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Oil giant liable for overseas abuses by ‘agents’
By Jim Lobe
Washington, DC, Sept. 19 (IPS)— In a landmark
decision hailed by human rights and corporate accountability
activists, a United States federal appeals court has ruled that
oil giant Unocal can be sued for forced labor, rape, and murder
committed by Burmese soldiers guarding a major gas pipeline
project completed three years ago.
Wednesday’s decision by the Ninth Circuit Court
of Appeals, overturned a ruling by a federal judge two years
ago that the victims of abuses committed by the military regime
in Burma could not sue the California-based company although
they produced evidence showing that Unocal knew about and benefited
directly from the troops’ conduct.
District Court Judge Stanley Lew issued a summary
judgment against the plaintiffs, insisting that in order for
the trial to proceed, they would have to provide evidence that
Unocal either directly participated in the abuses or exerted
control over the army when the abuses occurred.
But the three-judge appeals court ruled that Lew
had applied too strict a legal standard in the case. “Because
Unocal knew the acts of violence would probably be committed,
it became liable as an aider and abettor when such acts of violence
-- specifically, murder, and rape -- were in fact committed,”
said the court.
It then sent the case back to the district court
with instructions to let the matter proceed to trial.
Human rights lawyers who brought the case said
the court’s ruling marks a major milestone in making corporations
accountable for human rights abuses tied to their operations
or activities abroad.
“In recognizing that corporations that aid and
abet egregious human rights abuses can be held accountable,”
said Richard Herz, an attorney with EarthRights International
and co-counsel in the suit, “the Ninth Circuit has affirmed
that US corporations cannot violate international human rights
with impunity.”
The lawyers also pointed out that two of the judges
explicitly cited recent rulings by the international war crimes
tribunals in Yugoslavia and Rwanda regarding the liability of
individuals who may not directly participate in commission of
the abuses.
Aiding and abetting liability may be imposed
for “knowing practical assistance or encouragement, which has
a substantial effect on perpetration of the crime,” they wrote.
Given the stature of the San Francisco-based Ninth
Circuit, the ruling is certain to influence the views of other
courts that currently are hearing similar cases against US corporations.
The court, whose jurisdiction covers much of the western part
of the United States, can be overruled only by the US Supreme
Court.
Cases are pending, for example, against Royal
Dutch Shell for alleged abuses committed by the Nigerian Army
against the Ogoni people in the oil-rich Niger Delta, against
Texaco by indigenous people in Ecuador whose lands have been
largely destroyed by oil leaks and toxic waste, and against
ExxonMobil by victims of abuses committed by Indonesian security
forces in Aceh province.
The Unocal case was originally filed by EarthRights
and the Center for Constitutional Rights (CCR) in 1996 on behalf
of 15 unnamed Burmese plaintiffs, mostly members of the Karen
and Mon ethnic minorities living in or near the route of the
$1.2 billion Yadana pipeline that carries gas from off-shore
fields in the Andaman Sea through Burma (also known as Myanmar)
to Thailand.
Construction by a consortium consisting of Unocal,
France’s Total, and the Burmese state oil company began in 1992
and was completed in 1999.
Burma’s military regime forcibly relocated villages,
drafted villagers into forced labor, and committed a range of
other abuses, including murder, torture and rape, during the
construction phase of the project, according to international
human rights groups, such as Amnesty International and Human
Rights Watch.
The military junta achieved notoriety for a brutal
crackdown on a pro-democracy movement in the late 1980s and
then for ignoring the results of an election swept by the opposition
in 1990.
The plaintiffs sued under a 213-year-old US law,
the Alien Tort Claims Act (ATCA), that permits non-citizens
to sue foreign and domestic individuals or companies in the
United States for abuses committed abroad.
The law, which was enacted primarily against pirates
on the high seas, underwent a renaissance in the 1980s when
it was used successfully by victims of abuses committed by foreign
governments and militaries overseas against individual defendants
served with notice while living or visiting in the United States.
Last month, two former senior military officials
in the Salvadoran army, who had retired to the United States
in the early 1990s, were successfully sued by three alleged
victims for a total of more than $50 million.
The Unocal case was the first to use ATCA to go
after a corporation for alleged abuses committed abroad.
Lawyers argued that Unocal should be held liable
for abuses committed by the army, which, according to their
legal theory, acted as paid agents of the company. They contended
that, because Unocal hired military units to provide security
for the project and was generally aware of its abusive tactics,
the company should be made to pay for the harm done.
In presenting their case, the lawyers offered
internal Unocal memoranda and depositions as evidence to show
that the company was aware of the abuses but never tried to
sever its relationship with the army.
For its part, Unocal has strongly denied that
it knew about or sanctioned abuses committed by the military
in carrying out the project. When it did find out, it took remedial
action, according to officials.
“We’ve never ‘aided or abetted’ anyone in the
commission of human rights violations,” Unocal spokesman Barry
Lane told IPS on Thursday. “If this case goes to trial, we will
defend our reputation vigorously and expect to be fully vindicated,”
he added.
Lane stressed that the appeals court’s 82-page
opinion dealt only with the question of whether the plaintiffs
had presented sufficient evidence to permit the case to go forward.
The court also rejected any possible claim by
Unocal that the lawsuit should be barred because it would interfere
with US foreign policy toward Burma.
