chief Draghi was pressuring Berlusconi to step down. This was signalled by very limited Italian bond-buying by the ECB on the Monday before he resigned to be replaced with ex-EU commissioner Mario Monti. This bond-market weapon at Frankfurt’s disposal was of an order of magnitude greater than any domestic pressure from within Berlusconi’s own party or the opposition.<br />
Toppling two prime ministers in a week served as a muscular, unambiguous warning to other governments that the ECB giveth and the ECB taketh away. When Spanish PM Mariano Rajoy was dragging his feet in requesting a bailout, aware that he would be surrendering his country’s sovereignty, pressure was mounted on Madrid to capitulate. In perhaps a polite reminder to Rajoy of their role in Berlusconi’s ousting, ECB governing council members publicly encouraged him to avoid delay.<br />
Proposals for moves towards an EU ‘political union’ unveiled on 25 June by the self-selected quartet of the presidents of the European Council, European Commission, Eurogroup and ECB go well beyond the centralised EU review of national budgets and fines approved last year, and towards a pooling of sovereignty without democratic oversight. Brussels would be given the power to rewrite national budgets, and if a country needs to increase its borrowing, it would have to get permission from other eurozone governments. This is in line with the vision of political union ex-ECB chief Jean‑Claude Trichet outlined last June when still in office – of a centralised veto over national budgets jointly wielded by the commission and council ‘in liaison with’ the ECB, with overspending governments ‘taken into receivership’.<br />
The ECB vision, expressed on a number of public occasions by Trichet and subsequently his successor, was described by the former as a ‘quantum leap’. It involves two aspects: a radical liberalising programme of labour market deregulation, pensions restructuring and wage deflation on the one hand; and on the other for fiscal policy to be taken out of the hands of parliaments and placed in the hands of ‘experts’ – in the long-term an EU finance ministry – in the same way that monetary policy has been removed from democratic chambers and placed in the hands of Frankfurt.<br />
Orthodox analysts are quite sympathetic to the goals of the central bank. As Jacob Funk Kirkegaard of the Petersen Institute, the Washington economic think‑tank, has written, ‘The ECB is in a strategic game with Europe’s democratic governments,’ an overtly political strategy that is ‘aimed at getting recalcitrant eurozone policymakers to do things they otherwise would not do.’ The bank ‘is thinking about the design of the political institutions that will govern the eurozone for decades.’ For Kirkegaard and a number of other long-time ECB watchers, the main target is ultimately not Spain or Italy, but France, historically resistant to more binding eurozone fiscal rules viewed as a radical infringement of its sovereignty. By doing little in the face of market attacks on Spain and Italy, Frankfurt is warning Paris and its new president that it has no choice but to accede to its vision of technocratic fiscal governance.<br />
<strong>Bank welfarism</strong><br />
The ECB’s ruthless approach to indebted sovereign states contrasts sharply with its approach to the banks. Dwarfing its support for sovereign debt is the vast quantity of easy liquidity extended to the banks since the start of the crisis.<br />
The sovereign debt crisis has in reality always been a continuation of the banking crisis of 2008. In the absence of serious reforms, banks have remained fragile, over‑leveraged and highly interconnected across borders. Sovereign defaults would spell disaster for many major banks in core eurozone economies – not to mention the UK – which, running short of safe AAA investment opportunities and armed with new liquidity from their central banks’ support programmes, looked south in 2008/09 to invest in peripheral sovereign debt. Bailouts of these states were bailouts for banks too.<br />
Besides default risk, the sovereign debt crisis poses additional problems for the banks. Most depend heavily upon short-term borrowing in inter-bank money markets, in which they have to pledge assets as collateral for receiving a loan. Once a lender has received this collateral from a borrower, they can also use it as collateral for their own borrowing, building up a chain of debt in a process known as ‘rehypothecation’.<br />
Pre-crisis, the now-infamous AAA asset-backed securities were important for their use in collateralised lending. But once their value got questioned and their rating dropped, they were no longer eligible – a major factor in causing the credit crunch. Government bonds are generally accepted as safe collateral to be used in lending, but the debt crisis and downgrades of peripheral debt by the rating agencies has made many of them ineligible, compounding the liquidity problems.<br />
The ECB has stepped into the breach to support the banking sector, providing continuous rafts of cheap loans to effectively keep zombie banks on life support. Since 2007, ECB lending to eurozone credit institutions has more than tripled from around €400 billion to more than €1,200 billion. The ECB balance sheet has expanded from around 15 to more than 30 per cent of eurozone GDP.<br />
By continuing to accept the ‘non-marketable’ collateral, the ECB allows banks to exchange their bad investments made in the boom years for the highest quality form of money: central bank reserve money.<br />
These actions began with the onset of the credit crunch in August 2007, when the ECB took swift action to inject €95 billion of overnight liquidity into distressed eurozone banks. This continued over the coming years, but the most dramatic intervention took place in December 2011, with the long term refinancing operation (LTRO), a dry sounding name for an unprecedented action.<br />
With the eurozone banking system feared to be on the verge of a Lehman’s-style collapse, the ECB provided an unlimited supply of 1 per cent interest, three-year collateralised loans to the banking system, once on 21 December 2011, and again on 28 February 2012. The total amounted to around €1 trillion, with takers including nearly all of the eurozone’s major banks, and many from the UK as well. Given that banks used their bad assets as collateral this amounted almost to free money.<br />
The stated aim of the LTRO was to get banks lending again to the ‘real economy’. However, there is little evidence to suggest this happened. Analysts at ING bank estimated that of the €489 billion lent in the December 2011 LTRO, for example, a mere €50 billion found its way back into the economy.<br />
One of the outcomes of all this assistance has been the banks using the ECB’s easily accessible loans to undertake a ‘carry-trade’ – borrowing money at low interest rates and lending at higher ones – with eurozone governments. Forbidden from lending directly to governments, the ECB lends cheaply to banks, which in turn lend to governments and receive much higher interest rates in return. Spanish banks, for example, have reportedly bought €83 billion of Spanish government bonds since December. This is more than just an easy money spinner: it binds together more tightly the relationship between commercial banks and the state, meaning that each cannot survive without the other.<br />
As a result of this support to the banks the ECB now holds a large portfolio containing hundreds of billions of euros worth of dodgy bank assets. This goes well beyond acting as a ‘lender of last resort’ to the banking system – a traditional expectation of central banks – and represents a mass transfer of risk from private to public spheres. The value of these assets, many of them tied to over-inflated property markets, remains deeply uncertain.<br />
The outcome for central banks is unclear. Some economists argue that they cannot go insolvent since they can print money; others fear this would create a loss of confidence in the currency and that an expensive (and politically explosive) recapitalisation of the ECB by eurozone governments would be required.<br />
Central banks’ financial sector support operations have been widely portrayed as technical measures to keep the credit system moving. But their sheer size raises a political question: why should a public institution keep a banking industry so large, so fragile and with such a dubious social contribution running in its present form?<br />
A growing body of opinion suggests that the banking system is simply too large and too complex, and that the only reasonable solution is to shrink and simplify it – to return banking to a utility function. But these more radical reforms are being kept off the table by the central banks’ financial-sector welfare regime, which effectively preserves the system in its present form.<br />
And just like the worst stereotype of welfare dependency dreamt up by the right-wing press, the recipients of the bank welfare regime – as their handling of the Libor scandal shows – exhibit a lack of concern for the common good and an unwillingness to change their ways. In comparison to the punishing austerity exacted on the eurozone periphery, or the public sector restructuring in the UK, banking reforms have been featherweight.<br />
What of the future of central banks? Both the Bank of England and, it now seems likely, the ECB are to be handed additional responsibilities in bank regulation. If the pattern continues, it is one of governments moving ever greater responsibility for economic decision‑making beyond the sphere of democratic control. An intriguing issue raised by the central banks taking the bad assets of the commercial banks onto their balance sheet is whether they may eventually come to be responsible for writing them down, using their unlimited money-creating capacity to act as an agent of debt cancellation. In the face of the likely financial turbulence and economic changes ahead, central bank independence looks untenable.<br />
This independence was premised upon three things: technical competency, political neutrality and a strict limitation of activities. In the case of the ECB and the other major central banks all three conditions have been trampled over. In the UK, as evidence of collusion in corrupt Libor manipulation between the Bank of England and the major commercial banks comes to the surface, it’s a good time to put democratisation of the banks back onto the agenda.<br />
<small>This article is developed from an ongoing ‘Central bank-led capitalism?’ research project at the University of Manchester’s Centre for Research on Socio-Cultural Change. Free working papers analysing the crisis are available at <a href="http://www.cresc.ac.uk">www.cresc.ac.uk</a></small></p>
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		<title>Every crisis is an opportunity</title>
		<link>http://www.redpepper.org.uk/every-crisis-is-an-opportunity/</link>
		<comments>http://www.redpepper.org.uk/every-crisis-is-an-opportunity/#comments</comments>
		<pubDate>Wed, 08 Feb 2012 17:24:51 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Editorials]]></category>
		<category><![CDATA[Andrew Bowman]]></category>

		<guid isPermaLink="false">http://www.redpepper.org.uk/?p=6700</guid>
		<description><![CDATA[There is an urgent need for new ideas that challenge the technocrats, writes Andy Bowman]]></description>
				<content:encoded><![CDATA[<p>Goodbye, 2011 – we will miss you. An upsurge of popular protest against our dysfunctional economic system finally arrived, Western-backed dictatorships in the Arab world were toppled, and social movements began to take on innovative, unfamiliar forms.<br />
One person who will be trying to banish the memories of 2011, though, is Labour shadow chancellor Ed Balls. Less than a year after he joined the TUC’s March for the Alternative to say ‘there is an alternative to these cuts’, his first major intervention of 2012 was to announce that ‘we are going to have keep all these cuts’.<br />
The nuances of Balls’ speech, delivered to the Fabian Society on January 14, suggest this is not quite the 180-degree reversal in approach that delighted commentators on the right suggest. What it certainly does represent, however, is a continuation of the slide into a post-political consensus in the UK’s parliamentary politics. In the ever‑shrinking centre-ground that the three major parties inhabit, differences of opinion over fundamental issues are sidelined for an image-based popularity contest in which winning power is an end in itself. And in pursuit of victory in this contest, as evidenced by its refusal to support the pension strike, Labour is willing to trample upon its support base in pursuit of the elusive centre-right floating voter. Miliband’s Labour turns out not so different from New Labour after all.<br />
