John Pilger on Latin America: the attack on democracy

An unreported war is being waged by the US to restore power to the privileged.

Beyond the sound and fury of its conquest of Iraq and campaign against Iran, the world's dominant power is waging a largely unreported war on another continent - Latin America. Using proxies, Washington aims to restore and reinforce the political control of a privileged group calling itself middle-class, to shift the responsibility for massacres and drug trafficking away from the psychotic regime in Colombia and its mafiosi, and to extinguish hopes raised among Latin America's impoverished majority by the reform governments of Venezuela, Ecuador and Bolivia.

In Colombia, the main battleground, the class nature of the war is distorted by the guerrillas of the Revolutionary Armed Forces of Colombia, known as the Farc, whose own resort to kidnapping and the drugs trade has provided an instrument with which to smear those who have distinguished Latin America's epic history of rebellion by opposing the proto-fascism of George W Bush's regime. "You don't fight terror with terror," said President Hugo Chávez as US warplanes bombed to death thousands of civilians in Afghanistan following the 11 September 2001 attacks. Thereafter, he was a marked man. Yet, as every poll has shown, he spoke for the great majority of human beings who have grasped that the "war on terror" is a crusade of domination. Almost alone among national leaders standing up to Bush, Chávez was declared an enemy and his plans for a functioning social democracy independent of the United States a threat to Washington's grip on Latin America. "Even worse," wrote the Latin America specialist James Petras, "Chávez's nationalist policies represented an alternative in Latin America at a time (2000-2003) when mass insurrections, popular uprisings and the collapse of pro-US client rulers (Argentina, Ecuador and Bolivia) were constant front-page news."

It is impossible to underestimate the threat of this alternative as perceived by the "middle classes" in countries which have an abundance of privilege and poverty. In Venezuela, their "grotesque fantasies of being ruled by a 'brutal communist dictator'", to quote Petras, are reminiscent of the paranoia of the white population that backed South Africa's apartheid regime. Like in South Africa, racism in Venezuela is rampant, with the poor ignored, despised or patronised, and a Caracas shock jock allowed casually to dismiss Chávez, who is of mixed race, as a "monkey". This fatuous venom has come not only from the super-rich behind their walls in suburbs called Country Club, but from the pretenders to their ranks in middle-level management, journalism, public relations, the arts, education and the other professions, who identify vicariously with all things American. Journalists in broadcasting and the press have played a crucial role - acknowledged by one of the generals and bankers who tried unsuccessfully to overthrow Chávez in 2002. "We couldn't have done it without them," he said. "The media were our secret weapon."

Many of these people regard themselves as liberals, and have the ear of foreign journalists who like to describe themselves as being "on the left". This is not surprising. When Chávez was first elected in 1998, Venezuela was not an archetypical Latin American tyranny, but a liberal democracy with certain freedoms, run by and for its elite, which had plundered the oil revenue and let crumbs fall to the invisible millions in the barrios. A pact between the two main parties, known as puntofijismo, resembled the convergence of new Labour and the Tories in Britain and Republicans and Democrats in the US. For them, the idea of popular sovereignty was anathema, and still is.

Take higher education. At the taxpayer-funded elite "public" Venezuelan Central University, more than 90 per cent of the students come from the upper and "middle" classes. These and other elite students have been infiltrated by CIA-linked groups and, in defending their privilege, have been lauded by foreign liberals.

With Colombia as its front line, the war on democracy in Latin America has Chávez as its main target. It is not difficult to understand why. One of Chávez's first acts was to revitalise the oil producers' organisation Opec and force the oil price to record levels. At the same time he reduced the price of oil for the poorest countries in the Caribbean region and central America, and used Venezuela's new wealth to pay off debt, notably Argentina's, and, in effect, expelled the International Monetary Fund from a continent over which it once ruled. He has cut poverty by half - while GDP has risen dramatically. Above all, he gave poor people the confidence to believe that their lives would improve.

