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	<title>Red Pepper &#187; Leigh Phillips</title>
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		<title>Allende’s socialist internet</title>
		<link>http://www.redpepper.org.uk/allendes-socialist-internet/</link>
		<comments>http://www.redpepper.org.uk/allendes-socialist-internet/#comments</comments>
		<pubDate>Wed, 11 Sep 2013 10:00:35 +0000</pubDate>
		<dc:creator>James O'Nions</dc:creator>
				<category><![CDATA[Latin America]]></category>
		<category><![CDATA[Technology]]></category>
		<category><![CDATA[Leigh Phillips]]></category>

		<guid isPermaLink="false">http://www.redpepper.org.uk/?p=11059</guid>
		<description><![CDATA[Leigh Phillips tells the story of Cybersyn, Chile’s experiment in non-centralised economic planning which was cut short by the 1973 coup]]></description>
				<content:encoded><![CDATA[<p><img class="alignnone size-full wp-image-11061" alt="The Cybersyn Opsroom" src="http://www.redpepper.org.uk/wp-content/uploads/cybersyn_opsroom.jpg" width="460" height="312" /><small>The Cybersyn Opsroom</small><br />
The story of Salvador Allende, president of the first ever democratically elected Marxist administration, who died when General Augusto Pinochet overthrew the young administration in a US-backed coup on 11 September, 1973, is well known amongst progressives. But the human rights horrors and tales of desaparecidos have eclipsed – quite understandably – the pioneering cybernetic planning work of the Chilean leader, his ministers and a British left-wing operations research scientist and management consultant named Stafford Beer. It was an ambitious, economy-wide experiment that has since been described as the ‘<a href="http://arthurmag.com/2010/03/26/synco/" target="_blank">socialist internet</a>’, an effort decades ahead of its time.</p>
<p>In 1970, the Allende government found itself the coordinator of a messy jumble of factories, mines and other workplaces that had long been state-run, others that were freshly nationalised, some under worker occupation and others still under the control of their managers or owners. An efficient strategy of coordination was required. The 29-year-old head of the Chilean Production Development Corporation and later finance minister Fernando Flores &#8211; responsible for the management and coordination between nationalised companies and the state, and his advisor, Raul Espejo, had been impressed with Beer&#8217;s prolific writings on management cybernetics, and, like Allende, wanted to construct a socialist economy that was not centralised as the variations on the Soviet theme had been.</p>
<p>Allende, a doctor by training, was attracted to the idea of rationally directing industry, and upon Flores&#8217; recommendation, Beer was hired to advise the government, and the scheme he plunged himself into was called Project Cybersyn, a ‘nervous system’ for the economy in which workers, community members and the government were to be connected together transmitting the resources they had on offer, their desires and needs via an interactive national communications network. The whole idea would seem, frankly, eccentrically ambitious, even potty, if today the internet were not such a quotidian experience.</p>
<p>Although never completed, by the time of the coup, the advanced prototype of the system, which had been built in four months, involved a series of 500 telex machines distributed to firms connected to two government-operated mainframe computers and stretched the length of the narrow country and covered roughly between a quarter and half of the nationalised economy. Factory output, raw material shipments and transport, high levels of absenteeism and other core economic data pinged about the country and to the capital, Santiago – a daily exchange of information between workers and their government, easily beating the six months on average for economic data to be processed in this way in most advanced countries.</p>
<p>Paul Cockshott, a University of Glasgow computer scientist who has written about the possibility of post-capitalist planning aided by computing, is a big admirer of Cybersyn as a practical example of the general type of regulation mechanism he advocates: ‘The big advance with Stafford Beer&#8217;s experiments with Cybersyn was that it was designed to be a real-time system rather than a system which, as the Soviets had tried, was essentially a batch system in which you made decisions every five years.’<br />
Staff tallied the data and seven government surveyors (seven being the largest number of people who can comfortably participate in a discussion) viewed real-time economic processes for immediate decisions from a space-age, Star-Trek-like operations room, complete with Tulip swivel chairs with built-in buttons, but the aim was to maintain decentralised worker and lower-management autonomy rather than to impose a top-down system of control. The intention was to provide an Opsroom overseeing each industry and within each plant. At the factory level, it was planned that workers’ committees would run the Opsroom. Figures were avoided in favour of graphics displays under the belief that people should be able to engage in economic self-government without formal mathematical or financial training. Vast, economy-wide co-ordination is not the same as centralisation.</p>
<p>When the government faced a CIA-backed strike from conservative small businessmen and a boycott by private lorry companies in 1972, food and fuel supplies ran dangerously low. The government faced its gravest existential threat ahead of the coup. It was then that Cybersyn came into its own, when Allende&#8217;s government realised that the experimental system could be used to circumvent the opposition’s efforts. The network allowed its operators to secure immediate information on where scarcities were at their most extreme and where drivers not participating in the boycott were located and to mobilise or redirect its own transport assets in order to keep goods moving and take the edge of the worst of the shortages. As a result, the truck-owners&#8217; boycott was defeated.</p>
<p>After that other September 11 almost forty years ago, when the bombs fell on La Moneda, the presidential palace where Allende took his own life rather than surrender to Pinochet’s fascists, the fires that destroyed democracy in Chile also took the world&#8217;s first non-Stalinist experiment in economy-wide planning with them, replaced by another economic experiment of an altogether opposite character: the monetarist structural adjustment of Milton Friedman, infamously replicated by Margaret Thatcher and her dozens of imitators.</p>
<p>Today, 40 years later, systemic change is on the table again. After decades of defeats, there is a burgeoning &#8211; if still fragile &#8211; sense that far-reaching transformation going beyond a tinkering with the system might be necessary and, crucially, achievable.</p>
<p>So you would think that the period would be ripe for discussion of a post-capitalist economics, for a blossoming of competing concrete proposals of what a thoroughly different economic system might look like. Yet very few have engaged in the hard thinking about what could happen ‘the morning after’ a presumed victory. We are undergoing the biggest economic disaster since the 1930s, an unprecedented global slump that may turn out to be worse than the Great Depression, and no one wants to theorise about the day after tomorrow, fearful that we may be ‘building castles in the air’.</p>
<p>This is the utility of Allende’s Cybersyn for us in 2013. Cybersyn is not some quirky historical curiosity. Nor was it a utopian dream. Rather, Allende’s experiment was a real-world example of post-capitalist planning that needs to be scrutinised in great depth and then appraised to see what bits of it, if any, can be redeployed were ordinary people once again to win power.</p>
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		<title>Dawkins vs democracy</title>
		<link>http://www.redpepper.org.uk/dawkins-vs-democracy/</link>
		<comments>http://www.redpepper.org.uk/dawkins-vs-democracy/#comments</comments>
		<pubDate>Wed, 22 May 2013 19:51:30 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Blog]]></category>
		<category><![CDATA[Leigh Phillips]]></category>

		<guid isPermaLink="false">http://www.redpepper.org.uk/?p=10113</guid>
		<description><![CDATA[Leigh Phillips looks at Richard Dawkins’ proposal to put scientists instead of bishops in the House of Lords]]></description>
				<content:encoded><![CDATA[<p><img src="http://www.redpepper.org.uk/wp-content/uploads/dawkins.jpg" alt="" width="460" height="300" class="alignnone size-full wp-image-10116" /><small><b>Richard Dawkins.</b> Photo: Shane Pope/Flickr</small></p>
<p>Richard Dawkins, professional atheist and Twitter provocateur, has branched out beyond his recent foray into <a href="http://liberalconspiracy.org/2013/04/22/richard-dawkinss-meltdown-on-twitter-against-mehdi-hasan/">Muslim journalist-baiting</a> to offer his recommendations for parliamentary reform. Following Labour ex-minister Frank Field’s <a href="http://www.independent.co.uk/news/uk/politics/exclusive-archbishop-of-canterbury-justin-welby-urged-to-scrap-most-bishops-seats-in-house-of-lords-8610096.html">call</a> for the new Archbishop of Canterbury to give up the 25 seats the Church of England appoints to the House of Lords, and have the seats awarded instead to people from civil society, Dawkins burped out a series of tweets saying that these seats should be given to scientists and other ‘elites’.</p>
<p>‘Replace Lord Bishops by (elected) heads of Royal Society, British Academy, Roy Coll Physicians, Royal Academy etc,’ he <a href="https://twitter.com/RichardDawkins/status/332758658918277120">tweeted</a>, adding: ‘I want to be operated on by elite surgeons, flown by elite pilots, have my car fixed by elite mechanics. Why not elite electors of Lords?’</p>