Labour’s vacillations over the cuts are an exemplar of the deeper crisis of social democratic parties across Europe. If there was any doubt over the matter before, it seems certain now that significant progressive change will continue to be driven by movements outside the formal political process. This issue of Red Pepper contains several critical reflections on the successes, failures, challenges and opportunities in this arena. These range from a <a href="http://www.redpepper.org.uk/an-excess-of-democracy/">discussion of the historical lessons for the Occupy movement</a> and an analysis of the relation between leaderships and grassroots members in <a href="http://www.redpepper.org.uk/n30-and-after-was-that-it/">trade union mobilisations for N30</a>, to a look at <a href="http://www.redpepper.org.uk/the-students-moment/">the student movement’s ability to bypass conventional union structures altogether</a>.<br />
<a href="http://www.redpepper.org.uk/tweetin-bout-a-revolution/">Paul Mason</a> outlines the extent to which horizontal forms of political organisation combined with new communication technologies have created protests that repressive regimes find hard to contain, and that also, as he puts it, have a ‘congruence with the human values of the generation’ in a way that increasingly tired traditional left organisations do not. In the surreal contest between Ed Miliband and David Cameron to offer condemnation of ‘predatory’ or ‘crony’ capitalism, or the Economist’s plea to ‘Save the City’ as ‘even the bankers’ supposed allies are putting the boot in’, one can read the far-reaching impacts that the likes of UK Uncut and Occupy are now beginning to have.<br />
There are grounds for caution as well as optimism though. As our essay by Adam Leaver outlines, the past three years have seen the entrenchment of a coalition of big banks, leading politicians and civil servants within the most powerful organs of the British state, which has successfully blocked financial reform. The democratic disconnects hereby created will be hard to overcome. Additionally, as <a href="http://www.redpepper.org.uk/policing-protest/">Nina Power’s sobering analysis of the legal system’s crackdown on student protests</a> and <a href="http://www.redpepper.org.uk/eyewitness-in-cairo/">Mika Minio-Paluello’s report from Cairo</a> remind us, successful movements usually encounter repression.<br />
The EU’s lurch towards technocracy exemplifies the regressive direction in which official politics may be heading as political elites seek to contain the discontent caused by imposed austerity. There is an urgent need for new ideas that challenge the technocrats’ neoliberal programme, which threatens to undo the social gains of the past half century and erode the basis of mass democracy itself.<br />
This issue seeks to provide a space for discussion of <a href="http://www.redpepper.org.uk/a-different-kind-of-europe/">some of the alternative proposals for a route out of the EU’s current crisis</a>, in the hope that we might ‘keep good ideas alive until the politically impossible becomes the politically inevitable’.<br />
The quote is borrowed from Milton Friedman, who endured decades in the political wilderness during the Bretton Woods era of state capitalism. The coalition of interests that the likes of Friedman provided the intellectual foundations for, later subsumed under the label ‘neoliberalism’, was well placed to take advantage of the collapse of the post-war economic order in the 1970s.<br />
At the time of writing, the credit rating agency Standard &#038; Poor’s has, ironically, issued a stark warning over the shortcomings of Europe’s austerity obsession via a rating downgrade of France and Austria. Ernst &#038; Young economists have announced that Britain is back in a double-dip recession and that unemployment will rise to three million in 2012.<br />
As Friedman was fond of saying, every crisis is an opportunity. And as the failures of neoliberal doctrine proffered by both the EU technocrats and the UK’s coalition become more apparent, the space for alternatives is opening further.</p>
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		<title>Ballot stuffing. Bribery. Blatant fraud. Inside the Russian elections</title>
		<link>http://www.redpepper.org.uk/putins-democracy-the-illusion-shatters/</link>
		<comments>http://www.redpepper.org.uk/putins-democracy-the-illusion-shatters/#comments</comments>
		<pubDate>Fri, 16 Dec 2011 18:00:38 +0000</pubDate>
		<dc:creator>Andy</dc:creator>
				<category><![CDATA[Democracy]]></category>
		<category><![CDATA[Andrew Bowman]]></category>

		<guid isPermaLink="false">http://www.redpepper.org.uk/?p=5977</guid>
		<description><![CDATA[As election fraud allegations spark protests across the country, Andrew Bowman reports from Russia on what he saw on polling day in one fraud hotspot]]></description>
				<content:encoded><![CDATA[<p><img class="size-large wp-image-5978 " title="" src="http://www.redpepper.org.uk/wp-content/uploads/BallotBoxEmptiedDavlekanovo0411-279x300.jpg" alt="" width="279" height="300" /><br /><small><b>A ballot box being emptied at a polling station in Davlekanovo, Bashkortostan.</b> Photo: Fred Weir</small><br />
Galina Ivanovna Kulakova is having a difficult day. It&#8217;s 4 December and as citizens across Russia vote in the Duma elections, the 62 year old Communist Party secretary for Kumertau, a small town in oil-rich Bashkortostan in the Southern Urals, is trying to coordinate her party’s local elections monitors.<br />
As they shuffle in and out of the office, dressed warmly for the deep snow outside, her mobile phone rings continuously. Complaints of irregularities at the polling stations are piling up: bribery, ballot stuffing, and the falsification of data, she tells me, have already been reported to her today.<br />
During previous legislative elections in 2003 and 2007, international observers from the Organisation for Security and Cooperation in Europe described the electoral process in Bashkortostan as <a href="http://www.osce.org/odihr/elections/russia/18284">&#8216;blatant fraud&#8217;</a>. This year, Galina says with a sigh, &#8216;evidently there is more, it has increased&#8217;.<br />
How fraud hides<br />
In the metropolitan areas of Western Russia, fraud is harder to pull off unnoticed. Closer to Moscow the presence of activists from civil society organisations and smaller opposition parties is greater, and irregularities can be rapidly brought to global attention from smartphone to Youtube through the free internet in which Russian dissident politics thrives.<br />
Deeper into the provinces, though, the situation is different. Electoral fraud is commonly at its most barefaced in the Russian Federation’s scattered Republics. Concerned with reigning in nationalist sentiment, the Kremlin tends to take a firmer grip on power in the Republics and during elections uses them as a means of vote harvesting. In war-torn Chechnya, for example, the official results this year state that 99.5 per cent of voters backed United Russia, with a turn-out of 94 per cent.<br />
The task is made easier by the paucity of independent election observers. Here in Bashkortostan, a geographical area larger than England with a population of four million, the OSCE reportedly provided just 10 observers. In towns like Kumertau, 250km from the capital city of Ufa, monitoring is carried out almost entirely by volunteers from opposition parties.<br />
Though its effectiveness in the role is <a href="http://www.opendemocracy.net/od-russia/vladimir-gelman/russias-communists-paper-tigers-of-opposition">questionable</a> at best, the Communist Party is the main opposition on both a national and local level, and the only organisation in the area with the capacity to send observers to all of the 27 polling stations around the town. These observers face a difficult task, for while allegations of fraud are easy to make, they are hard to prove.<br />
Disrupting the process<br />
At a polling station close to the town centre, a gleaming new government administration office, a quarrel has been taking place throughout the day. A row of election officials, the election committee, sit facing two ballot boxes. Sitting directly opposite them, five metres from the boxes, are the three election observers.<br />
Ms Nazagova, a young and self-assured Communist Party observer, immediately begins to tell me that she has witnessed ballot stuffing from voters she believes to be in the employ of United Russia. She explains that this has happened with the complicity of the election committee, who have also forbidden her from using her camera inside the polling station. Another Communist Party member, who sits on the election committee, claims to have been offered bribes to remain silent about the incidents.<br />
Presently, other committee members and suited men claiming to be representatives of United Russia gather around us and begin loudly rebuking the observers for disrupting the election process, later explaining to me that they have poor eyesight. If they were to carry out their observers&#8217; role properly, the chairwoman of the polling station says, they would wait until 8pm, when voting officially closes, and submit a written complaint.<br />
Open intimidation of observers is rare, Galina explained to me earlier in the day, but those who create a fuss can still face problems, particularly in terms of their employment prospects. In Bashkortostan, as in many other parts of Russia, major employers strike deals with the ruling party, exchanging the votes of their employees for favourable treatment.<br />
At the next polling station, observers are unwilling to talk, refusing to utter a word. The voters are more forthcoming, however. While it is apparent that many young people avoid voting altogether though a belief that the system is too compromised, it is not only government supporters who go through the process.<br />
One young woman, who declines to be named, explains to me that she has travelled 130km from the city of Orenburg, where she is studying, in order to vote against the government. Clutching a certificate presented to her by the election committee to commemorate her first vote, she explains to me that she wants to vote &#8216;to show that each voice matters&#8217;, and to oppose forthcoming education reforms. When we begin to ask if she has been aware of any irregularities, we are told it is time to leave.<br />
<img class="size-large wp-image-5981" title="" src="http://www.redpepper.org.uk/wp-content/uploads/CommunistPartyObserverComplainsFaudDavlekanovoBashkortostan04111-400x300.jpg" alt="" width="400" height="300" /><br /><small><b>A Communist Party observer makes a complaint. Davlekanovo, Bashkortostan.</b> Photo: Fred Weir</small><br />
It is not only the Communist Party activists in Kumertau who make complaints that day. Other journalists working in the Republic that day recount numerous similar incidents. One reporter from the <a href="http://www.themoscowtimes.com/news/article/urals-polling-station-kicks-out-mt-reporter/449184.html">Moscow Times</a> witnesses a Communist Party observer who made a complaint being removed for having the wrong size badge. The reporter was herself ejected from the polling station on the grounds of disrupting the electoral process.<br />
Who counts the votes?<br />
To paraphrase a common Russian saying attributed to Stalin, who is casting the votes matters less than who is counting them. The most serious, and hard-to-observe, fraud is carried out at the Territorial Commissions where the counts from polling stations are collated before being digitally transmitted to the Republic’s electoral commission in Ufa. The dividing line between ruling party and state is blurred, and a common claim from activists is that compliant local officials manage the counting processes and produce the right result should the voters not do so.<br />
The Russian state has tried to maintain close control of affairs in the Republic of Bashkortostan, which has been a major centre of oil production since the Soviet era and today produces <a href="http://gntexpo.ru/en/index.htm">over 15 per cent of Russia’s petroleum</a>.<br />
Following the collapse of the USSR, Mutaza Rakhimov ruled as the elected head of Bashkortostan until 2010. An ethnic Bashkir, Rakhimov turned it into something of a personal fiefdom. While resisting the drive towards a unified legal system for the Russian Federation and attempting for a while to monopolise control of the territories&#8217; oil, he nonetheless provided Putin with votes at election time. In the 2007 Duma elections, United Russia won 82 percent of the vote, and all 35 of the seats in the Republican parliament in 2009.<br />
Rakhimov’s successor is Rustem Khamitov. A former manager of the energy company RusHydro, Khamitov follows in a line of technocrats appointed as regional leaders since powers of nomination were passed to the Kremlin in another of the Putin era political reforms. Amid rumors of bureaucratic ruptures caused by the transition between leaders, delivering a favorable election result without the controversy of previous years was to be his first major challenge. He did not fail.<br />
The first ten protocols announced at the Territorial Commission for Kumertau showed United Russia winning close to 90 per cent of the vote at each polling station. In the official results for Bashkiria produced the following day, United Russia win 70 per cent of the vote – a startling figure in itself, but more so when placed alongside the national results. Overall, United Russia managed to win just under 50 per cent of the vote nationwide, a fall of nearly 15 per cent from 2007, allowing them to maintain control of the Duma by only the narrowest of margins as they lose 77 seats.<br />
