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.

http://www.johnpilger.com

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!

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