<p>Each of these colleges of presumably godless elites would select their own representatives to the upper chamber, a suggestion that was met with a chorus of approving retweetage from the atheist brigadier’s amassed troops of skeptics, secularists and science fans. </p>
<p><strong>Who decides?</strong></p>
<p>However fond of science and evidence one may be, it should be simple to spot the problem here. Who chooses which colleges of elite experts, scientists, technocrats? Perhaps we could have an expert panel that has an expertise in choosing experts. But then how is that expert panel chosen? Perhaps there are experts in expert panels that have expertise in choosing experts. One way out of this infinite regression is that grizzled old idea, democracy.</p>
<p>Dawkins is not alone these days in his greater faith in elite experts than in lumpen voters. The crisis response of the European Union has been to hollow out democracy and put in place new institutional mechanisms that remove fiscal policy-making from elected chambers and place it in the hands of unelected technocrats, central bankers, judges and diplomats instead. </p>
<p>As they could not be trusted to push through the necessary austerity and structural adjustment in the face of popular opposition, elected leaders have been thrown under the bus in Greece, Italy and Portugal by EU powerbrokers. And across the European periphery, ‘troika’ wonks are flown in to superintend governance. Without experts at the reins, Brussels says, electorates will keep voting themselves ever deeper into debt.</p>
<p>This elite anti-political stance – encompassing a fear of ‘excessive’ democracy, contempt for ordinary people and a faith in experts – is just the contemporary expression of an older distaste for taking democracy too far that dates back to the revolutionary republican upheavals that followed Dawkins’ beloved Enlightenment. Kings may have been overthrown or cowed by the insurgent Enlightenment-reading bourgeois, but that was as far as it was supposed to go.</p>
<p>Upper houses – Senates, Bundesrats, Chambers of Peers, Councils of State and so on – were all intended as wiser, wealthier, more knowledgeable checks on what US founding father James Madison described as the ‘fickleness and passion’ of lower chambers. They are in essence houses of republican nobility. (And, in the House of Lords, actual nobility, but its bicameralism is defended for the same reasons.)</p>
<p><strong>Two Enlightenments</strong></p>
<p>As one of the world’s leading historians of the Enlightenment, Jonathan Israel, has documented, there were in fact two Enlightenments: the moderate Enlightenment of Rousseau, Newton and Kant that embraced science and secularism but made its peace with or defended established power; and the radical Enlightenment of a hardier bunch inspired by Baruch Spinoza, the ‘prince of philosophers’, who went further, targeting the injustice of the entire social order and demanding democracy, equality and what we now call human rights.</p>
<p>There is much to be celebrated in the arrival in recent years of a popular militant secularism and cheering of science and reason. From the youthful <a href="http://www.skeptic.org.uk/events/skeptics-in-the-pub">Skeptics in the Pub</a> groups popping up across the country, to <a href="http://news.bbc.co.uk/2/hi/8489019.stm">homeopathy overdose die-ins</a>, to the popularity of ‘<a href="http://www.guardian.co.uk/commentisfree/2011/dec/30/philip-ball-science-jokes-comedy">science</a> <a href="http://www.independent.co.uk/arts-entertainment/comedy/features/the-rise-of-the-nerds-8059789.html">comedy</a>’, it is hard to be curmudgeonly about a revival in Enlightenment thinking when Louisiana schools are teaching that the Loch Ness Monster <a href="http://www.guardian.co.uk/science/blog/2012/jul/05/loch-ness-monster-evolution">disproves evolution</a>.</p>
<p>But there can also be at times something a little bit sneering and, well, elitist, about bits of this ‘movement’, the same attitude that inheres in the affinity of Dawkins and his followers for a scientised House of Lords, that democrats amongst the geeks would do well to try to excise. There is insufficient effort at understanding why people might embrace religion, New Age mumbo-jumbo, or alternative medicine, and occasionally a smug dismissal of the dumb, unlettered mass of humanity. Is this not the contemporary analogue of the moderate Enlightenment, an elitist rationalism comfortable with illegitimate power and disdainful of ordinary people?</p>
<p>Another famous haranguer of religion, Karl Marx, understood religion to be a protest against real suffering, and that the struggle against religion is pointless without a struggle against a political economy that requires religion as its analgesic. His frequently over-shortened quote, that religion is the opium of the people, continues: ‘The criticism of religion is, therefore, in embryo, the criticism of that vale of tears of which religion is the halo. Criticism has plucked the imaginary flowers on the chain not in order that man shall continue to bear that chain without fantasy or consolation, but so that he shall throw off the chain and pluck the living flower.’</p>
<p>A House of Lords with 25 extra godless scientists is still a House of Lords. The living flower would not have been plucked.</p>
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		<title>Thatcher vs Bin Laden: the Daily Mail&#8217;s views on &#8216;sick death parties&#8217;</title>
		<link>http://www.redpepper.org.uk/thatcher-vs-bin-laden-the-daily-mails-views-on-sick-death-parties/</link>
		<comments>http://www.redpepper.org.uk/thatcher-vs-bin-laden-the-daily-mails-views-on-sick-death-parties/#comments</comments>
		<pubDate>Wed, 10 Apr 2013 14:42:35 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Blog]]></category>
		<category><![CDATA[Leigh Phillips]]></category>

		<guid isPermaLink="false">http://www.redpepper.org.uk/?p=9801</guid>
		<description><![CDATA[Leigh Phillips says that the idea of 'showing respect for the dead' seems to be somewhat selective]]></description>
				<content:encoded><![CDATA[<p>When is okay to organise a &#8216;death party&#8217; to celebrate the demise of someone responsible for the deaths of thousands, and when is not?</p>
<p>According to the Daily Mail, when the venal killer is Margaret Thatcher, <a href="http://www.dailymail.co.uk/news/article-2306165/Margaret-Thatcher-death-parties-The-Lefts-sick-celebration-Brixtons-streets.html">decorum and respect for the dead must prevail</a>. But when the murderer is Osama bin Laden, well, <a href="http://www.dailymail.co.uk/news/article-1382652/Osama-Bin-Laden-dead-Pictures-USA-celebrating-death-Al-Qaeda-leader.html">Waheeey! It&#8217;s partaaay time!</a></p>
<p>Based on the Daily Mail&#8217;s moral algebra, the answer to when street revelry is acceptable can only be when the dead are easily enumerable. Then death parties are &#8216;moments to remember&#8217;.</p>
<p>But when we are talking about excess deaths that wouldn&#8217;t have happened otherwise – the kind that it takes epidemiologists to estimate with a margin of error and a level of confidence &#8211; or deaths in apartheid South Africa, or Khmer Rouge Cambodia, or Northern Ireland, where the link between the killer and killed is stochastic rather than deterministic, then public celebrations are &#8216;macabre&#8217;.</p>
<p><img src="http://www.redpepper.org.uk/wp-content/uploads/mail-thatcher.jpg" alt="" width="460" height="308" class="alignright size-full wp-image-9805" /></p>
<p>The paper on Wednesday denounced the &#8216;Flames of hate: 30 years of Left wing loathing for Lady T explodes in sick celebrations of her death&#8217;. Those marking the occasion with revelry across the country, from street parties to working men&#8217;s clubs&#8217; extended closing times, were all engaged in &#8216;sick celebrations&#8217;.</p>
<p>The Mail fulminated against these &#8216;ugly&#8217;, &#8216;disgraceful&#8217; &#8216;Thatcher death parties&#8217; where &#8216;some people drank champagne while others walked around in Thatcher masks&#8217; and &#8216;revellers cheered and handed out &#8220;Maggie death cake&#8221;&#8216; and party balloons.</p>
<p>At the very least, the argument goes, it would have been appropriate for those who disagreed with her policies to remain silent out of consideration for her grieving family.</p>
<p><strong>A contrast</strong></p>
<p>But just under two years ago, it was a different story. There were no thoughts for the deceased loved ones, no strident calls for decency, good manners and propriety. When Osama bin Laden was summarily executed by US Navy Seals, avoiding all niceties of due process, the Daily Mail joined with millions of Americans who took to their streets and parks and bars to celebrate the death of their enemy.</p>
<p><img src="http://www.redpepper.org.uk/wp-content/uploads/mail-binladen2.jpg" alt="" width="460" height="304" class="alignright size-full wp-image-9806" /></p>
<p>These were not &#8216;drunken mobs&#8217; this time, but instead &#8216;euphoric crowds&#8217;. People who climbed atop street lamps and other structures were &#8216;daring&#8217;. &#8216;Many threw caution to the wind as they clambered to high vantage points to wave flags,&#8217; the paper said.</p>
<p>These were &#8216;moments to remember&#8217; and a time to be &#8216;proud to be an American&#8217;.</p>
<p>&#8216;Memorable scenes at Times Square early today, with many waving U.S. flags in celebration,&#8217; cooed the captions that sub-editors added to photos of the merry-making.</p>
<p>&#8216;Fancy that! Actor Rob Lowe joined New York City Firefighters in Times Square to cheer the news of the death of Al Qaeda Leader!&#8217; the paper continued, cheering along with the West Point Military Academy cadets who stripped down, started a bonfire and threw glow sticks out of their dorm rooms.</p>
<p>It was, the article&#8217;s four authors wrote, an &#8216;emotional high&#8217;.</p>
<p><strong>Sing it</strong></p>
