These labourers provide a cheap supply of ready manpower. Photograph: Getty Images
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Cheap, and far from free: The migrant army building Britain

Revealed: how job restrictions have left Romanian and Bulgarian construction workers underpaid and vulnerable to exploitation.

The men gather in the shadow of the Wickes hardware store, looking out for the odd jobs that keep them in the UK and for the police that periodically moves them along.
    
As day labourers on the margins of Britain’s sprawling construction sector, they provide a cheap supply of ready manpower, useful yet often unwelcome.

Their presence provokes frequent complaints from the residents of Seven Sisters, a north London neighbourhood where the cafés offer a greasy “builder’s breakfast” for less than five pounds.

With no offices or agencies supporting them, the day labourers crowd the pavement and advertise their trade through their attire – grubby tracksuits spattered with paint and plaster.

When potential clients pull up, they haggle over rates and hitch rides. When the police show up, they run.

Across the road on a sunny July morning, Jarek collects his groceries and stops for a chat with some friends.

“Illegal people,” is how he describes the 30 or so men waiting outside Wickes. Like them, Jarek is an immigrant. Unlike them, he comes from Poland and does not panic when he sees the police.

He too is a builder, but he does not do business on the pavement outside Wickes. Instead, he travels on a moped fitted with a toolbox, dispensing glossy flyers advertising “cheap and reliable contractor services” in ungrammatical English.

Jarek is one of around a million workers who moved to the UK as a result of the EU’s expansion into Eastern Europe in 2004. The scale of the migration, most of it from Poland, prompted a backlash against the British politicians who had failed to anticipate it.

The day labourers are mostly Romanians and Bulgarians, and relative newcomers to the UK. They arrived after 2007, when Romania and Bulgaria – the so-called A2 countries – joined the EU.

Despite Jarek’s suspicions, the men’s presence in Britain, or indeed outside Wickes, is not in itself illegal.    

All that separates him from the newcomers is a web of restrictions, designed to deny A2 migrants the many advantages that helped Jarek and his compatriots establish themselves in the UK.

Free to stay but not free to work, the Romanians and Bulgarians fulfil a narrow function – meeting Britain’s need for underpaid and unprotected labour.

Nervous and suspicious

The construction sector accounts for more than 10 per cent of Britain’s GDP. It is the centrepiece of the government’s plan to revive the struggling economy, and the recipient of regular subsidies and stimuli.

Critics say the government’s restrictions on A2 workers have benefitted the construction sector by boosting the ranks of poorly paid and loosely regulated labourers. They accuse Britain of trying to build its way out of a double-dip recession by undercutting pay and conditions for other, relatively well-established, workers.

A Balkan Investigative Reporting Network (BIRN) investigation shows that A2 workers are generally prepared to work for lower wages and in worse conditions than others in the construction industry. Many interviewees spoke on condition of anonymity because they did not wish to attract the attention of the authorities.

Unions and safety officials agree that the A2 workers’ immigration status has driven them into the highly casual end of the building trade, where procedures are more likely to be ignored and injuries and grievances are less likely to be reported.

The UK government justifies its restrictions, arguing that they have protected the British workforce by preventing another surge of immigration of the scale that brought Jarek to the country.

Statistics from the Department of Work and Pensions show that around 210,000 Romanians and Bulgarians have received a National Insurance (NI) number since their countries joined the EU five years ago. This figure offers a very rough indication of how many migrants from these countries may be working in Britain, without taking into account those working illegally and those who have since returned home.

By comparison, some 640,000 Poles have received NI numbers over the last five years, from the total of more than a million over the last decade.

Large construction guilds, meanwhile, insist that their members are bound by law to ensure working conditions are safe and fair. When the rules are broken, they say, the migrants are often complicit.

Some migrants interviewed by BIRN seemed to confirm this, saying they worked in the grey economy to avoid taxes. But as many are underpaid, the incentive for doing so is also greater.

If caught working illegally, the migrants face a fine of up to £1,000 pounds (about €1,300) and a possible prison term.

However, the day labourers in front of Wickes are in little danger of being busted, as they can always claim that they intend to declare any earnings.

Their nervousness around the police stems less from a genuine fear of prosecution than from a general suspicion of the state.

