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Ed Webb

Imperialist appropriation in the world economy: Drain from the global South through une... - 0 views

  • Unequal exchange theory posits that economic growth in the “advanced economies” of the global North relies on a large net appropriation of resources and labour from the global South, extracted through price differentials in international trade.
  • Our results show that in 2015 the North net appropriated from the South 12 billion tons of embodied raw material equivalents, 822 million hectares of embodied land, 21 exajoules of embodied energy, and 188 million person-years of embodied labour, worth $10.8 trillion in Northern prices – enough to end extreme poverty 70 times over.
  • Our analysis confirms that unequal exchange is a significant driver of global inequality, uneven development, and ecological breakdown.
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  • Historians have demonstrated that the rise of Western Europe depended in large part on natural resources and labour forcibly appropriated from the global South during the colonial period, on a vast scale. Spain extracted gold and silver from the Andes, Portugal extracted sugar from Brazil, France extracted fossil fuels, minerals and agricultural products from West Africa, Belgium extracted rubber from the Congo; and Britain extracted cotton, opium, grain, timber, tea and countless other commodities from its colonies around the world – all of which entailed the exploitation of Southern labour on coercive terms, including through mass enslavement and indenture. This pattern of appropriation was central to Europe’s industrial growth, and to financing the expansion and industrialization of European settler colonies, including Canada, Australia, New Zealand and the United States, which went on to develop similarly imperialist orientations toward the South
  • Today, we are told, the world economy functions as a meritocracy: countries that have strong institutions, good markets, and a steadfast work ethic become rich and successful, while countries that lack these things, or which are hobbled by corruption and bad governance, remain poor. This assumption underpins dominant perspectives in the field of international development (Sachs, 2005, Collier, 2007, Rostow, 1990, Moyo, 2010, Calderisi, 2007, Acemoglu and Robinson, 2012), and is reinforced by the rhetoric, common among neoclassical economists, that free-trade globalization has created an “even playing field”.
  • Emmanuel and Amin argued that unequal exchange enables a “hidden transfer of value” from the global South to the global North, or from periphery to core, which takes place subtly and almost invisibly, without the overt coercion of the colonial apparatus and therefore without provoking moral outrage. Prices are naturalized on the grounds that they represent “utility”, or “value”, or the outcome of “market mechanisms” such as supply and demand, obscuring the extent to which they are determined by power imbalances in the global political economy. Price differentials in international trade therefore function as an effective method of maintaining the patterns of appropriation that once overtly defined the colonial economy, allowing blame for “underdevelopment” to be shifted onto the victims.
  • Historians have demonstrated that the rise of Western Europe depended in large part on natural resources and labour forcibly appropriated from the global South during the colonial period, on a vast scale. Spain extracted gold and silver from the Andes, Portugal extracted sugar from Brazil, France extracted fossil fuels, minerals and agricultural products from West Africa, Belgium extracted rubber from the Congo; and Britain extracted cotton, opium, grain, timber, tea and countless other commodities from its colonies around the world – all of which entailed the exploitation of Southern labour on coercive terms, including through mass enslavement and indenture. This pattern of appropriation was central to Europe’s industrial growth, and to financing the expansion and industrialization of European settler colonies, including Canada, Australia, New Zealand and the United States, which went on to develop similarly imperialist orientations toward the South (e.g., Naoroji, 1902, Pomeranz, 2000, Beckert, 2015, Moore, 2015, Bhambra, 2017, Patnaik, 2018, Davis, 2002).
  • for every unit of embodied resources and labour that the South imports from the North they have to export many more units to pay for it, enabling the North to achieve a net appropriation through trade. This dynamic was theorized by Emmanuel (1972) and Amin (1978) as a process of “unequal exchange”.Emmanuel and Amin argued that unequal exchange enables a “hidden transfer of value” from the global South to the global North, or from periphery to core, which takes place subtly and almost invisibly, without the overt coercion of the colonial apparatus and therefore without provoking moral outrage. Prices are naturalized on the grounds that they represent “utility”, or “value”, or the outcome of “market mechanisms” such as supply and demand, obscuring the extent to which they are determined by power imbalances in the global political economy. Price differentials in international trade therefore function as an effective method of maintaining the patterns of appropriation that once overtly defined the colonial economy, allowing blame for “underdevelopment” to be shifted onto the victims.
  • Following Dorninger et al. (2021), we use a “footprint” analysis of input–output data to quantify the physical scale of raw materials, land, energy and labour embodied in trade between the North and South, looking not only at traded goods themselves but also the upstream resources and labour that go into producing and transporting those goods, including the machines, factories, infrastructure, etc.
  • Grounding our analysis in the physical dimensions of unequal exchange is important for several reasons. First, these resources – raw materials, land, labour and energy – embody the productive potential that is required for meeting human needs (use-value) and for generating economic growth (exchange-value). Physical drain is therefore ultimately what drives global inequalities in terms of access to provisions, as well as in terms of GDP or income (see Hornborg, 2020). Second, this approach allows us to maintain sight of the ecological impacts of unequal exchange. We know that excess energy and material consumption in high-income nations, facilitated by appropriation from the rest of the world, is causing ecological breakdown on a global scale. Tracing flows of resources embodied in trade allows us to determine the extent to which Northern appropriation is responsible for ecological impacts in the South; i.e., ecological debt (Roberts and Parks, 2009, Warlenius et al., 2015, Hornborg and Martinez-Alier, 2016).
  • Due to the growing fragmentation of international commodity chains, monetary databases on bilateral gross trade flows have been criticised for not accurately depicting the monetary interdependencies between national economies (Johnson and Noguera, 2012), i.e., the amount of a countries’ value added that is induced by foreign final demand and international trade relations. Trade in Value Added (TiVA) indicators Johnson and Noguera, 2012, Timmer et al., 2014 are designed to take into account the complexity of the global economy. The TiVA concept is motivated by the fact that, in monetary terms, trade in intermediates accounts for approximately two-thirds of international trade. Imports (of intermediates) are used to produce exports and hence bilateral gross exports may include inputs (i.e., value added) from third party countries (Stehrer, 2012). TiVA reveals where (e.g., in which country or industry) and how (e.g. by capital or labour) value is added or captured in global commodity chains (Timmer et al., 2014).
  • TiVA, which is sometimes referred to as the “value footprint”, is the monetary counterpart of the MRIO-based environmental footprint because both indicators follow the same system boundaries, i.e., all supply chains between production and final consumption of two countries including all direct and indirect interlinkages. Moreover, in contrast to global bilateral monetary trade flows, TiVA is globally balanced, meaning that national exports and imports globally sum up to zero. This is an important feature of the TiVA indicator that facilitates more consistent and unambiguous assessments.
  • for every unit of embodied raw material equivalent that the South imports from the North, they have to export on average five units to “pay” for it
  • For land the average ratio is also 5:1, for energy it is 3:1, and for labour it is 13:1
  • Table 1. Resource drain from the South.ResourceNorth → South flows 2015South → North flows 2015Drain from South in 2015Cumulative drain from South 1990–2015Raw material equivalents [Gt]3.3715.3912.02254.40Embodied land [mn ha]527.421,349.01821.5932,987.23Embodied energy [EJ]21.5543.5121.06650.34Embodied labour [mn py-eq]31.11219.22188.125,956.62
  • in the year 2015 the North’s net appropriation from the South totalled 12 billion tons of raw materials, 822 million hectares of land, 21 exajoules of energy (equivalent to 3.4 billion barrels of oil), and 188 million person-years equivalents of labour (equivalent to 392 billion hours of work). By net appropriation we mean that these resources are not compensated in equivalent terms through trade; they are effectively transferred gratis. And this appropriation is not insignificant in scale; on the contrary, it comprises a large share (on average about a quarter) of the North’s total consumption.
  • significant consequences for the global South, in terms of lost use-value. This quantity of Southern raw materials, land, energy and labour could be used to provision for human needs and develop sovereign industrial capacity in the South, but instead it is mobilized around servicing consumption in the global North.
  • Eight hundred and twenty-two million hectares of land, which is twice the size of India, would in theory be enough to provide nutritious food for up to 6 billion people, depending on land productivity and diet composition
  • material use is tightly linked to environmental pressures. It accounts for more than 90% of variation in environmental damage indicators (Steinmann et al., 2017), and more than 90% of biodiversity loss and water stress (International Resource Panel, 2019). Moreover, as Van der Voet et al. (2004) demonstrate, while impacts vary by material, and vary as technologies change, there is a coupling between aggregate mass flows and ecological impact. Net flows of material resources from South to North mean that much of the impact of material consumption in the North (43% of it, net of trade) is suffered in the South. The damage is offshored.
  • Industrial ecologists hold that global extraction and use of materials should not exceed 50 billion tons per year (Bringezu, 2015). In 2015, the global economy was using 87 billion tons per year, overshooting the boundary by 74% and driving ecological breakdown. This overshoot is due almost entirely to excess resource consumption in global North countries. The North consumed 26.71 tons of materials per capita in 2015, which is roughly four times over the sustainable threshold (6.80 tons per capita in 2015). Our results indicate that most of the North’s excess consumption (58% of it) is sustained by net appropriation from the global South; without this appropriation, material use in high-income nations would be much closer to the sustainable level.
  • In consumption-based terms, the North is responsible for 92% of carbon dioxide emissions in excess of the planetary boundary (350 ppm atmospheric concentration of CO2) (Hickel, 2020), while the consequences harm the South disproportionately, inflicting dramatic social and economic costs (Kikstra et al., 2021b, Srinivasan et al., 2008). The South suffers 82–92% of the costs of climate change, and 98–99% of the deaths associated with climate change (DARA, 2012)
  • Net appropriation of land means soil depletion, water depletion, and chemical runoff are offshored; net appropriation of energy means that the health impacts of particulate pollution are offshored; net appropriation of labour means that the negative social impacts of exploitation are offshored, etc (Wiedmann and Lenzen, 2018). In the case of non-renewable resources there is also a problem of depletion: resources appropriated from the South are no longer available for future generations to use (Costanza and Daly, 1992, World Bank, 2018), which is particularly problematic given that under conditions of net appropriation economic losses are not offset by investments in capital stock (cf. Hartwick, 1977). Finally, the extractivism that underpins resource appropriation generates social dislocations and conflicts at resource frontiers (Martinez-Alier, 2021).
  • the value of resources and labour cannot be quantified in dollars, and there is no such thing as a “correct” price.
  • Prices under capitalism do not reflect value or utility in any objective way. Rather, they reflect, among other things, the (im)balance of power between market agents (capital and labour, core and periphery, lead firms and their suppliers, etc); in other words, they are a political artefact
