Afghanistan, Pakistan and the Intolerable US Arrogance

May 22, 2012 at 10:31 am | Posted in Arms Control, Human Rights, International Relations | Leave a comment
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By what arrogance does NATO invite a head of state to a meeting and then have the head of state of the host nation refuse the visiting dignitary a one-on-one meeting even as his rival is granted an audience and then expect the snubbed leader to obsequiously accede to all demands even as drone aircraft murders the leader’s citizens and even troops with impunity? Yet, this is what President Barack Obama did to Pakistan’s Asif Ali Zardari who was summoned to the NATO conclave in Chicago at the very last minute. When it became apparent that a mere invitation was not going to make him cave in, he was refused a meeting with the US President who nevertheless met with the Zardari’s rival, the Afghan president Hamid Karzai thus humiliating Zardari. When aides scrambled to get the two presidents to “accidentally bump” into each other at the meeting, Obama pointedly told a press conference that that was their only exchange.

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Last November, a strike by a US drone aircraft killed 24 Pakistani soldiers. The United States has refused to apologize for the murders even though it has acknowledged that its drone aircraft was responsible for the deaths. Consider the situation. The US needs Pakistan as an ally–granted that it is a cantankerous and difficult one. Surely, the best way to further alienate its citizens is to indiscriminately kill them by drone planes controlled from bases deep inside the US. The victims have little warning of their impending death–and the controllers of the planes do not put themselves in harm’s way at all. This is blood sport for them without risk–and when innocent civilians or Pakistani soldiers, the very ones the US depends on to stop al-Qaeda and Taliban fighters, are killed, President Obama refuses to apologize!

Given rising anger in Pakistan, the government shut down two key supply routes for the NATO troops in Afghanistan, forcing the North Atlantic alliance to use more circuitous routes through Central Asia and Russia. Again, snubbing President Zardari, the US Secretary of Defense, Leon Panetta, lauded the help and support of Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan–pointedly ignoring Pakistan. It is true that Pakistan has demanded a 20-times hike of the transit fee for trucks–for $250 to $5000. But this could have been negotiated if an apology was forthcoming.

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Without the supply routes from Pakistan, the withdrawal of equipment brought into Afghanistan for more than a decade will be immensely complicated and the chances of lethal weaponry falling into the hands of the Taliban, al-Qaeda, and other militant groups increases geometrically. It would be another nail in the coffin of the US-NATO failure in Afghanistan. After more than 10 years of war, it is unlikely that the Karzai government will survive even for the three years the Soviet supported regime survived before being toppled–and it was toppled not because the insurgents’ military successes but because Moscow stopped deliveries of arms, fuel, and other supplies. As Juan Garriges writes for the Barcelona Centre for International Affairs, the likelihood of a civil war after NATO leaves is steadily increasing.

As Jonathan Steele writes in the Guardian, unlike the Soviets, NATO is not negotiating with the Taliban but is pursuing a garrison strategy that is virtually guaranteed to fail:

Increasing numbers of Afghan troops will sit in bases and go out on patrols instead of US and British ones, but this is nothing more than “Nato with an Afghan face”. Locals see these Afghan troops as occupiers just like the US and British. Less than 4% of the Afghan National Army are southern Pashtuns. Most are Tajiks and Uzbeks who speak a different language and don’t know the area. But if you recruit more southerners in a hurry, you just feed the Taliban’s latest tactic: join the Afghan army and police, get trained by the Americans and British, then shoot them in the camp or mess hall.

In these conditions, to continue to snub Zardari and refuse to apologize for the killing of the soldiers–perhaps for domestic electoral purposes as Obama’s likely Republican opponent, Mitt Romney, will certainly exploit it–is almost to ensure that the Pakistani Inter-Services Intelligence directorate (ISI) will increase its interference in Afghanistan especially since there is little love lost between the Karzai administration and the Pakistani military and political establishment.