Doors glued shut<br />
Speaking to <a href="http://www.csmonitor.com/World/Europe/2011/1205/Putin-s-party-ekes-out-majority-in-controversial-Russia-election">Fred Weir from the Christian Science Monitor</a>, the leader of the Communist Party for Bashkortostan, Rifgat Gordanov, claimed that exit polls on the evening of the elections showed United Russia to have won 46 per cent of the vote in the Republic, with the Communist Party on 21 per cent. The following morning the official results put United Russia on 70.6 per cent, and the Communist Party on 15.6 per cent. Gordanov described the result as &#8216;a complete fraud. Our observers were everywhere, they saw what was happening &#8230; There were unbelievable violations of the rules&#8217;.<br />
As results across the country were produced, a similar picture began to emerge. Countless accusations of fraud, intimidation and various other infringements of the democratic process pour in from opposition party branches and civil society organisations across Russia. They range from the sinister to the bizarre.<br />
In some areas, turnout is listed as above 100 per cent of the voting population. Numerous eyewitnesses report ballot stuffing, and opposition observers claim to have been expelled from polling stations. Some <a href="http://www.reuters.com/article/2011/12/06/us-russia-election-violations-idUSTRE7B429Z20111206">claimed to have had the doors of their homes glued shut</a>.<br />
Alongside several other organisations critical of the election process, the US-funded election watchdog Golos reports that its <a href="http://blogs.law.harvard.edu/idblog/2011/12/08/coordinated-ddos-attack-during-russian-duma-elections/">website has crashed</a> following a distributed denial of service attack. &#8216;The attack was an attempt to close down our reporting on violations, because the violations we have shown reflect very poorly on the people who are in power,&#8217; Golos deputy director Grigory Melkonyants was quoted as saying. The evening before polling day, their Director Lila Shibanova, was detained at the airport while police seized her laptop.<br />
<img src="http://www.redpepper.org.uk/wp-content/uploads/votecount.jpg" alt="" title="" width="460" height="298" class="alignnone size-full wp-image-6064" /><small><b>Counting the votes. Davlekanovo, Bashkortostan.</b> Photo: Fred Weir</small><br />
On December 5, as fraud allegations begin to be reported in the international media, the OSCE released a <a href="http://www.osce.org/odihr/85757">damning preliminary statement</a>. Noting that &#8216;the elections were marked by the convergence of the State and the governing party&#8217;, they say that the vote count was &#8216;characterised by frequent procedural violations and instances of apparent manipulation, including several serious indications of ballot box stuffing&#8217;, alongside curtailment of freedom of assembly and interference with election monitors.<br />
The three largest exit polls all show United Russia receiving between 2 and 12 per cent less of the vote than their final total. Several opposition leaders and election monitoring NGOs <a href="http://www.themoscowtimes.com/news/article/activists-up-to-25-of-vote-faked/449488.html">claimed</a> a fair result would have lowered United Russia’s total by 20-25 per cent.<br />
The return of defiance<br />
That evening, several thousand people take to the streets of Moscow to protest against the fraud, demanding a re-run of the elections. Many are linked to the liberal opposition party Yabloko &#8211; which failed to reach the 7 per cent threshold which would have afforded it representation in the Duma &#8211; but the rally pulls in a range of malcontents ranging from nationalists to democratic socialists.<br />
Demonstrations in Russia are infrequent, and small. An intimidating style of policing and the regular use of mass arrests mean that most dissent in Russia is channelled through the internet, which remains largely free from restrictions. Even 500 people coming out in defiance is considered a major event.<br />
Despite the predictable arbitrary arrests, people come back out on Tuesday night, and by Saturday 10 December, an estimated 50,000 people take to the streets of Moscow, with protests spreading to 50 other towns around the country.<br />
It has become the largest outbreak of civil unrest since the constitutional crisis of 1993, when tens of thousands marched in the capital in defence of parliament after Boris Yeltsin sought to have it dissolved by military force. Could the implications be similarly momentous?<br />
For Putin it represents the most serious challenge of his political career. Although the protesters&#8217; demands centre around the election fraud, the energy which drives them is dissatisfaction with more deep-rooted problems in Russian society. Continued economic malaise will mean the Kremlin will not be able to rely on the apathy induced by rising prosperity to cool the anger.<br />
The cracks in the image of Russian democracy have become gaping fissures, and although it is too early to talk of a Russian Spring in the offing, all of a sudden Putin’s re-election looks far less certain than it did on 3 December.<br />
<small>Andrew Bowman was part of a delegation of journalists sent by the Moscow based Institute of Globalization and Social Movements to observe the election process in Bashkortostan</small></p>
<hr /><b>Briefing: Putin and Putinism</b><br />
The 4 December elections served not just as a test of public opinion on the dominant political party United Russia, who have controlled the Duma since 2003, but also on &#8216;Putinism&#8217;, the political system Vladimir Putin has built for Russia since gaining the presidency in late 1999.<br />
Putin won power with promises to bring order to the chaos of the post-Soviet transition. On this, he delivered. Powerful <a href="http://www.opendemocracy.net/od-russia/vladimir-gelman/russia%E2%80%99s-crony-capitalism-swing-of-pendulum">oligarchs were brought to heel</a>, either co-opted by the regime or, as in the case of <a href="http://www.bbc.co.uk/news/world-europe-12082222">Mikhail Khodorkovsky</a>, the imprisoned controller of the now-bankrupt petroleum firm Yukos, dispossessed.<br />
Even if inequality, graft and insidious soft authoritarianism remained, a semblance of everyday law and order returned, and, most significantly, living standards began to rise from the lows reached following the IMF-coordinated &#8216;shock therapy&#8217; liberalisation. Russia’s vast petro-chemical wealth – it is the single largest producer in the world – has famously made a few people spectacularly rich, but it has also provided the means by which the government could pursue a popular redistributive economic strategy.<br />
In the run up to the elections this year however, it was apparent that the strategy was reaching its limits. Russia’s mineral wealth has not been sufficient to shield it from the impact of the global economic slowdown. GDP contracted by a record 7.8 per cent in 2009, and though it has since rebounded, growth <a href="http://www.bloomberg.com/news/2011-09-08/russia-economic-growth-slowed-to-3-4-last-quarter-on-production.html">remains only 3-4 per cent</a> &#8211; well below that of other BRIC economies and insufficient to continue the pace of promised improvements in living standards. If, as expected, oil prices fall significantly from their $110 per barrel high and further financial contagion spreads from the Eurozone crisis, the problems will mount.<br />
The inevitable popular impatience brought by economic torpor mingles potently with the dissatisfaction of social elites over corruption. Widely referred to as &#8216;the party of thieves and crooks&#8217; – a phrase borrowed from the influential blogger <a href="http://www.bbc.co.uk/news/world-europe-16057045">Alexei Navalny</a>, who has received a 15-day prison sentence for his role in the post-election protests – United Russia’s rule has seen the country remain close to the bottom of <a href="http://cpi.transparency.org/cpi2011/results/">Transparency International’s Corruption Index</a>. Regardless of elections, those who can are voting with their feet and wallets: capital flight has been increasing and is <a href="http://online.wsj.com/article/SB10001424052970204770404577082300283169954.html">expected to top $85 billion</a> this year. Around 1.25 million Russians have emigrated in the last decade, and <a href="http://www.economist.com/node/21528596">polls conducted</a> earlier this year show more than half of Russia’s students wish to live elsewhere in the world.<br />
Politics matters too in this equation. Russia’s current political system represents a major conundrum for analysts. Is it a troubled democracy struggling to escape Soviet habits? A close network of elites with an autocratic Putin at the centre? An oligopoly where powerful businessmen have bought political power, or a predatory state which has done the opposite? A police state or a lawless mafia state? It can be all of these things, but the best single descriptor is probably a managed democracy: the formal elements of democracy exist, but the state ultimately guides the democratic process to its desired conclusion.<br />
Managed democracies differ from outright dictatorships in that the image of democracy is a necessary element in securing consent. The appearance of free and fair elections therefore matters not just for Russia’s fastidiously cultivated image on the international stage, but to its internal political stability. The problem has been that the level of &#8216;management&#8217; has increased over the past decade to the extent that image of democracy no longer holds.<br />
The trade off for the Putin era&#8217;s social stability and economic growth was a raft of reforms between 2000-2008 that restricted the political sphere. Whereas throughout the 1990s <a href="http://en.rian.ru/infographics/20111113/168581358.html">more than a dozen different parties sat in the Duma</a>, restrictions imposed on smaller parties mean that today just seven parties compete in elections, with only four sitting in the Duma.<br />
It is widely believed that all of these are controlled at the higher level by the Kremlin – a view reinforced by the controversial <a href="http://www.opendemocracy.net/od-russia/grigorii-golosov/reflections-on-mikhail-prokhorov-and-right-cause">collapse of the pro-Kremlin Right Cause</a> party this September, and the toppling of its oligarch leader Mikhail Prokhorov, following its apparant unwillingness to follow the administration&#8217;s wishes in the selection of its candidates for the December 4 election. This is not to mention United Russia&#8217;s domination of the media and control of state resources, both of which are brazenly mobilised to full effect around elections.<br />
The announcement of Putin&#8217;s succession to president Medvedev at a United Russia congress in September provided a further significant blow to the democratic image. It was widely known that Medvedev was not his own man, and widely expected that he would stand aside, and yet the cynically theatrical manner in which this was foisted upon the assembled delegates and the watching public offended even some of those within the party. The boos which greeted Putin’s similarly theatrical appearance at a wrestling match in Moscow in November underlined the growing public hostility towards the prospect of a further 12 years of his rule.<br />
Going into the elections, the Russian power elite were thus presented with a difficult balancing act: maintaining the image of fair elections in a time of fragile legitimacy, while delivering votes at a time of plummeting support. In this situation, the issue of electoral fraud was always going to play a central role.</p>
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		<title>Pay cut sparks electricians&#8217; protest in Manchester</title>
		<link>http://www.redpepper.org.uk/pay-cut-sparks-electricians-protest-in-manchester/</link>
		<comments>http://www.redpepper.org.uk/pay-cut-sparks-electricians-protest-in-manchester/#comments</comments>
		<pubDate>Mon, 07 Nov 2011 09:20:52 +0000</pubDate>
		<dc:creator>Michael</dc:creator>
				<category><![CDATA[Blog]]></category>
		<category><![CDATA[Andrew Bowman]]></category>

		<guid isPermaLink="false">http://www.redpepper.org.uk/?p=5499</guid>
		<description><![CDATA[Andy Bowman on how electricians from across the North West are fighting a co-ordinated attack on their pay and conditions]]></description>
				<content:encoded><![CDATA[<p><strong>Electricians from across the North West this week again took part in the latest nationally coordinated protests against plans by employers to reduce pay and worsen working conditions. For the second week in a row the building site for the new Carrington Paper Mill, operated by the construction firm Balfour Beatty, was picketed by around 50 workers, with many of those employed on site choosing to turn away rather than cross the picket line. Similar actions have taken place in Newcastle, Glasgow and London over the past fortnight.</strong></p>
