John Pilger on President Obama: Don't believe the hype

Barack Obama is being lauded by liberals but the truth about him is that he represents the worst of the world's power.

My first visit to Texas was in 1968, on the fifth anniversary of the assassination of President John F Kennedy in Dallas. I drove south, following the line of telegraph poles to the small town of Midlothian, where I met Penn Jones Jr, editor of the Midlothian Mirror. Save for his drawl and fine boots, everything about Penn was the antithesis of the Texas stereotype. Having exposed the racists of the John Birch Society, his printing press had been repeatedly firebombed. Week after week, he painstakingly assembled evidence that all but demolished the official version of Kennedy's murder.

This was journalism as it had been before corporate journalism was invented, before the first schools of journalism were set up and a mythology of liberal neutrality was spun around those whose "professionalism" and "objectivity" carried an unspoken obligation to ensure that news and opinion were in tune with an establishment consensus, regardless of the truth. Journalists such as Penn Jones, independent of vested power, indefatigable and principled, often reflect ordinary American attitudes, which have seldom conformed to the stereotypes promoted by the corporate media on both sides of the Atlantic.

Read American Dreams: Lost and Found by the masterly Studs Terkel, who died on 31 October, or scan the surveys that unerringly attribute enlightened views to a majority who believe that "government should care for those who cannot care for themselves" and are prepared to pay higher taxes for universal health care, who support nuclear disarmament and want their troops out of other people's countries.

Returning to Texas, I am struck again by those so unlike the redneck stereotype, in spite of the burden of a form of brainwashing placed on most Americans from a tender age: that theirs is the most superior society in the world, and all means are justified, including the spilling of copious blood, in maintaining that superiority.

That is the subtext of Barack Obama's "oratory". He says he wants to build up US military power; and he threatens to ignite a new war in Pakistan, killing yet more brown-skinned people. That will bring tears, too. Unlike those on election night, these other tears will be unseen in Chicago and London. This is not to doubt the sincerity of much of the response to Obama's election, which happened not because of the unction that has passed for news reporting since 4 November (eg, "liberal Americans smiled and the world smiled with them"), but for the same reasons that millions of angry emails were sent to the White House and Congress when the "bailout" of Wall Street was revealed, and because most Americans are fed up with war.

Two years ago, this anti-war vote installed a Democratic majority in Congress, only to watch the Democrats hand over more money to George W Bush to continue his blood-fest. For his part, the "anti-war" Obama voted to give Bush what he wanted. Yes, Obama's election is historic, a symbol of great change to many. But it is equally true that the American elite has grown adept at using the black middle and management class. The courageous Martin Luther King recognised this when he linked the human rights of black Americans with the human rights of the Vietnamese, then being slaughtered by a "liberal" Democratic administration. And he was shot. In striking contrast, a young black major serving in Vietnam, Colin Powell, was used to "investigate" and whitewash the infamous My Lai massacre. As Bush's secretary of state, Powell was often described as a "liberal" and was considered ideal to lie to the United Nations about Iraq's non-existent weapons of mass destruction. Condaleezza Rice, lauded as a successful black woman, has worked assiduously to deny the Palestinians justice.

Obama's first two crucial appointments represent a denial of the wishes of his supporters on the principal issues on which they voted. The vice-president-elect, Joe Biden, is a proud warmaker and Zionist. Rahm Emanuel, who is to be the all-important White House chief of staff, is a fervent "neoliberal" devoted to the doctrine that led to the present economic collapse and impoverishment of millions. He is also an "Israel-first" Zionist who served in the Israeli army and opposes meaningful justice for the Palestinians - an injustice that is at the root of Muslim people's loathing of the US and the spawning of jihadism.

No serious scrutiny of this is permitted within the histrionics of Obama mania, just as no serious scrutiny of the betrayal of the majority of black South Africans was permitted within the "Mandela moment". This is especially marked in Britain, where America's divine right to "lead" is important to elite British interests. The Observer, which supported Bush's war in Iraq, echoing his fabricated evidence, now announces, without evidence, that "America has restored the world's faith in its ideals". These "ideals", which Obama will swear to uphold, have overseen, since 1945, the destruction of 50 governments, including democracies, and 30 popular liberation movements, causing the deaths of countless men, women and children.

None of this was uttered during the election campaign. Had that been allowed, there might even have been recognition that liberalism as a narrow, supremely arrogant, war-making ideology is destroying liberalism as a reality. Prior to Blair's criminal warmaking, ideology was denied by him and his media mystics. "Blair can be a beacon to the world," declared the Guardian in 1997. "[He is] turning leadership into an art form."

Today, merely insert "Obama". As for historic moments, there is another that has gone unreported but is well under way - liberal democracy's shift towards a corporate dictatorship, managed by people regardless of ethnicity, with the media as its clichéd façade. "True democracy," wrote Penn Jones Jr, the Texas truth-teller, "is constant vigilance: not thinking the way you're meant to think, and keeping your eyes wide open at all times."