<p>Efforts to propel &#8216;Ding dong, the Witch is Dead&#8217; to the top of the download charts are self-evidently odious to commentators, but when Miley Cyrus&#8217;s &#8216;Party in the USA&#8217; became the &#8216;official funeral song of Osama bin Laden&#8217; and people played the tune outside the White House, this bubble-gum-pop thanatology was somehow unremarkable.</p>
<p>At the time former US President George W. Bush described the extra-judicial killing as &#8216;a momentous achievement&#8217; while Tony Blair offered his &#8216;heartfelt gratitude&#8217; for this &#8216;huge achievement&#8217;. Condoleeza Rice found it &#8216;absolutely thrilling&#8217; and was &#8216;overwhelmed with gratitude&#8217; while David Cameron expressed his &#8216;great relief&#8217; and saluted the &#8220;great success&#8221;.</p>
<p>Elsewhere in the world the Polish foreign ministry put out a statement describing their &#8216;moment of happiness&#8217;, French foreign minister Alain Juppé said &#8216;I&#8217;m overjoyed&#8217;, and the Canadian prime minister declared his &#8216;sober satisfaction&#8217;. German leader Angela Merkel expressed &#8216;joy&#8217; and the Dutch prime minister &#8216;presented his compliments to President Obama&#8217;.</p>
<p>Oh, and Charlie Sheen tweeted: &#8216;Dead or Alive. WE PREFER DEAD! Well done SEAL team! AMERICA: WINNING that&#8217;s how we roll.&#8217;</p>
<p>Well I say: Ghoulish, the lot of them, showing no respect for Bin Laden&#8217;s grieving family.</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>Dawkins’ support for private schools lets Loch Ness Monster into biology class</title>
		<link>http://www.redpepper.org.uk/dawkins-support-for-private-schools-lets-loch-ness-monster-into-biology-class/</link>
		<comments>http://www.redpepper.org.uk/dawkins-support-for-private-schools-lets-loch-ness-monster-into-biology-class/#comments</comments>
		<pubDate>Wed, 11 Jul 2012 19:45:28 +0000</pubDate>
		<dc:creator>louise</dc:creator>
				<category><![CDATA[Blog]]></category>
		<category><![CDATA[Leigh Phillips]]></category>

		<guid isPermaLink="false">http://www.redpepper.org.uk/?p=7957</guid>
		<description><![CDATA[Leigh Phillips argues that the radical privatisation of education is leading to creationist teaching in US classrooms]]></description>
				<content:encoded><![CDATA[<p>The news that thousands of <a href="http://www.scotsman.com/the-scotsman/scotland/loch-ness-monster-cited-by-us-schools-as-evidence-that-evolution-is-myth-1-2373903" target="_blank">Louisiana school-children</a> will be taught that the Loch Ness Monster is real in order to show that the theory of evolution is false pinged around the atheist Twittersphere this week. Oh how the enlightened creatures on the Richard Dawkins Foundation for Reason and Science discussion board <a href="http://richarddawkins.net/articles/646340-how-american-fundamentalist-schools-are-using-nessie-to-disprove-evolution" target="_blank">chortled</a> at yet another wacky tale of the American Taliban, sure to be shelved alongside efforts by North Carolina Senators this month to legislate away <a href="http://www.nature.com/news/us-northeast-coast-is-hotspot-for-rising-sea-levels-1.10880" target="_blank">non-linear extrapolation</a> of sea-level rise and the same state’s constitutional amendment in May restricting marriage to <a href="http://abcnews.go.com/blogs/politics/2012/05/amendment-one-north-carolina-anti-gay-marriage-measure-passes/" target="_blank">one man and one woman</a>.</p>
<p>Largely missed in much of the coverage that focussed on the sheer nuttiness of those crazy happy-clappy Yanks, was that this sorry development is the predictable outcome of the <a href="http://www.washingtonpost.com/blogs/answer-sheet/post/a-scary-and-telling-school-voucher-story/2012/05/31/gJQAxRgE4U_blog.html" target="_blank">broadest assault</a> on public education yet by a US state, an agenda of radical privatisation that some of the most prominent New Atheists such as Dawkins, cosmologist Lawrence Krauss and philosopher AC Grayling appear to be more than comfortable with.</p>
<p>As part of Louisiana Governor Bobby Jindal’s <a href="http://articles.chicagotribune.com/2012-06-01/news/sns-rt-us-education-vouchersbre8501g0-20120601_1_voucher-students-private-schools-state-funding" target="_blank">overhaul</a> of the state’s education system passed in May, pupils are to receive publicly funded vouchers to attend privately-run Christian schools teaching the Accelerated Christian Education (ACE) programme, which attempts to disprove evolution.</p>
<p>One ACE textbook reads: ‘Have you heard of the Loch Ness Monster in Scotland? “Nessie” for short has been recorded on sonar from a small submarine, described by eyewitnesses, and photographed by others. Nessie appears to be a plesiosaur.’</p>
<p>The Creationist, ‘young Earth’ logic holds that if it can be proved that dinosaurs still exist, then Darwinian evolution is shown to be false.</p>
<p>‘The ACE curriculum seems even to get the details wrong,’ Glenn Branch, the deputy director of the <a href="http://ncse.com/" target="_blank">National Center for Science in Education</a>, America’s leading anti-creationist organisation, told this reporter. ‘The ACE textbook identifies the Loch Ness monster as a plesiosaur – but plesiosaurs weren&#8217;t dinosaurs, as any eleven-year-old interested in palaeontology could have told them.’</p>
<p>‘The ACE curriculum wouldn&#8217;t be appropriate for public schools, both because of its scientific failing and because of its religious agenda,’ he said, adding that ACE and other fundamentalist materials are widely used in Christian schools. ‘But the situation in Louisiana is complex, because a new state-wide private school voucher program is involved, and it&#8217;s unclear to what degree the state will be required to oversee curriculum and instruction in the schools benefiting from the vouchers.’</p>
<p>Jindal’s law, the focus of <a href="http://www.shreveporttimes.com/article/20120617/NEWS0401/206170307/Number-lawsuits-over-Louisiana-s-voucher-program-growing?odyssey=mod%7cnewswell%7ctext%7cEducation%20News%7cs" target="_blank">two lawsuits</a> from teachers’ associations, establishes the largest voucher programme of any state in the US. So far, around 125 private and religious schools have the green light to receive publicly funded vouchers given to families to pay for tuition. The vouchers shift millions of dollars out of the public education budget, delivering a windfall of cash to fundamentalist schools, worsening conditions in the public sector.</p>
<p>Any organisation that declares it can provide educational services is entitled to receive the vouchers. Democratic oversight of quality or curriculum has been replaced by ‘parent choice’.</p>
<p>Diane Ravitch, US Undersecretary of Education under George H. W. Bush and a one-time booster of vouchers and charter schools, <a href="http://online.wsj.com/article/SB10001424052748704869304575109443305343962.html" target="_blank">reversed her opinion</a> in the wake of a major national evaluation by only major national evaluation of charter schools was carried out by Stanford economist Margaret Raymond and funded by pro-charter foundations that showed 17 per cent of charter schools received higher scores, 46 per cent were no different, and 37 per cent performed significantly worse than public schools.</p>
<p>Describing her outrage at Jindal’s scheme, she <a href="http://dianeravitch.net/2012/06/03/vouchers-and-the-future-of-public-education/" target="_blank">wrote</a> this month: ‘The voucher programme is a bold effort to privatise public education by taking money away from public schools and giving it to anyone who claims that they can offer some sort of an educational or tutoring or apprenticeship program, in person or online, regardless of its quality.’</p>
<p>The school that is to receive the most voucher students, <a href="http://www.nlwm.org/school.php" target="_blank">New Living Word</a> in Ruston, has no library, according to a <a href="http://articles.chicagotribune.com/2012-06-01/news/sns-rt-us-education-vouchersbre8501g0-20120601_1_voucher-students-private-schools-state-funding" target="_blank">report</a> in the Chicago Tribune, and lessons are composed of instructional videos about chemistry or English with verses from the Bible plonked in the middle.</p>
<p>It is not that Louisiana authorities are not performing due diligence; the undermining of such oversight and checks is intrinsic to such systems.</p>
<p>Defending the plan, state education commissioner John White said: ‘To me, it’s a moral outrage that the government would say, “We know what’s best for your child”…Who are we to tell parents we know better?’</p>
<p>In 2013, the state plans to extend the programme to ‘<a href="http://www.dnhpe.org/louisiana/5wayslouisiana%E2%80%99snewvoucherprogramspellsdisasterforpubliceducationalternet6812" target="_blank">mini-vouchers</a>’ that can be cashed by private vendors for tutoring, online courses and apprenticeships, further chipping away at public education funds.</p>
<p>Louisiana is not some bumpkin outlier. Public cash being channelled toward Christian right teaching is happening in at least 13 US states, according to <a href="http://www.talk2action.org/story/2012/6/25/185238/087/Front_Page/Humans_and_Fire_Breathing_Dinosaurs_Romney_Education_Plan_Would_Fund_Rejected_Curriculum" target="_blank">Bruce Wilson</a>, a researcher on the role of religion in American politics, delivering funds to some 200,000 pupils.</p>
<p>Meanwhile, Republican presidential candidate Mitt Romney <a href="http://www.washingtonpost.com/nationall/education/mitt-romney-promotes-school-vouchers-in-attack-on-obamas-education-policy/2012/05/23/gJQAZN37kU_story.html" target="_blank">last month</a> unveiled his plan for education, which would see Jindal’s voucher scheme rolled out nationwide.</p>