<p>The protests began following the announcement in May by Balfour Beatty and another seven of the UK’s 14 major electrical contractors (Crown House, NG Baileys, T. Clarkes, MJN Colston, Gratte Brothers, Shepherds Engineering, Matthew Hall) that they would impose new contracts upon their electricians, and in doing so scrapping the Joint Industry Board (JIB) agreement which has for the past 40 years been the basis for setting pay and working conditions. The firms have drawn up a replacement, the Building and Engineering Services National Agreement (BESNA), and issued notice to employees in August that their current contracts will be terminated on December 7, leaving them with the option of taking up the new contracts or accepting unemployment.</p>
<p>According to Unite, which represents UK electricians, BESNA will have a number of negative effects on the trade. Contractors will be able to continually raise and lower hourly pay according to specific tasks workers undertake at any point in time, rather than maintaining a standard wage for skilled work. For some electricians this will entail a lowering of the hourly rate from £16.25 to £10 – a 35 per cent pay cut.</p>
<p>Unite say that both travel and overtime pay will be cut and made payable only at the employer’s discretion, the ability to claim for unfair dismissal will be reduced, while employers will simultaneously be enabled to make redundancies while agency temp workers are still engaged on projects. As one electrician analysing the agreement put it: “People are going to be losing a lot. Every single term in BESNA gives all the power to the employer. They get final say on everything.”</p>
<p>The JIB agreement has been in place for over 40 years, and part of the reason for its creation was the avoidance of labour unrest. The prospect of its removal is now fuelling some of the most potent labour militancy of recent years.</p>
<p>Protests by rank and file union members have shut down building sites across the country. In September a group of around 1,500 electricians workers at the Lindsey oil refinery in Lincolnshire walked out to join demonstrating electricians and Unite officials, while sites in London have been blockaded and occupied by workers several times in recent weeks.</p>
<p>“We’ve got to have mass walkouts, whether it’s official or not, it’s our very futures at stake,” explained Steve Acheson, Branch secretary for Unite from Manchester.</p>
<p>He said in view of the fast-approaching December deadline, electricians “aren’t prepared to wait for the union to decide what they’re going to do. Time is not permitting. The rank and file are saying we haven’t got enough time and they’re taking action.”</p>
<p>Acheson, himself a victim of Balfour Beatty’s past union blacklisting activity, accused building firms of lacking commitment to negotiations with their workforces.</p>
<p>“They’re just moving the goalposts so they can get the rate down by £3. This is a 43 year agreement they’re walking away from. The root cause of everything is insatiable greed for greater profit.</p>
<p>“The only language these companies seem to understand is industrial action. There’s no dialogue, they don’t want dialogue.”</p>
<p>One of the original eight companies proposing to scrap the JIB, MJN Colston, has already backed down in response to the protests, and the workers are confident that others can be forced into the same decision.</p>
<p>Balfour Beatty, a firm with a recent history of illegal union blacklisting, is viewed as the driving force behind BESNA and as such is being targeted by Unite for the first wave of official strike action. The decision to ballot the 1,000 Unite members employed by Balfour Beatty was announced on October 18. While Balfour Beatty have claimed that the scrapping of the JIB is a response to competitive pressures, Unite point out that the companies orders have risen 6 per cent this year, with £15.5bn worth of projects underway since last year, yielding pre-tax profits of £50.5m. Ian Tyler, the company’s chief executive, received a total pay package of £979,994.</p>
<p>Unite national officer, Bernard McAulay said: “We believe Balfour Beatty is the main aggressor among a group of companies trying to bully their workers into signing away their livelihoods so Unite is balloting them first. We have warned them repeatedly that their greed will bring mayhem to an industry desperately trying to steer a path through the recession, but they refuse to listen.</p>
<p>“The failure of the senior management at Balfour Beatty to withdraw the threats of dismissal has left Unite with no choice than to prepare for an industrial action ballot with Balfour Beatty, the ring-leader of these break-away firms.</p>
<p>“This is a vastly profitable company. It has no need whatsoever to rob its employees in order to satisfy its shareholders. Perhaps the threat of strike action will bring Balfour Beatty to its senses and back to the negotiating table.”</p>
<p>In Manchester, as well as the Carrington Paper Mill construction site run by Balfour Beatty, the other major target of protest has been the Town Hall refurbishment project. The contractor chosen for the project, NG Bailey, is one of the seven firms still seeking to implement BESNA. July’s <em>Manchester People</em>, the council’s news publication, <a href="http://www.manchester.gov.uk/info/100004/the_council_and_democracy/5198/manchester_people-july_2011/4">quoted deputy leader Sue Murphy</a> praising the project for its role in creating jobs and apprenticeships for local youngsters, saying as well as “preserving these heritage buildings for the future and ensuring they can deliver improved services in the years ahead, we are also helping give these people a promising future”.</p>
<p>This future now looks decidedly less promising for those hired by NG Bailey, which will, under the terms of BESNA, also no longer be offering specialist electricians’ apprenticeships.</p>
<p>Balfour Beatty were contacted for comment and supplied the following statement:</p>
<p>“Balfour Beatty Engineering Services (BBES) remain committed to the HVCA and the introduction of the Building Engineering Services National Agreement (BESNA) which will introduce one consistent set of terms and conditions for electrical, mechanical and plumbing operatives who are currently employed under a number of existing industry agreements.</p>
<p>“The UK construction industry is under pressure to increase efficiency, to improve productivity and to minimise costs. We are in the process of consulting with our workforce on the proposed introduction of the BESNA, this process includes providing the opportunity for our employees to ask questions to fully understand the detail and benefits of a single agreement for BBES and the industry as a whole.</p>
<p>“We believe that by implementing the new agreement we will create a more modern structure, better able to respond to the market place and to safeguard employment, without eroding the terms and conditions of our employees. No employee will have their wages cut, electricians will earn the same rate under the BESNA and mechanical and plumbing operatives will see an increase in their hourly rate to create a level playing field.”</p>
<p>A report on Manchester City Council’s reaction to the protests against NG Bailey will follow in the coming weeks.</p>
<p>This piece originally appeared on the Manchester <a href="http://manchestermule.com/article/pay-cut-sparks-electricians-protests-in-manchester">Mule</a> site.</p>
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		<title>Where next for Egypt? A roundup</title>
		<link>http://www.redpepper.org.uk/where-next-for-egypt-a-roundup/</link>
		<comments>http://www.redpepper.org.uk/where-next-for-egypt-a-roundup/#comments</comments>
		<pubDate>Mon, 14 Feb 2011 14:07:41 +0000</pubDate>
		<dc:creator>Andy</dc:creator>
				<category><![CDATA[Africa]]></category>
		<category><![CDATA[Andrew Bowman]]></category>

		<guid isPermaLink="false">http://www.redpepper.org.uk/?p=3272</guid>
		<description><![CDATA[Red Pepper rounds up the best commentary and analysis on the situation in Egypt after the fall of Mubarak.]]></description>
				<content:encoded><![CDATA[<p>Events in Egypt have been moving at such a pace as to leave journalists and citizens alike battling to get up-to-the-minute reports and analysis into the public domain as quickly as possible. Mubarak’s resignation on Friday created euphoria amongst protestors on the streets and delighted supporters of democracy around the world, but uncertainty surrounds the question of what reconfiguration of power this will bring.</p>
<p>In The Guardian, <a href="http://www.guardian.co.uk/commentisfree/2011/feb/11/egypt-cairo-hosni-mubarak">Tariq Ali</a> comments on the striking centrality of Tharir Square to the revolution &#8211; he writes that it is &#8216;as if to say, &#8220;we are showing our strength, we don&#8217;t want to test it because we are neither organised for that nor are we prepared, but if you mow us down remember the world is watching.&#8221;’ This is, he argues, ultimately a sign of the weakness of the movement: heavily reliant on symbolism and, thus far, achieving largely symbolic gains. The Egyptian regime, a dense web of shared elite interests, was ultimately about much more than just Mubarak. Who or what can ultimately carry the momentum of the protests forward to effect change that is more than cosmetic?</p>
<p>The lack of conventional political leadership on display has created hysteria in the west over the prospect of the Muslim Brotherhood seizing control of Egypt. They are the strongest organised political opposition to Mubarak. However, as <a href="http://motherjones.com/politics/2011/02/what-is-the-muslim-brotherhood">Robert Dreyfuss</a> explains in Mother Jones, the Brotherhood were Mubarak’s means of staying in power and garnering international support -  likewise, they were the West’s means of justifying support for Mubarak’s regime. Their power and influence  – while still considerable &#8211; has been exaggerated, as their sluggish response to recent events demonstrates. Though certain now to be a strongerl force in Egyptian politics, and one which amplifies anti-American and anti-Israeli sentiment, talk of the protests being co-opted by the Brotherhood are, Dreyfuss argues, unrealistic. The protests have remained secular in character, and it is unforeseeable that the youth and modernising middle classes which instigated the protests would tamely bow to a theocracy.</p>
<p><a href="http://www.almasryalyoum.com/en/opinion/egypt%E2%80%99s-islamist-prospects">Amer el-Zant</a> writes in the Egyptian newspaper <em>Almasry Alyoum</em> of his experiences of one of the most remarkable features of the protests &#8211; the cooperative harmony between Islamists, secular youths and Christians:</p>
<p><em>In the terminology of political philosopher John Rawls, this is the sort of interaction that, if nurtured, could form the nucleus of an &#8220;overlapping consensus&#8221; concerning the future of Egypt’s factious society&#8211;a consensus that excludes political positions and practices that are completely unacceptable to some segments of society. </em></p>
<p>Islamism, he claims, will be best contained within a more open society: ‘[I]t&#8217;s the persistence of the status quo that is the more likely harbinger of theocracy.’ Should the regime continue to cling on, he suggests, the next uprisings could well be ‘led by those willing to pay the price of resistance in the form of martyrdom. And they will be unlikely to want to share power following an eventual victory.’</p>
<p><em> </em></p>
<p>Power rests for now with the army’s generals &#8211; ‘men of the old order’, as <a href="http://www.independent.co.uk/news/world/africa/robert-fisk-a-tyrants-exit-a-nations-joy-2212487.html">Robert Fisk</a> calls them in The Independent, a wealthy and privileged elite who have gained much from the Mubarak regime and a close relationship with the United States and Israel. They have promised free and fair elections, but have also told the protestors to ‘resume a normal way of life’ and have begun clearing them from the streets. Fisk’s question gets to the heart of the matter, ‘The army has decided to protect the people. But who will curb the power of the army?’</p>
<p>Certainly not the US and EU, who have <a href="http://euobserver.com/9/31794">praised the army’s handling of events</a>, and labelled them ‘guardians’ of the transition. They will doubtless continue to supply the generals with <a href="http://www.cnn.com/2011/OPINION/02/09/hunter.egypt.aid/index.html">copious amounts of military aid</a> to serve their strategic interests in the region. Writing as the demonstrations were escalating <a href="http://www.alternet.org/story/149786/chomsky:_why_the_mideast_turmoil_is_a_direct_threat_to_the_american_empire?page=entire">Noam Chomsky</a> pointed out,</p>
<p><em>There’s a kind of a standard routine—Marcos, Duvalier, Ceausescu, strongly supported by the United States and Britain, Suharto: keep supporting them as long as possible; then, when it becomes unsustainable—typically, say, if the army shifts sides—switch 180 degrees, claim to have been on the side of the people all along, erase the past, and then make whatever moves are possible to restore the old system under new names.</em></p>