The State Department last month asked a federal
judge to dismiss the ExxonMobil case brought by the Acehnese
plaintiffs on the grounds that trying the case could set back
Washington’s “war on terrorism” by risking the co-operation
of the Indonesian military and discouraging US corporate investment
in the country’s battered economy.
The judge in that case has yet to rule on the
State Department’s request, which caused outrage among human
rights groups here.
Zapatista communities live in fear of new military
base
By Claudia Boyd-Barrett
Mexico, Sept. 19— The construction of a
new military camp close to Zapatista communities this month
has added to fear and tension in the nation’s most conflict-ridden
state, according to a report in La Jornada daily on Wednesday.
The new “Mixed Operations Base” recently set up
along the road leading to the autonomous municipality of La
Paz, houses around 40 soldiers and comes in addition to an existing
military base in the municipal capital of Tumbala, in the state’s
north.
Residents filing a complaint through the Network
of Community Human Rights Defenders claim camp soldiers have
been harassing neighboring villages and built on communal land
without the permission of local farmers. According to the complaint,
army soldiers intimidate the indigenous inhabitants and limit
their movement around their towns as they go about daily work.
Residents claim women have even been forced to do chores for
soldiers.
“They [the troops] prevent us form working freely
and in peace, and children can’t go to school because they feel
threatened,” La Paz residents told the human rights network.
“We demand the immediate withdrawal of the army from this area.”
The new base has blocked access to a community
well and contaminated the water, complain residents, who are
also angry that soldiers felled trees and built houses on their
land without consulting them. They say the army has no reason
to be there and they can protect themselves. Locals fear increasing
problems such as prostitution, military ground and air patrols,
and paramilitary activity will increase because those effects
have been observed in other areas occupied by the army.
One village has already reported threats by the
paramilitary group Peace and Justice -- an organization they
say receives support from the army and state police. Mobilization
of army forces in the area comes a month after reports of increased
troop movements in the Lacandon jungle and around the Montes
Azules biosphere reserve, near the Guatemalan border.
Source: TheNewsMexico.com
Bush declaration: global military domination
Compiled by Eamon Martin
Sept. 25 (AGR)— No state will be allowed
to challenge the military supremacy of the United States under
a national security strategy for the 21st century revealed by
President George W. Bush last Friday.
The 33-page document, titled “The National Security
Strategy of the United States,” and submitted to Congress, also
reveals the previously unstated determination of the US to do
everything possible to maintain its status as the world’s sole
superpower. The document envisions a world in which the United
States will enjoy permanent military dominance over all countries,
allies and potential foes alike.
It discards most nonproliferation treaties in
favor of a new doctrine of “counterproliferation.” It declares
that the strategies of containment and deterrence—staples of
US foreign policy since the 1940s—are all but dead. There is
no way in this changed world, the document states, to deter
those who “hate the United States and everything for which it
stands.”
“We cannot let our enemies strike first,” Bush
wrote. “As a matter of common sense and self-defense, America
will act against such emerging threats before they are fully
formed.”
The document, which is one that every president
is required to submit to Congress, is the first comprehensive
explanation of the administration’s foreign policy, from defense
strategy to global warming.
“America is now threatened less by conquering
states than we are by failing ones,” it states, sounding what
amounts to a death knell for many of the key strategies of the
Cold War.
One of the most striking elements of the new strategy
outlined is its insistence “that the president has no intention
of allowing any foreign power to catch up with the huge lead
the United States has opened since the fall of the Soviet Union
more than a decade ago.” For Bush, the essential role of US
military strength is to “build and maintain our defenses beyond
challenge.”
“Our forces will be strong enough,” the document
states, “to dissuade potential adversaries from pursuing a military
buildup in hopes of surpassing, or equaling, the power of the
United States.”
In particular, it cautioned China against a military
expansion. “In pursuing advanced military capabilities that
can threaten its neighbors in the Asia-Pacific region, China
is following an outdated path that, in the end, will hamper
its own pursuit of national greatness,” it said.
Much of the document focuses on how public diplomacy,
the use of foreign aid and changes in the International Monetary
Fund and the World Bank can be used to win what it describes
as a battle of competing values and ideas — including “a battle
for the future of the Muslim world.”
“The war on terrorism is not a clash of civilizations.
It does, however, reveal the clash inside a civilization, a
battle for the future of the Muslim world. This is a struggle
of ideas and this is an area where America must excel,” the
document said.
In the document, Bush insists that the United
States will exploit its military and economic power to encourage
“free and open societies, “ rather than seek “unilateral advantage.”
The document calls this “a distinctly American internationalism.”
But at several points, the document is blunt,
stating clearly that when important US interests are at stake,
there will be no compromise. It argues that while the US will
seek allies in the battle against terrorism, “we will not hesitate
to act alone, if necessary, to exercise our right of self-defense
by acting preemptively.”
Since the end of the Cold War deprived Moscow
of its superpower status a decade ago, the US has had no rival
in terms of military strength.
But instead of easing its spending on defense,
like many NATO countries, the Pentagon is increasing it. The
US defense budget for 2003 is $400 billion, an increase of 6
percent. Washington spends as much on defense as the next eight
largest military powers combined.