The irony is that, unlike Fidel Castro in Cuba, he presented no real threat to the well-off, who have grown richer under his presidency. What he has demonstrated is that a social democracy can prosper and reach out to its poor with genuine welfare, and without the extremes of "neo liberalism" - a decidedly unradical notion once embraced by the British Labour Party. Those ordinary Vene zuelans who abstained during last year's constitutional referendum were protesting that a "moderate" social democracy was not enough while the bureaucrats remained corrupt and the sewers overflowed.

Across the border in Colombia, the US has made Venezuela's neighbour the Israel of Latin America. Under "Plan Colombia", more than $6bn in arms, planes, special forces, mercenaries and logistics have been showered on some of the most murderous people on earth: the inheritors of Pinochet's Chile and the other juntas that terrorised Latin America for a generation, their various gestapos trained at the School of the Americas in Georgia. "We not only taught them how to torture," a former American trainer told me, "we taught them how to kill, murder, eliminate." That remains true of Colombia, where government-inspired mass terror has been documented by Amnesty, Human Rights Watch and many others. In a study of 31,656 extrajudicial killings and forced disappearances between 1996 and 2006, the Colombian Commission of Jurists found that 46 per cent had been murdered by right-wing death squads and 14 per cent by Farc guerrillas. The para militaries were responsible for most of the three million victims of internal displacement. This misery is a product of Plan Colombia's pseudo "war on drugs", whose real purpose has been to eliminate the Farc. To that goal has now been added a war of attrition on the new popular democracies, especially Venezuela.

US special forces "advise" the Colombian military to cross the border into Venezuela and murder and kidnap its citizens and infiltrate paramilitaries, and so test the loyalty of the Venezuelan armed forces. The model is the CIA-run Contra campaign in Honduras in the 1980s that brought down the reformist government in Nicaragua. The defeat of the Farc is now seen as a prelude to an all-out attack on Venezuela if the Vene zuelan elite - reinvigorated by its narrow referendum victory last year - broadens its base in state and local government elections in November.

America's man and Colombia's Pinochet is President Álvaro Uribe. In 1991, a declassified report by the US Defence Intelligence Agency revealed the then Senator Uribe as having "worked for the Medellín Cartel" as a "close personal friend" of the cartel's drugs baron, Pablo Escobar. To date, 62 of his political allies have been investigated for close collaboration with paramilitaries. A feature of his rule has been the fate of journalists who have illuminated his shadows. Last year, four leading journalists received death threats after criticising Uribe. Since 2002, at least 31 journalists have been assassinated in Colombia. Uribe's other habit is smearing trade unions and human rights workers as "collaborators with the Farc". This marks them. Colombia's death squads, wrote Jenny Pearce, author of the acclaimed Under the Eagle: US Intervention in Central America and the Caribbean (1982), "are increasingly active, confident that the president has been so successful in rallying the country against the Farc that little attention will shift to their atrocities".

Uribe was personally championed by Tony Blair, reflecting Britain's long-standing, mostly secret role in Latin America. "Counter-insurgency assistance" to the Colombian military, up to its neck in death-squad alliances, includes training by the SAS of units such as the High Mountain Battalions, condemned repeatedly for atrocities. On 8 March, Colombian officers were invited by the Foreign Office to a "counter-insurgency seminar" at the Wilton Park conference centre in southern England. Rarely has the Foreign Office so brazenly paraded the killers it mentors.

The western media's role follows earlier models, such as the campaigns that cleared the way for the dismemberment of Yugoslavia and the credibility given to lies about Iraq's weapons of mass destruction. The softening-up for an attack on Venezuela is well under way, with the repetition of similar lies and smears.


Cocaine trail


On 3 February, the Observer devoted two pages to claims that Chávez was colluding in the Colombian drugs trade. Similarly to the paper's notorious bogus scares linking Saddam Hussein to al-Qaeda, the Observer's headline read, "Revealed: Chávez role in cocaine trail to Europe". Allegations were unsubstantiated; hearsay uncorroborated. No source was identified. Indeed, the reporter, clearly trying to cover himself, wrote: "No source I spoke to accused Chávez himself of having a direct role in Colombia's giant drug trafficking business."

