Middle East/North Africa Uprising 2011

In the 1970s, however, Sadat envisioned the area as a new business district to showcase Egypt’s economic realignment with global capitalism. An aggressive campaign of forced evictions and relocation was commenced. Residents were forced out of their homes and given flats in concrete blocs built on the desert fringes of Cairo. This campaign continued under the Mubarak regime. One of the residents filmed narrates her ordeal when she was evicted in 1982, only to return later.

Despite the economic hardships and the deteriorating physical environment, the community is thriving socially. The filmmaker intercuts interviews with scenes of everyday life: a woman smoking outside her home, a butcher cutting meat, a child on a bicycle, and a man who is uncomfortable with the presence of a camera and demands to know what is being filmed.

It would have made a stronger case against government policies if the audience had the chance to hear from officials directly how they view the issue of Bulaq. The multinational developers and hotel chains that also benefit from this government policy are also unheard. An interview with the management of the Hilton Hotel overlooking the district, for example, could have been interesting.

‘Those responsible for demolitions have to be tried,’ says one man. ‘In neighborhoods like Bulaq we love each other and work together like one family,’ says a woman. Another man confirms that ‘the owners of this place are the people living here; we own this place.’

Conventional wisdom - or more accurately, perhaps, corporate media - would suggest that this is happening because the growing middle-class have rising expectations for individual freedom, mobility, money, private health and education, luxury commodities, cars, and so on. It is suggested that what is fuelling the discontent with autocratic regimes is middle-class aspiration for an unfettered market and their frustrations with the regimes that prevent them enjoying these benefits.

Almost without exception, the same set of social and economic policies were implemented under pressure from the IFIs (international financial institutions) across the African continent - the so-called structural adjustment programmes (later rebranded as Poverty Reduction Strategy Programmes), all to ensure that African countries serviced the growing debt. But the agenda of the creditors was also to use the debt ‘crisis’ to open avenues for capital expansion, through extreme privatization and liberalization of African economies.

The net effect was to reduce the state to having a narrowly prescribed role in economic affairs, and precious little authority or resources to devote to the development of social infrastructure, its primary role being to ensure an ‘enabling environment’ for international capital and to police the endless servicing of debt to international finance institutions.[8]

the most serious consequence of these policies was not simply the reversal of the many gains of independence, but the erosion of the ability of citizens to control their own destiny. Self-determination, originally such a powerful motor force for mobilisation in the anti-colonial movement, was gradually suffocated. Economic policies were no longer determined by citizens and their representatives in government, but by technocrats from the international finance institutions and the World Bank, with hefty support provided by the international aid agencies.

And where progressive developments occurred – as in Burkina Faso under Thomas Sankara – assassinations, support for military coups and economic isolation were some of the weapons used to prevent citizens having the audacity to construct alternatives to the crass policies of neoliberalism.

Research by the Tax Justice Network (TJN) estimates that a staggering US$11.5 trillion has been siphoned 'offshore' by wealthy individuals, held in tax havens where they are shielded from contributing to government revenues.

Many criticise SAPs/PRSPs as being the product of bad policy - neoliberal policies that are said to be dogmatic and an expression of 'market fundamentalism'. But, as Prabhat Patnaik has argued recently, the policies that are being insisted upon by the international finance institutions are the result of the structural needs of financialised capitalism in the present era, something that began as early as the 1970s and today dominates all parts of the global economy.

If a country is graded well by credit-rating agencies then that becomes a matter of national pride, no matter how miserable its people are.

But perhaps the most serious dispossession that we face is a political dispossession. Our governments are more accountable today to the international financial institutions, to the corporations who extract wealth without restriction, to the international aid agencies that finance institutions such as the IMF, than to citizens. In this sense, our countries are increasingly becoming more akin to occupied territories than democracies.

The sweeping away of Ben Ali in Tunisia and of Hosni Mubarak in Egypt took the imperial governments, who had been ardently supporting those regimes financially, economically, politically and militarily, completely by surprise. The corporate media sought to present the uprisings as sudden and spontaneous, despite the evidence in both countries that the eventual pouring of people on to the streets was the outcome of years of attempts to organize protests that had been brutally suppressed. Corporate media sought to present the mobilizations as being the product of Twitter and Facebook, obscuring the agency of people and conveniently forgetting that in Egypt the largest mobilization occurred after both the Internet and mobile phone networks had been blocked.

Imperial response to the uprisings has been, in essence, to establish in Tunisia Ben Ali-ism without Ben Ali, and in Egypt, Mubarak-ism without Mubarak.