Facing severe restrictions in the job market, they have been funnelled towards a zone where there is no clear distinction between the lawful and unlawful, or between the exploitative and the cost-effective.

“The police have asked me for ID… Sometimes they say you can stay, sometimes they make you leave,’’ says a middle-aged day labourer from Bulgaria who gave his name as Neven. “I stay,’’ he adds. “What are the police going to do to me?’’

 

Numbers game

Upon arrival in the UK, all foreigners in search of work are expected to apply for an NI number.

The number is a prerequisite for anyone seeking legitimate long-term employment. It is effectively the code upon which the state builds each individual’s record of taxes, pensions and benefits.

When Jarek came to Britain in 2004, Poles like him had little difficulty acquiring an NI number. But by the time Neven migrated five years later, Romanians and Bulgarians were finding it harder to register.

A2 nationals are automatically allocated NI numbers only if they have travelled to Britain on a type of work permit that is issued with direct offers of employment.

However, these migrants are in a minority. Most Romanians and Bulgarians travel to the UK without work permits or any firm promise of employment.

Eager to start earning, they gravitate towards the construction and hospitality sectors, where they can eventually skirt the need for a work permit by registering as self-employed.

Migrants who fail to prove they are self-employed, and therefore fail to get an NI number, often end up on the margins of these sectors, getting paid cash-in-hand for casual jobs that require minimal paperwork.

Bulgarian and Romanian embassy officials in London told BIRN that their citizens were finding it harder to get an NI number, in some cases logging five unsuccessful attempts. Many of the day labourers outside the Wickes at Seven Sisters fit this category.

“No money, no job in Bulgaria,” said a 45-year-old migrant who did not give his name. He said he had twice applied for an NI number, and had been refused both times. He had not found work for two months and was living off his savings.

"Smaller sites, bigger risks"

Undocumented workers are more likely to be seriously injured on the job, according to trade unions and safety experts.

A young Romanian man, whose name has been withheld on the advice of his lawyer, told BIRN he had been electrocuted while operating a jackhammer at a site in London. “I don’t remember much,” he said. “There was smoke. My arm was burned.”

The man had been working in Britain without an NI number and had learned about the job from a friend. He says he was not asked to provide any documents or sign any contracts before starting work, and was paid cash-in-hand. Although he received some basic safety instructions, he says he had trouble following them because of his poor English.

Construction unions estimate that some 80 per cent of workplace accidents go unreported. The Health and Safety Executive (HSE), the UK watchdog that monitors safety in the workplace, does not keep any data recording the nationality of injured workers.

However, it acknowledges that migrant workers are more exposed to accidents and less likely to report them, even though they cannot be deported or penalised for doing so.

Richard Boland, the HSE’s head of operations for construction in southern England, says “the vulnerability that comes with having restrictions on when and where you can work” can drive builders to sites where the safety rules are not enforced.

HSE’s inspectors are now shifting their focus away from the large firms towards smaller sites because the latter, he says, are more likely to ignore standards and to employ relatively inexperienced migrant workers.

"Silent accidents"

Romanian and Bulgarian workers who manage to acquire an NI number still face curbs that did not trouble an earlier generation of immigrants from the EU.

Most jobs in construction are arranged through specialist employment agencies, which are typically small companies with a record for hiring from within a particular immigrant community.

These agencies act as subcontractors for bigger firms, delivering casual labour to large sites at short notice and handling much of the associated paperwork.

According to lawyers and labour experts, the A2 workers hired by such agencies are less likely to complain of dangerous conditions and low wages. Many fear being blacklisted in an economy where their options for employment are already circumscribed.

Remus Robu, a paralegal with UK law firm Levenes, often handles claims arising from accidents involving A2 workers. “Unfortunately, there are people who do lose their job when they file for compensation,” he said.

The Romanian owner of a small building company, speaking on condition of anonymity, confirmed the existence of an informal blacklist for workers who were regarded as troublesome. But, he said, this was no different to the system of references shared by employers in other industries.

“Would you hire back somebody who had filed a claim against you?’’ he said.

The owner also told BIRN that he had persuaded a worker against reporting an accident that had led to a broken leg. He said he had paid the injured man a full wage throughout his time in recovery, and guaranteed him further employment when he was fit again.

“He agreed not to pursue a claim against me because I have a good relationship with my workers,” the owner said.