<p><a href="http://voices.washingtonpost.com/fact-checker/2011/01/obama_and_mubarak_and_democrac.html">Glenn Kessler</a>, &#8216;fact checker&#8217; for The Washington Post, backs up this arguement by succinctly tracing the about-turn in US rhetoric with regards to Egypt. <a href="http://therealnews.com/t2/index.php?option=com_content&amp;task=view&amp;id=31&amp;Itemid=74&amp;jumival=6269">Gilbert Achar</a><span style="text-decoration: underline;">,</span> from the London School of Oriental and African studies, meanwhile explains how powerful interest groups are now attempting to recuperate the revolution. For Achar, genuine democracy will hinge on the ability of protestors to keep fighting.</p>
<p>According to the Egyptian journalist <a href="http://www.arabawy.org/2011/02/12/permanent-revolution/">Hossam El-Hamalawy</a> there is a danger now emerging of the moderate elements of the protest movement – the middle class professionals that ultimately comprise the apparatus of the state &#8211; siding with the army in search of ‘order’. The result of the protest movement allowing the military to engineer the transition to a new government would result, he argues:</p>
<p><em>[in] a government that will guarantee the continuation of a system that will never touch the army’s privileges, keep the armed forces as the institution that will have the final say in politics </em>[and]<em> guarantee Egypt will continue to follow the US foreign policy.</em></p>
<p>In the long term, the potential for progressive change, he argues, lies with the Egyptian workers movement, which outside the attention of the world’s media has been becoming <a href="http://www.isj.org.uk/index.php4?id=428&amp;issue=118">ever more politicized in recent years</a>. The economic aspects of the revolution have been largely overlooked in favour of the political, but the deep inequalities and harsh poverty created by Egypt’s neoliberal policies were what brought people onto the streets in such large numbers. With Egypt’s new finance minister <a href="http://www.almasryalyoum.com/en/news/new-finance-minister-no-change-egypts-economic-policies">pledging not to change course as regards economic policy</a>, this fault line will not disappear. It was the mass strikes which began three days before Mubarak’s resignation, El-Hamalawy  asserts, that forced the army to topple Mubarak before the economy collapsed: ‘there lies the hope of changing the system.’</p>
<p>Though the revolution came to include people from all walks of Egyptian society, the role of young people in initiating the revolts is unmistakable. <a href="http://www.thenation.com/article/158498/how-cyber-pragmatism-brought-down-mubarak">Sam Graham-Felsen</a> writes in The Nation of how the wave of protests unleashed on January 25<sup> </sup>were to a great extent planned by online activists in the preceding months who had been working hard to spread information, organize demonstrations and foster solidarity networks. Regarding what route the politicised youth of Egypt will take, sociologist <a href="http://www.jadaliyya.com/pages/index/561/the-egyptian-revolution_first-impressions-from-the-field_updated-">Mohammed A. Bamyeh</a><strong> </strong>asserts:</p>
<p><em>Undoubtedly this revolution, which is continuing to unfold, will be the formative event in the lives of the millions of youth who spearheaded it in Egypt, and perhaps also the many more millions of youth who followed it throughout the Arab world. It is clear that it is providing a new generation with a grand spectacle of the type that had shaped the political consciousness of every generation before them in modern Arab history.</em></p>
<p>The apparent spontaneity of the protests (albeit planned spontaneity) reflects the fact that as yet this new emerging political consciousness has no formal manifestation. While this spontaneity was a key strength in outmaneuvering Mubarak’s forces, again it may also mean the transition to a new order will be controlled by pre-existing groups. Most protestors, Bamyeh says, ‘seemed less concerned about those details than with basic demands the fulfillment of which, it appeared, guaranteed the more just nature of <em>any</em> subsequent system.’ However, it is pessimistic indeed to believe that this concrete experience of collective empowerment would be forgotten so quickly as to allow a simple change of figureheads to pass unopposed, as Bamyeh describes:</p>
<p><em>[P]opular committees in the neighborhood, with their rudimentary weapons and total absence of illusions, represented what society had already become with this revolution: a real body, controlling its present with its own hands, and learning that it could likewise make a future itself, in the present and from below.</em></p>
<p>What is certain regarding Egypt is that the reverberations will be felt further afield, and not just in the Arab world – where authorities in Algeria, Yemen and Jordan are struggling to contain unrest. As <a href="http://www.haaretz.com/print-edition/news/egypt-upheaval-may-send-shockwaves-far-beyond-the-arab-world-1.343251">Adar Primor</a> notes in Haaretz, authorities in Russia and China are right to look nervously at recent events in Egypt &#8211; ‘people power has never been more exciting.’  A collapse in the economic growth based social contract in either country could have similar catalytic effects to the rising food prices in the Arab world.</p>
<p><a href="http://www.opendemocracy.net/mary-kaldor/civil-society-in-1989-and-2011">Mary Kaldor</a> on Open-democracy argues that the protests are completing the revolutions of 1989, reclaiming the values of Solidinarosc and the Czech Civil Forum from the neo-liberals who usurped them, alongside the idea of civil society as an exclusively western phenomenon. The need for a total rethinking of western security, foreign, and economic policies is clearer now than ever before. More than this though, the Egyptian uprisings are, as John Pilger puts it <a href="http://www.morningstaronline.co.uk/index.php/news/content/view/full/101040">‘our theatre of the possible’</a>, writing:</p>
<p><em>In Washington and London, the regimes are fragile and barely democratic. Having long burned down societies abroad, they are now doing something similar at home, with lies and without a mandate. To their victims, the resistance in Liberation Square must seem an inspiration. Try kettling a million people in the centre of London, bent on civil disobedience and try imagining it could not happen. </em></p>
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		<title>Carry on camping?</title>
		<link>http://www.redpepper.org.uk/Carry-on-camping/</link>
		<comments>http://www.redpepper.org.uk/Carry-on-camping/#comments</comments>
		<pubDate>Wed, 07 Oct 2009 22:10:22 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Climate]]></category>
		<category><![CDATA[Andrew Bowman]]></category>

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		<description><![CDATA[Beginning in 2006, Climate Camp has captured the imagination of activists and the interest of the press. At a more peaceful than usual gathering in Blackheath this year, Andy Bowman spoke to participants about their reflections on the past three years, and the way forward]]></description>
				<content:encoded><![CDATA[<p>Beneath a banner reading &#8216;capitalism is crisis&#8217;, with the towers of Canary Wharf looming in the background, an unusual mixture of people are engaged in debate. There are weather-beaten permaculturists, sharp-tongued student campaigners, shaven-headed anarchists, pamphlet-wielding socialists and even a group of curious locals. All are sat around on hay bales in the summer sunshine, arguing about what kind of political action is needed to tackle climate change. Where else could we be but the Camp for Climate Action?</p>
<p>For the fourth successive August, a thousand or so assorted environmentalists were once again squatting land and filling newspaper pages. The camp is becoming as much a part of the summertime as crop circles and cricket &#8211; and many on the left seem keen to place it alongside such silly-season phenomena, as an inconsequential curiosity. They&#8217;re wrong.</p>
<p>The camp has made a significant impact on some major government planning decisions, brought a radical message on climate change to a mass audience, and employed innovative forms of organisation that the traditional left would do well to learn from. Additionally, through acts of large-scale civil disobedience, it has pushed at the limits of state control over protest. </p>
<p><b>Confront and sabotage them all</b><br />
<br />The camp is nothing if not hard to pin down. Commentators struggle to place it in pre-existing categories &#8211; social movement or pressure group? Pragmatic reformists or utopian revolutionaries? Green umbrella organisation or radical fringe?</p>
<p>Understanding it better requires going back to the roots. The first Camp for Climate Action was in August 2006. Around 600 people pitched next to Drax coal fired power station in Yorkshire &#8211; the biggest source of CO2 in the UK. The camp was based around four aims (which remain today): demonstrating sustainable living, providing popular education through workshops, building a mass movement against climate change on the premise that &#8216;government and corporations are not the answer&#8217;, and direct action &#8211; in this case, shutting down Drax.</p>
<p>The audacity captured the attention of the press, and the police &#8211; the latter outnumbered protesters three to one. The militancy of the protest seemed to mark a new phase in the politics of climate change. Politicians had sat on the problem for two decades, with little to show for it. Real change, camp organisers deduced, would come from below. Ruth Simpson (a pseudonym) was involved in organising Drax, and is concerned that its origins aren&#8217;t forgotten.</p>
<p>Ruth explains that the camp process began after the Gleneagles G8 protest mobilisation, and particularly the Horizon eco-village, created to counter claims that the G8 meeting was taking climate change seriously and provide a base for action. &#8216;Afterwards,&#8217; Ruth says, &#8216;people thought, we shouldn&#8217;t just do that when there&#8217;s a major summit, we can do it on our own terms and pick our own targets.&#8217;</p>
<p>&#8216;The camp was anarchist-leaning from the start, but it wasn&#8217;t urban class struggle anarchism &#8211; it was based around green anarchism and the DIY culture of the anti-roads movement and Reclaim the Streets. Consensus decision making was inspired by feminism, and the &#8216;Barrio&#8217; form of organisation [the camp is divided into 'neighbourhoods,' which feed decisions into central meetings] and non-hierarchy came from the 2001 Piqueteros Rebellion in Argentina.&#8217;</p>
<p>&#8216;It was clear we needed a radical perspective looking at the root causes,&#8217; she continues. This led the camp into territory where most other environmental organisations feared to tread: &#8216;The thinking was that to stop the emissions, we have to stop the mode of production that creates them, the big companies that profit from them and the political system which maintains this situation &#8211; the idea was to confront and sabotage them all.&#8217; </p>
<p><b>Into the spotlight</b><br />
<br />When the camp announced in spring 2007 that its next target was Heathrow airport, alarm bells started ringing in high places. The protest laid bare government hypocrisy. Should the proposed third runway go ahead and air travel grow as projected, emissions cuts in other areas would be meaningless, even according to the government&#8217;s own targets. This was, a camp media spokesperson proclaimed on live television, the &#8216;prioritisation of economic growth above the future of the planet.&#8217;</p>
<p>As the camp allied with residents organisations in nearby villages, Heathrow&#8217;s owners, BAA, applied for the biggest injunction in British legal history to stop the protest. Police invoked anti-terror legislation, but couldn&#8217;t prevent multiple autonomous blockades and occupations of companies and government departments linked to aviation expansion. It was a media feeding frenzy. Despite little more than a thousand people being on site at any one time, the protest got more attention than anything since the million-strong anti-war demonstration on 15 February 2003.</p>
<p>The tabloids had a revived &#8216;eco-terrorist&#8217; folk devil, while the liberal media swooned. <i>Guardian</i> columnist George Monbiot called it &#8216;better organised, more democratic and more disciplined that any [protest] I have seen &#8230; running water, sanitation, hot food twice a day, banks of computers and walkie-talkies, stage lighting, sound systems, even a cinema, were set up in a few hours on unfamiliar ground, in the teeth of police blockades &#8230; I left the camp convinced that a new political movement has been born.&#8217; </p>
<p><b>Maintaining the pressure</b><br />