  • While prices by definition do not reflect value, they do allow us to compare the scale of drain to prevailing monetary representations of production and income in the world economy.
  • Fig. 2 shows that drain from the South in 2015 amounted to $14.1 trillion when measured in terms of raw material equivalents, $5.1 trillion when measured in terms of land, $3.6 trillion when measured in terms of energy and $20.3 trillion when measured in terms of labour.
  • Over the period 1990–2015, the drain sums to $242 trillion (constant 2010 USD). This represents a significant “windfall” for the North, similar to the windfall that was derived from colonial forms of appropriation; i.e., goods that did not have to be produced on the domestic landmass or with domestic labour, and did not have to be bought on the domestic market, or paid for with exports (see Pomeranz, 2000, Patnaik, 2018). While previous studies have shown that the price distortion factor increased dramatically during the structural adjustment period in the 1980’s (Hickel et al., 2021), our data confirms that since the early- to mid-1990’s it has tended to decline slightly. This means that the increase in drain during the period 1990–2007, prior to the global financial crisis, was driven primarily by an increase in the volume of international trade rather than by an increase in price distortion.
  • Table 3 shows that, over the 1990–2015 period, resources appropriated from the South have been worth on average roughly a quarter of Northern GDP.
  • the North’s reliance on appropriation from the South has generally increased over the period (despite a significant drop after the global financial crisis), whereas the South’s losses as a share of total economic activity have generally decreased, particularly since 2003, due to an increase in South-South trading and higher domestic GDP creation or capture within the South, both driven largely by China
  • Aid flows create the powerful impression that rich countries give benevolently to poorer countries. But the data on drain through unequal exchange raises significant questions about this narrative.
  • net appropriation by DAC countries through unequal exchange from 1990 to 2015 outstripped their aid disbursements over the same period by a factor of almost 80
  • for every dollar of aid that donors give, they appropriate resources worth 80 dollars through unequal exchange. From the perspective of aid recipients, for every dollar they receive in aid they lose resources worth 30 dollars through drain
  • The dominant narrative of international development holds that poor countries are poor because of their own internal failings and are therefore in need of assistance. But the empirical evidence on unequal exchange demonstrates that poor countries are poor in large part because they are exploited within the global economy and are therefore in need of justice. These results indicate that combating the deleterious effects of unequal exchange by making the global economy fairer and more equitable would be much more effective, in terms of development, than charity.
  • In an equitable world, the resource trade deficit that the North sustains in relation to the South would be financed with a parallel monetary trade deficit. But in reality, the monetary trade deficit is very small, equivalent to only about 1% of global trade revenues, and fluctuates between North and South. In effect, this means that the North achieves its large net appropriation of resources and labour from the South gratis.
  • The question of sectoral disparities has been moot since the 1980s, however, as industrial production has shifted overwhelmingly to the South. The majority of Southern exports (70%) consist of manufactured goods (data from UNCTAD; see Smith, 2016). Of all the manufactured goods that the USA imports, 60% are produced in developing countries. For Japan it is 70%. We can see this pattern reflected also in the industrial workforce. As of 2010, at least 79% of the world’s industrial workers live in the South (data from the ILO; see Smith, 2016). This shift is due in large part to the rise of global commodity chains, which now constitute 70% of international trade. Between 1995 and 2013, there has been an increase of 157 million jobs related to global commodity chains, and an estimated 116 million of them are concentrated in the South, predominantly in the export manufacturing sector (ILO, 2015). In other words, during the period we analyse in this paper (1990–2015), the South has contributed the majority of the world’s industrial production, including high-technology production such as computers and cars. And yet price inequalities remain entrenched.
  • if Northern states or firms leverage monopoly power within global commodity chains to depress the prices of imports and increase the prices of final products, their labour “productivity” appears to improve, and that of their counterparts declines, even if the underlying production process remains unchanged. Indeed, empirical evidence indicates that real productivity differences between workers are minimal, and cannot explain wage inequalities (Hunter et al., 1990).
  • wage inequalities exist not because Southern workers are less productive but because they are more intensively exploited, and often subject to rigid systems of labour control and discipline designed to maximize extraction (Suwandi et al., 2019). Indeed, this is a major reason why Northern firms offshore production to the South in the first place: because labour is cheaper per unit of physical output (Goldman, 2012).
  • the terminology of “value-added” is a misnomer. In international trade, TiVA does not tell us who adds more value but rather who has more power to command prices. And in the case of global commodity chains, TiVA does not indicate where value is produced but rather where it is captured (Smith, 2016).
  • our analysis reveals that value in global commodity chains is disproportionately produced by the South, but disproportionately captured by the North (as GDP). Value captured in this manner is misleadingly attributed to Northern economic activities
  • rich countries are able to maintain price inequalities simply by virtue of being rich. This finding supports longstanding claims by political economists that, all else being equal, price inequalities are an artefact of power. Just as in a national economy wage rates are an artefact of the relative bargaining power of labour vis-à-vis capital, so too in international trade prices are an artefact of the relative bargaining power of national economies and corporate actors vis-à-vis their trading partners and suppliers. Countries that grew rich during the colonial period are now able to leverage their economic dominance to depress the costs of labour and resources extracted from the South. In other words, the North “finances” net appropriation from the South not with money, but rather by maintaining the prices of Southern resources and labour below the global average level.
  • Patents play a key role here: 97% of all patents are held by corporations in high-income countries (Chang, 2008:141)
  • In some cases, patents involve forcing people in the South to pay for access to resources they might otherwise have obtained much more affordably, or even for free (Shiva, 2001, Shiva, 2016).
  • In the World Bank and the IMF, Northern states hold a majority of votes (and the US holds a veto), thus giving them control over key economic policy decisions. In the World Trade Organization (which controls tariffs, subsidies, and patents), bargaining power is determined by market size, enabling high-income nations to set trade rules in their own interests.
  • ubsidized agricultural exports from the North undermine subsistence economies in the South and contribute to dispossession and unemployment, placing downward pressure on wages. Militarized borders preclude easy migration from South to North, thus preventing wage convergence. Moreover, structural adjustment programs (SAPs) imposed by the World Bank and IMF since the 1980s have cut public sector salaries and employment, rolled back labour rights, curtailed unions, and gutted environmental regulations (Khor, 1995, Petras and Veltmeyer, 2002).
  • SAPs, bilateral free trade agreements, and the World Trade Organization have forced global South governments to remove tariffs, subsidies and other protections for infant industries. This prevents governments from attempting import substitution, which would improve their export prices and drive Northern prices down. Tax evasion and illicit financial flows out of the South (which total more than $1 trillion per year) drain resources that might otherwise be reinvested domestically, or which governments might otherwise use to build national industries. This problem is compounded by external debt service obligations, which drain government revenue and require obeisance to economic policies dictated by creditors (Hickel, 2017). In addition, structural dependence on foreign investors and access to Northern markets forces Southern governments and firms to compete with one another by cutting wages and resource prices in a race to the bottom.
  • structural power imbalances in the world economy ensure that labour and resources in the South remain cheap and accessible to international capital, while Northern exports enjoy comparatively higher prices
  • Cheap labour and raw materials in the global South are not “naturally” cheap, as if their cheapness was written in the stars. They are actively cheapened
  • the analysis obscures class and geographic inequalities within countries and regions, which are significant when it comes to labour prices as well as resource consumption. The high levels of resource consumption that characterize Northern economies are driven disproportionately by rich individuals and affluent areas, as well as by corporations that control supply chains, and enabled by internal patterns of exploitation and unequal exchange in addition to drain through trade (Harvey, 2005). For example, there are marginalized regions of the United States that serve as an “internal periphery” (Wishart, 2014). It would also be useful to explore the gender dynamics of unequal exchange within countries. These questions cannot be answered with our data, however.
  • This research confirms that the “advanced economies” of the global North rely on a large net appropriation of resources and labour from the global South, extracted through induced price differentials in international trade. By combining insights from the classical literature on unequal exchange with contemporary insights about global commodity chains and new methods for quantifying the physical scale of embodied resource transfers, we are able to develop a novel approach to estimating the scale and value of resource drain from the global South. Our results show that, when measured in Northern prices, the drain amounted to $10.8 trillion in 2015, and $242 trillion over the period from 1990 to 2015 – a significant windfall for the North, equivalent to a quarter of Northern GDP. Meanwhile, the South’s losses through unequal exchange outstrip their total aid receipts over the period by a factor of 30.
  • support contemporary demands for reparations for ecological debt, as articulated by environmental justice movements and by the G77
  • True repair requires permanently ending the unequal distribution of environmental goods and burdens between the global North and global South, restoring damaged ecosystems, and shifting to a regenerative economic system.
  • It is clear that official development assistance is not a meaningful solution to global poverty and inequality; nor is the claim that global South countries need more economic liberalisation and export-oriented market integration. The core problem is that low- and middle-income countries are integrated into the global economy on fundamentally unequal terms. Rectifying this problem is critical to ensuring that global South countries have the financial, physical and human resources they need to improve social outcomes.
  • democratize the institutions of global economic governance, such as the World Bank, IMF and WTO, so that global South countries have more control over trade and finance policy.
  • end the North’s use of unfair subsidies for agricultural exports, and remove structural adjustment conditions on international finance, which would help mitigate downward pressure on wages and resource prices in the South while at the same time enabling Southern countries to build sovereign industrial capacity
  • a global living wage system, and a global system of environmental regulations, would effectively put a floor on labour and resource prices
  • Reducing North-South price differentials would in turn reduce the scale of the North’s net resource appropriation from the South (in other words, it would reduce ecologically unequal exchange), thus reducing excess consumption in the North and the ecological impacts that it inflicts on the South.
  • Structural transformation will only be achieved through political struggle from below, including by the anti-colonial and environmental justice movements that continue to fight against imperialism today
Ed Webb