<p>Wilson argues that under Romney’s plan, schools employing ACE curriculum and similar efforts such as the 2007 edition of the Bob Jones University biology textbook that tells students: ‘Is it possible that a fire-breathing animal really existed? Today some scientists are saying yes. They have found large chambers in certain dinosaur skulls&#8230; The large skull chambers could have contained special chemical-producing glands. When the animal forced the chemicals out of its mouth or nose, these substances may have combined and produced fire and smoke&#8230; Dinosaurs and humans were definitely on earth at the same time and may have even lived side by side within the past few thousand years.’</p>
<p>Beyond the lack of evidence for improved educational results, one of the <a href="http://www.teachers.org.uk/files/AcademiesA4-leaflet-General-Dec10.pdf" target="_blank">key criticisms</a> opponents mount against vouchers systems, charter schools and their UK variation, academy schools, is that all these versions of introduction of ‘choice’ into public education actually eliminate or significantly reduce democratic accountability.</p>
<p>In a number of US states, members of a local board of education are elected by voters; school budgets face referenda; meetings of the board must be announced in advance, open to the public and entertain concerns of citizens, while schools awarded vouchers, charter schools, free schools and academies are no longer democratically accountable to local communities.</p>
<p>This is why it is far from unfair to suggest that Dawkins, Krauss, Grayling and company are inadvertently aiding the creationist presence of Nessie in schools. Asked in a chat in 2010 on <a href="http://www.telegraph.co.uk/news/religion/7849563/Richard-Dawkins-interested-in-setting-up-atheist-free-school.html" target="_blank">Mumsnet</a>, the online discussion for parents, whether he would support the creation of an atheist free school, Dawkins replied: ‘I like the idea very much, although I would prefer to call it a free-thinking free school.’ And, taking the unaccountable private approach to the post-secondary level, these three noted New Atheists are pushing ahead with the establishment of the <a href="http://www.guardian.co.uk/education/2011/jun/05/new-college-dawkins-grayling-ferguson" target="_blank">New College of the Humanities</a>, a private, for-profit, elite US-style university in the UK offering £18,000-a-year courses. Grayling for his part has said that said the private route is the only path left to deliver a high-quality humanities education.</p>
<p>Dawkins, Grayling and the rest of the atheism-for-elites cohort will say that their efforts would be precisely the opposite of what perhaps could be described as Louisiana’s <a href="http://www.answersingenesis.org/articles/1999/11/05/dinosaurs-and-the-bible" target="_blank">Schools of Caledonian Cryptozoology</a>.</p>
<p>But surely the point is not to have atheist schools for the godless wealthy and Bible-thumping schools for everyone else, but to ensure through the democratic construction of secular curricula &#8211; which is best ensured via healthily funded state schools &#8211; high-quality education for all.</p>
<p>Sneering at God-botherers in the US south is easy. The biggest blow Dawkins and friends can deliver to creationism in schools is to come out robustly in favour of public education.</p>
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		<title>Ex-ECB chief: ‘If parliaments do not give us what we want, we will annul them’</title>
		<link>http://www.redpepper.org.uk/ex-ecb-chief-if-parliaments-do-not-give-us-what-we-want-we-will-annul-them/</link>
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		<pubDate>Mon, 21 May 2012 15:04:18 +0000</pubDate>
		<dc:creator>louise</dc:creator>
				<category><![CDATA[Blog]]></category>
		<category><![CDATA[Leigh Phillips]]></category>

		<guid isPermaLink="false">http://www.redpepper.org.uk/?p=7389</guid>
		<description><![CDATA[Leigh Phillips examines the response from former European Central Bank chief, Jean-Claude Trichet on how to solve the eurocrisis ]]></description>
				<content:encoded><![CDATA[<p>If there is anyone left doubting that the struggle against austerity is fundamentally a struggle for democracy, the chilling proposal of former European Central Bank chief Jean-Claude Trichet on how to solve the eurocrisis unveiled on Thursday, should quickly put paid to such overly microscopic focus.</p>
<p>Trichet has proposed what he calls ‘federation by exception,’ whereby if a country’s leaders or parliament ‘cannot implement sound budgetary policies,’ that country will be ‘taken into receivership’.</p>
<p>Recognising that it would not be possible in the timescale necessary to respond to the crisis to deliver a fully-fledged United States of Europe with the associated political and fiscal union, including fiscal transfers and common debt issuance, the former ECB president, who left office last November, said this ‘next step’ can at least be taken.</p>
<p>‘Federation by exception seems to me not only necessary to make sure we have a solid Economic and Monetary Union, but it might also fit with the very nature of Europe in the long run. I don&#8217;t think we will have a big [centralised] EU budget,’ he told the Peterson Institute of International Economics in Washington ahead of the G8 meeting this weekend and ahead of a make-or-break European Council meeting 23 May where EU leaders will discuss the fiscal, banking and political earthquake that is rumbling across southern Europe.</p>
<p>‘It is a quantum leap of governance, which I trust is necessary for the next step of European integration,’ he added.</p>
<p>Domestic fiscal policy has already been shunted off to unelected technocrats for vetting prior to assessment by elected parliaments as a result of the European Semester system, so in some ways, he is right to say that this is just ‘the next step’ beyond the still to be approved Fiscal Pact.</p>
<p>Of course, Trichet is now out of office, but he remains a policy heavyweight in European circles, and if the eurocrisis has shown us anything, it is that having a popularly sanctioned pulpit from which to speak is immaterial when it comes to whose voices are important. If anything, in being freed from office, Trichet is also now freed from the pretense that active ECB officials have to at least publicly maintain that the central bank only focusses on monetary policy and does not concern itself with the political governance of the provinces that lie within its territory. He can come out publicly with his proposals and not make them via secret letters to Italian prime ministers or orders to Portuguese elites.</p>
<p>At the same time, it should be underscored that this is not an official proposal from any EU institutions, and it remains to be seen what sort of hearing it will get, although reports from Washington suggest that his proposal was warmly received by economists and EU officials in attendance.</p>
<p>Nevertheless, let’s not be under any illusion that this proposal from a leading European ‘deep thinker’ is not a direct response to the elections in Greece this month that decimated the centre-left/centre-right austerity consensus in that country.</p>
<p>Trichet is in essence saying here that when the people elect the wrong parties, they have forfeited their right to democracy.</p>
<p>Acutely aware of what he is proposing, he declares that such a step would indeed have democratic accountability so long as it is approved by the European Council and the European Parliament.</p>
<p>But the European Council is a legislative chamber that never faces a general election. Its members, the presidents and prime ministers of Europe, are not elected to that chamber, but to their domestic parliaments and assemblies. And the European Parliament is not yet the parliament of a European government; even after the Lisbon Treaty, its powers remain very limited compared to the European Commission and Council, and, crucially, it does not have the power to initiate any legislation.</p>
<p>Should Trichet’s proposal or anything remotely similar somehow make its way to the Strasbourg chamber for its endorsement, any MEPs who cherish democracy must loudly oppose them.</p>
<p>If MEPs cannot muster sufficient numbers to do so, then the chamber would instantly be exposed as a Potemkin parliament, serving only to provide a facade of democratic legitimacy to an otherwise anti-democratic regime and so very far from the seed of a genuine European democratic order that many deputies wish it to be.</p>
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		<title>Bosses: want to know who&#8217;ll join the union? There&#8217;s an app for that!</title>
		<link>http://www.redpepper.org.uk/bosses-want-to-know-wholl-join-the-union-theres-an-app-for-that/</link>
		<comments>http://www.redpepper.org.uk/bosses-want-to-know-wholl-join-the-union-theres-an-app-for-that/#comments</comments>
		<pubDate>Mon, 02 Apr 2012 12:49:58 +0000</pubDate>
		<dc:creator>Michael</dc:creator>
				<category><![CDATA[Technology]]></category>
		<category><![CDATA[Leigh Phillips]]></category>

		<guid isPermaLink="false">http://www.redpepper.org.uk/?p=6660</guid>
		<description><![CDATA[Imagine an app that would tell bosses which of his workers was most likely to want to join a union. Leigh Phillips writes on the creepier side of new technologies]]></description>
				<content:encoded><![CDATA[<p><img src="http://www.redpepper.org.uk/wp-content/uploads/phonebuttons.jpg" alt="" title="" width="460" height="307" class="alignnone size-full wp-image-6697" /></p>
<p>When governments are using the economic crisis as an excuse to strip away what remains of the post-war welfare-state consensus, when the likelihood of runaway climate change threatens civilisation, when unending wars and the collapse of civil liberties have become just ‘the new normal’, is it really the time or the place to raise the admittedly on-the-face-of-it nutty slogan ‘Nationalise Facebook Now’?</p>