With the fall of Mubarak, it is hardly surprising that the US has been eager to push for the formation of a government comprising the remaining components of Mubarakism - the military and the Muslim Brotherhood.

If the events in Tunisia and Egypt inspired hope, its twin, despair, is perhaps what is dominant in relation to Libya, Côte d'Ivoire and Somalia.

the current crisis of capitalism is different from the earlier one in that the scale of concentration and centralization of capital is unprecedented, and accompanied by a financialisation of capital also on an unprecedented scale. As one person recently characterized it: General Motors used to produce cars and occasionally speculated; today General Motors speculates on the stock markets, and occasionally produces cars!

In Africa we have seen the devastation of Somalia, the destruction of the natural environment in places such as the Niger Delta, the military interventions in Libya and Côte d'Ivoire, to say nothing of the arming of regimes that ensure the illegal occupation of the territory of Western Sahara. At the same time we see the emergence of social movements seeking to reassert the dignity of our people, the protests and uprisings that have developed over the continent. The outcome of all these events cannot be foreseen. But there are grounds for optimism, I believe.

What this approach ignores is that while citizens may have a chance to vote once every four to five years, finance capital votes every day on the stock markets, voting that has a direct consequence on every aspect of production, and on the price of every day goods, fuel, land prices, and so on.

Secondly, one of the striking features of the current period is the degree to which there is growing recognition across the global South of the commonalities in experience of the dispossessed. Indeed, there is even recognition of those commonalities emerging in the North - viz the recent uprisings in Wisconsin, Spain and Greece. For the first time in many years, there is a potential to create solidarity links with people in struggle based not on charity and pity, but on an understanding of the common cause of our dispossession.

while recognizing that there are many struggles against those who seek to exploit Africa, there are opportunities also to create today the alternatives to profit-driven motives of corporations. For example, African farmers’ organisations are confronting the onslaught of foundations such as the Bill and Melinda Gates Foundation and the Rockefeller Foundation, backed by oligopolies like Monsanto, that are ‘pushing agro-chemical crops using multi-genome patents.

‘You cannot carry out fundamental change without a certain amount of madness. In this case, it comes from nonconformity, the courage to turn your back on the old formulas, the courage to invent the future. It took the madmen of yesterday for us to be able to act with extreme clarity today. I want to be one of those madmen.’

Resuming privatization and increasing the role of carefully structured and appropriately priced PPPs should assist fiscal adjustment and mobilize private resources for infrastructure investment.

In addition to expanding Public Private Partnerships (PPPs, a euphemism for services privatization and outsourcing), the IMF named its priorities: "adopting as early as possible a full-fledged VAT, complementing energy subsidy reform with better-targeted transfers to the most needy, and containing the fiscal cost of the pension and health reforms."

As Adam Hanieh from London's School of Oriental and African Studies concluded just after the G8 summit and allied Arab states pledged $15 billion to Egypt, The plethora of aid and investment initiatives advanced by the leading powers in recent days represents a conscious attempt to consolidate and reinforce the power of Egypt's dominant class in the face of the ongoing popular mobilizations. They are part of, in other words, a sustained effort to restrain the revolution within the bounds of an "orderly transition" - to borrow the perspicacious phrase that the U.S. government repeatedly used following the ousting of Mubarak.

If successful, the likely outcome of this - particularly in the face of heightened political mobilization and the unfulfilled expectations of the Egyptian people - is a society that at a superficial level takes some limited appearances of the form of liberal democracy but, in actuality, remains a highly authoritarian neoliberal state dominated by an alliance of the military and business elites.[10]

They welcomed Libya's strong macroeconomic performance and the progress on enhancing the role of the private sector and supporting growth in the non-oil economy. The fiscal and external balances remain in substantial surplus and are expected to strengthen further over the medium term, and the outlook for Libya's economy remains favorable (emphasis added).[12]

The fund's mission to Tripoli had somehow omitted to check whether the "ambitious" reform agenda was based on any kind of popular support. Libya is not an isolated case. And the IMF doesn't look good after it gave glowing reviews to many of the countries shaken by popular revolts in recent weeks.[13]

Egypt’s problems stem from the weakness of the private sector and the "rent-seeking" of state officials. The solution is to open Egypt’s markets to the outside world, lift restrictions on investment in key sectors of the economy, liberalise ownership laws, end subsidies to the poor for food and other necessities and increase market competition.

The mechanisms of this conditionality are discussed further below, at this stage, it is simply important to note that there has been an unassailable link established between aid and the fulfillment of neoliberal reforms.

