    
Mustt_mustt
Citizen
Username: Mustt_mustt
Post Number: 175
Registered: 8-2003
| | Posted on Saturday, December 25, 2004 - 9:10 am: | 
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Dear Ones,
Happy Holidays to one and all. I thought you'd be interested in reading an excerpt from Arundhati Roy's Sydney Peace prize lecture.
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So Iraq has been 'liberated.' Its people have been subjugated and its markets have been 'freed'. That's the anthem of neo-liberalism. Free the markets. Screw the people.
The US government has privatized and sold entire sectors of Iraq's economy. Economic policies and tax laws have been re-written. Foreign companies can now buy 100% of Iraqi firms and expatriate the profits. This is an outright violation of international laws that govern an occupying force, and is among the main reasons for the stealthy, hurried charade in which power was 'handed over' to an 'interim Iraqi government'. Once handing over of Iraq to the Multi-nationals is complete, a mild dose of genuine democracy won't do any harm. In fact it might be good PR for the Corporate version of Liberation Theology, otherwise known as New Democracy.
Not surprisingly, the auctioning of Iraq caused a stampede at the feeding trough. Corporations like Bechtel and Halliburton, the company that US Vice-president Dick Cheney once headed, have won huge contracts for 'reconstruction' work. A brief c.v of any one of these corporations would give us a lay person's grasp of how it all works. - not just in Iraq, but all over the world. Say we pick Bechtel, only because poor little Halliburton is under investigation on charges of overpricing fuel deliveries to Iraq and for its contracts to restore Iraq's oil industry which came with a pretty serious price-tag 2.5 billion dollars.
The Bechtel Group and Saddam Hussein are old business acquaintances. Many of their dealings were negotiated by none other than Donald Rumsfeld. In 1988, after Saddam Hussein gassed thousands of Kurds, Bechtel signed contracts with his government to build a dual-use chemical plant in Baghdad.
Historically, the Bechtel Group has had and continues to have inextricably close links to the Republican establishment. You could call Bechtel and the Reagan Bush administration a team. Former Secretary of Defense, Caspar Weinberger was a Bechtel general counsel. Former Deputy Secretary of Energy, W. Kenneth Davis was Bechtel's vice president. Riley Bechtel, the company chairman, is on the President's Export Council. Jack Sheehan, a retired marine corps general, is a senior vice president at Bechtel and a member of the US Defense Policy Board. Former Secretary of State George Shultz, who is on the Board of Directors of the Bechtel Group, was the chairman of the advisory board of the Committee for the Liberation of Iraq.
When he was asked by the New York Times whether he was concerned about the appearance of a conflict of interest between his two 'jobs', he said, "I don't know that Bechtel would particularly benefit from it [The invasion of Iraq]. But if there's work to be done, Bechtel is the type of company that could do it." Bechtel has been awarded reconstruction contracts in Iraq worth over a billion dollars, which include contracts to re-build power generation plants, electrical grids, water supply, sewage systems, and airport facilities. Never mind revolving doors, this -if it weren't so drenched in blood- would be a bedroom farce.
Between 2001 and 2002, nine out of thirty members of the US Defense Policy Group were connected to companies that were awarded Defense contracts worth 76 billion dollars. Time was when weapons were manufactured in order to fight wars. Now wars are manufactured in order to sell weapons. Between 1990 and 2002 the Bechtel group has contributed $3.3 million to campaign funds, both Republican and Democrat. Since 1990 it has won more than 2000 government contracts worth more than 11 billion dollars. That's an incredible return on investment, wouldn't you say? And Bechtel has footprints around the world. That's what being a multi-national means.
The Bechtel Group first attracted international attention when it signed a contract with Hugo Banzer, the former Bolivian dictator, to privatize the water supply in the city of Cochabamba. The first thing Bechtel did was to raise the price of water. Hundreds of thousands of people who simply couldn't afford to pay Bechtel's bills came out onto the streets. A huge strike paralyzed the city. Martial law was declared. Although eventually Bechtel was forced to flee its offices, it is currently negotiating an exit payment of millions of dollars from the Bolivian government for the loss of potential profits. Which, as we'll see, is growing into a popular corporate sport.