In fact, the UN Office on Drugs and Crime has reported that Venezuela is fully participating in international anti-drugs programmes and in 2005 seized the third-highest amount of cocaine in the world. Even the Foreign Office minister Kim Howells has referred to "Venezuela's tre mendous co-operation".

The drugs smear has recently been reinforced with reports that Chávez has an "increasingly public alliance [with] the Farc" (see "Dangerous liaisons", New Statesman, 14 April). Again, there is "no evidence", says the secretary general of the Organisation of American States. At Uribe's request, and backed by the French government, Chávez played a mediating role in seeking the release of hostages held by the Farc. On 1 March, the negotiations were betrayed by Uribe who, with US logistical assistance, fired missiles at a camp in Ecuador, killing Raú Reyes, the Farc's highest-level negotiator. An "email" recovered from Reyes's laptop is said by the Colombian military to show that the Farc has received $300m from Chávez. The allegation is fake. The actual document refers only to Chávez in relation to the hostage exchange. And on 14 April, Chávez angrily criticised the Farc. "If I were a guerrilla," he said, "I wouldn't have the need to hold a woman, a man who aren't soldiers. Free the civilians!"

However, these fantasies have lethal purpose. On 10 March, the Bush administration announced that it had begun the process of placing Venezuela's popular democracy on a list of "terrorist states", along with North Korea, Syria, Cuba, Sudan and Iran, the last of which is currently awaiting attack by the world's leading terrorist state.

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 28 April 2008 issue of the New Statesman, Everybody out!

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What Marx got right

...and what he got wrong.

1. You’re probably a capitalist – among other things

Are you a capitalist? The first question to ask is: do you own shares? Even if you don’t own any directly (about half of Americans do but the proportion is far lower in most other countries) you may have a pension that is at least partly invested in the stock market; or you’ll have savings in a bank.

So you have some financial wealth: that is, you own capital. Equally, you are probably also a worker, or are dependent directly or indirectly on a worker’s salary; and you’re a consumer. Unless you live in an autonomous, self-sufficient commune – very unusual – you are likely to be a full participant in the capitalist system.

We interact with capitalism in multiple ways, by no means all economic. And this accounts for the conflicted relationship that most of us (including me) have with capitalism. Typically, we neither love it nor hate it, but we definitely live it.

2. Property rights are fundamental to capitalism . . . but they are not absolute

If owning something means having the right to do what you want with it, property rights are rarely unconstrained. I am free to buy any car I want – so long as it meets European pollution standards and is legally insured; and I can drive it anywhere I want, at least on public roads, as long as I have a driver’s licence and keep to the speed limit. If I no longer want the car, I can’t just dump it: I have to dispose of it in an approved manner. It’s mine, not yours or the state’s, and the state will protect my rights over it. But – generally for good reason – how I can use it is quite tightly constrained.

This web of rules and constraints, which both defines and restricts property rights, is characteristic of a complex economy and society. Most capitalist societies attempt to resolve these tensions in part by imposing restrictions, constitutional or political, on arbitrary or confiscatory actions by governments that “interfere” with property rights. But the idea that property rights are absolute is not philosophically or practically coherent in a modern society.

3. What Marx got right about capitalism

Marx had two fundamental insights. The first was the importance of economic forces in shaping human society. For Marx, it was the “mode of production” – how labour and capital were combined, and under what rules – that explained more or less everything about society, from politics to culture. So, as modes of production change, so too does society. And he correctly concluded that industrialisation and capitalism would lead to profound changes in the nature of society, affecting everything from the political system to morality.

The second insight was the dynamic nature of capitalism in its own right. Marx understood that capitalism could not be static: given the pursuit of profit in a competitive economy, there would be constant pressure to increase the capital stock and improve productivity. This in turn would lead to labour-saving, or capital-intensive, technological change.

Putting these two insights together gives a picture of capitalism as a radical force. Such are its own internal dynamics that the economy is constantly evolving, and this in turn results in changes in the wider society.