<p>Oh yes, comrades, it is.  Or at least something like it, because the irresolubility of all these issues is ultimately the product of a common problem all tangled up with how we approach the ol’ Facebook conundrum. Sceptical? I’m feeling you, but roll with me here for a minute.</p>
<p>On Friday, an article by John Brownlee on Cult of Mac, the <a href="http://bit.ly/HgamPS">Apple news website</a>, shone a light on a decidedly creepy little app called ‘Girls Around Me’, a geolocation maps service that uses freely available data from Foursquare and Facebook to deliver a map of women who have recently checked into different nearby locations via Foursquare or been checked in by someone else via FB and who have publicly visible Facebook profiles of women.</p>
<p>Brownlee describes how someone might use what the <a href="http://bit.ly/HHhtpE">Daily Mail</a> accurately rechristened the ‘Let’s Stalk Women’ app. He uses it to look up a girl called ‘Zoe’ who has just checked in to a local watering hole called The Independent:</p>
<p>&#8220;Most of her information is visible, so I now know her full name. I can see at a glance that she’s single, that she is 24, that she went to Stoneham High School and Bunker Hill Community College, that she likes to travel, that her favorite book is Gone With The Wind and her favorite musician is Tori Amos, and that she’s a liberal. I can see the names of her family and friends. I can see her birthday.”</p>
<p>“Okay, so it looks like Zoe is my kind of girl. From her photo albums, I can see that she likes to party, and given the number of guys she takes photos with at bars and clubs at night, I can deduce that she’s frisky when she’s drunk, and her favorite drink is a frosty margarita. She appears to have recently been in Rome.”</p>
<p>“So now I know everything to know about Zoe. I know where she is. I know what she looks like, both clothed and mostly disrobed. I know her full name, her parents’ full names, her brother’s full name. I know what she likes to drink. I know where she went to school. I know what she likes and dislikes. All I need to do now is go down to the Independent, ask her if she remembers me from Stoneham High, ask her how her brother Mike is doing, buy her a frosty margarita, and start waxing eloquently about that beautiful summer I spent in Roma.”</p>
<p>The author used the app as an object lesson in the privacy issues relating to social networking and, in this case, geo-location mash-ups, that too few people pay very much attention to. By Saturday, Apple had pulled the app from the iTunes store and Foursquare had blocked Girls Around Me’s API access to their data.</p>
<p>The discussion around the subject in the last 48 hours has focused pretty much exclusively on two issues: a) nudging people into better decision-making around the sort of information they share online; and b) forcing companies to deploy use of shared data in an ethical fashion.</p>
<p>If more people begin to pay closer attention to online privacy as a result of all this, tremendous.  But such a solution to the problem remains dependent on a) the knowledge of the consumer and her ability to act based on that knowledge (Facebook’s privacy controls are notoriously labyrinthine); b) the willingness of other firms to act swiftly to respond to breaches or in this case perceived breaches of their rules governing the use of their products (however creepy Girls Around Me is, it does not appear that the company behind the app, Russian firm I-Free, actually did anything that was not allowed); and c) regulation in this area to keep pace in with technological change.</p>
<p>It took an excellent <a href="http://bit.ly/H8omAC">blog post</a> by science-fiction author Charles Stross &#8211; best known for his novels Accelerando and Singularity Sky, set in a post-technological-singularity world, and who is used to extemporising on the possible social implications of technological change &#8211; to think a bit more deeply about the meaning of this episode.</p>
<p>Girls Around Me may have been shut down, but, as Stross argues, the app is just “symptomatic of a really major side-effect of our forced acculturation into Facebook&#8217;s broken model of human social interaction—a broken model shared by all the most successful social networks, by design—and that it is going to get much worse, until it kills people.”</p>
<p>He imagines a near future of other, far nastier mash-ups of geolocation and aggregation of publicly available data, with apps “being designed to facilitate the identification and elimination of some ethnic or class enemy.”</p>
<p>He envisages a ‘Yids Among Us’ for anti-Semites. He wonders how such technology could be employed in a Rwanda-style situation, with, say, a ‘Hutus/Tutsis Near Me I Can Massacre’ app.</p>
<p>Beyond malevolent uses of geolocation, Stross notes that there is already an algorithm out there that can accurately guess the sexual orientation of an individual based on network connections. Carter Jernigan and Behram Mistree, two young computer scientists at MIT, developed it to show how network data implicitly reveals private information, by determining that the percentage of a user’s friends who identify as gay is strongly correlated with the sexual orientation of that user.</p>
<p>It’s an amazing piece of science in the public interest. The paper deserves a full read if you have the time, but suffice to quote the authors’ conclusions:<br />
“The privacy controls of Facebook, a multi–billion dollar corporation, offer anaemic protection &#8230; [O]ur model built from relatively simple network data was mostly unimpeded by Facebook’s privacy efforts. Future extensions of this work need not be limited to Facebook and could be applied to telephone call records or even e–mail transactions, as those communications rely on social connections. Who is to say that companies are not already doing the type of network analysis presented here behind closed doors?</p>
<p>“Extensions of our work to other networks has profound ramifications. Network data shifts the locus of information control away from individuals. Each individual’s traditional and absolute discretion is replaced by that of members of his social network.”</p>
<p>Network data, search-term data mining and tracking of online activity is already being successfully used in behavioural advertising to recommend books you might like to buy and a selection of appropriate do-it-yourself products when you decide to refit your bathroom.</p>
<p>Using algorithms based on search queries, Google can predict flu outbreaks faster than epidemiologists of national health agency flu surveillance.</p>
<p>I’m sure that some employers would be very interested in an application that accurately predicts which employees are likely union organisers or those most open to joining a union, while governments might want a programme that can guess the identity of political dissidents or anticipate who is about to break the law.</p>
<p>Is this unnecessary fear-mongering? Grindr, the gay dating app that employs GPS to locate other gay men in the area, and which could have been the perfect hunting tool for violent homophobes, has not resulted in any explosion of gay-bashings. The Rwandan genocidaires did not need Facebook or Foursquare to perpetrate their massacre. And governments intent on citizen surveillance will do so whatever tools are available.</p>
<p>So technological advance is certainly not the cause of injustice. However, it can make its performance more efficient. Counting machines were not responsible for the Holocaust, but, according to the historian of the relationship between IBM and the Nazi regime, Edwin Black: &#8220;without IBM&#8217;s machinery, continuing upkeep and service, as well as the supply of punch cards, whether located on-site or off-site, Hitler&#8217;s camps could have never managed the numbers they did.”</p>
<p>It all depends who is wielding the technology. Knives can be used to cut up cauliflower or to murder Tutsis.</p>
<p>As Stross notes: “<i>The app is not the problem.</i> The problem is the deployment by profit-oriented corporations of behavioural psychology techniques to induce people to over-share information which can then be aggregated and disclosed to third parties for targeted marketing purposes.”</p>
<p>I suppose we could always switch providers if we don’t like the way a particulr business operates. Now, it’s never the case that it is as easy as the free-market fundamentalists pretend it is to switch providers of a good or service when one is unhappy with the product, but it is true that that possibility is there at least for some items, like cheese or pillow cases. Except that Facebook isn’t a regular product. It is an effective monopoly.</p>
<p>Google Plus arrived last year with its modicum of superior identity and privacy management compared to FB, but hasn’t met with the success Google expected, largely because a customer cannot shift their brand loyalty in the social networking world as easily as they can from Coke to Pepsi. They would have to convince all their friends to jump ship at the same time.</p>
<p>Facebook, like Google’s search product, has no viable competitors and for the above reason, is unlikely to any time in the near future, making Facebook a what is called a ‘natural monopoly’.</p>
<p>Historically, natural monopolies emerged in those industries where the massive capital costs involved presented significant barriers to entry and discouraged competition (railways, electricity, water, etc.). In almost all cases, these industries were also utilities that everyone needed access to &#8211; what could today be described as ‘essential services’. Search I think it is fair to argue should now be viewed as just such a utility, as essential as water or electricity. Social networking for its part is closing in on being as essential as telephony.</p>