In India, Bechtel along with General Electric are the new owners of the notorious and currently defunct Enron power project. The Enron contract, which legally binds the Government of the State of Maharashtra to pay Enron a sum of 30 billion dollars, was the largest contract ever signed in India. Enron was not shy to boast about the millions of dollars it had spent to "educate" Indian politicians and bureaucrats. The Enron contract in Maharashtra, which was India's first 'fast-track' private power project, has come to be known as the most massive fraud in the country's history. (Enron was another of the Republican Party's major campaign contributors). The electricity that Enron produced was so exorbitant that the government decided it was cheaper not to buy electricity and pay Enron the mandatory fixed charges specified in the contract. This means that the government of one of the poorest countries in the world was paying Enron 220 million US dollars a year not to produce electricity!
Now that Enron has ceased to exist, Bechtel and GE are suing the Indian Government for 5.6 billion US dollars. This is not even a minute fraction of the sum of money that they (or Enron) actually invested in the project. Once more, it's a projection of profit they would have made had the project materialized. To give you an idea of scale 5.6 billion dollars a little more than the amount that the Government of India would need annually, for a rural employment guarantee scheme that would provide a subsistence wage to millions of people currently living in abject poverty, crushed by debt, displacement, chronic malnutrition and the WTO. This in a country where farmers steeped in debt are being driven to suicide, not in their hundreds, but in their thousands. The proposal for a Rural Employment Guarantee Scheme is being mocked by India's corporate class as an unreasonable, utopian demand being floated by the 'lunatic' and newly powerful left. Where will the money come from? they ask derisively. And yet, any talk of reneging on a bad contract with a notoriously corrupt corporation like Enron, has the same cynics hyperventilating about capital flight and the terrible risks of 'creating a bad investment climate'. The arbitration between Bechtel, GE and the Government of India is taking place right now in London. Bechtel and GE have reason for hope. The Indian Finance Secretary who was instrumental in approving the disastrous Enron contract has come home after a few years with the IMF. Not just home, home with a promotion. He is now Deputy Chairman of the Planning Commission.
Think about it, the notional profits of a single corporate project would be enough to provide a hundred days of employment a year at minimum wages (calculated at a weighted average across different states) for 25 million people. That's five million more than the population of Australia. That is the scale of the horror of neo-liberalism.
The Bechtel story gets worse. In what can only be called unconscionable, Naomi Klein writes that Bechtel has successfully sued war-torn Iraq for war reparations and lost profits. It has been awarded 7 million dollars.
So, all you young management graduates don't bother with Harvard and Wharton, here's the Lazy Manager's Guide to Corporate Success, first, stock your Board with senior government servants. Next, stock the government with members of your board. Add oil and stir. When no one can tell where the government ends and your company begins, collude with your government to equip and arm a cold blooded dictator in an oil-rich country. Look away while he kills his own people. Simmer gently. Use the time collect to collect a few billion dollars in government contracts. Then collude with your government once again while it topples the dictator and bombs his subjects, taking to specifically target essential infrastructure, killing a hundred thousand people on the side. Pick up another billion dollars or so worth of contracts to 'reconstruct' the infrastructure. To cover travel and incidentals, sue for reparations for lost profits from the devastated country. Finally, diversify. Buy a TV station, so that next war around you can showcase your hardware and weapons technology masquerading as coverage of the war. And finally finally, institute a Human Rights Prize in your company's name. You could give the first one posthumously to Mother Teresa. She won't be able to turn it down or argue back.
Invaded and occupied Iraq has been made to pay out 200 million dollars in reparations for lost profits to corporations like Halliburton, Shell, Mobil, Nestle, Pepsi, Kentucky Fried Chicken and Toys R Us. That's apart from its 125 billion dollar sovereign debt forcing it to turn to the IMF, waiting in the wings like the angel of death, with its Structural Adjustment program. (Though in Iraq there don't seem to be many structures left to adjust. Except the shadowy Al Qaeda.)
In New Iraq, privatization has broken new ground. The US Army is increasingly recruiting private mercenaries to help in the occupation. The advantage with mercenaries is that when they're killed they're not included in the US soldiers' body count. It helps to manage public opinion, which is particularly important in an election year. Prisons have been privatized. Torture has been privatized. We have seen what that leads to. Other attractions in New Iraq include newspapers being shut down. Television stations bombed. Reporters killed. US soldiers have opened fire on crowds of unarmed protestors killing scores of people. The only kind of resistance that has managed to survive is as crazed and brutal as the occupation itself. Is there space for a secular, democratic, feminist, non-violent resistance in Iraq? There isn't really.
That is why it falls to those of us living outside Iraq to create that mass-based, secular and non-violent resistance to the US occupation. If we fail to do that, then we run the risk of allowing the idea of resistance to be hi-jacked and conflated with terrorism and that will be a pity because they are not the same thing.
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