John Pilger, renowned investigative journalist and documentary film-maker, is one of only two to have twice won British journalism's top award; his documentaries have won academy awards in both the UK and the US. In a New Statesman survey of the 50 heroes of our time, Pilger came fourth behind Aung San Suu Kyi and Nelson Mandela. "John Pilger," wrote Harold Pinter, "unearths, with steely attention facts, the filthy truth. I salute him."

This article first appeared in the 17 November 2008 issue of the New Statesman, Obamania

Jeremy Corbyn. Photo: Getty
Show Hide image

Lexit: the EU is a neoliberal project, so let's do something different when we leave it

Brexit affords the British left a historic opportunity for a decisive break with EU market liberalism.

The Brexit vote to leave the European Union has many parents, but "Lexit" – the argument for exiting the EU from the left – remains an orphan. A third of Labour voters backed Leave, but they did so without any significant leadership from the Labour Party. Left-of-centre votes proved decisive in determining the outcome of a referendum that was otherwise framed, shaped, and presented almost exclusively by the right. A proper left discussion of the issues has been, if not entirely absent, then decidedly marginal – part of a more general malaise when it comes to developing left alternatives that has begun to be corrected only recently, under Jeremy Corbyn and John McDonnell.

Ceding Brexit to the right was very nearly the most serious strategic mistake by the British left since the ‘70s. Under successive leaders Labour became so incorporated into the ideology of Europeanism as to preclude any clear-eyed critical analysis of the actually existing EU as a regulatory and trade regime pursuing deep economic integration. The same political journey that carried Labour into its technocratic embrace of the EU also resulted in the abandonment of any form of distinctive economics separate from the orthodoxies of market liberalism.

It’s been astounding to witness so many left-wingers, in meltdown over Brexit, resort to parroting liberal economics. Thus we hear that factor mobility isn’t about labour arbitrage, that public services aren’t under pressure, that we must prioritise foreign direct investment and trade. It’s little wonder Labour became so detached from its base. Such claims do not match the lived experience of ordinary people in regions of the country devastated by deindustrialisation and disinvestment.

Nor should concerns about wage stagnation and bargaining power be met with finger-wagging accusations of racism, as if the manner in which capitalism pits workers against each other hasn’t long been understood. Instead, we should be offering real solutions – including a willingness to rethink capital mobility and trade. This places us in direct conflict with the constitutionalised neoliberalism of the EU.

Only the political savvy of the leadership has enabled Labour to recover from its disastrous positioning post-referendum. Incredibly, what seemed an unbeatable electoral bloc around Theresa May has been deftly prized apart in the course of an extraordinary General Election campaign. To consolidate the political project they have initiated, Corbyn and McDonnell must now follow through with a truly radical economic programme. The place to look for inspiration is precisely the range of instruments and policy options discouraged or outright forbidden by the EU.

A neoliberal project

The fact that right-wing arguments for Leave predominated during the referendum says far more about today’s left than it does about the European Union. There has been a great deal of myth-making concerning the latter –much of it funded, directly or indirectly, by the EU itself.

From its inception, the EU has been a top-down project driven by political and administrative elites, "a protected sphere", in the judgment of the late Peter Mair, "in which policy-making can evade the constraints imposed by representative democracy". To complain about the EU’s "democratic deficit" is to have misunderstood its purpose. The main thrust of European economic policy has been to extend and deepen the market through liberalisation, privatisation, and flexiblisation, subordinating employment and social protection to goals of low inflation, debt reduction, and increased competitiveness.

Prospects for Keynesian reflationary policies, or even for pan-European economic planning – never great – soon gave way to more Hayekian conceptions. Hayek’s original insight, in The Economic Conditions of Interstate Federalism, was that free movement of capital, goods, and labour – a "single market" – among a federation of nations would severely and necessarily restrict the economic policy space available to individual members. Pro-European socialists, whose aim had been to acquire new supranational options for the regulation of capital, found themselves surrendering the tools they already possessed at home. The national road to socialism, or even to social democracy, was closed.

The direction of travel has been singular and unrelenting. To take one example, workers’ rights – a supposed EU strength – are steadily being eroded, as can be seen in landmark judgments by the European Court of Justice (ECJ) in the Viking and Laval cases, among others. In both instances, workers attempting to strike in protest at plans to replace workers from one EU country with lower-wage workers from another, were told their right to strike could not infringe upon the "four freedoms" – free movement of capital, labour, goods, and services – established by the treaties.

More broadly, on trade, financial regulation, state aid, government purchasing, public service delivery, and more, any attempt to create a different kind of economy from inside the EU has largely been forestalled by competition policy or single market regulation.

A new political economy

Given that the UK will soon be escaping the EU, what opportunities might this afford? Three policy directions immediately stand out: public ownership, industrial strategy, and procurement. In each case, EU regulation previously stood in the way of promising left strategies. In each case, the political and economic returns from bold departures from neoliberal orthodoxy after Brexit could be substantial.