<br />The camp is an evolving project, with no mapped out direction. Robbie Gillett, a Plane Stupid activist who is now part of the camp&#8217;s media team, was among those who felt the success of Heathrow should be built upon with another camp: &#8216;The government thought the third runway was a done deal, then suddenly they had 2,000 people on the land saying &#8220;this isn&#8217;t going to happen.&#8221;&#8216; He sees the event&#8217;s importance not just in terms of immediate political impacts, but how the experience inspires activists. </p>
<p>&#8216;Some people go on gap years and come back with changed horizons,&#8217; he says. &#8216;I went to a field in East Riding aged 19 and came away transformed. Since then I&#8217;ve been totally focused on climate change.&#8217;</p>
<p>Outside the camp, monthly open meetings allow participants from the different regions that form the &#8216;neighbourhoods&#8217; to collectively plan the way forward. Open working groups, separate but accountable to the main group, implement decisions practically. Their remit ranges from educational workshops to media, police liaison to international networking. Professionals lending their expertise work alongside amateurs learning by doing.</p>
<p>This empowering, horizontal structure inspires many new participants. Robbie explains, &#8216;you can get involved in all aspects of the organisation &#8211; from cooking to the big political decisions. And if, for instance, you&#8217;re not happy about the line the media team is taking, you can join their working group and chip in.&#8217; This is more significant, he asserts, than movement micro-politics. &#8216;My generation grew up with New Labour, and never saw alternatives or potential for change from parliamentary politics. The camp is about people wanting to take responsibility themselves, rather than deferring to politicians. It shows politics isn&#8217;t about men in grey suits.&#8217; </p>
<p>In 2008, a decision was made to target Kingsnorth coal-fired power station in Kent, which energy giant E.On plans to replace with the UK&#8217;s first new coal station in 20 years. The camp announced it would attempt to shut down Kingsnorth, and launch rolling blockades should construction work begin. The state launched its most strident attacks yet. Police seized kitchen equipment, sanitation infrastructure and even creche toys. Blanket stop and searches were imposed around the site. Dozens were arrested for petty or entirely spurious offences. Helicopters and amplified music deprived campers of sleep, and violent dawn raids hospitalised several people. Similar scenes followed at the G20 protests in April 2009, when climate campers surrounded London&#8217;s Carbon Exchange to highlight the &#8216;false solution&#8217; of carbon-trading. When news cameras left in the evening, riot police beat their way through the crowd. </p>
<p>This much police attention is usually a sign of effectiveness. The government has indeed stalled on the construction of the third runway and the new Kingsnorth. The camp has also been at the forefront of struggles for freedom to protest, with the police reeling from a year of bad publicity at the hands of the camp&#8217;s media and legal teams.</p>
<p><b>Paths not taken</b><br />
<br />There&#8217;s much to celebrate &#8211; but it&#8217;s not a simple success story, and the strongest criticisms come from within the camp. Marc Hudson, a Manchester based climate activist, is among several former participants who feel bread and butter aspects of movement building have been neglected. Numbers participating in the organisation haven&#8217;t kept pace with the rising public profile. The climate camp movement is growing, but it&#8217;s far from a &#8216;mass movement.&#8217;</p>
<p>&#8216;Although more people are involved in the camp,&#8217; Marc says, &#8216;it is generally more of the same. It has got deeper, but not wider. It tends to be your white, middle-class, university educated, public sector type people.&#8217;</p>
<p>&#8216;On one level the camps are successful. New people are excited by the effectiveness of non-hierarchical organising, and they garner lots of media attention and raise awareness.&#8217;</p>
<p>&#8216;But,&#8217; he continues, &#8216;climate change isn&#8217;t a problem of awareness &#8211; most people know it&#8217;s serious. It&#8217;s a problem of there not being local avenues for people to put their concerns into action. The camp is a spasm, and what we need is year-round pressure.&#8217; As the anti-globalisation movement found, this tactic precludes true mass participation. &#8216;If climate camp could use its humour, organisational prowess, daring, courage and imagination to create more local opportunities, then we might get somewhere,&#8217; Marc concludes.</p>
<p>Others feel the radical focus of the camp is in danger of being lost. For Lauren Wroe, co-founder of the critical journal Shift, the experience of Heathrow brought concerns as much as inspiration. &#8216;All the ideas about austerity, forcibly limiting people&#8217;s lifestyles and restricting their movement &#8211; it didn&#8217;t fit with a radical politics of climate change.&#8217; The camp&#8217;s direct action, Lauren felt, was also becoming problematic. &#8216;It was being used more as a government lobby tool. The urgency of the situation was making people turn toward the state for solutions, and put aside questions of social change &#8211; it was effectiveness first, equity second.&#8217;</p>
<p>&#8216;Rather than walking away, we thought, &#8220;how can we encourage more critical engagement on these issues?&#8221; The result was Shift. Since then we&#8217;ve tried to keep engaging to push for a more radical approach, and counter reactionary tendencies.&#8217;</p>
<p>The pressure-cooker atmosphere created by the preparation of mass direct action and resisting police repression has sometimes drowned out political differences, and the difficult questions raised by people like Marc and Lauren. &#8216;At Kingsnorth,&#8217; Lauren continues, &#8216;ideas like just transition, capitalism and class came up, but people didn&#8217;t embrace them and push forward, because everyone was preoccupied.&#8217;</p>
<p><b>New directions</b><br />
<br />With this year&#8217;s main action delayed until October (&#8216;The Great Climate Swoop&#8217; on Ratcliffe-on-Soar coal-fired power station), and the Met keeping a low profile, there was greater opportunity to reflect at the camp. Economics was on the agenda as never before. The recession has opened new space for anti-capitalism, but the main inspiration for this change seemed to come from events on the Isle of Wight this summer. Sometimes small sparks start big fires, and the workers&#8217; occupation of the Vestas wind turbine factory may have added a new dimension to radical green politics.</p>
<p>In numerous workshop discussions, people were suggesting that Vestas points the way to a climate movement that really could become &#8216;mass,&#8217; challenging environmental destruction and the logic of capitalism in people&#8217;s everyday life rather than one-off media stunts.</p>
<p>Talk of red-green coalitions is nothing new, though in recent years the camp has mostly produced examples of barriers which prevent them, notably at Kingsnorth. The National Union of Mineworkers was incensed by a perceived disregard for the fate of energy industry workers. Arthur Scargill came to the camp to remonstrate. In an interview with Shift, NUM representative Dave Douglass explained, &#8216;the green movement, we foolishly thought, was our ally &#8230; whole communities of working class people fought the cops to stop pit closures. Now the climate camp shouts &#8220;Leave It In The Ground,&#8221; and de facto &#8220;Shut The Pits&#8221; &#8230; They need to engage us more and confront us less.&#8217;</p>
<p>Nowadays, the NUM are more symbolic than material representatives of working class politics, but identical arguments over priorities have been raging with the Unite union over the future of Heathrow. The response from campers has been to stand behind the science, but these encounters did prompt more serious consideration of &#8216;just transition&#8217; models.</p>
<p>Ongoing collaborations around the Vestas dispute are the outcome of this engagement with left politics. Luke Evans went to the Isle of Wight with other campers from the South Coast neighbourhood. Socialists, Green Party members, and trade unionists were all there at the factory. &#8216;At first,&#8217; he says, &#8216;it was really split. Everyone had respect for each other, but thought their own way was best. The divide broke down as time went on though, because we realised everyone had different types of experience to offer, and we were all after fairly similar results.&#8217;</p>
<p>Several Vestas occupiers attended this year&#8217;s camp, holding packed daily meetings to encourage support, and participating in discussions about the overlap between workplace struggle and environmentalism. Ian Terry, a worker from the factory, stressed the potential of meshing the direct action tactics and dynamism of the climate camp with the wide organisation of the unions (see interview in <i>Red Pepper&#8217;s</i> October/November issue).</p>
<p>The Workers Climate Action (WCA) network shares Ian&#8217;s optimism. They were instrumental in the Vestas occupation, having leafleted workers after their redundancies were announced with material pointing to the success of the Visteon occupation earlier this year. WCA was founded by socialists from the Alliance for Workers Liberty to bring class politics into the nascent climate movement, and members of the network have been active in the camp.</p>
<p>Heathrow was a formative political experience for WCA&#8217;s Bob Sutton, and he feels that the conventional left should learn from the camp. &#8216;The British left in the conventional sense couldn&#8217;t pull off something like climate camp,&#8217; he says. &#8216;The climate camp way of organising, independently sorting out the infrastructure of struggles and decent meetings, food, childcare &#8211; you can be sectarian about what climate camp can bring to workers&#8217; struggle, but actually these things are of concrete importance.&#8217;</p>
<p>There is also a lot he feels the camp can gain from socialist politics. The camp&#8217;s anti-capitalism focuses on building alternative economic systems rather than trying to gain control of the existing means of production and use them for different purposes &#8211; small scale artisan cooperatives, &#8216;grow your own&#8217; schemes, localisation and rural living are particularly popular initiatives.</p>
<p>&#8216;Many of us in this camp weren&#8217;t even alive when the working class was last a really powerful force in society,&#8217; Bob points out, &#8216;and this anti-capitalism that is external to capitalism is born of living through a period in which capitalism has total hegemony. It&#8217;s also born out of people&#8217;s largely middle class backgrounds &#8211; there isn&#8217;t a good sense of the amount of choice most people have.&#8217;</p>
<p>Vestas, whilst encouraging, remains unique: the workers there produce things greens want to see produced. Will we see greens engaging with workplace struggles at car factories, or shrinking back to safe-havens?</p>
<p><b>Communicating across difference</b><br />
<br />Gayle O&#8217;Donovan, secretary of Manchester Green Party and north west representative for the Green Left, is optimistic about the challenge. &#8216;An effective social movement won&#8217;t be based on individual issues, parties or organisations &#8211; we need many different groups working together. Climate camp is a model for getting people from different perspectives and organisations to work together. It is tuned in to communicating across difference and that&#8217;s important at a time when the left is so fragmented.&#8217;</p>
<p>She feels the most common criticism of the camp, that it is middle class student adventurism, is unjustified: &#8216;People criticise the camp for having this bourgeois hippy feel, but the people who will most be affected by runaway climate change are the poorest, the working class &#8211; on a national and global level. It&#8217;s a social justice issue that can&#8217;t be sidelined as the realm of sandal wearing, organic food eating hippies &#8211; it&#8217;s bigger than that.&#8217;</p>
<p>Climate change is indeed now much bigger than that. Since the first camp, the terrain of climate politics has shifted dramatically. Demands to end coal-fired electricity generation and short-haul flights look increasingly pragmatic rather than utopian. And, as the camp began calling for people to get to Copenhagen this December, it was joined by Ed Miliband, who told the media the leaders &#8216;need to be pushed&#8217;.</p>
<p><b>Coping with success</b><br />
<br />Perhaps it&#8217;s a measure of success that climate change is now being taken seriously &#8211; in word if not deed &#8211; across society in a way that those on the Drax camp would scarcely have believed possible. But where does this leave an organisation seeking to create a radical, anti-capitalist politics of climate change?</p>