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Finally, in NATO’s haste to cover its failure there is nary a word on the condition of Afghan women–sure to regress to the state they were in at the time of the 2001 invasion! The US-led invasion may have temporarily ousted the Taliban from Kabul and eventually killed Osama bin Laden in Abbottabad, but it has also devastated Afghanistan, killed tens (if not hundreds) of thousands of Afghans and thousands of Pakistanis, further destabilized Pakistan, fuelled the spread of al-Qaeda and other Islamic fundamentalists to Iraq, the Arabian peninsula, and east Africa, and expended trillions of dollars when the world-economy is mired in a crisis like no other since the Great Depression, and to the loss of thousands of American lives as well. Constitutional liberties have been suspended and torture has been reintroduced as a matter of state policy. The man who campaigned to change all this has done nothing at all!

The Greek Challenge: Austerity or NATO

May 9, 2012 at 4:16 pm | Posted in Arms Control, Capitalism, democracy, International Relations, Political Economy, World Politics | 1 Comment
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In the Greek elections on Sunday May 6, 2012, the two main parties that had governed the country since the end of the dictatorship–New Democracy and Pasok–and both of which has subscribed to the stringent austerity measures imposed on Athens for a bailout suffered a stunning set-back. Used to dominating the polls, together they received just one-third of the votes. Two-thirds of the Greek electorate voted for parties–including a neo-Nazi party, Golden Dawn–that rejected the austerity measures, though most Greeks still want to remain within the Eurozone. Alexis Tsipras, the leader of the Syriza coalition of green and left parties that placed second in the elections, and was the big winner declared the austerity plan dead. That is certainly what the Greek voters indicated though the German Chancellor, Angela Merkel and the European Commission President, José Manuel Durão Barroso claimed that agreements are binding and cannot be negotiated after every election. By what perverted logic does this hold: last year, when the stringent bailout conditions were imposed on Greece by the ‘troika’–the European Union, the European Central Bank, and the International Monetary Fund–the then Greek Prime Minister Giorgios Papandreou wanted to hold a referendum. Merkel and French President Nicolas Sarkozy, forced him to rescind the referendum. The bailout agreement, then, was foisted on the Greek people not only without their consent, but on the explicit condition that their consent not be solicited. No such international agreement can have a shred of legitimacy and the Greeks voted, in their millions, to reject it!

 

Greece electionIt was, Albert Einstein I think who said that the clearest sign of insanity is to persist in doing something that has failed repeatedly. Clearly, austerity programs have not worked. In Greece, unemployment stands at 21 per cent and the OECD estimates that real wages have fallen by 25 per cent in the last two years.According to the IMF, this will be the fifth straight year of recession for Greece to be followed by a year of stagnation. Even if the Greek government were to implement the austerity measures, the IMF estimates that in 2017, the public debt to GDP ratio would be 137 per cent, higher than at the onset of the current crisis. And thus far, IMF projections have been overly optimistic!

None of this should be surprising! After all if incomes are slashed and taxes raised, people are not going to have the resources to buy as many goods and services as they did earlier. This will lead to a contraction of the market and greater unemployment–which in turn will lead to further contractions in demand and the economy will go into a tailspin. Even Antonis Samaras, leader of the conservative New Democracy party and one who adheres to the austerity pact acknowledges that fully a fourth of all Greek companies have closed their doors since 2009 and a further third of the companies do not pay their workers on time

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What is surprising is that by insisting that Greece implement further austerity measures–and even suspend the rights of collective bargaining–the ‘troika’ has excluded Greece’s military expenditures from the scalpel. As Paul Haydon reported in the Guardian

In 2006, as the financial crisis was looming, Greece was the third biggest arms importer after China and India. And over the past 10 years its military budget has stood at an average of 4% of GDP, more than £900 per person. If Greece is in need of structural reform, then its oversized military would seem the most logical place to start. In fact, if it had only spent the EU average of 1.7% over the last 20 years, it would have saved a total of 52% of its GDP – meaning instead of being completely bankrupt it would be among the more typical countries struggling with the recession.