<p>Natural monopolies are in general robust entities, but do not have to last forever. Natural monopolies can sometimes be undermined by technological change (such as Britain’s canal system in the 19th Century by the then-new technology of railways). Google’s search (although not its other products) is a natural monopoly that is ripe for such a toppling. A new search engine with much more powerfully intelligent semantic search, able to understand more closely what a user is looking for, could quickly challenge the mighty Google. And Facebook is not forever. Remember MySpace, or Friendster?</p>
<p><a href="http://bit.ly/H9llRo">Thinkup</a> for example, is a free, non-profit open-source ‘data-liberation and analytics application’ that aims to build in its words a decentralised information network “that connects to today’s social networks, but isn’t centralised and dependent on a company or investors.” <a href="http://bit.ly/H3tZfH">Diaspora</a> meanwhile, still yet to go into beta status, is trying to build a free personal web server that implements a distributed social networking service in order to allow users to “communicate directly, securely, and without running exchanges past the prying eyes of Zuckerberg and his business associates.&#8221;</p>
<p>But Diaspora is likely to run into the same problems as Google Plus in trying to get users to jump en masse over to its concept, and it is already handicapped by having none of the market-dominance advantages that should have helped Google.</p>
<p>More fundamentally, there is a problem in viewing the problem as just a technical challenge to be overcome by the right start-up: Even if a Thinkup  or Diaspora  manages against all odds to dislodge Lord Zuckerberg, in the meantime, both FB and Google remain private natural monopolies, with all the problems that such entities entail. And ‘in the meantime’ may in any case be a long, long time.</p>
<p>And will the new boss be much better than the old boss? It depends on the new entity’s democratic accountability.</p>
<p>So what should be a progressive response to this brave new world of privacy-mulching social-network natural monopolies? I can’t believe I’m quoting Milton Friedman here, but here goes. The arch-liberal economist wrote that in response to a natural monopoly materialising: “There is only a choice among three evils: private unregulated monopoly, private monopoly regulated by the state, and government operation.&#8221;</p>
<p>Leaving a private monopoly alone and unregulated &#8211; the situation we have at the moment &#8211; is clearly not tenable. And progressives rightly have historically argued that natural monopolies do not make good candidates for regulation alone due to much of what made them natural monopolies in the first place &#8211; they are the most adept sorcerers of regulatory capture (what happens when a regulation or regulatory agency intended to serve the public interest and keep a close eye on an industry instead advances an industry’s or company’s interest).</p>
<p>So what about Friedman’s third option?  Once upon a time, when when natural monopolies were creatures of a single nation state, and before the neo-liberal mania for deregulation and privatisation infected policymaking some 30 years ago, electricity firms, water companies, railways and the like could be placed into public ownership. For all the problems this sometimes presented, on balance, public ownership of natural monopolies served the general interest to a much greater degree than the alternatives. I’m not going to rehearse here the problems of deregulated, privatised water, electric, rail, waste management and telecoms that we have seen since this epoch, but they are manifold. (If you’re interested, the Public Service International Research Unit at the University of Greenwich is an excellent resource)</p>
<p>But what should be the progressive response to these new kinds of natural monopolies, ‘digital natural monopolies’, which have become so not &#8211; or not largely &#8211; as a result of capital costs but as a result of other types of insurmountable advantages that flow from a networked world? Very few people have given this much consideration. There are privacy and digital rights advocates aplenty (La Quadrature du Net, the Open Rights Group, Electronic Frontiers Foundation, etc.), which all do great work, and Europe&#8217;s increasingly popular Pirate Parties, who now even have two seats in the European Parliament and won another four last week in the Saarland state elections in Germany.  But the online rights discourse (including separate but related subjects such as net neutrality, file-sharing, etc.) is often dominated by a libertarian politic.</p>
<p>The libertarian character of the digital rights conversation has something of a split personality. Its activists and lobbyists are caught between a recognition that state intervention in the market is required, for example, to preserve net neutrality, and a deregulatory neo-liberal instinct that prevents them from conceiving of a return to public ownership of the telecommunication companies &#8211; a move that would preserve net neutrality; ensure high-speed internet access to all locales, not just those that are profitable; and enable a redistribution of their windfall profits back to public-interest journalists and independent musicians who have been hit so hard since the advent of the internet.</p>
<p>A more progressive politic, from those less fearful of public, democratic intervention against the market, has something to add to this conversation. What it is though, I’m not quite sure yet.</p>
<p>Is it possible to construct an argument for public ownership of the likes of Facebook and Google? Is it even desirable? Is the prospect of the state as superintendent of all this personal information really a preferable alternative to a private, profit-seeking business as superintendent? Which state would do the owning? These are truly global companies. The UN then? But the UN is not a democratic structure. Can an international non-profit social network co-operative be built instead, democratically controlled by its members independent of both the market and the state?</p>
<p>O Wikipedians, to have a social network with your ethos rather than the mercenary avarice of Facebook’s owners.</p>
<p>I don’t have an answer, but the key point here is that we need to start thinking about what it might be.</p>
<p>Progressives need to start thinking much more deeply about issues such as geolocation, social networking, search, data mining and other digital issues &#8211; and how they relate to global governance. These topics cannot be left to be framed by the libertarians of the likes of the Pirate Parties and breathless, unlettered internet-guru douchebags.</p>
<p>And here is how all this is tangled up with issues of global warming, austerity and even war: The 21st Century seems to keep throwing up significant public policy challenges that only a system of international <i>and democratic</i> governance can solve (climate change, the financial crisis, transfer pricing, tax havens, the internet), yet we do not have such a system.</p>
<p>So these issues are being tackled in the absence of such a global democratic arena simply by the most powerful ‘sector stakeholders’ &#8211; might makes right.</p>
<p>We have an International Criminal Court, but in practice it’s the International Criminal Court for Third-World Criminals Only. We have the UNFCCC, but it’s a few key countries that shepherd the process to the disadvantage of the developing world. ‘Responsibility to Protect’ (R2P) against genocide and crimes against humanity is an emerging international legal norm used to justify so-called humanitarian intervention, but can never be employed against the most powerful countries and their allies. And the European Union is a grand experiment in post-democratic transnational governance that is sidelining democratically elected chambers in favour of technocrats and diplomats.</p>
<p>Less-than-democratic international structures are being built with or without us. A global system is already being fabricated &#8211; politically and digitally &#8211; whether we’re paying attention or not.</p>
<p>In response, sober, practical yet genuinely transformative proposals for the construction of a democratic global system &#8211; a global republic, if you will &#8211; need to start being developed without being dismissed as pie-in-the-sky maximalism.</p>
<p>So maybe the slogan on the banner shouldn’t exactly be ‘Nationalise Facebook Now!’, but, erm, it should be something. Let’s start thinking what it might be.</p>
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		<title>Castro: Beautiful brushwork, imperfect picture</title>
		<link>http://www.redpepper.org.uk/beautiful-brushwork-imperfect-picture/</link>
		<comments>http://www.redpepper.org.uk/beautiful-brushwork-imperfect-picture/#comments</comments>
		<pubDate>Thu, 01 Dec 2011 09:36:35 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Books]]></category>
		<category><![CDATA[Leigh Phillips]]></category>

		<guid isPermaLink="false">http://www.redpepper.org.uk/?p=5254</guid>
		<description><![CDATA[Leigh Philips reviews Castro by Reinhard Kleist]]></description>
				<content:encoded><![CDATA[<p><img src="http://www.redpepper.org.uk/wp-content/uploads/castro.jpg" alt="" title="" width="200" height="281" class="alignright size-full wp-image-5256" />Another comic to add to the burgeoning genre of what the French call BD reportage, or – less elegant in English – comic-book journalism, Reinhard Kleist’s graphic‑novel biography of Fidel Castro is, thankfully, no hagiography of the <em>maximo lider</em>. But neither does it present any sound explanation as to how the revolution soured. In this book, it simply happened, as – so the liberal imagination has it – all revolutions do.<br />
Kleist is a German comic book artist whose previous foray into BD reportage, <em>Havana</em>, explored, as the introduction to the current volume puts it, ‘the daily life and difficult living conditions of primarily young Cubans living in an &#8230; outdated model of Caribbean socialism.’<br />