According to the HSE, any accident that leads to a broken leg has to be reported under UK law. If an employer is found to be at fault, lawyers say a worker can expect to receive between £6,000 and £36,000, depending on the severity of the injury.

Small construction firms are usually keen to avoid having claims brought against them, as these can hamper their ability to secure fresh contracts.

"Informal economy"

As well as discouraging complaints over conditions, employment agencies often pay A2 migrants a lower wage than other workers.

Many agencies deduct a form of commission from workers’ pay packets. In some cases, a payroll company – often linked to the agency – will charge an additional “admin” fee for processing salaries.

The A2 migrants have no safeguards against these cuts to their earnings. As self-employed workers, they are not eligible for the UK’s minimum wage, currently set at just over six pounds an hour.

Moreover, although technically expected to pay their own taxes, self-employed labourers are automatically taxed at source at a rate of 20 per cent, under a government scheme that applies to the construction sector alone.

The construction workers’ union, UCATT, has called for the scheme to be scrapped, saying it facilitates a form of bogus self-employment. Britain’s opposition Labour party also recently said it would review the scheme.

However, an official from the UK’s largest construction trade association said the workers in this category deserved no more sympathy than their employers for undermining their “legitimate competitors”.

“Both parties gain from effectively breaking the law and, as such, those A2s who collude in false self-employment cannot be portrayed as innocent victims,” says Peter O’ Connell, a policy manager with the Federation of Master Builders.

Stephen Ratcliffe, director of the UK Contractors Groups, a guild representing the country’s top construction firms, said criminal proceedings should be used against the “informal economy” where companies flout tax, employment and safety laws.

Both O’Connell and Ratcliffe stressed that the members of their organisations abide fully by the law.

The UK’s main trade body for employment agencies, the Recruitment and Employment Confederation, declined to comment despite several requests from BIRN.

Given the ways in which working through employment agencies can eat into their earnings, many A2 workers decide to opt out of the system.

The day labourers outside the Wickes superstore in Seven Sisters include some who have an NI number but choose not to use it.

A Romanian man, who refused to give his name, says he has been in the UK for six years and regularly pays his taxes and contributions to the state.

But he supplements his official income by working cash-in-hand. “People hire me to paint their house. If they ask for an invoice, I can issue one. Otherwise, I don’t.”

“I’m done working with the agencies,” he adds. “They take too much of your money.”

Most of the men outside Wickes said they expected to earn around £50 (€60) a day. By comparison, a self-employed Romanian recruited legally through an employment agency for marshalling traffic at a building site, can expect to earn £80 (€100) per day. In other words, he will be paid only £30 (€40) more than the day labourers, out of which he must fund further tax and NI contributions.

Recruitment agencies say they pay the same wage, regardless of nationality. However, unions say that British and Polish workers can expect to be paid £9-10 per hour for jobs that will be offered to A2 workers for £5-6 per hour.

As they do not face any working restrictions, Polish and British workers are in a better position to negotiate their rates or simply take better jobs in other sectors. Romanians and Bulgarians are more likely to go with what they are offered, as they have fewer options on the job market.

"Good for business"

According to its critics, the current policy on A2 workers has created a system that deprives the state of tax revenues, undercuts British labour and leaves foreigners open to exploitation.

Labour MP Jim Sheridan has argued for tighter regulation of the employment agencies in the construction sector, along the lines of the licensing of agricultural gangmasters.

Others call for reducing self-employment in the sector by making construction firms hire more workers directly. However, this would also shift the burden for NI contributions – nearly 14 per cent of the wage bill – on to the employers.

UCATT convenor Dave Allen admits this is unlikely to happen, as it would leave the big firms with smaller budgets. “The government knows that if everybody was directly employed, the economy might suffer,” he says.

Bridget Anderson, deputy director and senior research fellow at Oxford University’s migration think-tank COMPAS, says the government should, at the very least, enforce the minimum wage regulations on all workers, British and foreign, self-employed or not.

She says the rhetoric about protecting British jobs was misleading: the curbs had undermined the established workforce while benefitting businesses by giving them a more pliant workforce.

“The more you focus on immigration control, the more you introduce transitional arrangements – the more you create a labour force that is actually more desirable for employers,” she said.