 In the five years to 2010, Greece was the largest customer for Germany’s arms industry. And in 2010, when the first bailout was being negotiated for Greece, Athens spent 7.1 billion euros on arms even as it slashed 1.8 billion in social spending. Daniel Cohn-Bendit, the European member of parliament, even claimed that Papanreou had told him that German and French support for the bailout was specifically linked to continued military spending. In 2010, at 3 percent of its budget on military spending, Athens allocated a higher percentage of its spending to defense than any NATO state other than the United States.

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While it is obvious why Germany and France don’t want Greece to cut its defense spending, why are Greek politicians not raising this as an issue?

What Difference Will Hollande’s Victory in France Make for Europe, for the World?

May 6, 2012 at 4:25 pm | Posted in Capitalism, democracy, International Relations, Labor, Political Economy, World Politics | 6 Comments
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Francois Hollande has defeated Nicolas Sarkozy to become the first Socialist president of France in 17 years. He campaigned on a platform to renegotiate the austerity package that the German Chancellor Angela Merkel and Sarkozy had championed, with the support of the British Prime Minister David Cameron and other ‘center-right’ politicians in Europe. The victorious Hollande argued that the way out of the fiscal crisis enveloping the Eurozone is to focus on growth rather than to reduce deficits. The austerity packages, by sharply curbing government expenditures not only leads to unemployment but also reduced payments to the elderly, the young, and the unemployed. They can therefore no longer consume at their previous levels leading to further unemployment as businesses curtail production and the economy continues its tailspin–as has already happened in Greece, Portugal, Italy, Spain, and Ireland.

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But will Hollande be successful in reviving the Eurozone economies? Will this ‘marshmallow’ man (so-called because he hates fights) be strong enough to stand up to Merkel? His potential choice as prime minister, Jean-Marc Ayrault. has suggested that rather than reopening the draft fiscal treaty driven by Sarkozy and Merkel., Hollande will seek to incorporate a minor amendment on growth. This would not be surprising as Hollande’s previous experience in government was as an aide to the last Socialist president of France, Francous Mitterand, who in his second term initiated a wave of neo-liberal reforms that de-regulated much of the French economy.

Socialist and Labor parties in Europe, as political expressions of trade unions since the late nineteenth-century, have floundered as manufacturing has shifted to lower-waged countries and trade unions have suffered a tremendous erosion of memberships. After Margareth Thatcher defeated the miners strike in 1984, European unions have steadily declined in political and social significance.

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What, too, is a ‘growth’ strategy has never been addressed except to say that it should not be based on austerity measures. As manufacturing is becoming increasingly automated–labor costs amounted to only $7.10 of a total production cost of $178.40 for Apple’s iPhone 4–high-paying jobs in industry are simply disappearing. In large, vertically-integrated industrial operations, workers going on strike in a singe shop can disrupt the entire assembly line and hence undermine corporate profits. If workers in a gear-box plant down their tools, the entire auto assembly line will soon grind to a halt. Workers in the service sector–in the fast food industry or tellers in banks–simply do not have this structural power and hence their ability to bargain for better wages are far more limited. And as industrial production relocates overseas, more and more workers enter the service industries.

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With lower incomes, their ability to consume is more limited. And this makes it less profitable to produce more goods and so industrial production continues to plummet as capital is increasingly allocated to financial speculation. This has the strange effect that whenever an election is held, the first question asked by the talking heads on TV is what would be the reaction of the markets to the results–because after the de-regulation of capital controls, the flows of capital into and out of a country are crucial to its economy and there is not government mechanism to regulate these flows.

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In these conditions, governments are compelled to maintain market-friendly conditions and this is not something Hollande is likely to change. So what does growth-oriented policies mean? This needs to be spelt out beyond saying that it is the opposite of austerity programs, How is the economy going to add well-paying jobs in a situation when manufacturing is being steadily downgraded in the hierarchy of economic activities?

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