LENIN'S TOMB: Why neoliberalism persists - 0 views

  • Finance has enjoyed hegemony in the past partially on account of its role in the British empire. Britain's overseas trading companies such as the East India Company or the Hudson Bay Company were based in the City of London, and it was the City's activities which financed the planters and traders. The capital's financial centre was the nexus between domestic producers and the colonies. Undoubtedly, finance has a similar role in today's imperialism, the mechanism by which surplus extracted in the 'periphery' is transferred to ruling classes in the 'metropole'. In fact, one of the reasons why the British government started to take a keen interest in consolidating the City's global role in the late 1960s was due to the loss of the colonies and the need to take on rising financial competitors, not least Wall Street.
  • The fact of the matter is that there often hasn't been enough profit to be had in productive investment, while high-risk speculation has consistently delivered, and will continue to do so as long as the public bails the bankers out at moments of crisis. Just how much neoliberalism has delivered is suggested by the fact that by 2006, two fifths of all corporate profits in the US were accumulated in the financial sector - more than double the ratio at the height of 'Reagonomics' two decades before.
Ed Webb

The American Empire Is the Sick Man of the 21st Century - Foreign Policy - 0 views

  • classic Foundation series, Isaac Asimov imagines a Galactic Empire, governed from the city-world of Trantor, that has maintained peace and prosperity for thousands of years but that is teetering on the brink of decline. The only person who sees this clearly is the psychohistorian Hari Seldon, who has mathematically determined that the core conditions for the Empire are unsustainable and will crumble over the course of centuries. As Trantor “becomes more and more the administrative center of Empire, it becomes a greater prize,” a disciple says as he absorbs Seldon’s calculations. “As the Imperial succession becomes more and more uncertain, and the feuds among the great families more rampant, social responsibility disappears.” Asimov published these words in 1951, at the peak of U.S. global power. But they might as well be describing Washington in 2019, an imperial capital whose elite have transformed it into a great prize to be feuded over as surely as Asimov’s future empire did—and as other empires have done in the past.
  • much of the United States has experienced a steady decline while a handful of major cities, including Washington, have become hyperwealthy and almost unaffordable through the concentration of financial, tech, and media monopolies and their affiliated lobbyists. By now, many Americans know this story—but few think about what it means for their place in the world
  • Although Foundation drew its direct inspiration from Edward Gibbon’s The Decline and Fall of the Roman Empire, history is replete with examples of seemingly powerful empires run by weak, divided elites and picked apart by outside powers
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  • The near-universal understanding of the United States as a powerful, unified global actor is flawed and in need of revision. The United States is less a great power exerting its will and more an open-air market for global corruption, in which outside powers can purchase influence, shape political outcomes, and play factions against each other in the service of their own competing agendas.
  • Trump’s administration is openly bought by foreign governments via his international network of hotels and resorts, including the one located directly between the White House and the U.S. Capitol, where a Saudi-funded lobbyist rented 500 rooms in the month after the 2016 election. His political party, which still controls the Senate and increasingly dominates the judiciary, has no interest in holding him accountable for any of this. And of course there’s the small matter of Russian interference in the 2016 election; as the limited information known so far from special counsel Robert Mueller’s report confirms, Trump and the Republicans were at the very least the passive and willing beneficiaries of efforts by a foreign power to influence the election outcome.
  • the influence of outside money in Washington has become routine over the past generation. From the pervasive influence of the United Arab Emirates and other Gulf monarchies over think tanks and media organizations to virtually the entire U.S. government kowtowing before the American Israel Public Affairs Committee to China’s warm relationship with the Chamber of Commerce and with the heads of some of the most powerful U.S. companies to the funneling of foreign money through the real estate industries of the country’s largest and wealthiest cities—the U.S. government is for sale.
  • The complete deregulation of campaign finance and the subsequent legalization of corruption in Washington, on a scale unheard of in other developed countries, have resulted in a capital where the distinction between foreign and domestic monied interests is harder and harder to parse. The U.S. government, in other words, does not exist to serve the interests of Americans through either its foreign or its domestic policies; rather, it exists to perpetuate the interests of the globalized oligarchy.
  • While Rhodes and Obama also faced pressure from within the Washington establishment, they found their agenda for the Middle East repeatedly hijacked by foreign allies—the same governments that also lobbied, with varying success, for U.S. military operations from Syria to Yemen. American power, however mighty, means nothing if it’s being used for the ends of the highest bidders
  • what we’re seeing is neither a considered, responsible withdrawal from empire in order to invest in urgent needs at home nor a revolt against empire by the world’s wretched. Rather, it’s a drawn-out, decadent collapse recognizable to any student of Rome or Constantinople. America is the sick man of the 21st century, and anyone who has watched its president bumble through a gathering of bemused, pitying world leaders knows it.
Ed Webb