The new strategy departs significantly from the
last one published by President Bill Clinton, at the end of
1999. Clinton’s strategy dealt at length with tactics to prevent
the kind of financial meltdowns that threatened economies in
Asia and Russia. While Clinton’s strategy relied heavily on
enforcing or amending a series of international treaties, from
the 1972 Antiballistic Missile (ABM) Treaty to the Comprehensive
Nuclear Test Ban Treaty to Kyoto protocols on the environment,
Bush’s strategy dismisses most of those efforts.
In fact, the new document—which Bush told his
staff had to be written in plain English because “the boys in
Lubbock [TX] ought to be able to read it”—celebrates his decision
last year to abandon the ABM treaty because it impeded US efforts
to build a missile defense system. It also says that the US
will never subject its citizens to the newly created International
Criminal Court, “whose jurisdiction does not extend to Americans.”
A senior White House official said Bush had edited
the document heavily “because he thought there were sections
where we sounded overbearing or arrogant.”
“Americans may live to rue Sept. 20, 2002, the
day they turned in the old republic for a new global empire,”
comments James Laxer, professor of political science at York
University.
For the first time in a formal statement of US
policy, the United States has portrayed itself as standing above
all other states. Its role, as guardian of a global system in
which the US is at the center, is conceptualized as being of
a higher order than the roles played by all other states.
“It is this feature of the doctrine that makes
it explicitly imperialist,” Laxer says. “The 95 percent of humanity
that is non-American is to be lulled into accepting the benefits
of ‘a distinctly American internationalism.’”
Some Senators expressed initial concern at the
tone of the new policy. “It’s much too broad, there’s no limit
at all on presidential powers,” said Sen. Carl Levin (D-MI),
chairman of the Senate Armed Services Committee. “It’s not even
limited to Iraq.”
Looking beyond a war with Iraq, Ivan Eland, the
director of defense policy studies at the Cato Institute, a
right-wing think tank, said the document’s prescription for
military primacy and preemptive attacks on potential threats
is not in line with “what a republic’s foreign policy should
be.” The statement, he said, “leads to a perpetual state of
war.”
Congressional formalities for Iraq
The previous day, Bush had asked Congress to authorize
the use of military force to disarm and topple Iraqi leader
Saddam Hussein, with or without United Nations support.
“If you want to keep the peace, you’ve got to
have the authorization to use force,” Bush told reporters after
a meeting with his war council in the Oval Office.
Congress is promising a quick vote on Bush’s request.
Senate Republican leader Trent Lott, (R-Miss.), said both the
House and Senate could vote on the resolution as early as the
first week in October before lawmakers go home to campaign for
the Nov. 5 election. He said lawmakers would review the president’s
proposal over the weekend, but he is “perfectly happy with the
language.”
Senate Majority Leader Tom Daschle, (D-S.D.),
agreed, saying Democrats wanted some changes in the wording
of the proposal, but were confident a broad consensus could
be reached.
White House officials said that while they will
negotiate the final language, Bush will insist that the resolution
not require future approval by Congress.
In a break with past resolutions authorizing military
force, the draft does not cite any imminent and tangible threat
or specific act of aggression against the United States as a
justification for military action. Rather, its rationale is
that hypothetical and highly uncertain risks must be preempted.
Both the sweeping nature of the request and its
reliance on the very controversial strategic doctrine of preemption
have already provoked alarms in some quarters.
Others compare it to the 1964 Gulf of Tonkin resolution
that authorized US military action in Indochina to “prevent
further aggression” in Southeast Asia. Passed on Aug. 7, 1964,
that resolution handed President Lyndon Johnson broad powers
to escalate the war in Vietnam, a conflict that cost 58,202
American lives and millions of Asian lives. It was later revealed
that the incident prompting the action had been fabricated.
“Congress needs to claim its leadership role in
American war-making to prevent such a tragedy from ever occurring,”
noted Timothy Edgar of the American Civil Liberties Union. Like
the Gulf of Tonkin resolution, he said, Bush’s request specifies
neither whom Washington is fighting nor any clear military objectives.
Several others also noted that, just as former
presidents Lyndon Johnson and Richard Nixon used the Gulf of
Tonkin resolution to expand the war into countries like Cambodia,
so could the reference to “restoring international peace and
security in the region” in Bush’s draft be used to carry the
“war on terrorism” to Syria, Lebanon, and Iran.
Unlike the resolution his father submitted to
Congress before the Gulf War, says Edgar, Bush’s request fails
to cite the War Powers Act, passed by Congress toward the end
of the Vietnam War to ensure that presidents could not fight
wars indefinitely without Congressional backing.
Wider strategic aims
There is no way that the US will not go to war
with Iraq - with or without an enabling resolution from the
UN - and the motives behind the coming attack go far beyond
simply toppling Saddam Hussein or stripping Iraq of any weapons
of mass destruction that it may or may not possess.
The impending war has much wider strategic aims
such as the cementing of US global supremacy by removing any
future threat to US oil supplies, encircling China, and installing
US-friendly regimes across the Middle East.
This is no scenario posited by the over-active
imagination of anti-American lobbies, but rather the sober consensus
arrived at by eminent academics, historians, economists, global
strategists and other experts during an international conference
at Oxford University last week.