4. And what he got wrong . . .

Though Marx was correct that competition would lead the owners of capital to invest in productivity-enhancing and labour-saving machinery, he was wrong that this would lead to wages being driven down to subsistence level, as had largely been the case under feudalism. Classical economics, which argued that new, higher-productivity jobs would emerge, and that workers would see their wages rise more or less in line with productivity, got this one right. And so, in turn, Marx’s most important prediction – that an inevitable conflict between workers and capitalists would lead ultimately to the victory of the former and the end of capitalism – was wrong.

Marx was right that as the number of industrial workers rose, they would demand their share of the wealth; and that, in contrast to the situation under feudalism, their number and geographical concentration in factories and cities would make it impossible to deny these demands indefinitely. But thanks to increased productivity, workers’ demands in most advanced capitalist economies could be satisfied without the system collapsing. So far, it seems that increased productivity, increased wages and increased consumption go hand in hand, not only in individual countries but worldwide.

5. All societies are unequal. But some are more unequal than others

In the late 19th and early 20th centuries, an increasing proportion of an economy’s output was captured by a small class of capitalists who owned and controlled the means of production. Not only did this trend stop in the 20th century, it was sharply reversed. Inherited fortunes, often dating back to the pre-industrial era, were eroded by taxes and inflation, and some were destroyed by the Great Depression. Most of all, after the Second World War the welfare state redistributed income and wealth within the framework of a capitalist economy.

Inequality rose again after the mid-1970s. Under Margaret Thatcher and Ronald Reagan, the welfare state was cut back. Tax and social security systems became less progressive. Deregulation, the decline of heavy industry and reduction of trade union power increased the wage differential between workers. Globally the chief story of the past quarter-century has been the rise of the “middle class”: people in emerging economies who have incomes of up to $5,000 a year. But at the same time lower-income groups in richer countries have done badly.

Should we now worry about inequality within countries, or within the world as a whole? And how much does an increasing concentration of income and wealth among a small number of people – and the consequent distortions of the political system – matter when set against the rapid ­income growth for large numbers of people in the emerging economies?

Growing inequality is not an inevitable consequence of capitalism. But, unchecked, it could do severe economic damage. The question is whether our political systems, national and global, are up to the challenge.

6. China’s road to capitalism is unique

The day after Margaret Thatcher died, I said on Radio 4’s Today programme: “In 1979, a quarter of a century ago, a politician came to power with a radical agenda of market-oriented reform; a plan to reduce state control and release the country’s pent-up economic dynamism. That changed the world, and we’re still feeling the impact. His name, of course, was Deng Xiaoping.”

The transition from state to market in China kick-started the move towards truly globalised capitalism. But the Chinese road to capitalism has been unique. First agriculture was liberalised, then entrepreneurs were allowed to set up small businesses, while at the same time state-owned enterprises reduced their workforces; yet there has been no free-for-all, either for labour or for capital. The movement of workers from rural to urban areas, and from large, unproductive, state-owned enterprises to more productive private businesses, though vast, has been controlled. Access to capital still remains largely under state control. Moreover, though its programme is not exactly “Keynesian”, China has used all the tools of macroeconomic management to keep growth high and relatively stable.

That means China is still far from a “normal” capitalist economy. The two main engines of growth have been investment and the movement of labour from the countryside to the cities. This in itself was enough, because China had so much catching-up to do. However, if the Chinese are to close the huge gap between themselves and the advanced economies, more growth will need to come from innovation and technological progress. No one doubts that China has the human resources to deliver this, but its system will have to change.

7. How much is enough?

The human instinct to improve our material position is deeply rooted: control over resources, especially food and shelter, made early human beings more able to reproduce. That is intrinsic to capitalism; the desire to acquire income and wealth motivates individuals to work, save, invent and invest. As Adam Smith showed, this benefits us all. But if we can produce more than enough for everybody, what will motivate people? Growth would stop. Not that this would necessarily be a bad thing: yet our economy and society would be very different.