U.S. appeals court revives Nestle child slavery lawsuit | Reuters - 0 views

  • A U.S. federal appeals court on Tuesday reinstated a lawsuit by a group of former child slaves accusing the U.S. unit of Nestle SA (NESN.S), the world’s largest food maker, and Cargill Co [CARG.UL] of perpetuating child slavery at Ivory Coast cocoa farms
  • “In sum, the allegations paint a picture of overseas slave labor that defendants perpetuated from headquarters in the United States,” the court wrote.
  • The plaintiffs, originally from Mali, are contending that the companies aided and abetted human rights violations through their active involvement in purchasing cocoa from Ivory Coast (Cote d’Ivoire)
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  • A district court in Los Angeles dismissed the lawsuit twice, most recently in March 2017. That court found that the former child slaves’ claims were barred by U.S. Supreme Court decisions that have made it harder for plaintiffs to sue corporations in U.S. courts for alleged violations overseas.
  • Cote d’Ivoire is the world’s leading cocoa grower. Other leading producers of cocoa include Ghana, Indonesia, Nigeria and Cameroon.
Ed Webb

The Everyday Obscenity of American Collapse - Eudaimonia and Co - 0 views

  • America learned from its founding to dehumanize and dominate people. But there is a great problem here, which America has never understood, much less reckoned with. Only the dehumanized can dehumanize. Dominance always requires our own subjugation. To be able to treat another person as if they are not a human being, but a mere possession, also costs us our very own empathy, gentleness, mercy, wisdom, courage, defiance, grace, and truth. And in the end, my friends, that ruins a nation
  • In other rich nations, norms of decency developed — after strife, it’s true, yet develop they did. What do I mean by norms of decency? Simply the idea, if you like, that every person is one. All people deserve dignity, equality, and freedom. Nobody stands alone — especially when they are in need of support, nurturance, and guidance.But Americans developed a perverse, backwards set of norms: I am only good when I punish you, when I’m above you, when I dominate you, when I dehumanize you
  • norms of dehumanization and dominance had catastrophic political effects. “Why should I invest in schools for those dirty animals?” asked American whites. And so the result of norms of dehumanization and domination were that America never built proper public goods, like healthcare, education, finance, media, transportation, and so on — and yet those are exactly the things that whites needed too, if they were ever to live lives that were genuinely free, healthy, sane, and happy. But now nobody had such things, because such norms make it impossible for people to invest in one another.
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  • The end result of norms of dehumanization and domination was a that a tiny elite of genuinely terrible people came to oppress even the people who’d been yesterday’s oppressors
  • the very norms of domination and dehumanization that had once been used to oppress blacks and natives and dirt poor whites, then, had come to be used as weapons of self-destruction even against the very people who they’d once existed to serve — middle class and even rich whites
  • It became perfectly OK, for example, to raid pensions, to work people 80 hours a week, to never pay them more, to prey on white women, too, to abuse and hurt people, to treat even that once relatively affluent white person like just another disposable commodity in the machine — not as a human being. It’s true that minorities always suffered most, of course — but it’s truer to say that such norms made it impossible for a society to really mature or develop at all, because now they were being used by a tiny elite to oppress more or less everyone else.
  • Norms of domination and dehumanization had created a society which was one great arena in which everyone competed to slaughter everyone else — a mechanism for sorting and winnowing the most domineering and inhuman. Over time, those people became even more savage, shameless, and selfish. Until, at last, America was led by the champions of such norms: people like Trump, Miller, and the rest. Everyday obscenity triumphed.
  • So here America is. Dehumanization and domination are the things it has invested in, cherished, cultivated, tended, and prized most. That is how a society ends up with crowdfunded healthcare, school shootings, a head of state who uses slurs, neo Nazis in office — and nobody, seemingly, with the power to do much, if anything, about it.
Ed Webb

Africa's Lost Kingdoms | by Howard W. French | The New York Review of Books - 0 views