The Oxford consensus rejected any comfortable
view that war might even yet be averted by Saddam Hussein’s
decision to re-admit UN arms inspectors and it also avoided
taking consolation in any thought that the impact might be short-lived
and limited only to Iraq. At the very least, violent, anti-American
street demonstrations in Cairo, Alexandria, and other Egyptian
cities could be expected - perhaps erupting also in Saudi Arabia
and maybe Jordan.
These would be forcibly suppressed, but if they
should threaten a number of Middle East regimes, this might
not necessarily be outside of the US game plan, some experts
suggested. To clean out such regimes and install others that
are not just friendly to the US in foreign policy terms but
which also subscribe to American mores would further the cause
of the Bush administration’s neo-imperialism and also secure
the future integrity of energy supplies for the US. Some at
the Oxford conference noted with incredulity the fact that the
new National Security Strategy also envisages the use of the
IMF and the World Bank as instruments of this policy. Nothing,
it seems, they noted, is now excluded in the campaign of the
Bush administration to wage war by one means or another on ‘un-American’
activities or beliefs.
When it’s over, who gets the oil?
A US-led ouster of President Saddam Hussein could
open a bonanza for US oil companies long banished from Iraq,
scuttling oil deals between Baghdad and Russia, France and other
countries and reshuffling world petroleum markets, according
to industry officials and Iraqi opposition leaders.
US and foreign oil companies have already begun
maneuvering for a stake in the country’s huge proven reserves
of 112 billion barrels of crude oil.
Ahmed Chalabi, leader of the Iraqi National Congress,
an umbrella organization of opposition groups that is backed
by the United States, said he favored the creation of a US-led
consortium to develop Iraq’s oil fields.
“American companies will have a big shot at Iraqi
oil,” Chalabi said.
Plans to overthrow Saddam Hussein have little
to do with the fight against terrorism, says Francois Lafargue,
professor of geopolitics at the University of Saint-Quentin
in Paris, and an expert on Iraq. Control of oil reserves are
the main strategic objective, he says.
The Middle East produces 65 percent of the world’s
oil, and Iraq is known to have the second largest oil reserves
after Saudi Arabia. Experts believe that Iraq, which has not
been intensively explored, could produce far more. Iraqi oil
is also cheaper to produce. A barrel of oil costs 70 cents in
Iraq, and up to eight dollars in Central Asia, Lafargue says.
“By controlling the oil fields in the Middle
East, the US would obtain a huge leverage on countries dependent
on foreign oil, especially the People’s Republic of China,”
Lafargue says. “By the year 2020, China will have to get half
its oil imports from the Middle East.” The US wants to curb
China’s military and political ambitions, he says.
‘Fight terror’ or wither, Rumsfeld tells NATO
The North Atlantic Treaty Organization (NATO)
must now adapt to “fighting terrorism” and “rogue states” or
accept that it is irrelevant, US Defense Secretary, Donald Rumsfeld,
told his European allies on Tuesday.
The US remained fully committed to the Atlantic
alliance, he said, but it had to modernize rapidly and improve
its military capacity.
“If NATO does not have a force that is quick and
agile, which can deploy in days or weeks instead of months or
years, then it will not have much to offer the world in the
21st century,” he told NATO ministers’ meeting in Warsaw.
The US plan is for a new rapid response force,
which can be deployed anywhere in the world, not just in NATO’s
normal European zone of operations.
If authorized when Bush, Tony Blair and other
NATO leaders meet in Prague in November, it will have rotating
brigades of 5,000 soldiers drawn from US and European forces,
armed with hi-tech weapons.
Opening the two-day meeting, NATO secretary general,
Lord Robertson agreed, urging the alliance to refocus its military
capabilities so it could “root out and destroy” terrorist threats.
“We must now transform,” Robertson said.
Sources: Associated Press, Business Times,
Cox News Service, Financial Times (UK), Guardian (UK), Inter
Press Service, Los Angeles Times, MSNBC.com, New York Times,
Reuters, San Francisco Chronicle, Times (UK), Toronto Globe
& Mail, Washington Post
IMF and World Bank, a year in review
Analysis by Shawn Gaynor
Asheville, NC, Sept. 25 (AGR)— Last fall,
in the wake of the Sept. 11 attacks on the World Trade Center
and the Pentagon, the International Monetary Fund (IMF) and
World Bank canceled their annual fall meetings in Washington,
DC. The world’s largest lending institutions, with a combined
portfolio of over $300 billion, had been embattled in the “developed”
world for three years, after a upswing in the anti-corporate
globalization movement in the wake of the 1999 Seattle protests
against the World Trade Organization. Their meeting, scheduled
to take place in Barcelona, Spain in June 2001, had been canceled
for fear of massive protests and unrest.
No one can know what would have taken place if
the meetings had not been canceled, but it was clear the Bank’s
opponents had geared up for a massive demonstration, that may
well have eclipsed, in both scale and outrage, the previous
anti-corporate globalization protests in North America.
The IMF and World Bank were created in 1946 during
the post-World War II era. Though they where conceived as institutions
for the rebuilding of post-war Europe, the massive Marshal Plan
filled this financial niche, and the newly-created Bretton Woods
institutions looked to the poor nations of the world to promote
the new Truman “development model,” and to act as a project
to soften the harsh effects of industrial capitalism on these
nations in order to counter the Soviet model of economics.