EU members cannot prevent the citizens of other member states from travelling to their countries for work. They can only impose “transitional controls” of the kind currently in place in the UK against Romanians and Bulgarians.

The UK is just one of several EU states that have imposed restrictions on A2 workers. Similar restrictions exist in Austria, Germany, Belgium, France and the Netherlands.

By law, the curbs must be lifted by January 2014. However, a statement issued by the UK Border Agency last year confirmed it would apply similar “transitional restrictions” on all new EU member states to ensure that “migration benefits the UK and does not adversely impact our labour market’’.

The UK’s Border Agency, the immigration minister, and the Department for Work and Pensions all declined to be interviewed for this article.

Sorana Stanescu is a Bucharest-based journalist. This article was edited by Neil Arun. It was produced as part of the Balkan Fellowship for Journalistic Excellence, an initiative of the Robert Bosch Stiftung and ERSTE Foundation, in cooperation with the Balkan Investigative Reporting Network. All photographs from Getty Images.

Sorana Stanescu is a Bucharest-based journalist.

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The age of lies: how politicians hide behind statistics

Perhaps it is time to combine our Trump-era, heightened sensitivity to untruths with a new broadcasting technique or two.

The small slabs of crude election soundbites, with extra ornamentation in the form of half-true and meaningless headline statistics, clunk across the airwaves, and we grimace. The dead prose reaches us umpteen times a day – “an economy that works for all”, “the many and not the few”, “work is the way out of poverty”, “more being spent on our schools than ever before”, “the NHS is treating more patients than ever ­before”, “fastest growth rate in Europe”, “the national interest”, “the most ­important election in my lifetime” – and yes, let’s hear it for “strong and stable leadership”.

On 30 April, Andrew Marr tried a little witty and civilised pre-emptive mocking to stop Theresa May using soundbites in his interview with her, but it did not work because it could not work. Embarrassment about clichés and almost idiotic numbers is not what democratic politicians worry about at election time. Many of us may pine for the old American game-show device – where, for failing to amuse and divert the audience, contestants are removed from the fray by a man hammering a gong – but that is not on offer and, in election mode, the politicians will do as they have long learned to do. They will listen to the Lynton Crosbys and Seumas Milnes of this world and plough on – and on.

The soundbites are largely vacuous and we are more noisily sardonic about them than three decades ago (hooray for media literacy) but they aren’t worse than normal. There is no point expecting the debate to run on the lines of Gladstone’s Midlothian campaign 140 years ago, when he charged around Britain giving five-hour speeches – richly informed by Liberal philosophy – which did the trick for him and his party.

The clichés are, naturally, often interchangeable. Everybody running for high political office could quite contentedly utter any or all of the above phrases, though I concede it doesn’t require an inspired analyst of modern British politics to know what Theresa May is trying to do with her leadership riff – nor Jeremy Corbyn with his “rule for the many and not the few”, a phrase that has been used religiously since the adoption of universal suffrage. Only Jacob Rees-Mogg would put it to one side.

I spent almost 30 years at the BBC – working with a cadre of (mostly) hugely talented and impartial presenters and editors trying to find ways of injecting a bit more surprise or rigour into political interviews. (Surprise and rigour are often not the same thing.) I recall David Dimbleby reducing Alastair Campbell to semi-public fury in 1997 by excavating Tony Blair’s early political career and finding, neither surprisingly nor, in my view, particularly reprehensibly, that he had said Michael Foot-like things in a Michael Foot-like era. Oddly, nobody had thought to do this after he had been elected leader three years earlier, so Dimbleby’s approach to Blair had an element of ­surprise. And then there was John Humphrys’s relentless needling of Gordon Brown for his comic refusal after the 2008 financial crash to use the word “cuts” to describe what might have to happen to reduce the budget deficit, or even to agree with his own chancellor, Alistair Darling, that the global economic outlook was very bad. Brown had an on-air mega-curdle.

We know the score – the politicians find the rhetorical and statistical position that provides the best short-term defensive crouch, while the interviewer at least wants to make sure that the audience knows the question posed is relevant, fair and, if need be, that it has been dodged. Time presses on both participants – but the impact of the compression is unequal. The interviewee usually has the upper hand. In her early period Margaret Thatcher, who was a good deal more nervous than her subsequent reputation for clarity and authority would suggest, might well have been the all-time queen of interview delay tactics. However, most interviewees know that once they have found an answer to a question the first thing to do is to pad it out in case the next question is a little more difficult.