It is perhaps the worst sort of liberal conception of Cuba’s path, celebrating the heroic guerilla struggle uncritically and then damning what follows, without any exploration of why things developed as they did. There is no knowing irony when a character tells Castro: ‘Only you can lead the struggle to victory.’<br />
This then flips over to an understandably bitter disillusion at what the revolution did to its writers and later its people in failing to deliver basic foods and consumer items. But there is never any discussion of why this happened. If anything, the blame appears to be placed at the feet of those pushing for farther-reaching changes, notably in the field of land reform, characters who are conflated with communists.<br />
There is no discussion of guerrilla struggle as a strategy. The rebels just seem to win through sheer will. Suddenly Castro’s forces are victorious but there is no explanation of what tipped the balance of forces in their favour, or why this strategy worked in Cuba but not for Che in Bolivia or the Congo. It is also frequently confusing as to why characters do what they do. At one point Castro goes into exile in the US and it’s not clear exactly why.<br />
However beautiful Kleist’s brushwork is and his impressive ability to capture Castro as he ages, there are better works out there exploring what went right and wrong in Cuba since 1959.</p>
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		<title>The greatest injustice</title>
		<link>http://www.redpepper.org.uk/the-greatest-injustice/</link>
		<comments>http://www.redpepper.org.uk/the-greatest-injustice/#comments</comments>
		<pubDate>Thu, 14 Jul 2011 12:07:21 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Books]]></category>
		<category><![CDATA[Leigh Phillips]]></category>

		<guid isPermaLink="false">http://www.redpepper.org.uk/?p=3803</guid>
		<description><![CDATA[Leigh Phillips reviews Treasure Islands by Nicholas Shaxson]]></description>
				<content:encoded><![CDATA[<p><img src="http://www.redpepper.org.uk/wp-content/uploads/treasureislands-129x195.jpg" alt="" title="" width="129" height="195" class="alignright size-medium wp-image-4113" />Put down this magazine now and rush to your local library or closest bookshop and get your hands on perhaps the most important book to appear in recent years for those who care about social justice. Financial Times journalist Nicholas Shaxson’s book is not just an exposé of tax havens that is as page-turning as an airport thriller, with James Bond-like characters colluding with corrupt politicians and their armies of accountants and lawyers in labyrinthine plots to squirrel away trillions – yes trillions – in palm tree-lined Caribbean colonial outposts (and Channel Islands and, er, Delaware). It is a veritable weapon of mental self-defence.<br />
So much of the analysis and discourse surrounding the reverse in western public policy over the past 30 years, from Keynesian management of the economy and support for social protection to laissez-faire frameworks, has focused solely on ideological changes and the emasculation of social democracy and labour. <br />
The gaping hole in this tragic tale is the crucial, perhaps dominant role offshore finance played in this seismic shift. This hole is amply filled by Shaxson’s tome.<br />
More than half of world trade passes through tax havens. A third of foreign direct investment is channelled via these fiscal black boxes. A quarter of all global wealth is stashed by wealthy individuals offshore. And that’s just the legal end of things. <br />
The very same jurisdictions and methods are also used by drug smugglers, terrorists and third-world plutocrats, blurring further and further the distinction between ‘legitimate’ business and organised crime.<br />
Few activists pay much attention to the problem of tax havens. Yet until these berserkers in the international system are eliminated, they are hamsters on a treadmill. The power offshore investors wield over elected governments is vast and ever growing. Shaxson makes a sound argument that tax havens are the greatest injustice the world has known.</p>
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		<title>Society-wide anger</title>
		<link>http://www.redpepper.org.uk/greece-no-tahrir-here/</link>
		<comments>http://www.redpepper.org.uk/greece-no-tahrir-here/#comments</comments>
		<pubDate>Sat, 18 Jun 2011 04:52:27 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Europe]]></category>
		<category><![CDATA[Leigh Phillips]]></category>

		<guid isPermaLink="false">http://www.redpepper.org.uk/?p=3839</guid>
		<description><![CDATA[Leigh Phillips talked to Debtocracy director Aris Chatzistefanou about the left and the current situation in Greece]]></description>
				<content:encoded><![CDATA[<p><img class="alignnone size-full wp-image-4088" src="http://www.redpepper.org.uk/wp-content/uploads/imf.jpg" alt="" width="460" height="221" /><br />
Until last month Aris Chatzistefanou was a journalist with Skai Radio, part of the Skai Media Group – one of the largest media conglomerates in Greece and owner of Kathimerini, the conservative daily newspaper of record. The station is by Aris’s own assessment a quite right-wing outfit. He was, he reckons, the network’s token contrarian.<br />
‘You know how Fox News and these sort of channels will keep one lefty in house just so they can say, “We’re not right-wing, we’re balanced: look, we even have so-and-so.” Well, I’m that guy with Skai.’<br />
But he is also, along with journalist Katerina Kitidi, the co-director of a new documentary, Debtocracy, exposing as a neoliberal fabrication the mainstream narrative about how Greece and the rest of the EU periphery became indebted. Funded by online donations, the film quickly went viral online after its release in April. It angered many members of the government and media chiefs, who immediately went on the attack against the directors. Aris, who has also spoken out against the diminishing tolerance in the mainstream media for alternative voices, was fired shortly after the documentary made its debut.<br />
He explains straight off that Greeks may be impressed with the revolutions in Tunisia and Egypt and the upheaval across north Africa and the Middle East. But apart from left-wing parties who carry placards saying they should mount their own ‘Tahrir Square’ in Syntagma Square, the plaza in front of the Greek parliament, he says most people draw a line between what is happening there and what is happening here.<br />
‘There is perhaps a bit of, maybe not racism, but something like it, even during the strikes and so on,’ he says. ‘If there is an uprising here, they say it will be different and nothing to do with Egypt or Tunisia. They don’t really want to be seen as part of this wave because, you know, they’re Arabs and we are Greeks.’<br />
In any case he is sceptical that anything remotely approaching the unrest on the other side of the Mediterranean could happen here. The parties, movements and organisations opposing austerity are too actively sectarian towards each other, he says, to mount any kind of leadership or channel the society-wide anger.<br />
‘Added together, there has been the best showing for the left parties in decades in elections, but there are four main different left parties [to the left of the governing Pasok social democrats], and splits every few months. Have you seen Monty Python’s Life of Brian?’<br />
The EU question<br />
Aris stresses how the ‘EU question’ is the central debate on the Greek left at the moment. The communists of the KKE, the largest group to the left of Pasok – authors of one of the most stringent austerity programmes instituted in Europe –  want out of the eurozone and even out of the European Union. Synapsismos, the euro-communist grouping that split from the KKE in the 1970s, and voted for the EU’s Maastricht Treaty that introduced the first EU-level strictures on public spending, believes the EU can be captured by the left and transformed in a progressive direction.<br />
The debate is visceral. Many on the far left take a similar line to that of the KKE, arguing that the EU and the eurozone in particular was built expressly as an instrument benefiting capital, and core eurozone capital at that. To seek to reform it from the inside is as naive as to say there could be a progressive version of the death penalty. Its very purpose is to undermine the post-war social contract.<br />
On the other side, the argument goes that the EU, like any government, can be a contested space and that to say that the EU is wholly neoliberal is a facile argument. They worry that, outside the EU, Greece would become a pariah state as far as markets are concerned, unable to borrow and tipped into a spiral of decline. But worse, they say, an anti-EU movement is playing with fire – it comes too close to nationalism and the beneficiaries of such an exit will not be the left, but the far right.<br />
But it is not as simple as saying some parties take one side and others the opposing point of view. They are just as divided internally over this question. ‘Synapsimos believes that the EU can be changed from within, that there is no option but to stay in. But it is true also that some members want out,’ says Aris.<br />
‘Many, even within Pasok, are beginning to say that Greece should default, even some of the big players in the market are starting to realise that Greece will never be able to pay back all of this debt, so the question becomes what are the parameters of default: are they set by the market or by the people?’<br />
Bewildering patchwork<br />
Aris, who is a member of no party, says that some of the smaller left groups have proposals that are interesting, but they are tiny and no less divided. He describes a bewildering patchwork of different factions. I have to ask him to repeat a number of times to make sure I’ve got the Russian dolls of parties within parties within coalitions within alliances right.<br />