This policy shift, however, does not represent a turn away from the logic of neoliberalism. Rather, it actually serves to reinforce this logic, by tailoring institutions to the needs of the private sector and removing any ability of the state to intervene in the market.

In the case of Egypt, the discourse of institutional reform has allowed neoliberal structural adjustment to be presented not just as a technocratic necessity – but as the actual fulfillment of the demands innervating the uprisings.

his fundamental message has been repeatedly emphasised by US and European spokespeople over the last weeks: this was not a revolt against several decades of neoliberalism – but rather a movement against an intrusive state that had obstructed the pursuit of individual self-interest through the market.

The political demands heard on the streets of Egypt today – to reclaim wealth that was stolen from the people, offer state support and services to the poor, nationalise those industries that were privatised and place restrictions on foreign investment – can be either disregarded or portrayed as "anti-democratic".

Precisely because Egypt’s uprising was one in which the political and economic demands were inseparable and intertwined, this effort to recast the struggle as "pro-market" is, in a very real sense, directly aimed at undercutting and weakening the country’s ongoing mobilisations.

There are two common elements to all the financial support offered to Egypt to date – an extension of loans (i.e. an increase in Egypt’s external debt) and promised investment in so-called public-private partnerships (PPPs).

n other words, contrary to popular belief, more money actually flows from Egypt to Western lenders than vice versa. These figures demonstrate the striking reality of Egypt’s financial relationship with the global economy – Western loans act to extract wealth from Egypt’s poor and redistribute it to the richest banks in North America and Europe.

Of course, the decision to borrow this money and enter into this "debt trap" was not made by Egypt’s poor. The vast majority of this debt is public or publically guaranteed (around 85%), i.e. debt that was taken on by the Mubarak government with the open encouragement of the IFIs. Egypt’s ruling elite – centred around Mubarak and his closest coterie – profited handsomely from these transactions (estimated in the many billions).

It is actually a debt swap – a promise to reduce Egypt’s debt service by $1 billion, provided that money is used in a manner in which the US government approves. This debt swap confirms the relationship of power that is inherent to modern finance.

The US is able to use Egypt’s indebtedness as a means to compel the country to adopt the types of economic policies described above.

Unless these loans are refused and the existing debt repudiated, Egypt will find itself in a cul-de-sac from which there is little chance of escape. Foreign debt is not a neutral form of "aid" but an exploitative social relation established between financial institutions in the global North and countries in the global South.

OPIC’s mandate is to support US business investment in so-called emerging markets; it provides guarantees for loans (particularly in the case of large projects) or direct loans for projects that have a significant proportion of US business involvement and may face political risk.

In the case of Egypt, this is likely to take place primarily through the use of US government funds to establish public-private partnerships (PPPs). A PPP is a means of encouraging the outsourcing of previously state-run utilities and services to private companies. A private company provides a service through a contract with the government – typically, this may include activities such as running hospitals or schools, or building infrastructure such as highways or power plants.

OPIC’s intervention in Egypt has been explicitly tied to the promotion of PPPs. An OPIC press release, for example, that followed soon after Obama’s speech, noted that the $1 billion promised by the US government would be used “to identify Egyptian government owned enterprises investing in public-private partnerships in order to promote growth in mutually agreed-upon sectors of the Egyptian economy.”

Anyone who has any illusions about the goals of the EBRD’s investment in Egypt would do well to read carefully the EBRD 2010 Transition Report. The report presents a detailed assessment of the East European and ex-Soviet republics, measuring their progress on a detailed set of indicators. These indicators are highly revealing: (1) Private sector share of GDP; (2) Large-scale privatisation; (3) Small-scale privatisation; (4) Governance and enterprise restructuring; (5) Price liberalisation; (6) Trade and foreign exchange system; (7) Competition policy; (8) Banking reform and interest rate liberalisation; (9) Securities markets and non-bank financial institutions; (10) Overall infrastructure reform.[5] Only countries that score well on these indicators are eligible for EBRD loans. A research institute that tracks the activity of the EBRD, Bank Watch, noted in 2008 that a country cannot achieve top marks in the EBRD assessment without the implementation of PPPs in the water and road sectors.

Moreover, fully embracing the pro-market ideological discourse discussed above, the Egyptian government promised to relax control over foreign investments through committing “to overcoming the previous shortcomings of excessive government centralisation. In addition, we will build on existing initiatives to achieve a greater level of decentralisation, especially in terms of local planning and financial management”.