I am not outraged by any of this; nor do I believe these encounters should be dismissed as sterile, or that we should be contemptuous of the skills involved on either side of the exchange. The sort of one-sided triumph enjoyed by LBC’s Nick Ferrari with Diane Abbott is rare, and her numerical amnesia over policing made a whole argument go kerplunk – but even in more orthodox interviews you can often detect at the very least a broad weakness in a broad argument.

To my ear Corbyn sounds perpetually unsteady on defence policy (see his Marr interview in the first week of the campaign) and public finances, and neither May nor David Cameron before her manages much fluency on the impact of cuts on the working poor once they have uttered that threadbare soundbite about work being the route out of poverty. Would that it were so simple.

Our willingness to dismiss as boring these interviews, the staple of daily current affairs programmes, is overdone. And we have been a little graceless about the extent to which senior UK politicians do – or did – engage in at least some forms of public debate. Anyone who follows the US media will know how rare it has always been for senior members of the administration and White House staff to expose themselves to the sort of scrutiny still supplied by the Sunday political shows, Radio 4 current affairs programmes, Newsnight or Channel 4 News.

For decades, senior politicians in the UK turned up in the studios – often with scarcely concealed irritation – but they went through with it. In part because it was expected and in part out of self-interest. Good interview performances could lead to rapid promotion. Iain Duncan Smith was (you may be surprised by this) particularly effective in his early years at advocating his causes, and his party’s, in front of a microphone. But the studios did for him when he became Tory leader. As it turned out, his failings were more obvious when confronted by a skilled interviewer than in the House of Commons. His nervous coughing finally caught up with him one morning on the Today programme, and that was that.

Duncan Smith and Abbott are far from alone in seeing their currency plummet as a result of losing the plot in an interview. Harriet Harman, normally a highly fluent and agile politician, was sacked as social security secretary in 1998 after a grim outing, at least for her, with John Humphrys – caused not by his abrasiveness nor by any Abbott-like forgetfulness, but by her almost tangible unhappiness with a New Labour policy she was defending.

Even now, on BBC Question Time, some heavyweights will turn up only to be mauled by the voters on topics a long way away from the heart of their portfolio. Yes, they get copious notes from party researchers and have endless rehearsals to minimise the chance of saying anything too intellectually lively: but they should nevertheless get credit for risking it in the first place.

However, outside election time this tradition of broadcasting interrogation and debate, not much more than 50 years old, is under stealthy attack. The presenting team on Today is seriously good, but it is hard not to notice that the heavy hitters turn up less often for their ten minutes of duelling; similarly with Newsnight and Channel 4 News.

The Prime Minister’s Olympian approach to this sort of public engagement aggravates what was already a problem. The broadcasters may be losing ground. In this election there will be no head-to-head leaders’ debates featuring Labour and the Conservatives, and there is no great uproar about it. As it happens, I don’t believe that their absence is a disaster – not least because the format of individual leaders confronting an engaged Question Time audience one at a time (a “tradition” that began in 1997) provides far more substance and revelation than the 2010 or 2015 leaders’ debates did.

In the meantime, what can be done to the interview to improve the quality of public debate? Forcing out the clichés is not a realistic goal. Yet perhaps it is time to combine our Trump-era, heightened sensitivity to untruths with a new broadcasting technique or two. The BBC Trust (which I was part of for two years until it ceased to exist in April) commissioned its final independent editorial report on the BBC’s use of statistics from a panel of experts chaired by the former UK chief statistician Jil Matheson.

It is a superb piece of work. Above all it pleads with the BBC to do more to put statistics in context. The work was largely complete before the EU referendum so it did not pass judgement about either the veracity of the Brexiteers’ “extra £350m for the NHS” claim or the BBC’s coverage of that claim. I listened and watched a lot and, contrary to the views of many leading members of the Remain campaign, the BBC seemed to me to have consistently signalled to the audience the risible nature of the figure, if not as rudely as many would have liked.

