International affairs

Capitalism: A Ghost Story

Mandela, Vedanta to Anna Hazare…. How long can the cardinals of corporate gospel buy up our protests?

Arundhati Roy    Part-II

The Aspen Institute is an international club of local elites, businessmen, bureaucrats, politicians, with franchises in several countries. Tarun Das is the president of the Aspen Institute, India. Gautam Thapar is chairman. Several senior officers of the McKinsey Global Institute (proposer of the Delhi Mumbai Industrial Corridor) are members of the CFR, the Trilateral Commission and the Aspen Institute.

The Ford Foundation (liberal foil to the more conservative Rockefeller Foundation, though the two work together constantly) was set up in 1936. Though it is often underplayed, the Ford Foundation has a very clear, well-defined ideology and works extremely closely with the US state department. Its project of deepening democracy and “good governance” are very much part of the Bretton Woods scheme of standardising business practice and promoting efficiency in the free market. After the Second World War, when Communists replaced Fascists as the US government’s enemy number one, new kinds of institutions were needed to deal with the Cold War. Ford funded RAND (Research and Development Corporation), a military think-tank that began with weapons research for the US defense services. In 1952, to thwart “the persistent Communist effort to penetrate and disrupt free nations”, it established the Fund for the Republic, which then morphed into the Center for the Study of Democratic Institutions whose brief was to wage the cold war intelligently without McCarthyite excesses. It is through this lens that we need to view the work Ford Foundation is doing, with the millions of dollars it has invested in India—its funding of artists, filmmakers and activists, its generous endowment of university courses and scholarships.

The Ford Foundation’s declared “goals for the future of mankind” include interventions in grassroots political movements locally and internationally. In the US, it provided millions in grants and loans to support the Credit Union Movement that was pioneered by the department store owner, Edward Filene, in 1919. Filene believed in creating a mass consumption society of consumer goods by giving workers affordable access to credit—a radical idea at the time. Actually, only half of a radical idea, because the other half of what Filene believed in was the more equitable distribution of national income. Capitalists seized on the first half of Filene’s suggestion, and by disbursing “affordable” loans of tens of millions of dollars to working people, turned the US working class into people who are permanently in debt, running to catch up with their lifestyles.

Many years later, this idea has trickled down to the impoverished countryside of Bangladesh when Mohammed Yunus and the Grameen Bank brought microcredit to starving peasants with disastrous consequences. Microfinance companies in India are responsible for hundreds of suicides—200 people in Andhra Pradesh in 2010 alone. A national daily recently published a suicide note by an 18-year-old girl who was forced to hand over her last Rs 150, her school fees, to bullying employees of the microfinance company. The note said, “Work hard and earn money. Do not take loans.”

There’s a lot of money in poverty, and a few Nobel Prizes too.

By the 1950s, the Rockefeller and Ford foundations, funding several NGOs and international educational institutions, began to work as quasi-extensions of the US government that was at the time toppling democratically elected governments in Latin America, Iran and Indonesia. (That was also around the time they made their entry into India, then non-aligned, but clearly tilting towards the Soviet Union.) The Ford Foundation established a US-style economics course at the Indonesian University. Elite Indonesian students, trained in counter-insurgency by US army officers, played a crucial part in the 1965 CIA-backed coup in Indonesia that brought General Suharto to power. Gen Suharto repaid his mentors by slaughtering hundreds of thousands of Communist rebels.

Eight years later, young Chilean students, who came to be known as the Chicago Boys, were taken to the US to be trained in neo-liberal economics by Milton Friedman at the University of Chicago (endowed by J.D. Rockefeller), in preparation for the 1973 CIA-backed coup that killed Salvador Allende, and brought in General Pinochet and a reign of death squads, disappearances and terror that lasted for seventeen years. (Allende’s crime was being a democratically elected socialist and nationalising Chile’s mines.)

In 1957, the Rockefeller Foundation established the Ramon Magsaysay Prize for community leaders in Asia. It was named after Ramon Magsaysay, president of the Philippines, a crucial ally in the US campaign against Communism in Southeast Asia. In 2000, the Ford Foundation established the Ramon Magsaysay Emergent Leadership Award. The Magsaysay Award is considered a prestigious award among artists, activists and community workers in India. M.S. Subbulakshmi and Satyajit Ray won it, so did Jayaprakash Narayan and one of India’s finest journalists, P. Sainath. But they did more for the Magsaysay award than it did for them. In general, it has become a gentle arbiter of what kind of activism is “acceptable” and what is not.

Interestingly, Anna Hazare’s anti-corruption movement last summer was spearheaded by three Magsaysay Award winners—Anna Hazare, Arvind Kejriwal and Kiran Bedi. One of Arvind Kejriwal’s many NGOs is generously funded by Ford Foundation. Kiran Bedi’s NGO is funded by Coca Cola and Lehman Brothers.