This new development model held that, through
loans and aid, underdeveloped nations could overcome the trappings
of colonial economics and industrialize. Furthermore, it sought
through this industrialization a general rise in the standard
of living throughout the impoverished areas of the world.
This model produced modest success in some of
the countries receiving loan and aid, especially in cases where
a developing nation combined foreign help with market protections
through tariffs. However, by the early 1980s a new model of
global economics was emerging — Neo-Liberalism.This model held
that rather then foreign aid, the future profits of exports
alone would lift the Third World from poverty. This would be
accomplished with a worldwide reduction of tariffs, which would
encourage product export around the world.
It is unclear whether this shift in economic
policy was due to an honest belief in its ability to succeed,
or was a way to ratchet up profits and cut foreign aid now that
the Soviet model threat to capitalism had passed.
What is clear, though, is that many World Bank-funded
projects, through scale, mismanagement, or corruption, have
failed to generate the future projected profits on which the
credit was extended. This caused a deep crisis in the nations
with large loan payments, and created a dilemma: default on
loan payments and face the abandonment of First World investors,
or raise more funds toward the debt payments. With budgets already
tight in these impoverished nations, funds could only be raised
in two primary ways; cut social spending in health, education
and welfare, and/or sell (privatize) state-owned ventures like
schools, water, rail lines, and power.
As these waves of financial crises spread, the
IMF stepped in to make the choice for the Third World debtor
nations. In order to receive the capital with which to ease
the financial crisis — and make loan payments — the IMF demanded
as a stipulation of emergency loans (to be used for interest
payments on World Bank development loans), that programs of
“structural adjustment” be enacted. The structural adjustments
favor privatization, and prohibit or reduce spending on domestic
social programs.
While the Bank’s opponents in the US have spent
a year trying to integrate anti-globalization and anti-war messages,
without shattering the coalitions that made the anti-globalization
movement possible, the IMF and World Bank have continued unimpeded
in their domination of Third World economics.
What follows is a summary of some examples of
World Bank and IMF actions since their missed meeting last year,
and international reaction to these policies.
Oil
The main investor in, and therefore influence
upon, the World Bank and IMF is the US. With the current ruling
party deeply dependent on the energy lobby, oil exploration
and pipelines have been at the forefront of some large World
Bank programs this year.
In Ecuador, the OCP pipeline which will carry
heavy crude from the Amazon region to the coast has been the
cause of much friction between the people of Ecuador, their
government, and the IMF. IMF negotiators, who will fund the
project, have demanded that all revenues from the new pipeline
go toward servicing that nation’s foreign debt. However, the
Ecuadorian Congress has stipulated that 10 percent of revenues
must go toward social spending. This small demand has held up
funding of the project, which is reportedly between $240 and
$900 million. Bank officials, who this spring stated that the
10 percent social spending was the major obstacle of the project,
have now turned down the project over “environmental and social
concerns.”
Oil has also been on the top of the World Bank’s
agenda in the Sudan, Chad, and Nigeria, where tensions between
poor populations and wealthy investment banks have run high.
In Sudan, a vast de-population campaign has been underway to
forcibly remove residents from oil exploration areas to clear
the way for development.
Water
Increasing pressures on the world’s supply of
fresh and unpolluted water have caused massive competition for
the dwindling resource. The IMF, through it’s structural adjustment
programs, has encouraged and in some cases forced privatization
of water. According to Vandana Shiva’s book Water Wars, “out
of 40 IMF loans… in 2000, 12 had requirements for partial or
full privatization of water supplies.”
Multinationals such as the US-based Bechtel and
Monsanto have invested heavily in the privatization of water,
seeing it as a vast new area of revenue. As water rights have
fallen out of municipal and national hands, and into the hands
of large multinationals, water prices in these countries have
soared.
In Bolivia, which was forced by the IMF to privatize
its water in 2000, water was re-nationalized this year. Massive
unrest had followed the privatization, as water costs had increased
to 1/5 of a person’s average earnings, and a general strike
followed. The International Center for the Settlement of Investment
Disputes (ICSID), a branch of the World Bank, has ruled that
Bolivia (one of the world’s poorest countries) must pay $25
million in damages for breaching its 40 year water contract.
In Ghana, water privatization plans under the
World Bank are being developed. The plan calls for the country
to be divided into two water regions, with the water rights
to be sold to the highest bidder. This would eliminate the current
government process of charging wealthy families more for water,
in order to subsidize water to poor districts. The plan also
calls for the Ghanaian government to take responsibility for
subsidizing the water companies if they raise prices beyond
what poor customers can afford, jeopardizing any financial gains
in selling the rights. It is estimated that water prices could
climb 300 percent due to the deal. International consulting
firms that have endorsed the deal are all being paid by the
World Bank, with the poor nation of Ghana unable to hire their
own consultants.
Africa
For several years activists in Africa and in the
First World have been calling for debt relief, mainly the cancellation
of World Bank loan repayment, for the nations of sub-Saharan
Africa. Though the principals of the loans to these nations
have largely been repaid, interest payments on the loans continue
to cripple Africa’s ability to deal with massive issues of poverty
and hunger. The annual interest payments on foreign debt in
sub-Saharan Africa is currently estimated at just under $15
billion per year. While in the first world this is not viewed
as very much money (the 2003 US defense budget increases spending
by $24 billion), in these countries payment of the debts has
had a crippling effect on agriculture and health.