  • There is a broad strain in Western thought that has long treated Africa as existing outside of history and progress; it ranges from some of our most famous thinkers to the entertainment that generations of children have grown up with
  • Africa has never lacked civilizations, nor has it ever been as cut off from world events as it has been routinely portrayed
  • medieval Africa suffered no dearth of cultural accomplishments. There is, for example, evidence of long-distance trade as early as the ninth century between northern African settlements and caravan towns like Aoudaghost, at the southern edge of the Sahara. Manufactured copper goods were sent south in exchange for gold dust, to be cast into ingots out of which much of the fast-rising Arab world’s coinage was struck.2 To illustrate just how well established these commercial exchanges were by the late tenth century, Fauvelle describes an order of payment—what we might call a check3—sent by a sub-Saharan merchant to a businessman in the Moroccan town of Sijilmasa for the sum of 42,000 dinars
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  • More than a century and a half before Columbus’s voyages, a Malian ruler named Abu Bakr II was said to have equipped an expedition involving two hundred ships that attempted to discover “the furthest limit of the Atlantic Ocean.” The expedition failed to return save for one vessel, whose survivor claimed that “there appeared in the open sea [as it were] a river with a powerful current…. The [other] ships went on ahead but when they reached that place they did not return and no more was seen of them.” Some modern historians (Michael Gomez, Toby Green, and John Thornton, among others) have interpreted this to mean that the Malian ships were caught in the Atlantic Ocean’s Canary Current, which sweeps everything in its path westward at about the same latitude as Mali.Abu Bakr II supposedly responded not by abandoning his dreams of exploration but by equipping a new and far larger expedition, this time involving two thousand ships and with himself in command. That was the last that was seen of him. We know of this story only because when Abu Bakr’s successor, Mansa Musa, was staying in Cairo in 1324–1325 on his pilgrimage to Mecca, the secretary of the chancery of the Mamluk Dynasty asked him how he had come to power and recorded his reply. There are no other traces of Abu Bakr’s attempt.
  • Mansa Musa, however, who took power in 1312, left such a powerful stamp on his time that it is remarkable how little known he is today. Recently it has been claimed that he was the richest person who ever lived. Speculation over the size of his fortune (“Mansa” means ruler) is based almost entirely on his three-to-twelve-month stay in Cairo on his way to Mecca. The Arabic-language sources vary on many of the details but leave an unmistakable impression of lucre the likes of which have rarely been seen anywhere. Badr al-Din al-Halabi wrote that Musa “appeared [in Cairo] on horseback magnificently dressed in the midst of his soldiers” with more than 10,000 attendants. Another source claims that he “brought with him 14,000 slave girls for his personal service.” A third spoke of the “great pomp” of the pilgrimage, saying that Musa traveled “with an army of 60,000 men who walked before him as he rode. There were [also] 500 slaves, and in the hand of each was a golden staff each made from 500 mithqāls of gold.”
  • the Malian leader’s huge slave entourage may have cemented the image of Sudanic Africa as an inexhaustible source of black labor in lastingly harmful ways
  • Between the money handed out and that spent extravagantly in the markets of the city, the value of gold in the region dipped sharply, and according to some accounts remained depressed for years. Musa was so profligate that he had to borrow funds to finance his return voyage
  • Gomez speculates that the grand geopolitical gambits of Abu Bakr and Mansa Musa shared similar motives: both were looking for a way for Mali to escape the threatening political interference and costly economic control of the Berber middlemen of North Africa through whose territory their gold passed on its way to Europe and elsewhere
  • the Sahara has long been miscast as a barrier separating a notional black Africa from an equally notional white or Arab one. In reality, it argues, the desert has always been not just permeable but heavily trafficked, much like the ocean, with trade as well as religious and cultural influences traveling back and forth, and with world-shaping effects
  • early in the European encounter with Africa there was a tremendous fluidity and confusion over the labels the newcomers applied to the indigenous peoples they met, with the newly explored lands of West Africa being variously fancied as Guiné, Ethiopia, and even India. Blackness, however, was essentialized from the very beginning
  • when they crossed the Senegal River on their way south down the coast of West Africa, they found that they lacked the means to prevail militarily over the confident and capable African kingdoms they encountered. The Portuguese thereafter made a pragmatic turn away from an approach that relied on surprise raids to one based instead on trade and diplomacy.
  • a pattern in which the Portuguese obtained slaves not from unclaimed territories inhabited by stateless societies but rather from African kings with legitimate sovereignty over their lands, as when they sold captives won in wars with their neighbors
  • Of the broader interactions in the region between these early Portuguese seekers of fortune and local sovereigns, Bennett writes:While both sides constantly struggled to impose their traditions on the commercial formalities, the African elite usually dictated the terms of trade and interaction. Portuguese subjects who violated African laws quickly risked stiff fines or found their lives in danger. Here we are clearly a very long way from the view—commonly propagated in the ascendant West after the transatlantic slave trade had increased dramatically and European colonization and plantation agriculture had taken firm hold in the New World—that Africans were mere savages who subsisted in a near state of nature.
  • At the core of Bennett’s book is the argument that the fierce competition between Portugal and Spain over the African Atlantic, which was significantly mediated by the Church, was crucial to the creation of the modern nation-state and of what became modern European nationalism. Early national identities in Europe were forged, to a substantial extent, on the basis of competition over trade and influence in Africa. And this, Bennett says, gets completely lost in Western histories that fast-forward from the conquest of the Canary Islands to Columbus’s arrival in the Americas. “We lose sight of the mutually constitutive nature of fifteenth-century African and European history…whereby Africa figured in the formation of Iberian colonialism and thus the emergence of early modern Portugal and Castile,” he writes.
  • the often surprising success that Africans had throughout the first four hundred years of their encounter with Europe
  • That Africans themselves participated in the Atlantic slave trade is by now widely known, and Green by no means skimps on the details. What is less well known in his account is the determined and resourceful ways that a number of major African states struggled to insulate themselves from the slave trade and resist Europe’s rising dominance
  • Faced with Kongo’s resistance to expanding the slave trade, in 1575 Portugal founded a colony adjacent to the kingdom, at Luanda (now in Angola), which it used as a base to wage an aggressive destabilization campaign against its old partner. Kongo resisted the Portuguese doggedly, eventually turning to Holland as an ally, because that country was not yet engaged in slaving and was an enemy of the then unified kingdoms of Spain and Portugal. The 1623 letter by Kongo’s King Pedro II initiating an alliance with Holland requested “four or five warships as well as five or six hundred soldiers” and promised to pay for “the ships and the salaries of the soldiers in gold, silver, and ivory.” Holland soon entered into the proposed alliance, hoping that by cutting off the supply of slaves from this region, which alone supplied more than half of those sent to Brazil and the Spanish Indies, Brazil itself, a plantation society and at the time Portugal’s leading source of wealth, would become unviable.
  • What ultimately undid Kongo, the horrific demographic drain of the slave trade that followed its defeat by Portugal in 1665, was a vulnerability it shared with some of the other important late holdouts against European encroachment—powerful and sophisticated kingdoms like the Ashanti Empire and Benin—which was a loss of control over its money supply. In Kongo, a locally made cloth of high quality was the main traditional measure of value and means of exchange, alongside a type of seashell, the nzimbu, harvested along the nearby coast. The Dutch, discovering the local fixation on cloth, flooded the region with its early industrial textiles, wiping out the market for Kongo’s own manufacture. After they gained control of Luanda, the Portuguese similarly flooded the region with shells, both local ones and others imported from the Indian Ocean. Similar monetary catastrophes befell the few big surviving West African kingdoms—mostly as a result of the fall in the price of gold following New World discoveries of gold and silver.
  • “For several centuries, Western African societies exported what we might call ‘hard currencies,’ especially gold; these were currencies that, on a global level, retained their value over time.” In return, Africans received cowries, copper, cloth, and iron, all things that declined in value over time. All the while, Africa was bled of its people, as slave labor was being put to productive use for the benefit of the West
  • the root causes of many of the problems of the present lie precisely in this more distant past
Ed Webb

The Military-Industrial Jobs Scam | naked capitalism - 0 views

  • despite defense contractor claims to the contrary, increased military spending has been accompanied by job losses in the US
  • the contracting fraud results in US taxpayers paying way more than it would have cost for US personnel to do the work…with the added insult that the tasks were performed by locals for a pittance
  • the Trump administration has stopped at nothing to push the argument that job creation is justification enough for supporting weapons manufacturers to the hilt. Even before Donald Trump was sworn in as president, he was already insisting that military spending was a great jobs creator. He’s only doubled down on this assertion during his presidency. Recently, overriding congressional objections, he even declared a national “emergency” to force through part of an arms sale to Saudi Arabia that he had once claimed would create more than a million jobs. While this claim has been thoroughly debunked, the most essential part of his argument — that more money flowing to defense contractors will create significant numbers of new jobs — is considered truth personified by many in the defense industry
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  • When contractors receive more taxpayer money, do they generally create more jobs? To answer it, we analyzed the reports of major defense contractors filed annually with the U.S. Securities and Exchange Commission (SEC). Among other things, these reveal the total number of people employed by a firm and the salary of its chief executive officer. We then compared those figures to the federal tax dollars each company received, according to the Federal Procurement Data System, which measures the “dollars obligated,” or funds, the government awards company by company
  • In 2012, concerned that those caps on defense spending would cut into their bottom lines, the five top contractors went on the political offensive, making future jobs their weapon of choice. After the Budget Control Act passed, the Aerospace Industries Association — the leading trade group of the weapons-makers — warned that more than one million jobs would be at risk if Pentagon spending were cut significantly. To emphasize the point, Lockheed sent layoff notices to 123,000 employees just before the BCA was implemented and only days before the 2012 election. Those layoffs never actually happened, but the fear of lost jobs would prove real indeed and would last.
  • Pentagon spending was actually higher in 2018 than in 2012
  • From 2012 to 2018, overall employment at Lockheed actually fell from 120,000 to 105,000, according to the firm’s filings with the SEC and the company itself reported a slightly larger reduction of 16,350 jobs in the U.S. In other words, in the last six years Lockheed dramatically reduced its U.S. workforce, even as it hired more employees abroad and received more taxpayer dollars
  • where is all that additional taxpayer money actually going, if not job creation? At least part of the answer is contractor profits and soaring CEO salaries. In those six years, Lockheed’s stock price rose from $82 at the beginning of 2012 to $305 at the end of 2018, a nearly four-fold increase. In 2018, the company also reported a 9% ($590 million) rise in its profits, the best in the industry. And in those same years, the salary of its CEO increased by $1.4 million
  • From 2012 to 2018, the unemployment rate in the U.S. plummeted from roughly 8% to 4%, with more than 13 million new jobs added to the economy. Yet, in those same years, three of the five top defense contractors slashed jobs. In 2018, the Pentagon committed approximately $118 billion in federal money to those firms, including Lockheed — nearly half of all the money it spent on contractors. This was almost $12 billion more than they had received in 2012. Yet, cumulatively, those companies lost jobs and now employ a total of 6,900 fewer employees than they did in 2012, according to their SEC filings.
  • not only are the green energy and education areas vital to the future of the country, they are also genuine job-creating machines. Yet, the government gives more taxpayer dollars to the defense industry than all these other government functions combined.
  • “the aerospace and defense (A&D) sector scored record revenues and profits in 2018” with an “operating profit of $81 billion, surpassing the previous record set in 2017.” According to the report, Pentagon contractors were at the forefront of these profit gains. For example, Lockheed’s profit improvement was $590 million, followed closely by General Dynamics at $562 million. As employment shrank, CEO salaries at some of these firms only grew. In addition to compensation for Lockheed’s CEO jumping from $4.2 million in 2012 to $5.6 million in 2018, compensation for the CEO of General Dynamics increased from $6.9 million in 2012 to a whopping $20.7 million in 2018.
  • weapons-making outfits spend more than $100 million on lobbying yearly, donate tens of millions of dollars to the campaigns of members of Congress every election season, and give millions to think tanks annually
  • research has repeatedly shown that, even with this supposed “multiplier effect,” defense spending produces fewer jobs than just about anything else the government puts our money into. In fact, it’s about 50% less effective at creating jobs than if taxpayers were simply allowed to keep their money and use it as they wished
  • As Brown University’s Costs of War project has reported, “$1 billion in military spending creates approximately 11,200 jobs, compared with 26,700 in education, 16,800 in clean energy, and 17,200 in health care.”
  • In addition to the reductions at Lockheed, Boeing slashed 21,400 jobs and Raytheon cut 800 employees from its payroll. Only General Dynamics and Northrop Grumman added jobs — 13,400 and 16,900 employees, respectively — making that total figure look modestly better. However, even those “gains” can’t qualify as job creation in the normal sense, since they resulted almost entirely from the fact that each of those companies bought another Pentagon contractor and added its employees to its own payroll
  • Reports from the industry’s own trade association show that it has been shedding jobs. According to an Aerospace Industries Association analysis, it supported approximately 300,000 fewer jobs in 2018 than it had reported supporting just three years earlier
  • add to their army of lobbyists, their treasure trove of campaign contributions, and those think tanks on the take, the famed revolving door that sends retired government officials into the world of the weapons makers and those working for them to Washington
  • since 2008, as the Project On Government Oversight’s Mandy Smithberger found, “at least 380 high-ranking Department of Defense officials and military officers shifted into the private sector to become lobbyists, board members, executives, or consultants for defense contractors.” 
Ed Webb