Although we are at least twice as rich as we were half a century ago, the urge to consume more seems no less strong. Relative incomes matter. We compare ourselves not to our impoverished ancestors but to other people in similar situations: we strive to “keep up with the Joneses”. The Daily Telegraph once described a London couple earning £190,000 per year (in the top 0.1 per cent of world income) as follows: “The pair are worried about becoming financially broken as the sheer cost of middle-class life in London means they are stretched to the brink.” Talk about First World problems.

Is there any limit? Those who don’t like the excesses of consumerism might hope that as our material needs are satisfied, we will worry less about keeping up with the Joneses and more about our satisfaction and enjoyment of non-material things. It is equally possible, of course, that we’ll just spend more time keeping up with the Kardashians instead . . .

8. No more boom and bust

Are financial crises and their economic consequences part of the natural (capitalist) order of things? Politicians and economists prefer to think otherwise. No longer does anyone believe that “light-touch” regulation of the banking sector is enough. New rules have been introduced, designed to restrict leverage and ensure that failure in one or two financial institutions does not lead to systemic failure. Many would prefer a more wholesale approach to reining in the financial system; this would have gained the approval of Keynes, who thought that while finance was necessary, its role in capitalism should be strictly limited.

But maybe there is a more fundamental problem: that recurrent crises are baked into the system. The “financial instability” hypothesis says that the more governments and regulators stabilise the system, the more this will breed overconfidence, leading to more debt and higher leverage. And sooner or later the music stops. If that is the case, then financial capitalism plus human nature equals inevitable financial crises; and we should make sure that we have better contingency plans next time round.

9. Will robots take our jobs?

With increasing mechanisation (from factories to supermarket checkouts) and computerisation (from call centres to tax returns), is it becoming difficult for human beings to make or produce anything at less cost than a machine can?

Not yet – more Britons have jobs than at any other point in history. That we can produce more food and manufactured products with fewer people means that we are richer overall, leaving us to do other things, from economic research to performance art to professional football.

However, the big worry is that automation could shift the balance of power between capital and labour in favour of the former. Workers would still work; but many or most would be in relatively low-value, peripheral jobs, not central to the functioning of the economy and not particularly well paid. Either the distribution of income and wealth would widen further, or society would rely more on welfare payments and charity to reduce unacceptable disparities between the top and the bottom.

That is a dismal prospect. Yet these broader economic forces pushing against the interests of workers will not, on their own, determine the course of history. The Luddites were doomed to fail; but their successors – trade unionists who sought to improve working conditions and Chartists who demanded the vote so that they could restructure the economy and the state – mostly succeeded. The test will be whether our political and social institutions are up to the challenge.

10. What’s the alternative?

There is no viable economic alternative to capitalism at the moment but that does not mean one won’t emerge. It is economics that determines the nature of our society, and we are at the beginning of a profound set of economic changes, based on three critical developments.

Physical human input into production will become increasingly rare as robots take over. Thanks to advances in computing power and artificial intelligence, much of the analytic work that we now do in the workplace will be carried out by machines. And an increasing ability to manipulate our own genes will extend our lifespan and allow us to determine our offspring’s characteristics.

Control over “software” – information, data, and how it is stored, processed and manipulated – will be more important than control over physical capital, buildings and machines. The defining characteristic of the economy and society will be how that software is produced, owned and commanded: by the state, by individuals, by corporations, or in some way as yet undefined.

These developments will allow us, if we choose, to end poverty and expand our horizons, both materially and intellectually. But they could also lead to growing inequality, with the levers of the new economy controlled by a corporate and moneyed elite. As an optimist, I hope for the former. Yet just as it wasn’t the “free market” or individual capitalists who freed the slaves, gave votes to women and created the welfare state, it will be the collective efforts of us all that will enable humanity to turn economic advances into social progress. 

Jonathan Portes's most recent book is “50 Ideas You Really Need to Know: Capitalism” (Quercus)

Jonathan Portes is senior fellow The UK in a Changing Europe and Professor of Economics and Public Policy, King’s College London.

This article first appeared in the 22 June 2017 issue of the New Statesman, The zombie PM

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