The main crisis faced in sub-Saharan Africa is
AIDS. Many countries in that region now have adult AIDS rates
at over 1/3 of the adult population. Maintenance on their World
Bank debts has prevented these countries from addressing the
epidemic, because Structural Adjustment Programs have gutted
national health care budgets thoughout the region.
Many of these countries have seen agricultural
exports of cash crops as a major method in meeting dept payments
over the years. Instead of competing with First World (particularly
US) subsidized grains and staple foods, these nations have encouraged
the planting of coffee, chocolate, cotton and other cash crops,
in their most fertile land. Two major problems have ensued from
this choice. The first is that the projected profits of these
crops have not been realized, due largely to overproduction
and falling worldwide prices. The second impact has been a reduction
in these nations’ abilities to feed their populations. In the
1980s, during the great famine that took place in Ethiopia,
land that had traditionally been planted for food was instead
growing cash crops. Much more than drought, these choices starved
the Ethiopian people, as cotton exports continued to expand
even throughout the worst of the famine. This year has seen
a return of these problems, as worldwide coffee prices plummeted,
leaving Africa both hungry and poor.
This year a startling new proposal has emerged
— even among some of the world’s most conservative economists
— that African nations unilaterally default on their debt. Economist
Jeffrey D. Sachs has said, “If you try to collect the debt,
you are killing millions of people. If the countries pay their
debt, they can’t meet their development needs … If there is
not international understanding, many countries in duress in
history have taken a unilateral action. That is important for
African leaders to understand.” The Heritage Foundation, a Washington-based
economic think tank, has also recommended that African leaders
default.
Many African nations remain unwilling to do so,
however, out of fear that this will leave them completely abandoned
by international investors.
Public pressure
Massive public pressure has continued to be expressed
against the institutions of the IMF and World Bank in the last
year. In April of this year over 100,000 protesters converged
on Washington, DC during the spring meetings of the IMF and
World Bank.
World Bank Bonds, a favored investment worldwide,
are the driving economic force behind the Bank’s portfolio.
Campaigns for divestment in the World Bank through bond boycotts
have grown in popularity in the last year, as a way to pressure
the Bank to reform. This year the city of Milwaukee, WI, along
with the city of Cambridge, MA, and five other US cities joined
in boycotting World Bank bonds. Several unions, including the
Wisconsin AFL-CIO, the SEIU, Steel Workers local 1304, and Teamsters
local 85 have also joined the boycott this year.
Though they represent a small percentage of total
World Bank bond buyers, these campaigns hold the possibility
of forcing concessions from the Bank by starving it of new funds.
In addition, protests in the Third World have
remained consistently strong. In Brazil, Venezuela, Argentina,
Equador, and Nigeria, it appears that governments are on the
verge of relenting to citizens’ demands that these institutions,
and the others that represent the neo-liberal model, be abandoned.
The outstanding question in these areas, however, is: “Abandoned
in favor of what?” Though Venezuela and Nigeria may have the
natural resources (mainly oil) to weather the international
investor fallout over unilateral debt default, many nations
that desire to abandon the Bank loan interest cycle have been
unable to find a realistic economic alternative that can alleviate
poverty.
It is impossible to calculate with accuracy the
human toll that these economic policies have had. Clearly, 5,000
avertable deaths each day from hunger, lack of health care,
and lack of potable water is a very conservative estimate. Resistance
has had its price also. According to the report “States of Unrest
II,” release in April of this year, 76 IMF/World Bank protesters
have been documented as having died due to state repression,
with injuries and arrests running into the thousands. Yet people
worldwide continue to risk resistance and voice their opposition
to economic reductionism.
Police, soldiers, paramilitaries disperse protests
in Colombia
By Yadira Ferrer

Colombia's National Peasant
Council said that security forces and paramilitaries on Tuesday,
Sept. 17 forcefully obstructed protests over social spending
and a halt to food imports.
Bogota, Colombia, Sept. 17 (IPS)— The military,
police and paramilitaries in Colombia used force in their attempt
to block demonstrations and marches Tuesday by associations
of peasant farmers protesting the new right-wing government’s
economic and social policies, said organizers.
The National Peasant Council (CNC), which links
10 organizations of small farmers, said in a communique that
in at least five of Colombia’s departments or states, the security
forces and paramilitaries — acting separately — obstructed the
start of a nationwide protest declared Monday to demand social
spending in rural areas and a halt to food imports.
Supposed members of paramilitary groups tried
to keep farmers from participating in protest marches in the
localities of Argelia, Balboa, Chalán, Colosó, Corinto, El Tambo,
La Vega, and Piendamó, according to the CNC statement.
Those towns are located in the southern department
of Cauca and the northern department of Sucre.
The CNC also said the army was prohibiting vehicles
from leaving most municipalities in the central department of
Tolima, while it had confiscated food belonging to groups that
planned to participate in the marches.
In the central department of Caldas, soldiers
detained around 90 indigenous families Monday “simply for having
joined the mobilization,’’ and paramilitaries threatened to
kill anyone who took part in the protests, the communique added.
In the central departments of Boyacá and Cundinamarca,
“peasant farmers and students, who intended to march from Tunja
to Bogota to take part in the protests called by the workers’
central trade unions, were not allowed to depart,’’ reported
the CNC.