Though Anna Hazare calls himself a Gandhian, the law he called for—the Jan Lokpal Bill—was un-Gandhian, elitist and dangerous. A round-the-clock corporate media campaign proclaimed him to be the voice of “the people”. Unlike the Occupy Wall Street movement in the US, the Hazare movement did not breathe a word against privatisation, corporate power or economic “reforms”. On the contrary, its principal media backers successfully turned the spotlight away from massive corporate corruption scandals (which had exposed high-profile journalists too) and used the public mauling of politicians to call for the further withdrawal of discretionary powers from government, for more reforms, more privatisation. (In 2008, Anna Hazare received a World Bank award for outstanding public service). The World Bank issued a statement from Washington saying the movement “dovetailed” into its policy.

Like all good Imperialists, the Philanthropoids set themselves the task of creating and training an international cadre that believed that Capitalism, and by extension the hegemony of the United States, was in their own self-interest. And who would therefore help to administer the Global Corporate Government in the ways native elites had always served colonialism. So began the foundations’ foray into education and the arts, which would become their third sphere of influence, after foreign and domestic economic policy. They spent (and continue to spend) millions of dollars on academic institutions and pedagogy.

Joan Roelofs in her wonderful book Foundations and Public Policy: The Mask of Pluralism describes how foundations remodelled the old ideas of how to teach political science, and fashioned the disciplines of “international” and “area” studies. This provided the US intelligence and security services a pool of expertise in foreign languages and culture to recruit from. The CIA and US state department continue to work with students and professors in US universities, raising serious questions about the ethics of scholarship.

The gathering of information to control people they rule is fundamental to any ruling power. As resistance to land acquisition and the new economic policies spreads across India, in the shadow of outright war in Central India, as a containment technique, the government has embarked on a massive biometrics programme, perhaps one of the most ambitious and expensive information-gathering projects in the world— the Unique Identification Number (UID). People don’t have clean drinking water, or toilets, or food, or money, but they will have election cards and UID numbers. Is it a coincidence that the UID project run by Nandan Nilekani, former CEO of Infosys, ostensibly meant to “deliver services to the poor”, will inject massive amounts of money into a slightly beleaguered IT industry? (A conservative estimate of the UID budget exceeds the Indian government’s annual public spending on education.) To “digitise” a country with such a large population of the largely illegitimate and “illegible”—people who are for the most part slum-dwellers, hawkers, adivasis without land records—will criminalise them, turning them from illegitimate to illegal. The idea is to pull off a digital version of the Enclosure of the Commons and put huge powers into the hands of an increasingly hardening police state. Nilekani’s technocratic obsession with gathering data is consistent with Bill Gates’s obsession with digital databases, “numerical targets”, “scorecards of progress”. As though it is a lack of information that is the cause of world hunger, and not colonialism, debt and skewed profit-oriented, corporate policy.

Corporate-endowed foundations are the biggest funders of the social sciences and the arts, endowing courses and student scholarships in “development studies”, “community studies”, “cultural studies”, “behavioural sciences” and “human rights”. As US universities opened their doors to international students, hundreds of thousands of students, children of the Third World elite, poured in. Those who could not afford the fees were given scholarships. Today in countries like India and Pakistan there is scarcely a family among the upper middle classes that does not have a child that has studied in the US. From their ranks have come good scholars and academics, but also the prime ministers, finance ministers, economists, corporate lawyers, bankers and bureaucrats who helped to open up the economies of their countries to global corporations.

Scholars of the Foundation-friendly version of economics and political science were rewarded with fellowships, research funds, grants, endowments and jobs. Those with Foundation-unfriendly views found themselves unfunded, marginalised and ghettoised, their courses discontinued. Gradually, one particular imagination—a brittle, superficial pretence of tolerance and multiculturalism (that morphs into racism, rabid nationalism, ethnic chauvinism or war-mongering Islamophobia at a moment’s notice) under the roof of a single, overarching, very unplural economic ideology—began to dominate the discourse. It did so to such an extent that it ceased to be perceived as an ideology at all. It became the default position, the natural way to be. It infiltrated normality, colonised ordinariness, and challenging it began to seem as absurd or as esoteric as challenging reality itself. From here it was a quick easy step to ‘There is No Alternative’.

It is only now, thanks to the Occupy Movement, that another language has appeared on US streets and campuses. To see students with banners that say ‘Class War’ or ‘We don’t mind you being rich, but we mind you buying our government’ is, given the odds, almost a revolution in itself.

One century after it began, corporate philanthropy is as much part of our lives as Coca Cola. There are now millions of non-profit organisations, many of them connected through a byzantine financial maze to the larger foundations. Between them, this “independent” sector has assets worth nearly 450 billion dollars. The largest of them is the Bill Gates Foundation with ($21 billion), followed by the Lilly Endowment ($16 billion) and the Ford Foundation ($15 billion).

As the IMF enforced Structural Adjustment, and arm-twisted governments into cutting back on public spending on health, education, childcare, development, the NGOs moved in. The Privatization of Everything has also meant the NGO-isation of Everything. As jobs and livelihoods disappeared, NGOs have become an important source of employment, even for those who see them for what they are. And they are certainly not all bad. Of the millions of NGOs, some do remarkable, radical work and it would be a travesty to tar all NGOs with the same brush. However, the corporate or Foundation-endowed NGOs are global finance’s way of buying into resistance movements, literally like shareholders buy shares in companies, and then try to control them from within. They sit like nodes on the central nervous system, the pathways along which global finance flows. They work like transmitters, receivers, shock absorbers, alert to every impulse, careful never to annoy the governments of their host countries. (The Ford Foundation requires the organisations it funds to sign a pledge to this effect.) Inadvertently (and sometimes advertently), they serve as listening posts, their reports and workshops and other missionary activity feeding data into an increasingly aggressive system of surveillance of increasingly hardening States. The more troubled an area, the greater the numbers of NGOs in it.