As the decades of the Egyptian experience of neoliberalism illustrate all too clearly, these measures will further deepen poverty, precarity and an erosion of living standards for the vast majority. Simultaneously, the financial inflows will help to strengthen and consolidate Egypt’s narrow business and military elites as the only layer of society that stands to gain from further liberalisation of the economy. The expansion of PPPs, for example, will provide enormous opportunities for the largest business groups in the country to take ownership stakes in major infrastructure projects and other privatised service provision. Alongside foreign investors, these groups will gain from the deregulation of labour markets, liberalisation of land and retail activities, and the potential access to export markets in the US and Europe.

These measures also have a regional impact. Their other main beneficiary will be the states of the Gulf Cooperation Council (Saudi Arabia, Kuwait, United Arab Emirates, Bahrain, Qatar and Oman), which are playing a highly visible and complementary role alongside the IFIs. Saudi Arabia has pledged $4 billion to Egypt – exceeding the amounts promised by the US and EBRD.

As with the investments from Western states, these financial flows from the GCC are dependent upon the further liberalisation of Egypt’s economy, most likely through the mechanisms of PPPs. Indeed, Essam Sharaf, Egypt’s interim prime minister, and Samir Radwan, finance minister, have both travelled frequently to the GCC states over recent months with the aim of marketing PPP projects, particularly in water and waste water, roads, education, health care and energy.

In essence, the financial initiatives announced over recent weeks represent an attempt to bind social layers such as these – Egypt’s military and business elites, the ruling families and large conglomerates of the GCC, and so forth – ever more tightly to the Western states. The revolutionary process in Egypt represented an attack against these elements of the Arab world.

the Emir is an interventionist in his own right, supporting the Saudi invasion of Bahrain, the crushing of peaceful protest, to which he may add more Qatari forces, while also promising support for the implementation of the no fly zone against Libya.

Every night I watched CNN’s Anderson Cooper, hot, breathless, turgid, anally righteous, spewing venom against the dictator–much of it deserved, some of it resting on ignorance and fabrication–the dictator’s “lies,” “keeping them honest,” all principles never directed back at CNN.

In a large hall, over hundred people gathered to welcome us. In the intense atmosphere made hazy by the smoke of cigarettes inhaled with anxiety and pain, mothers, sisters, fathers, brothers and friends told us their tragedies, their losses, their suffering, their fight, their hope. In a more intimate setting on the third floor of the big building, we met later with others who lost their beloved and cried for justice, who were tortured and demanded their rights.

we asked each other with incredulity how we could tell the genuine from the demagogic and the demagogic from the outright false among the rhetoric that seemed to express the same discourses of liberation and the same aspiration to justice and development for all?

Facebook was in everyone’s mouth, Al Jazeera’s journalists were praised for their courage and dedication (though, some told us, ‘in the long run we can’t forget they are islamists’).

But while nobody denied the supportive role of new social media, the general understanding was that though they helped they were certainly not the determining factors pace the international media (perhaps too eager to stress how western technology democratizes the world).

the Italian Prime Minister and his delegation met their Tunisian counterparts in Tunis to discuss an agreement on the migrant crisis which involved shutting down Italy and Europe and send back the thousands deluded migrants who thought hospitality was one of the values of a continent that likes to preach to the world cosmopolitan ideals. If those migrants knew that in Italy a debate rages on the extent to which the boats that carry them, in which they risk their lives and die by the dozens, can be shot at to prevent their landing on national shores!

This revolution may have already changed the stereotypes of the submissive, agency deprived, Arab. But as the transition processes develop they may contribute to the elaboration of new democratic practices whose resonance exceeds the national boundaries and make the Tunisian youth rise to the secular Pantheon of historical revolutionaries.

The biggest imperialist force on the planet, NATO, is bombing Libya “in the name of revolution,” CIA operatives are active on the ground, Western “military advisers” become visible in Benghazi, as US and Egyptian military specialists are reported by Al-Jazeera to be training the revolutionaries. ‘The Libyan revolution is being hijacked in front of our eyes… This is counterrevolution…’

Essentially, the resemblance to the uprisings in the north lies in structural similarities - an unequal society, high unemployment, the lack of future perspectives, police violence, impunity, a closed political system, a bourgeoisie tied in with a non-functioning political administration and the longevity of the regime.

The bloody repression of the protests in Koudougou and the entire province of Boulkiemde was followed by attempts at appeasement, which suggests that the authorities are seriously worried about the spread of popular discontent.[13] Public anger is already high, first because Blaise Compaore wants to modify the constitution to allow him to stay on as president for life.

The regime has stuck to the same tactics it has used since 1997 to deal with the latest crisis, alternating carrot and stick while denouncing the fact that its concessions have failed to reduce tensions.