Yet there is a different perspective on that cause célèbre. Only very rarely did the BBC on air (or anyone else, for that matter) compare the sums involved with total UK public expenditure: a net annual payment to the EU of about £8.5bn, compared to public expenditure of about £785bn. This £8.5bn is not a trivial sum – and it is likely to sound gargantuan to an unskilled worker on low wages in Hartlepool – but it hardly threatens the nation’s existence. We will have to think about that number all over again when the EU divorce bill gets paid.

In the past few years there has been a welcome growth online of fact-checking websites that get to grips with some of the half-sense or nonsense uttered – sometimes deliberately – in public debate. Among the broadcasters, Channel 4 News got in first with “FactCheck” and deserves great credit for having done so. The BBC has Reality Check; there are also the non-aligned Full Fact and others. And the Institute for Fiscal Studies (IFS) sits as a mega-authority when it pronounces on individual economic statistics. (It was a particularly dispiriting episode when the IFS took a pounding during the EU campaign.)

The good newspapers and the broadcasters have correspondents who can – and do – understand the context in which statistical argument takes place. They know the difference between a big number and a not-so-big number, the difference between an aggregate spending figure and spending per head of population, the difference in importance between a one-month figure and a trend – and a trend that does not change much over time.

This is all good, and better than it used to be. But perhaps more of this rigour can be woven into what is still the dominant form of political accountability in broadcasting: the interview.

So let us try a thought experiment. Imagine (though we don’t really have to imagine) that the Health Secretary, Jeremy Hunt, comes into a studio to say, surprise, surprise, that more is being spent in real terms on the NHS than ever before. Imagine that he is told there will be no questions on anything else until he can answer, let’s say, two obvious supplementary questions: in the course of the past 60 years how often has his assertion not been true? (Answer, says the IFS: four times, one of which was 2011/12.) And what has been the growth in per capita NHS spend, in real terms, since 2009/10, compared to the previous 15 years or so? (Answer: 0.6 per cent, as opposed to 5.4 per cent.) Answering these would show that his boast is one that almost all of his predecessors could have made, and also that the Conservative-led coalition was less generous to the health service than the preceding Labour government. It would be absolutely fair for Jeremy Hunt to respond vigorously about the need to cut the deficit or even to make points about who was in government when the crash happened – but he could not be allowed to get away with statistical near-rubbish.

Similarly, the mantra on English education (“Our schools are getting more money than ever before”) is a waste of air. It’s not that the cuts are “vicious” – just that the assertion when put in context is gibberish. The economy is growing and the school population is growing, fast. So if we were not spending more in total, and in real terms, then the cuts would be vicious. And yet, per head, there will be less in real terms for pupils. Period.

The front-line interviewers I know best are very skilled journalists and they often do try to get a jab in when the numerical nonsense gets going – but they have to move on, whether to other urgent matters or to seek a news headline from the interview, and there is not enough jeopardy for the press officer or spin doctor who wrote the politician’s brief to desist from writing the same stuff next time around.

There may be other ways of levelling up matters. The interview could proceed as normal; but at the end of it up could pop, say, Tim Harford (of the brilliant statistics programme More or Less on Radio 4) to put in the necessary corrections. It would have to be done within a few minutes or else the impact would dissipate. From time to time, Harford or his equivalent does appear after a political interviewee has spouted statistically illiterate twaddle – but not often enough, and usually this happens long after the attempted mugging of intelligent debate. Too little, too late.

It would be obligatory to ensure that this type of treatment, particularly at election time, was meted out to all the parties – but outside the election it is the government of the day and its news departments that are going to have to face most of the music. Fair enough.

My suggestion is not put forward because I am advocating a particular party’s reading of the state of the nation (or nations). There is no monopoly on vice. We should not forget Labour’s “triple counting” of health service spending after 1997 even if Blair/Brown subsequently, in benign economic circumstances, did indeed put their foot on the health-spending accelerator.

Rather, when the election dust settles and the media seminar post-mortems crank up yet again – about the level of turnout, political ennui, the particular disengagement of the young, the coverage of the leaders, the role of opinion polls and other staples – we need to keep working on how to improve the quality of public debate. It is not all awful, and a stylised contempt for what is good is itself corrupting of democracy. But the numbers nonsense needs fixing. 

Mark Damazer is Master of St Peter’s College, Oxford, and was the controller of BBC Radio 4 from 2004 to 2010

This article first appeared in the 18 May 2017 issue of the New Statesman, Age of Lies

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