A country at war

In the wake of the assassination of Benazir Bhutto we revisit our October special on Pakistan in whi

Pakistan is about to descend even deeper into violence and chaos, as the front-line state in the war on terror prepares for an all-out offensive on the jihadi militants entrenched in Waziristan, the country's lawless northern province. In what amounts to total war on the Taliban and al-Qaeda, President Musharraf is planning to bring the whole region under military control. This is a high-risk strategy, as the consequences of failure could be devastating for Pakistan. They could even lead to the break-up of the country.

Behind the headlines, the state's contradictions and tensions are being tested to the limit. The arrival of Benazir Bhutto, supposed to help marshal the forces of moderation and reform, has increased political instability. Supporters of the other former prime minister, Nawaz Sharif, who plans a second attempt to return from exile to Pakistan in the first week of November, are preparing a mass campaign against Musharraf that could lead to political gridlock. And the president himself has given a general amnesty to corrupt politicians - an act seen as handing a tabula rasa to plunderers and murderers.

Bhutto returned to Pakistan on the basis of a "power-sharing deal" brokered by Washington and vaunted in the international media as a po sitive move towards democracy. But it is little more than a conjunction of self-interests. Mush arraf describes the proposed arrangement as a "troika", involving the president, the prime min ister and the army chief of staff. The powers of the president, including being able to sack the prime minister at will, are to remain untouched for the next five-year term. Any premier would thus have little real power and would be forced to do the bidding of the other two members of the troika. A pliant prime minister with selected political parties on board means Musharraf remains in charge. The status quo is preserved.

In return for joining the arrangement, Bhutto's two main demands are met: her Swiss bank accounts have been unfrozen and she gets to keep her skyscraper in Dubai and properties in England and the US; and the rule against her serving a third term as prime minister is waived.

Musharraf's plans for the immediate future have two components. First, now that Bhutto has returned, he is determined to hold elections before mid-January. They will be "managed", just as he managed the 2002 elections, by "seat adjustment" - this time to the advantage of her party. He expects Bhutto to deliver her "blind" followers from Sind and Punjab, largely poor peasants at the mercy of feudal landlords. The intelligence agencies and the army will do the rest and ensure the desired results.

However, after the bloodbath in Karachi at Bhutto's return on 19 October, it is difficult to see how in the current atmosphere elections can be held. "Political rallies will be open to both militant attacks and sabotage by rogue intelligence elements," says Rashed Rahman, managing editor of the Post, the Lahore daily. "With intel ligence apparatus as prime candidate for the attack, all previous assumptions of Bhutto riding back to power are scuppered."

Fear of suicide bombings will be a potent inhibition to voters from venturing into the polling booths. And given that large parts of the northern provinces are virtually no-go areas, it will be next to impossible to hold elections in that region. "A limited voter turnout at around 20 per cent will hardly constitute a credible election," says Rahman - no matter how the elections are "managed".

Second, a fully fledged assault on Waziristan is due within days. "This has now become inevi table," a high-ranking military officer told the NS. "We are taking daily casualties. If we don't take the militants on with our full might, the morale of the army will sink even further." Unlike previous operations, which target ed specific militant bases or tried to block guer rilla movement between Pakistan and Afghan is tan, "the aim now is to pacify the entire province".

Forces would be deployed in all major cities, such as Mir Ali, Angor Ada and Magaroti, with the aim of establishing permanent army bases manned by thousands of military and paramilitary troops. The entire region will come under Pakistani military control, administered under the direct command of the newly appointed vice-chief of the army staff, General Ashfaq Pervez Kiani. (When and if Musharraf removes his uniform, General Kiani will take over as chief of the army staff.) "We estimate the all-out assault will destroy the centralised command structure of al-Qaeda and the Taliban, making their operations sporadic and largely ineffective," says the military officer.

Language of liberation

However, given the Pakistani army's poor record in Waziristan, this seems rather optimistic. The militants will almost certainly stand and fight to the bloody end. Pakistan has already lost more than a thousand soldiers; 300 more are being held hostage. The Pashtun fighters, including the Pakistani Taliban, know the region well. They are used to guerrilla warfare and see death in battle as a great honour and a direct route to paradise. Most of the local population supports them. The chances of the Pakistani army "pacifying" the region are therefore slim.