Roads in Boyacá and Cundinamarca have been put
under close military surveillance, which included “provocative
overflights by gun-ship helicopters,’’ the statement said.
The farmers are demanding a suspension of food
imports, participation in government decisions that affect them,
and social investment programs for rural areas.
Among the protesters arrested Monday were Spanish
activists Ana Andrés and Daniel Bustos with the non-governmental
organization Solidaridad con Colombia, who were accompanying
peasant farmers in the northern locality of Chalán, as well
as the head of the Federación Sindical Unitaria Agropecuaria
farmers’ union, Nelson Reina.
Military and police authorities said some of the
protests were dispersed “for security reasons,’’ due to suspicions
that the participants were acting under the pressure of left-wing
guerrillas.
In other cases, the police and soldiers acted
on the orders of provincial officials.
The president of another farmers’ union, the Federación
Nacional Sindical Agraria, Eberto Díaz, told IPS that some provincial
governors had invoked the “state of interior commotion’’ declared
by the government of Alvaro Uribe shortly after it took office
in August, “to repress the peasants.’’
The state of interior commotion enables authorities
to suspend certain constitutional guarantees, justified by the
need to crack down on the escalation of the four-decades-old
armed conflict between leftist guerillas, the army, and rightwing
paramilitaries with ties to the Colombian military.
The decision to declare a state of interior commotion
was backed by broad sectors of society, which complain of the
intensification of the activity by the irregular armed groups.
But non-governmental organizations say the emergency
measures constitute a threat to individual freedoms.
The most heavily criticized measure adopted by
Uribe in the context of the state of emergency is the one that
authorizes the armed forces to arrest suspects and search homes
and vehicles without a warrant.
The movements of individuals were also restricted
in so-called “zones of rehabilitation and consolidation’’ created
in 14 departments.
Díaz said the government’s “real intention’’
was to convert those areas into “theaters of war.’’
The vulnerability of human rights activists increases
when the armed forces are given the authority to carry out arrests,
which can lead to an increase in impunity for rights abuses,
said the secretary-general of the Canadian chapter of the London-based
rights watchdog Amnesty International, Alex Neve.
On a visit last week to Bogota, Neve said that
he was not opposed to governments taking measures to protect
their citizens, but warned that the impunity prevailing in Colombia
would not be counteracted by giving the military greater powers
to carry out arrests without due process.
The CNC said the farmers’ protests, which coincided
with the first strike organized by the unions of civil servants
under the Uribe administration, would only be called off when
the government responded to the farmers’ grievances.
The peasant farmers are opposed to the projected
merging of the National Institute for Agrarian Reform, the Integrated
Rural Development Institute, the National Institute of Hydrology
and Meteorology, and the International Fisheries Institute into
one single institution.
The CNC also complains that food imports have
further impoverished laborers and small farmers in the countryside,
who already bear the brunt of the armed conflict.
Ivory Coast shaken by military uprising
Compiled by Willy Rosencrans

Sept. 25 (AGR)— Widespread violence erupted
last Thursday in several cities in Ivory Coast after the government
announced plans to forcibly retire 750 troops. Military sources
said 270 people were killed and 300 more injured during fighting
between insurgents and troops loyal to the government. State
television has made an appeal for blood donors, suggesting that
there are large numbers of seriously injured people. Interior
Minister Emile Boga Doudou and several senior military officers
died during the fighting.
Loyalist forces took back control of Abidjan,
the nation’s commercial capital, on the day the uprising began,
but government opponents were still in control in the northern
city of Korhogo, as well as the central town of Bouake, on Saturday.
“The people of Bouake have rallied to us and we
are now passing to the phase of a rebellion,” said a dissident
commander on Friday. In Korhogo, the heartland of northern opposition
leader Alassane Ouattara, people said some local youths appeared
to have rallied to the rebel cause. The towns of Daloa and Fereke
have also seen fighting.
Ivorian government troops were dispatched north
to confront the dissident troops in Bouake and Korhogo.
President vows all-out war
The uprising began with bursts of automatic-weapons
fire outside a paramilitary police base in Abidjan. Diplomats
said early in the uprising that as many as 800 soldiers revolted.
Vowing that his army would wage an all-out war
on his enemies, President Laurent Gbagbo said: “This is not
some display of anger by a few soldiers; this is an attempted
coup d’etat.”
There are growing fears that the current turmoil
in Ivory Coast could be a prelude to a wider conflict in this
country of 16 million people, which has so far managed to stay
relatively free of the civil conflicts that have plagued some
of its neighbors.
Tensions have pitted opposition leader Ouattara,
a northerner, against the Gbagbo government, which draws much
of its support from the south and west.
Three years of unrest
The government claims that General Robert Guei,
who led a sucessful coup in 1999 but was forced out during elections
the next year amid allegations he was trying to steal the vote,
was behind the coup. Guei was killed when his car refused to
stop for a roadblock in Abidjan during Thursday’s violence.
Ivory Coast’s standing as one of West Africa’s
most stable and prosperous nations was shattered with Guei’s
coup, which ushered in three years of military uprisings and
political and ethnic violence, killing hundreds. The government
has heavily armed the police and military in a bid to enforce
order.
After national reconciliation talks earlier this
year, the country created a coalition government including ministers
from opposition parties. But Guei last week ended his party’s
two-year alliance with the ruling party. And in an outspoken
attack, he slammed the President’s attempts at reconciliation
as a charade and accused him of assassinating political opponents.