Mischievously, when the government or sections of the Corporate Press want to run a smear campaign against a genuine people’s movement, like the Narmada Bachao Andolan, or the protest against the Koodankulam nuclear reactor, they accuse these movements of being NGOs receiving “foreign funding”. They know very well that the mandate of most NGOs, in particular the well-funded ones, is to further the project of corporate globalisation, not thwart it.

Armed with their billions, these NGOs have waded into the world, turning potential revolutionaries into salaried activists, funding artists, intellectuals and filmmakers, gently luring them away from radical confrontation, ushering them in the direction of multi-culturalism, gender, community development—the discourse couched in the language of identity politics and human rights.

The transformation of the idea of justice into the industry of human rights has been a conceptual coup in which NGOs and foundations have played a crucial part. The narrow focus of human rights enables an atrocity-based analysis in which the larger picture can be blocked out and both parties in a conflict—say, for example, the Maoists and the Indian government, or the Israeli Army and Hamas—can both be admonished as Human Rights Violators. The land-grab by mining corporations or the history of the annexation of Palestinian land by the State of Israel then become footnotes with very little bearing on the discourse. This is not to suggest that human rights don’t matter. They do, but they are not a good enough prism through which to view or remotely understand the great injustices in the world we live in.

 

 

Francois Hollande to set France on new course after win

Hollande came to Paris late on Sunday evening to make a victory speech

French President-elect Francois Hollande is to start work on forming a new government, after declaring to his supporters that his victory gave hope there would be an end to austerity.

Mr. Hollande has vowed to rework a deal on government debt in eurozone member countries to focus on promoting growth.

The Socialist leader won just under 52% of votes in Sunday’s run-off election.

Centre-right incumbent Nicolas Sarkozy is the first French president since 1981 not to win a second term.

Mr. Sarkozy will hand power to Mr. Hollande on 15 May, following talks between the two camps, the presidency has said.

Invitation to Berlin

Mr. Hollande must act quickly to reassure other eurozone countries he is up to the considerable challenge he faces.

Mr, Hollande has called for a renegotiation of a hard-won European treaty on budget discipline championed by German Chancellor Angela Merkel and Mr. Sarkozy.

Mrs. Merkel congratulated the president-elect by phone and invited him to Berlin to hold talks soon.

Mr. Hollande’s campaign director, Pierre Moscovici, told AFP news agency that the two had agreed to work together on “a strong Franco-German relationship in the interest of Europe”.

UK Prime Minister David Cameron also called Mr. Hollande to congratulate him.

Mr. Hollande feeds a renewed sense of hope in the country – particularly among the young – that amid the austerity, there can be jobs and salaries, our correspondent adds. Mr. Hollande offers a fresh start – but the debt problems for France are still the same.

Jubilant Hollande supporters gathered at the Place de la Bastille in Paris – a traditional rallying point of the Left – to celebrate.

Mr. Hollande – the first Socialist to win the French presidency since Francois Mitterrand in the 1980s – earlier gave his victory speech in his stronghold of Tulle in central France.

He said he would push ahead with his pledge to refocus EU fiscal efforts from austerity to “growth”.

“Europe is watching us, austerity can no longer be the only option,” he said.

After his speech in Tulle, Mr. Hollande headed to Brive airport to fly to Paris to address supporters at the Place de la Bastille.

“I am the president of the youth of France,” he told the assembled crowd of tens of thousands of supporters.

“You are a movement that is rising up throughout Europe,” he said.

‘Respect’

Mr. Hollande capitalised on France’s economic woes and President Sarkozy’s unpopularity.

The Socialist candidate has promised to raise taxes on big corporations and people earning more than 1m euros a year.

He wants to raise the minimum wage, hire 60,000 more teachers and lower the retirement age from 62 to 60 for some workers.

In his concession speech, Mr Sarkozy told supporters: “Francois Hollande is the president of France and he must be respected.”

The outgoing president said he was “taking responsibility for defeat”.

Hinting about his future, he said: “My place will no longer be the same. My involvement in the life of my country will now be different.”

During the campaign, he had said he would leave politics if he lost the election.

Admitting defeat soon after polls closed on Sunday evening, centre-right incumbent Nicolas Sarkozy wished “good luck” to Mr. Hollande.

Mr. Sarkozy, who has been in office since 2007, had promised to reduce France’s large budget deficit through spending cuts.

He becomes the latest European leader to be voted out of office amid widespread voter anger at austerity measures triggered by the eurozone debt crisis.

Mr. Hollande is expected to be inaugurated later this month. A parliamentary election is due in June.

(Courtesy to BBC)

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