At issue is more than terrorism. The fiercely proud and independent Pashtun people see the American and British forces in neighbouring Afghanistan as invaders. Pakistani troops marching into Waziristan will also be seen as a foreign invasion. A civil war will turn into a war of "national liberation". Many tribal leaders are already speaking the language of liberating themselves from the "Pakistani administration". The end result could be a new wave of suicide attacks and acts of sabotage throughout Pakistan.

Musharraf began putting his strategy in place two weeks ago. He secured the passage of the national reconciliation ordinance (NRO), as it is called, on 5 October. This dropped all corruption charges against politicians from "all parties". "We decided to wind up those cases that were pending for the past 15 years," Musharraf said, claiming that it would bring to an end the politics of vendetta and victimisation in the country. The NRO cleared the way for Bhutto's return and wiped out the last remaining charges against her husband, Asif Ali Zardari, who was released on bail in 2004 after spending eight years in prison. The next day, Musharraf had himself re-elected as president for another term by the current hand-selected parliament.

But the amnesty granted in the NRO does not include Nawaz Sharif, leader of the Muslim League, Pakistan's second-largest party. A conservative, staunchly anti-American politician, Sharif believes democracy and military dictators do not go together. He commands huge support among both the middle classes and religious groups and is more likely to win a fair election than Bhutto. Sharif, deposed in a bloodless coup in 1999, is determined to engineer Musharraf's downfall. On his first attempt to return to Pakistan on 10 September, he was arrested at Kar achi Airport and given two choices: prison, or return to exile in Saudi Arabia. The cases against Sharif are still pending before the Supreme Court. Yet, despite Musharraf's efforts, the courts have refused to issue new arrest warrants against him. If Sharif succeeds in returning, the Bhutto/Mush arraf deal will be in serious trouble.

"The chances of that alliance holding are also slim," says Rahman. To begin with, the two despise each other. The Pakistan People's Party is not so much a party as a feudal institution that Bhutto runs as her fiefdom. But even she may find it difficult to suppress dissent in the senior ranks. Many PPP stalwarts believe that the power-sharing pact with Musharraf is damaging the party's reputation and electoral chances. A number of Bhutto family members have openly stated their criticisms. The poet and newspaper columnist Fatima Bhutto, Benazir's niece, holds her aunt responsible for the deaths in Karachi because of her insistence on "political theatre".

Her ratings in opinion polls conducted after the NRO have fallen sharply. Some senior PPP members hoped she would give a new lease of life to the party by behaving like a senior states woman and allowing younger politicians to lead. But not many are willing to defend an indefensible deal. There is thus a real chance that the PPP may split, as it did at the previous elections. And if Bhutto fails to deliver at these elections, even after seat manipulations, Musharraf will drop her as easily as he has abandoned other parties.

So far, Musharraf has had it all his way. His only remaining obstacle is a case currently at the Supreme Court over whether he can continue as president in uniform. It is not much of an obstacle, however, as everything is now in place for him to retain his power even if he has to dispense with his military position.

The power-sharing arrangement was conceived as a ploy to paper over the gaping cracks in the country. After Karachi, it looks more like another contributory factor in a more turbulent and dangerous era for Pakistan. The intelligence services, elements of which may be responsible for the attack on Bhutto's motorcade, are out of control. Suicide bombings have become an integral part of the militants' strategy in Waziristan, both to undermine the political process and to demoralise the army. Whether one player, or even power-sharing players, ultimately subservient to Washington can retain control of this explosive situation is a moot point.

Ziauddin Sardar, writer and broadcaster, describes himself as a ‘critical polymath’. He is the author of over 40 books, including the highly acclaimed ‘Desperately Seeking Paradise’. He is Visiting Professor, School of Arts, the City University, London and editor of ‘Futures’, the monthly journal of planning, policy and futures studies.

This article first appeared in the 29 October 2007 issue of the New Statesman, Pakistan

Jeremy Corbyn. Photo: Getty
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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 29 October 2007 issue of the New Statesman, Pakistan

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