The dissident soldiers behind Thursday’s violence
allegedly were enlisted during Guei’s leadership; this, apparently,
is the basis of the government’s claim that Guei orchestrated
the uprising.
Tensions with neighbors escalate
Gbago has implied that neighboring Burkina Faso
played a role in the military uprising. Other officials have
blamed Liberia and Mali.
There is already bad blood between the Burkinabe
and Ivorian governments. Burkina Faso has accused Ivory Coast
of harassing its citizens across the border, while Gbagbo’s
government says Burkina Faso is harboring dissident Ivorian
soldiers, allowing them to train and prepare to destabilize
Ivory Coast.
On Friday, the Ivorian Defense Minister, Moise
Lida Kouassi, claimed that a foreign military column of reinforcements
had crossed into Ivory Coast from a neighboring state to join
and support dissident soldiers. He did not say which, but there
were similar claims of a column coming from Burkina Faso after
a failed coup in January 2001.
Burkina Faso is reported to have tightened security
inside the country and at the border.
Harassment of immigrant workers
On Saturday, the authorities called on the security
forces not to target foreigners, but the allegations against
Burkina Faso have aggravated anti-immigrant feeling. Security
forces have attacked the shanty town homes of workers from Burkina
Faso and other neighboring countries, sending immigrants pouring
onto the streets of the capital Abidjan. Immigrants’ homes have
been torched and their valuables stolen.
Reports said the raids on foreign households,
purportedly to flush out ‘rebels,’ were led by the paramilitary
gendarmerie, fiercely loyal to Gbagbo.
Immigrant workers were instrumental in building
Ivory Coast into the regional economic cocoa-producing ‘El Dorado’
it used to be. But they are regularly blamed for the country’s
problems, including coup-plots, and are believed to be monopolizing
jobs and small enterprises and enriching themselves on the backs
of local people.
Sources: AllAfrica.com, Associated Press, Reuters
WORLD BRIEFS
US commandos seen preparing for strikes in Yemen,
Somalia
Several hundred US Special Forces troops are ready
in east Africa to make commando raids on al-Qaida and other
targets as the Central Intelligence Agency prepares a vast anti-terrorism
operation, according to media reports.
Between 200 and 500 Special Forces troops are
among 800 US soldiers moved secretly in recent weeks to a French
military base at Djibouti, according to intelligence sources
quoted by the US media. The force also has several dozen attack
helicopters. Also in the region are the USS Bellau amphibious
assault group with vertical takeoff Harrier fighters; the elite
Delta Force commandos; and army Green Berets. US military officials
have confirmed that there is a presence but have not said how
large it is.
Djibouti is strategically placed on the Horn of
Africa at the meeting point of the Red Sea and Gulf of Aden,
within striking distance of Yemen and Somalia, two hot spots
for followers of Osama bin Laden.
Yemen has denied that US forces will be allowed
to stage operations in the country, saying there was only cooperation
between the two countries in the security and intelligence domains.
(AFP)
Farm bill hurts poor farmers, boosts business
New US agricultural subsidies benefit big business
while impoverishing poor Third World farmers, and they contradict
advice from global institutions like the World Bank and the
International Monetary Fund (IMF), says a development group.
The new report by US-based Food First / Institute
for Food and Development Policy details the 2002 Farm Bill’s
impact on small family farmers, trade, and agricultural sustainability
and accuses international trade institutions of hypocrisy on
the issue of subsidies.
The bill provides two-thirds of 190 billion dollars
in new money over the next 10 years to the largest US agribusiness
farms that grow export crops such as cotton, rice, soybeans,
and wheat.
The report comes only days ahead of annual meetings
of the World Bank and the IMF in Washington, which will discuss
a review of debt relief efforts, global trade issues, ways to
improve aid delivery, and the trade subsidies of industrial
nations. The report also coincides with growing demands from
the two international organizations that the world’s rich countries
dump their subsidies and that poor countries liberalize trade.
On Sept 19, IMF Managing Director Horst Kiehler
told the Council on Foreign Relations, a US think-tank, that
it was near impossible for poor countries to escape poverty
while wealthy nations maintain their massive agriculture exports
subsidies. (IPS)
UK “sells” nuclear bomb material to Iran
British officials have approved the export of
key components needed to make nuclear weapons to Iran and other
countries known to be developing such weapons.
An investigation by BBC Radio 4 program File on
Four will disclose that the Department of Trade and Industry
(DTI) allowed a quantity of the metal beryllium to be sold to
Iran last year. Beryllium is a necessary ingredient in the manufacture
of nuclear bombs.
Britain has had an arms embargo to Iran since
1993 and has signed an international protocol which bans the
sale of beryllium to named countries, including Iran.
The program has interviewed a leading nuclear
weapons expert in the UK who says that the beryllium and other
items which the DTI has licensed to Iran add up to a shopping
list for a nuclear weapons program.
The program highlights the weaknesses in the UK’s
new export control system, which was set up to stop the proliferation
of nuclear weapons. It will reveal that Iranian procurement
agents have been working in the UK to get sensitive material
back to Iran, and that Pakistan has also been successful in
procuring material for its nuclear program from the UK. (BBC)
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