<p>During <i>Red Pepper&#8217;s</i> workshop at this year&#8217;s camp, the writer and campaigner Kat Ainger neatly encapsulated the issues now facing the organisation as it looks forward. &#8216;Success is dangerous. Just at the moment when you are shifting the terms of mainstream debate, you encounter the sticky embrace of corporations and the state who will say, &#8220;we want the same things as you.&#8221; There&#8217;s a classic PR tactic of defusing movements by co-opting the moderates and isolating the radicals. And success is heady; it can lead to repetition of tactics that worked once. A movement needs to innovate; literally, to keep moving.&#8217; </p>
<p>With the camp&#8217;s upcoming agenda involving another mass action against coal, and another summit mobilisation (Copenhagen), this statement seems particularly pertinent. Innovation will no doubt be made easier by the camp&#8217;s fluid organisational system, but as Vestas seems to have shown, the real opportunities for the way ahead lie in collaboration and cross-pollination with other movements.</p>
<p><a href="http://www.climatecamp.org.uk">www.climatecamp.org.uk</a><br />
This article is part of our series on emerging political movements, made possible with the help of the <a href="http://www.amielandmelburn.org.uk">Barry Amiel and Norman Melburn Trus</a>t<small></small></p>
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		<title>A real green deal</title>
		<link>http://www.redpepper.org.uk/a-real-green-deal/</link>
		<comments>http://www.redpepper.org.uk/a-real-green-deal/#comments</comments>
		<pubDate>Wed, 07 Oct 2009 11:12:35 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Activism]]></category>
		<category><![CDATA[Economics]]></category>
		<category><![CDATA[Andrew Bowman]]></category>
		<category><![CDATA[Hilary Wainwright]]></category>

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		<description><![CDATA[35 years ago, workers at the Lucas Aerospace company formulated an 'alternative corporate plan' to convert military production to socially useful and environmentally desirable purposes. Hilary Wainwright and Andy Bowman consider what lessons it holds for the greening of the world economy today]]></description>
				<content:encoded><![CDATA[<p>There are moments when a radical idea quickly goes mainstream. A cause for optimism but also caution; an opportunity for a practical challenge. The &#8216;green new deal&#8217;, a proposal for a green way out of recession, is such an idea (see interview with <a href="http://www.redpepper.org.uk/What-s-the-deal?">Green Party leader Caroline Lucas</a>, <i>Red Pepper</i>, June/July 2009). It has now been adopted in some form, in theory if not in corresponding action, by governments across the world. </p>
<p>In Britain, the workers&#8217; occupation of the Vestas wind turbine factory on the Isle of Wight &#8211; supported by green, trade union and socialist campaigners across the country &#8211; has provided a practical challenge to the government. The Vestas workers&#8217; argument, committed as ministers say they are to green investment, is that here is an exemplary case: so intervene and save green jobs, creating a base and a beacon for further action in the same direction. </p>
<p>Before the Vestas occupation, Ed Miliband, the minister responsible for action on climate change, made a welcome call for public pressure to achieve tougher action. But when faced with a request from the Vestas workers to talk, the government showed no interest in practical collaboration with real-life pressure &#8211; particular and complex as it invariably is. Why didn&#8217;t the government pick up on this opportunity to support a strategically-placed group of citizens who were responding to the need for everyone to take responsibility for climate change? </p>
<p><b>Strategic choices</b><br />
<br />Was it just political caution, a wariness of giving legitimacy to a campaigning alliance that includes political forces New Labour considers beyond the pale? Or is there a deeper divide at stake? A divide between those who believe that reversing the destructive momentum of the present economy is mainly a matter of appealing to the interests of private business, cajoling them to invest in green technologies as new profit opportunities; and, on the other hand, those who believe that a green transition will at times conflict with the priority of profits and require a strong alliance with workers and citizens with the technical and social know-how and potential power to rebalance the economy with the needs of the public and the planet to the fore. </p>
<p>Vestas symbolises how we can&#8217;t rely on the motor forces of the capitalist market. Here were green products but low profits; hence, in a capitalist market, the result is closure and &#8216;rationalisation&#8217;. How can the passions and reflections stimulated by the Vestas campaign be turned into the strategy we need for an effective and socially just green transition? </p>
<p>There are serious gaps in our knowledge as to how, practically speaking, a socialised green energy industry might be achieved. Vestas remains a special case &#8211; what about the polluting industries that the majority of workers are engaged in? There&#8217;s a need for some quick thinking, and the excavation of relevant lessons from the past. The words on many people&#8217;s lips are &#8216;Lucas Aerospace&#8217;. They are remembering the plan for socially useful and environmentally desirable products drawn up in 1975/76 by workers facing the threat of closure in a company involved in military production. They were supported by the industry minister of the time, Tony Benn. </p>
<p><b>Meet the shop stewards combine committee</b><br />
<br />Flashback to January 1975 and a meeting of the Lucas Aerospace shop stewards combine committee. The management of Lucas Aerospace was reacting to economic crisis by cutting jobs. Listen in as 60 delegates from 13 factories discuss what is to be done at a specially-convened meeting at a stately home turned trade union education centre just outside Sheffield. </p>
<p>The differences between their situation and that of the Vestas workers will be obvious. They include the existence of a strong trade union organisation and some initial encouragement from a government minister &#8211; but on the other hand a green movement that was only embryonic. </p>
<p>Similarities emerge, however, and new insights can be gained as to how today&#8217;s green movement can make common cause with workers to redirect the economy towards sustainability without loss of livelihoods. By the end of that January weekend, the Lucas Aerospace shop stewards &#8211; a powerful mix of some of the best aerospace designers in the country, highly skilled shop floor engineers and so-called &#8216;unskilled&#8217; workers with a strong class and community consciousness &#8211; had taken a pioneering decision. They decided to go back to their workplaces and involve their members in drawing up and campaigning for &#8216;an alternative corporate plan for socially useful and environmentally desirable production&#8217;. </p>
<p>&#8216;Let&#8217;s draw up a plan without management,&#8217; said Mike Reynolds, a shop steward from Liverpool, at this historic meeting. &#8216;Lets start here from this combine committee. It has grown and grown. It has ability not only in industrial disputes but also to tackle wider problems. Let&#8217;s get down to working on how we&#8217;d draw up a plan, on our terms, to meet the needs of our community.&#8217; </p>
<p>The theme of using their skills to meet social needs &#8211; and demonstrating that their skills (used mainly to make components for military aircraft) were not redundant &#8211; was fundamental to their initiative. </p>
<p>&#8216;There&#8217;s talk of crisis wherever you turn,&#8217; said Mike Cooley, an inspirational designer then working at the Willesden factory (and later sacked by the company for his involvement in the combine committee), describing an aspect of the context familiar to us now. &#8216;We have to stand back &#8230; for it is the present economy that has a crisis. We don&#8217;t. We are just as skilled as we were, we can still design and produce things.&#8217; </p>
<p>Judging by the way that Lucas workers responded to the proposal to draw up an alternative corporate plan, Mike Cooley was voicing a widely shared ethos. The combine committee sent round a detailed questionnaire to every factory to draw up an inventory of skills and machinery and to ask fellow trade union members what they should be making. &#8216;Ideas poured in within three or four weeks,&#8217; remembers Cooley, as we talk to him about the experience nearly 35 years on. &#8216;In a short time we had 150 ideas for products which we could make with the existing machine tools and skills we had in Lucas Aerospace.&#8217; </p>
<p><b>Demonstrating alternatives in practice</b><br />
<br />The specific ideas are worth returning to; they illustrate in a very vivid way the principles guiding the methodology of the shop stewards &#8211; principles that continue to have relevance today. The ideas were presented as drawings and models more often than written proposals. &#8220;Can do&#8221; rather than &#8220;can analyse&#8221; was the emphasis of the combine committee. They insisted, against the conventional emphasis (including by much of the left) on linguistic skills and propositional and codified scientific knowledge, on the importance of tacit knowledge, of &#8220;things we know but cannot tell&#8221;.</p>
<p>This approach also illustrates the strong sense that the Lucas Aerospace workers had of the choices to be made in both the development and the application of technology. Technology is not value-neutral; it involves choices and alternative directions. &#8216;There is no single best way,&#8217; as the introduction to the plan put it.</p>
<p>Guided by these kinds of principles, some product ideas addressed medical needs: kidney machines for the thousands who die through lack of available equipment; a light, portable life-support system for ambulances; a simple heat exchanger and pumping system for maintaining the blood at a constant optimum temperature and flow during critical operations. </p>
<p>Another range of proposals concerned alternative energy sources, including proposals for storing energy produced during periods when it is not required for times when it is; solar collecting equipment for low-energy housing; a range of wind generators drawing on the workers&#8217; know-how of aerodynamics. Others addressed the transport system and destructive nature of the automotive industry.</p>
<p>One proposal that was developed into a working &#8216;prototype&#8217;, which they used as a form of technological agitprop, was a &#8216;road-rail&#8217; vehicle capable of driving through the city on roads and then running on the national rail network, with a capability of going up much steeper inclines than normal rolling stock. Another idea involved a power pack with a small combustion engine that would enhance the efficacy of battery-driven cars, improve fuel consumption and radically reduce toxic emissions. </p>
<p>A final set of proposals were for tele-archic devices, which mimic the motions of a human being, in real time but at a distance. They enable workers to use and develop their skill by working with the challenges of the physical world in a way that no simple robot would be capable of &#8211; as miners, oil drillers and so on &#8211; but in a safe and secure environment. </p>
<p>Significantly, the plan put forward democratic alternatives in relation to the organisation of production process, as well as the end products. In emphasising the social usefulness and environmental beneficence of these products, it also challenged the imperative to accumulate and maximise profits. </p>
<p>Some of the products would make a profit within a capitalist market economy &#8211; some have indeed been taken up by profit-maximising companies in Japan and Germany, for example &#8211; while others would not. </p>
<p>Implicit was the possibility of a different notion of growth, not driven by the logic of what has been called &#8216;the bicycle economy&#8217; with its driving necessity to accumulate simply to keep going. </p>
<p><b>Management&#8217;s refusal to negotiate</b><br />
<br />It was a radical initiative, then, but pragmatic too, drawn up to be part of the collective bargaining process with management and government. The Lucas Aerospace management danced around it but refused to negotiate seriously &#8211; because the alternative plan would have taken collective bargaining onto a level that challenged management&#8217;s sole prerogative to manage. </p>
<p>The combine committee initially hoped the government would engage. Talk of public ownership was in the air. In November 1974, a combine committee delegation crowded into Tony Benn&#8217;s office when he was minister for industry to discuss the future of the industry. He said he didn&#8217;t have the power to nationalise but stressed the importance of diversification and &#8216;producing our way through the slump&#8217;. It was Benn who planted the seed of the idea of an alternative corporate plan. He offered the possibility of a meeting between government, the company and the combine to discuss it (is there a lesson here for our current minister for climate change?)</p>