The communists, the KKE, are by some distance the largest party to the left of Pasok, with 21 MPs in the 300-seat parliament, and, according to Aris, very well organised. The problem, he says, is their sectarianism, refusing to organise in partnership with other left groups. ‘They always have a separate demo. As soon as they don’t control a movement, they start criticising.’<br />
The aforementioned Synapsismos, meanwhile, is just one party, albeit the largest, in a wider coalition, Syriza. This Coalition of the Radical Left is an alliance of 11-14 small left parties that grew out of the alter-mondialist mobilisations of the turn of the millennium. The coalition has nine seats in the parliament and enjoys the support of 5.5 per cent of voters. Its fortunes have undergone something of a roller-coaster ride since the start of the crisis. In 2008, the party’s support tripled, climbing as high as 17 per cent to the KKE’s then 7 per cent. A bitter leadership fight left the coalition adrift, however. Today, the roles are reversed, with the Communists on 12 percent and Syriza on 5.5, as of late April.<br />
While not as critical of the riots as the KKE, Syriza waffled between saying it would not play ‘the role of the state prosecutor’ against the youths and declaring the coalition to be ‘in an ideological conflict with the hooded gangs’. Such flip-flopping did not endear them to their young supporters.<br />
To the left is Antarsya, an alliance of 10 radical left parties founded in 2009. The name, a somewhat forced acronym that means ‘mutiny’ or ‘rebellion’, takes some letters from the group’s full title, ‘Anticapitalist Left Co-operation for the Overthrow’. The alliance’s biggest members are NAR, a breakaway from the Communists, and SEK, Greece’s outpost of the UK’s Socialist Workers Party.<br />
And then there is also the increasingly strong pull of anarchism. Here the philosophy has perhaps the largest number of adherents – if you can call them all that – in Europe. ‘Now you have to say that this is a real current. The black bloc is relatively big, for example. It’s not just a few dozen kids any more, but 1,000, 2,000 people at every demonstration.’<br />
Strikes and local resistance<br />
In April, the government unveiled a massive €50 billion privatisation programme. It also announced a fresh €23 billion austerity package under pressure from the EU and IMF. The 23 February 2011 strike came close to matching the scale of last May. And there was more industrial action on 11 May.<br />
Yet these remain one-day affairs. Open-ended strikes that could threaten the government are strictly off the table. ‘It is clear that the general strikes are mainly being used as a safety valve for their own members,’ Aris warns.<br />
‘There is pressure within the unions to take a stronger stance, but the union leaders are Pasok members, and some Pasok ministers were union leaders. This is why they can’t call for open-ended strikes. At the same time, the unions are the only ones with the capacity to organise anything, to organise the strikes.’<br />
People are also getting tired, and with unemployment rising and wages under assault, they cannot afford to take days off work.<br />
Nevertheless, between these irregular mass days of action, many of the government’s announced measures are being blocked locally – the main reason the EU-IMF-ECB inspectors only give the government’s austerity efforts their qualified approval. A number of local councils are refusing to pass on the cuts, while town halls are regularly occupied by municipal workers. This resistance has spread beyond movements against austerity to any moves by the central government considered illegitimate.<br />
The town of Keratea has held out heroically against central government efforts to build a new landfill. This semi-rural region to the southeast of Athens has seen citizens ripping up tarmac roads in the middle of the night to prevent police-protected construction crews from entering the town. When the bulldozers and diggers approach, church bells ring and air-raid sirens sound calling on the people to defend their town. Tear gas is normally an urban affair, but you can watch videos on YouTube of riot police chasing people into fields, firing canister after canister among crops and grasslands.<br />
Hatred of politicians<br />
A visceral hatred of all politicians has swept the land. ‘MPs from both of the main two parties cannot walk through the centre of Athens without being attacked,’ Aris continues. ‘Ministers have stopped going to restaurants they used to go to. Not just because they are worried they will be shouted at or attacked, but the restaurant owners tell them not to come because it’s bad for business.’<br />
Last December, former transport minister Costis Hatzidakis was left bleeding after an assault by protesters. During the same demonstration, the finance ministry was set ablaze. In March, deputy prime minister Theodoros Pagalos found himself trapped in a taverna for two hours in the town of Kalyvia as a crowd of 500 furious locals hurled insults and yoghurt at the MP. In mid-April, the offices of two former ministers were set on fire, causing massive damage to one.<br />
A poll by market research firm Alco in late April found that a full 40 per cent of respondents support the wave of attacks on politicians. ‘It’s really dangerous for them. The media report that the people who are attacking ministers are a small group of anarchists, but it really isn’t. It’s just regular, middle-aged people,’ says Aris.<br />
He is critical of the amount of coverage both the domestic and international media have devoted to the mini-wave of two-bit terrorism that has materialised in the last three years from groups with screwball names like the Conspiracy of the Cells of Fire, Summer Entropy Commandos and Destroyers of Whatever is Left of Social Peace. Targeting banks, government offices, foreign embassies, German chancellor Angela Merkel and French president Nicolas Sarkozy, and killing an aide to the counter-terrorism minister last June, the attacks are nevertheless described by security experts as amateur.<br />
Aris says that the media attention is out of all proportion: ‘These small terrorist groups. they are really tiny. They don’t deserve the time they are getting in the media because they aren’t representative of any real segment of the people. I used to think maybe they were agents provocateurs, but I think this is a bit too conspiratorial.’<br />
At the same time, this excess of media exposure serves a purpose, allowing the government to associate all opposition to its measures with these groupuscules – if they are actually more than just one group of people – and up the security presence on the streets.<br />
‘The government is using the terror groups as an excuse to increase the police presence on the streets. Have you seen how many police there are everywhere? I won’t call it a police state, that would be exaggerating, but police are arresting people before demonstrations. They wear masks and arrest people without showing their ID. It’s like kidnapping people. And they are becoming more aggressive. Tear gas like you can’t imagine. It’s really chemical warfare.’<br />
One of the more fearsome elements, he says, is the advent of motorcycle police patrols, created in the wake of the 2008 riots, who are used to intimidate and corral protesters: ‘The police are using motorcycles like they do in Iran, where they drive into demonstrators, hitting people from their motorcycles.’<br />
He describes how it works: ‘You’ll have two police on a bike – one to drive and the other to hit people as they go past.’<br />
Tired of the chaos<br />
On the right, there are many who are growing tired of the chaos – as they see it, the anarchy abroad in the land. Kathimerini has taken to publishing editorials condemning the spread of civil disobedience and what it says is the unwillingness of the government to crack down on this ‘lawlessness’.<br />
‘The state and the rule of law are being ridiculed on a daily basis,’ laments the paper, which has also taken to puffing up the ‘common sense’ of the country’s far-right party, the Popular Orthodox Rally (Laos). On 3 April, an opinion piece appeared that argued were events to spin out of control, the choice will be between a humiliating retreat for the authorities and ‘a police state to enforce law and order’.<br />
‘We should brace for tough law enforcement, and the people will be the first to ask for it,’ the paper wrote. For a country with a relatively recent history of strongmen in place of democracy, these are chilling words.<br />
Asked what he thinks will happen, Aris pauses. The fury is palpable everywhere, but without any force able to give it a constructive direction, he oscillates between optimism and pessimism.<br />
‘You know that Kaiser Chiefs song, “I predict a riot”? That’s what I predict, and I mean it in this way: an explosion is likely,’ he explains. ‘At the start of this, everyone expected another December 2008, and we still do, but it hasn’t happened yet. But an explosion without direction – without it being channelled into some co-ordinated movement – this, I think, will still happen, but it will just be a riot, like back then, not leading anywhere or producing anything.<br />
‘At the same time, what the government will do does depend on the level of violence. If you remember [the 2001 economic collapse of] Argentina, the government that rejected the IMF, said “No” to the IMF, this was the Peronists, who were quite right wing. It was what happened in the street that pushed them to take this position.<br />
‘This goes for what the left parties will do too. It is not that nothing will happen until the left parties get their act together. It is the other way round; it is more that the Greek people have to do something. If that something is really big, then maybe the left would be obliged to come together.’</p>
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