All Roads Need Not Lead To China - NOEMA - 0 views

  • For the Romans, Ottomans, Russians and British, transportation infrastructure was an essential tool of conquest. It is no different for China today. In a world of mostly settled boundaries, China seeks to control infrastructure and supply chains to achieve leverage over its neighbors as well as carve through them to its destination: the oil-rich Gulf region and the massive export markets of Europe. From oil refineries and ports to internet cables, China is maneuvering for infrastructural access where it cannot dominate territory. Even where China shifts boundaries by force, the purpose is nonetheless to pave the way for its infrastructure.
  • Around the time China joined the World Trade Organization in 2001, it suddenly found itself the world’s largest importer of raw materials as well as one of the largest exporters of consumer goods. Yet still, it was subject to the “Malacca trap”: Most of its trade passes through the narrow Strait of Malacca, the world’s busiest waterway, which it does not control. Building road and rail infrastructure across neighboring states was thus something of a defensive measure to reduce dependence on a single chokepoint.
  • Whereas the Soviet Union was not integrated into the global economy, China is the top trade partner of more than 120 countries, and is now the largest international creditor as well. China’s main instruments in pursuit of its grand strategy have been connectivity projects, not military incursions. Rather than conquer colonies, China has sought to buy countries. 
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  • a wide array of initiatives have emerged as a direct response to China’s Belt and Road to undermine and dilute China’s infrastructural prowess: the U.S. International Finance and Development Corporation, the EU’s “Asia Connectivity Initiative,” the EU-Japan “Partnership on Sustainable Connectivity and Quality Infrastructure,” the U.S.-Japan-Australia “Blue Dot Network,” the India-Japan “connectivity corridors” and myriad other coalitions. None of these existed even three years ago. Roads have always been the pathways of conquest; now they are the battlefield of competitive connectivity. 
  • in dozens of visits to Beijing, I have found my interlocutors unable to grasp this basic psychological fact. While many societies admire China’s success and are grateful for China’s role in their development, none want to be like China, nor be subservient to it. It’s an argument that’s fallen on deaf ears in Washington, too. And as with America’s experience of benevolent nation-building, China’s policy of intimidating neighbors into feebly muting their own interests has predictably backfired
  • Bogging down the adversary while moving stealthily towards one’s objective has been an axiom of Chinese diplomacy for generations. But there is little stealth anymore in China’s land grabs, island-building and wolf-warrior diplomacy
  • With China’s suppression of information about the coronavirus painting it into a corner, Beijing no longer feels it has anything to lose and is going for broke: moving on Taiwan, Hong Kong, the Senkaku Islands, India’s borders and other disputes while the rest of the world is off-kilter, girding itself for a new Cold War with America. China’s leadership has convinced itself that West-leaning powers seek to encircle it militarily, splinter it internally and destabilize the Communist Party. This is the classical psychological spiral at the heart of any security dilemma in which each action taken by one side elevates the perceived insecurity of the other. 
  • A repeat of the Cold War would surely not play out as favorably for the U.S. as the last one. America is politically polarized and is the world’s largest debtor nation. Its most recent major wars have been disasters and its military needs time to rebuild and adjust to new adversaries and tactics. And many of its erstwhile allies from Europe to Asia are far more vested in China than America is and don’t trust it to lead a consensus-based global coalition.
  • What the U.S. and Europe do have in their favor is that they are territorially secure while China is not. China has 14 neighbors, all of which harbor deep suspicions of its motives even as many (especially Russia) cooperate with it.
  • American strategists have been far more fixated on China’s presence in Africa and South America rather than developing a comprehensive strategy for reassuring China’s neighbors and supporting their own efforts to stand up to it.
  • Despite the immense economic leverage China has accrued vis-a-vis the many states along its perimeter, it is the complexity of having so many neighbors that constrains China more than its increasingly sophisticated military arsenal suggests. Maintaining global influence is much harder when you are fighting a 14-front war in your own neighborhood. 
  • From Malabar to Pearl Harbor, the U.S., Japan, Australia, India and numerous other countries have been deepening their coordination in the Indo-Pacific maritime domain. The “quad” coalition features joint strategic patrols and hardware support for the navies of Vietnam, the Philippines and Indonesia in the South China Sea. This summer, ASEAN foreign ministers finally graduated from their usually limp communiques watered down by Chinese pressure and reaffirmed that the U.N. Convention on the Law of the Sea must be the basis for arbitrating maritime disputes. 
  • Boundary agreements are rarely perceived as fair by both sides, yet such settlements have the virtue of enabling counties to mature towards functional cooperation.  
  • Precisely because the U.S. and EU have imposed such stiff restrictions on Chinese investment, China has redirected its outbound capital portfolio ever more towards its more proximate Asian domain. And in the wake of the COVID-19 crisis, once fast-growing countries face capital outflows and weak global demand amid ruptured supply chains. The West may be squeezing China out of some markets, but China’s balloon is inflating across Asia as it lowers tariffs on all its Belt and Road trading partners
  • Laos and Cambodia, two of Asia’s poorest countries, have become all but wholly owned subsidiaries of China, even as China’s Mekong River dams have ravaged their agriculture through volatile water flows and chemical pesticides. With stronger technical and diplomatic assistance, these countries could demand that Chinese investments reinforce their sustainability and local businesses. 
  • It was always going to be an uphill battle for China to be perceived as a benevolent superpower. Unlike America or the European Union, China is wholly unconvincing as a multiethnic empire. It systematically squelches diverse identities rather than elevating them. Furthermore, though China is an ancient and rich civilization, it coexists with other Asian civilizations with equally respectable glory. None will ever bow to the others, as Japan learned the hard way in the 20th century. Every time China gains an inch of territory, it loses a yard of credibility. The essence of geopolitical stability is equilibrium, and the pathway to it follows the logic of reciprocity. 
  • China’s assertiveness signals neither an inevitable new Cold War nor a new unipolar hegemony. Rather, it is one phase in Asia’s collective story and the global shift towards multipolarity.
  • Never has Eurasia been ruled by a single hegemon. The Mongols came closest 700 years ago, but the 14th-century Black Death fractured its disparate khanates, and the Silk Road fell idle. Today again, a pandemic has emerged from China, but rather than shut down the Silk Road, we should build many more of them among dozens of Eurasian nations rather than in and out of China alone. All roads need not lead to Beijing.
Ed Webb