<p>By the time the plan was ready in January 1976, Harold Wilson had sacked Tony Benn from the sensitive post of industry minister in response to pressure from the Confederation of British Industry (CBI). The doors of the ministry were all but closed to the workplace trade union reps &#8211; the people who knew what could be done to produce a way out of an economic crisis and had a vested interest in seeing such plans develop.</p>
<p>In a sense, the alternative plan and the combine committee were a classic product of the co-operative, egalitarian creativity of the late 1960s and 1970s: challenging authority and seeking individual realisation, but through a social movement &#8211; in this instance the labour movement &#8211; and all the more potent as a result. It came up against trade union, government and management institutions stuck in the command and control mentalities of the 1950s, and the power of the movement was destroyed by Thatcher&#8217;s onslaught against the unions and radical local government in the 1980s. It could be said that the creative spirit of the 1970s got separated from the social critique and organised movements in which it was initially embedded and was appropriated by the more sophisticated sections of corporate management. </p>
<p><b>What relevance for today?</b><br />
<br />With the challenge of diverse social forces now coming together in search of an alternative red-green economic strategy, is this a moment when that spirit of creativity and autonomy can be recombined with the organised power of the workers and citizens struggling for democratic control over the future? What new forms could this recombination take in the 21st century, when trade unions are generally weak and the left fragmented? What new alliances could be created as consciousness of the need for a socially and environmentally responsible alternative grows? </p>
<p>The Lucas shop stewards showed that the most effective challenges to the dominance of the capitalist market were not abstract principles but concrete actions, the most important of which being the formulation of alternative ways of doing things. The Green New Deal comes from the same realisation, but as a response to different circumstances. </p>
<p>Nonetheless, with the urgency provided by climate change, the growing influence of green movements and a labour movement in need of invigoration, maybe the Lucas plan&#8217;s time really has come? </p>
<p>Mike Cooley points out that the subtitle of the Lucas plan was &#8216;A positive alternative to recession and redundancy&#8217;. &#8216;The underlying ideas are even more relevant now than they were 35 years ago,&#8217; he argues. </p>
<p>&#8216;Once again we are told that for many there is no work. Are our hospitals so well staffed and equipped, our public transport services so frequent, safe and environmentally desirable, our housing stock so adequate and well maintained that there is no work to be done? Just look around. There is work to be done on all sides. What is lacking is the imagination and courage to creatively address it.&#8221;</p>
<p>A renewed Green New Deal that involved such painstaking attention to grass-roots participation would be a worthy successor indeed. And, with the speed at which things are changing in environmental politics at the moment, who knows how far such radicalism might go in a few years time?</p>
<p>The Lucas Plan; a new trade unionism in the making? by Hilary Wainwright and Dave Elliott, first published by Allison &#038; Busby in 1981, is available second hand from amazon.co.uk, abebooks.co.uk and other bookshops</p>
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		<title>The state of the movement</title>
		<link>http://www.redpepper.org.uk/The-state-of-the-movement/</link>
		<comments>http://www.redpepper.org.uk/The-state-of-the-movement/#comments</comments>
		<pubDate>Sun, 23 Aug 2009 15:06:01 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Globalisation]]></category>
		<category><![CDATA[Andrew Bowman]]></category>

		<guid isPermaLink="false"></guid>
		<description><![CDATA[The G20 protests have certainly left their mark, though not in a way anyone predicted - and the ensuing debate on policing was long overdue. But, Andy Bowman asks, did the protests manage to unite the left?]]></description>
				<content:encoded><![CDATA[<p>Before the G20, the last time world leaders met on British soil was in 2005 for the G8 at Gleneagles. The counter-mobilisation was long and meticulously planned.</p>
<p>The G20, by contrast, arrived suddenly, and in the midst of a recession. It produced more confused head scratching than bold political strategies. With the world&#8217;s attention soon to be focused upon London, those seeking to steal the limelight with opposition and alternatives were scrambling to prepare.</p>
<p>Political meetings in the early months of this year &#8211; from liberal NGOs to anarchist forums and everything in between &#8211; were filled with a sense of panic, but also expectation. Would this be the turning point, the mass outpouring of popular discontent over the government&#8217;s handling of the recession? From this expectation emerged the Put People First coalition. It draws together a dazzling array of organisations. Usual suspects like War on Want, Greenpeace and the Jubilee Debt Campaign work alongside smaller groups ranging from Sudanese Women for Peace to Performers Without Borders. There are even several Christian groups &#8211; whoever expected to see the Salvation Army marching unto class war? This is all knitted together with the combined might of the Trade Union Congress&#8217;s six million members.</p>
<p>The coalition&#8217;s 28 March demonstration created much excitement. Organisers speculated that the turnout would be the highest of any demonstration since the peak of the anti-war movement in 2003.</p>
<p>Titled &#8216;Jobs, Justice and Climate&#8217;, the march aimed for the broadest possible appeal. Coach-loads of protesters from across the country converged on the capital. But in the end, it felt somewhat muted. With an estimated 35,000 out on the streets, it wasn&#8217;t even the biggest demonstration this year &#8211; the Gaza protests in January were far larger.</p>
<p><b>Solidarity &#8211; but not quite unity</b><br />
<br />There was certainly a diversity of attendees, but it seemed most had simply brought their own particular issue along. Anti-war activists had come about the war, environmentalists about climate change, trade unionists about jobs. There was a clear sense of solidarity, but not quite unity. What for instance, of the dispute between environmentalists and the Unite union over the third runway at Heathrow?</p>
<p>Possible tensions were smoothed over by the ambiguity of the demonstration&#8217;s purpose. Although an accompanying policy document compensated somewhat, policy documents don&#8217;t get feet on the street &#8211; the core message matters. Instead of bold, concrete demands such as for the public ownership of major banks, a bailout for the unemployed or a proper green stimulus package, Put People First offered only vague principles. Perhaps many stayed away confused or uninspired?</p>
<p>The TUC&#8217;s head of international relations, Owen Tudor, is more optimistic in his assessment. &#8216;Dealing with such broad issues can be difficult,&#8217; he says, citing disagreements over priorities between climate activists and trade unionists as a key sticking point. The key question in retrospect, he asserts, is: &#8216;Were these three areas, &#8220;Jobs, Justice and Climate&#8221;, tacked together, or are they integrally bound up? The more radical outcomes of this alliance will depend on how far we see these things as integrated. People are now coming to a conclusion that they are.&#8217;</p>
<p>If it manages to stick together &#8211; Copenhagen will likely be make or break time &#8211; Put People First could create the grounds for a more forceful expression of progressive forces in society. It&#8217;s certainly unfair to judge an organisation too harshly on its first outing.</p>
<p>Nik Dearden, director of the Jubilee Debt Campaign, says: &#8216;We were actually pleased with numbers on the day, but even more pleased with some of the meetings that had gone on beforehand. We got trade unionists sitting down with development activists, and climate activists, discussing not just a Make Poverty History type agenda, but something central to all our interests. The structure of the world economy is affecting poverty in Zambia, but also people losing their jobs in this country. We need to bring that whole agenda together to tackle it.&#8217;</p>
<p>Those at the top of the participating organisations seem enthused, but is this shared throughout the ranks?</p>
<p>Derek Clarke of Tameside NUT feels Put People First&#8217;s ability to mobilise more people depends on orientating itself towards the grassroots. &#8216;It needs to start focusing on local campaigns and how to link them up, as opposed to just national campaigns and national demonstrations. We need to get people talking about it in the pubs and clubs and the only way you&#8217;ll do that is to energise local groups.&#8217; Gary Hassell, of Brighton RMT, shares the sentiment. &#8216;One demo like this won&#8217;t be enough &#8211; we&#8217;ve got to take it back to the regions, back to the workplaces, and we&#8217;ve got to start making political demands. Hopefully this protest today will act as a catalyst.&#8217;</p>
<p>Similar hopes were attached to the more confrontational Financial Fools Day protests on 1 April. Two loosely anarchist-orientated groups, the Camp for Climate Action and the hastily assembled G20 Meltdown, planned to bring the financial district to a standstill for the day and spark off the feted &#8216;summer of rage&#8217;. A hungry media latched on. The Climate Camp and its slick PR machine took an unfamiliar place in the shadows for the week as &#8216;good protesters&#8217;, and attention focused on the more colourful characters of G20 Meltdown and their talk of insurrection.</p>
<p>As with Put People First, the hype didn&#8217;t quite match reality. But the difference was the electric atmosphere on the streets &#8211; a heady mixture of carnival and passionate dissent in the blazing sunshine at the Bank of England and Bishopsgate. It reflected the heritage of the protests (often physically embodied in the organising groups) in the 1990s Reclaim the Streets, anti-road and alter-globalisation movements. A friend who had seen the best of those years drew a good comparison: &#8216;The sound systems are smaller, the music&#8217;s not as good and people are taking less drugs. But people have a better idea of what they&#8217;re here for, there&#8217;s more politics. Maybe it&#8217;s better overall!&#8217;</p>
<p><b>What about the politics?</b><br />
<br />Like Put People First, G20 Meltdown tried to include everyone. Four marches, led by the red horse of war, the black horse of borders, the silver horse of financial crisis, and the green horse of climate chaos, converged on the Bank of England.</p>
<p>The crowd was wonderfully eclectic, but like Put People First there was a sense of confusion over what was being demanded. Climate Camp attempted to use the occasion to draw attention to the issue of carbon trading, drawing analogies between the reckless management of the economy and the handling of climate change. It seemed self-consciously aimed toward a distinct kind of protester &#8211; as style mag Grazia (don&#8217;t ask) put it, &#8216;smartly dressed &#8230; young professionals, many of whom have never demonstrated before.&#8217; The organic food stalls set up in the middle of Bishopsgate under the slogan &#8216;farmers market, not carbon market&#8217; seemed particularly apt.</p>
<p>The common thread uniting the week&#8217;s protests was the scapegoating of finance capital. Laying into greedy &#8216;bwankers&#8217; is hard to resist given recent events, and even harder so when said creatures lean from their offices and wave banknotes at you (it really happened).</p>
<p>But it was a shame to see so much replication of mainstream views of the crisis being caused by recent financial mismanagement, rather than deeper, structural problems in the world economy. If things continue like this, it will be all too easy for mainstream parties to co-opt the anger into petty banking reforms.</p>
<p>In the short term, the broad public discussion on policing is the most tangible political result of the protests. Police behaviour at the protests was nothing new, but the subsequent media interest in it is. Much energy from campaigners has gone into making the most out of the furore &#8211; a more timid, better behaved police force will be welcome if protests are to grow.</p>
<p>The G20 demonstrations were always going to be, at best, a starting point. But even when big street mobilisations lack coherence, they can inspire participants and distant spectators alike.</p>
<p>As the dust settled in the financial district, workers quietly went into occupation in Enfield. Many protesters went straight to join them. Parents outraged by privatisation took over their school in Glasgow. This is where real pressure will come from. Maybe this really was just the beginning? <small></small></p>
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