Show of strength

Hugo Chávez says he wants to bring peace to the warring factions in Colombia's cocaine wars but his

Squinting into the glare of the late-afternoon Caribbean sun, hundreds of pleated khaki-dressed soldiers and military dignitaries form orderly rows facing their chief of staff and head of state, Venezuelan president Hugo Chávez.

Positioned on stage and flanked by a few lines of tanks and helicopters in a military training ground in the provincial city of Valencia, western Venezuela, President Chávez waits for the roaring fighter jets to pass overhead before addressing the assembly.

"From Colombia, Venezuela is threatened," Chávez says, dismissing as "inventions" widespread allegations that his government has colluded with drug trafficking and arms sales to Colombian guerrillas.

The speech is being delivered to mark the 16th anniversary of the attempted coup led by the then-young Lieutenant Colonel Chávez on 4 February 1992. Although it ended in failure and Chávez and his cohorts were imprisoned, many believe the event - now commonly referred to as 4F - paved the way for his eventual democratic election to the presidency in 1998.

But while the Venezuelan president was commemorating his failed putsch, over a million protesters took to the streets in neighbouring Colombia and in cities across the world to voice their opposition to Chávez's hostage-taking rebel allies, the Revolutionary Armed Forces of Colombia (Farc).

In an almost implausible coincidence, anti-Farc campaigners chose 4 February to mobilise a global protest against the Marxist insurgents. They maintain that the event was entirely apolitical and directed only at the rebel fighters, but in a statement on their website they denounce Chávez's "interventions in the internal matters of Colombia and, particularly, his declarations which seek to justify the Farc as a representation of the Colombian people".

Chávez's inflammatory comments about the threat from Colombia came two days after he declared that the Venezuelan armed forces were "on alert" against possible aggressions from the neighbouring country. In a televised broadcast, the president had warned: "We don't know how far it could go. We don't want to hurt anybody, but no one should make a mistake with us."

He added: "One day things will change in Colombia," referring to the cocaine-fuelled civil war that has raged across the border for almost 60 years. "Theirs is a war in which we cannot participate except as peacemakers."

His words have further aggravated the deepening diplomatic crisis with Bogotá. After successfully negotiating the release of two hostages held by the Farc, he requested that these narco-rebels be removed from lists of international terrorist organisations and expressed an ideological affinity with their insurgent cause.

"The Farc and [National Liberation Army] ELN are not terrorist bodies. They are real armies that occupy space in Colombia. That must be recognised. They are insurgent forces with a Bolivarian political project, which here we respect," Chávez said in his yearly address to the National Assembly on 11 January.

As the anti-Farc movement gathered global momentum through social networking sites such as Facebook, it was quickly seized upon by the Colombian government. On the day of protest, Colombian president Álvaro Uribe even delivered a message of thanks to marchers in the city of Valledupar. "Our gratitude goes to all Colombians who today expressed with dignity and strength their rejection of kidnapping and kidnappers," Reuters reported him as saying.

Back at the Valencia barracks, Venezuelan officials reacted truculently. Jesús González, the strat egic commander of the armed forces, rejected it as a "political ploy to try to identify 4 February with opposition to the Farc".

President Chávez reminded his army and onlookers of the history behind the day's cele brations. "The events of 4 February [1992] swept Venezuela into the 21st century. It was when the Bolivarian revolution truly began," he declared.

In recent years, the flamboyant Venezuelan president has used 4F to demonstrate his increasing regional influence and to launch stinging verbal attacks on his enemies.

While critics maintain that it is hypocritical for a democratic country to celebrate a coup, albeit a failed one, Chávez's supporters see it as the day that planted the seeds for Venezuela's ongoing socialist transformation. Chavistas call it the "Dawn of Hope" and regard it as a stepping-stone to true democracy for the poverty-stricken masses.

"It was the lightning bolt that illuminated the darkness," Chávez said in an interview with the Chilean author Marta Harnecker in 2005.

Continuing his speech to the military, the president maintains that 4F is not finished. "It reminds us we need to be even more revolutionary. My government is a child of 4F," he says.

After two years in prison, Chávez and his allies were released by presidential pardon in 1994 and began a new effort to take over the government, this time through democratic means.

"We realised that another military insurrection would have been crazy," Chávez said in 2005. "A large part of the population did not want violence, but rather they expected that we would organise a political movement structured to take the country on the right path." He came to believe, he has said, that the Bolivarian revolution had to be a peaceful one.

However, some scholars consider the Venez uelan government's decision to actively celebrate 4F a rewriting of history intended to indoctrinate the population.

Néstor Luis Luengo, a professor of sociology and head of research at the Andrés Bello Catholic University in south-west Caracas, believes commemorating the failed coup is a key element in Chávez's broader socialist agenda. "There is an ideological battle taking place in this country. If [the government is] going to push for more reforms, they have to change the ideology of the country and the historical events celebrated." It is in their interests, he says, to make 4 February a patriotic day.

Opposition leaders also criticise Chávez for using the commemoration of the failed coup as an attempt to politicise the military. "For us, the important thing is to have an armed force that is apolitical, modern and at the service of the Venezuelan people, and one that does not become a political party," said Julio Borges, leader of the opposition party Primero Justicia.

Other Chávez opponents are concerned at the militarism: "This government prefers to celebrate a day of violence. They should instead be celebrating the day he was democratically elected president," said Armando Briquet, secretary general of Primero Justicia.

A violent act

Chávez's supporters obviously disagree. Cruz Elena Peligrón, a civilian participant in the 1992 coup and friend and neighbour of Chávez in the 1990s, says: "We have always celebrated our independence day and that was a violent act. The US military commemorates wars like Vietnam and the Second World War. They say you have to fight for peace and unfortunately that's true."

Since Chávez took office in 1999, he has survived an attempted coup, oil strikes and referendums on his presidency. Last December, a package of proposed reforms to the constitution, which would have allowed him to stand for indefinite re-election, was defeated at the polls - his first political loss in nine years.

With Chávez's opponents invigorated by their poll success, this year's 4F festivities were notably restrained, taking place in a small pro vincial barracks instead of the grand military base at Fuerte Tiuna.

Venezuela's ambassador to the UN and former coup plotter, Francisco Javier Arias Cárdenas, said political priorities have changed: "We are no longer going to support unconditionally any segment of the Colombian military that has the objective of destroying either the Farc or the peace process in Colombia. Venezuela is just a third party in the civil war."

He concluded: "Of course we don't support guerrilla warfare, kidnapping or drug trafficking. But to end the war you don't necessarily need to end the Farc - just end the poverty, misery and violence that occur in Colombia every day. Both sides should go to the table and talk peace."

President Uribe maintains an unwavering zero-tolerance stance against the Marxist rebels and has shown much support for paramilitary forces that have been responsible for a catalogue of human rights abuses throughout Colombia's intractable civil war.

Meanwhile, Chávez's flamboyant militarism and allegiances with the Farc make dialogue between Colombia's warring factions seem less and less likely.

This article first appeared in the 11 February 2008 issue of the New Statesman, Now it gets really dirty

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 11 February 2008 issue of the New Statesman, Now it gets really dirty