Fortress Europe: the millions spent on military-grade tech to deter refugees | European... - 0 views

  • The EU is central to the push towards using technology on its borders, whether it has been bought by the EU’s border force, Frontex, or financed for member states through EU sources, such as its internal security fund or Horizon 2020, a project to drive innovation.In 2018, the EU predicted that the European security market would grow to €128bn (£108bn) by 2020. Beneficiaries are arms and tech companies who heavily courted the EU, raising the concerns of campaigners and MEPs.
  • “In effect, none of this stops people from crossing; having drones or helicopters doesn’t stop people from crossing, you just see people taking more risky ways,” says Jack Sapoch, formerly with Border Violence Monitoring Network. “This is a history that’s so long, as security increases on one section of the border, movement continues in another section.”
  • The most expensive tool is the long-endurance Heron drone operating over the Mediterranean.Frontex awarded a €100m (£91m) contract last year for the Heron and Hermes drones made by two Israeli arms companies, both of which had been used by the Israeli military in the Gaza Strip. Capable of flying for more than 30 hours and at heights of 10,000 metres (30,000 feet), the drones beam almost real-time feeds back to Frontex’s HQ in Warsaw.Missions mostly start from Malta, focusing on the Libyan search and rescue zone – where the Libyan coastguard will perform “pull backs” when informed by EU forces of boats trying to cross the Mediterranean.
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  • In September, Greece opened a refugee camp on the island of Samos that has been described as prison-like. The €38m (£32m) facility for 3,000 asylum seekers has military-grade fencing and CCTV to track people’s movements. Access is controlled by fingerprint, turnstiles and X-rays. A private security company and 50 uniformed officers monitor the camp. It is the first of five that Greece has planned; two more opened in November.
  • Poland is hoping to emulate Greece in response to the crisis on its border with Belarus. In October, its parliament approved a €350m wall that will stretch along half the border and reach up to 5.5 metres (18 feet), equipped with motion detectors and thermal cameras.
  • German MEP Özlem Demirel is campaigning against the EU’s use of drones and links to arms companies, which she says has turned migration into a security issue.“The arms industries are saying: ‘This is a security problem, so buy my weapons, buy my drones, buy my surveillance system,’” says Demirel.“The EU is always talking about values like human rights, [speaking out] against violations but … week-by-week we see more people dying and we have to question if the EU is breaking its values,” she says.
  • The EU spent €4.5m (£3.8m) on a three-year trial of artificial intelligence-powered lie detectors in Greece, Hungary and Latvia. A machine scans refugees and migrants’ facial expressions as they answer questions it poses, deciding whether they have lied and passing the information on to a border officer.The last trial finished in late 2019 and was hailed as a success by the EU but academics have called it pseudoscience, arguing that the “micro-expressions” the software analyses cannot be reliably used to judge whether someone is lying. The software is the subject of a court case taken by MEP Patrick Breyer to the European court of justice in Luxembourg, arguing that there should be more public scrutiny of such technology. A decision is expected on 15 December.
Ed Webb