While not banned outright by EU law, public ownership is severely discouraged and disadvantaged by it. ECJ interpretation of Article 106 of the Treaty on the Functioning of the European Union (TFEU) has steadily eroded public ownership options. "The ECJ", argues law professor Danny Nicol, "appears to have constructed a one-way street in favour of private-sector provision: nationalised services are prima facie suspect and must be analysed for their necessity". Sure enough, the EU has been a significant driver of privatisation, functioning like a ratchet. It’s much easier for a member state to pursue the liberalisation of sectors than to secure their (re)nationalisation. Article 59 (TFEU) specifically allows the European Council and Parliament to liberalise services. Since the ‘80s, there have been single market programmes in energy, transport, postal services, telecommunications, education, and health.

Britain has long been an extreme outlier on privatisation, responsible for 40 per cent of the total assets privatised across the OECD between 1980 and 1996. Today, however, increasing inequality, poverty, environmental degradation and the general sense of an impoverished public sphere are leading to growing calls for renewed public ownership (albeit in new, more democratic forms). Soon to be free of EU constraints, it’s time to explore an expanded and fundamentally reimagined UK public sector.

Next, Britain’s industrial production has been virtually flat since the late 1990s, with a yawning trade deficit in industrial goods. Any serious industrial strategy to address the structural weaknesses of UK manufacturing will rely on "state aid" – the nurturing of a next generation of companies through grants, interest and tax relief, guarantees, government holdings, and the provision of goods and services on a preferential basis.

Article 107 TFEU allows for state aid only if it is compatible with the internal market and does not distort competition, laying out the specific circumstances in which it could be lawful. Whether or not state aid meets these criteria is at the sole discretion of the Commission – and courts in member states are obligated to enforce the commission’s decisions. The Commission has adopted an approach that considers, among other things, the existence of market failure, the effectiveness of other options, and the impact on the market and competition, thereby allowing state aid only in exceptional circumstances.

For many parts of the UK, the challenges of industrial decline remain starkly present – entire communities are thrown on the scrap heap, with all the associated capital and carbon costs and wasted lives. It’s high time the left returned to the possibilities inherent in a proactive industrial strategy. A true community-sustaining industrial strategy would consist of the deliberate direction of capital to sectors, localities, and regions, so as to balance out market trends and prevent communities from falling into decay, while also ensuring the investment in research and development necessary to maintain a highly productive economy. Policy, in this vision, would function to re-deploy infrastructure, production facilities, and workers left unemployed because of a shutdown or increased automation.

In some cases, this might mean assistance to workers or localities to buy up facilities and keep them running under worker or community ownership. In other cases it might involve re-training workers for new skills and re-fitting facilities. A regional approach might help launch new enterprises that would eventually be spun off as worker or local community-owned firms, supporting the development of strong and vibrant network economies, perhaps on the basis of a Green New Deal. All of this will be possible post-Brexit, under a Corbyn government.

Lastly, there is procurement. Under EU law, explicitly linking public procurement to local entities or social needs is difficult. The ECJ has ruled that, even if there is no specific legislation, procurement activity must "comply with the fundamental rules of the Treaty, in particular the principle of non-discrimination on grounds of nationality". This means that all procurement contracts must be open to all bidders across the EU, and public authorities must advertise contracts widely in other EU countries. In 2004, the European Parliament and Council issued two directives establishing the criteria governing such contracts: "lowest price only" and "most economically advantageous tender".

Unleashed from EU constraints, there are major opportunities for targeting large-scale public procurement to rebuild and transform communities, cities, and regions. The vision behind the celebrated Preston Model of community wealth building – inspired by the work of our own organisation, The Democracy Collaborative, in Cleveland, Ohio – leverages public procurement and the stabilising power of place-based anchor institutions (governments, hospitals, universities) to support rooted, participatory, democratic local economies built around multipliers. In this way, public funds can be made to do "double duty"; anchoring jobs and building community wealth, reversing long-term economic decline. This suggests the viability of a very different economic approach and potential for a winning political coalition, building support for a new socialist economics from the ground up.

With the prospect of a Corbyn government now tantalisingly close, it’s imperative that Labour reconciles its policy objectives in the Brexit negotiations with its plans for a radical economic transformation and redistribution of power and wealth. Only by pursuing strategies capable of re-establishing broad control over the national economy can Labour hope to manage the coming period of pain and dislocation following Brexit. Based on new institutions and approaches and the centrality of ownership and control, democracy, and participation, we should be busy assembling the tools and strategies that will allow departure from the EU to open up new political-economic horizons in Britain and bring about the profound transformation the country so desperately wants and needs.

Joe Guinan is executive director of the Next System Project at The Democracy Collaborative. Thomas M. Hanna is research director at The Democracy Collaborative.

This is an extract from a longer essay which appears in the inaugural edition of the IPPR Progressive Review.

 

 

This article first appeared in the 17 November 2008 issue of the New Statesman, Obamania