Monthly Review | China: Imperialism or Semi-Periphery? - 0 views

  • although China has developed an exploitative relationship with South Asia, Africa, and other raw material exporters, on the whole, China continues to transfer a greater amount of surplus value to the core countries in the capitalist world system than it receives from the periphery. China is thus best described as a semi-peripheral country in the capitalist world system.
  • if China does manage to become a core country, the extraction of labor and energy resources required will impose an unbearable burden on the rest of the world. It is doubtful that such a development can be made compatible with either the stability of the existing world system or the stability of the global ecological system.
  • In 2016–17, China consumed 59 percent of the world total supply of cement, 47 percent of aluminum, 56 percent of nickel, 50 percent of coal, 50 percent of copper, 50 percent of steel, 27 percent of gold, 14 percent of oil, 31 percent of rice, 47 percent of pork, 23 percent of corn, and 33 percent of cotton.1
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  • In chapter 7 of Imperialism, the Highest Stage of Capitalism, Lenin defined the five “basic features” of imperialism: (1) the concentration of production and capital developed to such a high stage that it created monopolies which play a decisive role in economic life; (2) the merging of banking capital with industrial capital, and the creation, on the basis of this “finance capital,” of a financial oligarchy; (3) the export of capital as distinguished from the export of commodities acquires exceptional importance; (4) the formation of international monopolist capitalist associations which share the world among themselves, and (5) the territorial division of the whole world among the biggest capitalist powers is completed.8
  • Marxist theories of imperialism (or concepts of imperialism inspired by the Marxist tradition) that evolved after the mid–twentieth century typically defined imperialism as a relationship of economic exploitation leading to unequal distribution of wealth and power on a global scale.9
  • In chapter 8 of Imperialism, Lenin further argued that export of capital was “one of the most essential bases of imperialism” because it allowed the imperialist countries to “live by exploiting the labour of several overseas countries and colonies.” The superprofits exploited from the colonies in turn could be used to buy off the “upper stratum” of the working class who would become the social base of opportunism in the working-class movement: “Imperialism means the partition of the world, and the exploitation of other countries besides China, which means high monopoly profits for a handful of very rich countries, creating the economic possibility of corrupting the upper strata of the proletariat.”14
  • imperialism must be a system where a small minority of the world population exploits the great majority. It cannot possibly be a system in which the majority exploits the minority.
  • From 2004 to 2018, China’s total foreign assets increased from $929 billion to $7.32 trillion. During the same period, China’s total foreign liabilities (that is, total foreign investment in China) increased from $693 billion to $5.19 trillion.16 This means China had a net investment position of $2.13 trillion at the end of 2018. That is, China has not only accumulated trillions of dollars of overseas assets but also become a large net creditor in the global capital market. This seems to support the argument that China is now exporting massive amounts of capital and therefore qualifies as an imperialist country.
  • Rather than “exploiting” the developed capitalist countries, such capital flight in fact transfers resources from China to the core of the capitalist world system.
  • while foreign investment in China is dominated by direct investment, an investment form consistent with the foreign capitalist attempt to exploit China’s cheap labor and natural resources, reserve assets account for the largest component of China’s overseas assets.
  • the United States and other developed capitalist countries simply do not have the production capacity to produce within a reasonable period of time the extra goods and services that may correspond to the more than three trillion dollars of foreign exchange reserves held by China
  • From the U.S. point of view, China’s accumulation of foreign exchange reserves (mostly in dollar-denominated assets) has essentially allowed it to “purchase” trillions of dollars’ worth of Chinese goods largely by printing money without providing any material goods in return. China’s reserve assets, rather than being a part of China’s imperialist wealth, essentially constitute China’s informal tribute to U.S. imperialism by paying for the latter’s “seigniorage privilege.”
  • An average rate of return of about 3 percent on China’s overseas investment obviously does not constitute “superprofits.” Moreover, foreign capitalists in China are able to make about twice as much profit as Chinese capital can make in the rest of the world on a given amount of investment.
  • China’s total stock of direct investment abroad in 2017 was $1.81 trillion, including $1.14 trillion invested in Asia (63 percent), $43 billion invested in Africa (2.4 percent), $111 billion invested in Europe (6.1 percent), $387 billion invested in Latin America and the Caribbean (21 percent), $87 billion invested in North America (4.8 percent), and $42 billion invested in Australia and New Zealand (2.3 percent).
  • China’s massive investments in Hong Kong, Macao, Singapore, Cayman Islands, and British Virgin Islands (altogether $1.41 trillion or 78 percent of China’s direct investment abroad) are obviously not intended to exploit abundant natural resources or labor in these cities or islands.
  • Much of the Chinese investment in these places may simply have to do with money laundering and capital flight
  • the structure of China’s overseas assets is very different from the structure of foreign assets in China. Out of China’s total overseas assets in 2018, 43 percent consists of reserve assets, 26 percent is direct investment abroad, 7 percent is portfolio investment abroad, and 24 percent is other investment (currency and deposits, loans, trade credits, and so on). By comparison, out of total foreign investment in China in 2018, 53 percent is foreign direct investment, 21 percent is foreign portfolio investment, and 26 percent is other investment.
  • about $158 billion (8.7 percent of China’s total stock of direct investment abroad or 2.2 percent of China’s total overseas assets) invested in Africa, Latin America, and the rest of Asia. This part of Chinese investment no doubt exploits the peoples in Asia, Africa, and Latin America of their labor and natural resources. But it is a small fraction of China’s total overseas investment and an almost negligible part of the enormous total wealth that Chinese capitalists have accumulated
  • Marxist theorists of imperialism already realized that, in the postcolonial era, imperial exploitation of underdeveloped countries mainly took the form of unequal exchange. That is, underdeveloped countries (peripheral capitalist countries) typically export commodities that embody comparatively more labor than the labor embodied in commodities exported by developed capitalist countries (imperialist countries). In the twenty-first century, global outsourcing by transnational corporations based on the massive wage differentials between workers in imperialist and peripheral countries may be seen as a special form of unequal exchange.22
  • if a country receives substantially more surplus value from the rest of the world than it transfers, then the country clearly qualifies as an imperialist country in the sense of being an exploiter country in the capitalist world system. On the other hand, if a country transfers substantially more surplus value to the imperialist countries than it receives from the transfer of the rest of the world, the country would be either a peripheral or a semi-peripheral member of the capitalist world system (depending on further study of the country’s position relative to other peripheral and semi-peripheral countries).
  • even if in the unlikely event that China turns out to be extremely successful in its effort to promote electric cars, it would at best replace no more than one-tenth of China’s current oil consumption.
  • Being a leading imperialist country, the United States benefits from its “seigniorage privilege.” Because of the other countries’ need to hold massive amounts of foreign exchange reserves in the form of dollar-denominated assets, the United States can “purchase” trillions of dollars of goods simply by printing money without providing material goods in return. The labor embodied in the U.S. “trade deficits” therefore should be treated essentially as unilateral transfers from the rest of the world and included in the unequal exchange.
  • Sources: “World Development Indicators,” World Bank, accessed May 31, 2021. Net labor transfer is defined as the difference between the total labor embodied in a country’s imported goods and services and the total labor embodied in the country’s exported goods and services. If the difference is positive, it constitutes a net labor gain; if negative, it constitutes a net labor loss.
  • in the neoliberal era, Chinese capitalism has functioned as a crucial pillar for the global capitalist economy by transferring surplus value produced by tens of millions of workers to the imperialist countries. At its peak, China’s net labor loss equaled 48 percent of China’s industrial labor force in 2007
  • Had there not been unequal exchange, the massive amounts of material goods currently supplied to the United States by the rest of the world would have to be produced through domestic production to maintain existing levels of U.S. material consumption. About sixty million workers (38 percent of the total U.S. labor force) would have to be withdrawn from service sectors and transferred to material production sectors. This would result in a massive reduction of services output (by about two-fifths of U.S. GDP) without raising levels of material consumption.
  • By 2015–17, while it would still take about five units of Chinese labor to exchange for one unit of U.S. labor and four units of Chinese labor to exchange for one unit of labor from other high-income countries, China had clearly established exploitative positions in South Asia and sub-Saharan Africa. One unit of Chinese labor can now be exchanged for about two units of labor from sub-Saharan Africa or four units of labor from South Asia. One unit of Chinese labor is roughly on a par with one unit of labor from the low- and middle-income countries of Latin America, Caribbean, Middle East, North Africa, Eastern Europe, and Central Asia. In addition, China has also established a significant advantage relative to other East Asian low- and middle-income countries.
  • The core countries specialize in quasi-monopolistic, high-profit production processes, and the peripheral countries specialize in highly competitive, low-profit production processes. Surplus value is transferred from the peripheral producers to the core producers, resulting in unequal exchange and concentration of world wealth in the core. By comparison, semi-peripheral countries have “a relatively even mix” of core-like and periphery-like production processes.23
  • From 1870 to 1970, the share of the world population that lived in countries with per capita GDP greater than 75 percent of the imperial standard varied between 10 percent (in 1950) and 17 percent (in 1913). This is a range consistent with the population share of “a handful of exceptionally rich and powerful states” suggested by Lenin.
  • reasonable to use 75 percent of the imperial standard as the approximate threshold between the core of the capitalist world system and the semi-periphery. It is important to note that this is only an approximate threshold and other important characteristics (such as state strength, degree of political and economic independence, technological sophistication, and so on) also need to be considered when deciding whether a country is a member of the core or simply has a core-like income level. For example, in 1970, among the wealthiest countries were rich oil exporters such as Qatar, Kuwait, United Arab Emirates, and Venezuela that clearly do not qualify as core countries.
  • From 1870 to 1970, the share of the world population that lived in countries with per capita GDP less than 25 percent of the imperial standard increased from 57 percent to 66 percent, suggesting widening global inequalities. I use 25 percent of the imperial standard as the approximate threshold between the periphery and the semi-periphery.
  • by 2017, as China’s per capita GDP advanced to 31 percent of the imperial standard, the structure of world income distribution was radically transformed. The share of the population that lived in countries with per capita GDP less than 25 percent of the imperial standard fell to 50 percent (the lowest since 1870). The share of the population that lived in countries with per capita GDP higher than 75 percent of the imperial standard narrowed to 12 percent. At the same time, the share of the population that lived in countries with per capita GDP between 25 and 75 percent of the imperial standard expanded to 38 percent (almost double the historical semi-peripheral share of the world population).
  • Neither capitalism nor imperialism is compatible with an arrangement where the majority of the world population exploits the minority, or even with a situation where a large minority exploits the rest of the world. Given the size of the Chinese population (almost one-fifth of the world population), if China were to advance into the core, the total core population would have to rise to about one-third of the world population. Can the rest of the world afford to provide sufficient surplus value (in the form of labor embodied in commodities) as well as energy resources to support such a top-heavy capitalist world system?
  • South Asia has recently overtaken China to become the largest source of net labor transfer in the global capitalist economy. In 2017, South Asia suffered a net labor loss of 65 million worker-years. All the low- and middle-income countries combined provided a total net labor transfer of 184 million worker-years in 2017
  • Assuming that China’s average labor terms of trade rises from the current level of about 0.5 (one unit of Chinese labor exchanges for about half of a unit of foreign labor) to about 2 (one unit of Chinese labor exchanges for about two units of foreign labor, similar to the current average labor terms of trade of the non-U.S. high-income countries), then the total labor embodied in China’s imported goods and services would have to rise to about 180 million worker-years. Rather than providing a net labor transfer of nearly 50 million worker-years, China will have to extract 90 million worker-years from the rest of the world. The total shift of 140 million worker-years represents about three-quarters of the total surplus value currently received by the core and the upper-level semi-periphery from the rest of the world and is roughly comparable to the total net labor transfer currently provided by all the low- and middle-income countries (excluding China).
  • to replace China’s current annual car production by electric vehicles would require the consumption of 120,000 metric tons of lithium annually. World total lithium production in 2018 was only 62,000 metric tons. Therefore, even if China uses up the entire world’s lithium production, it would only be sufficient to replace about one-half of China’s conventional car production.27
  • China was a typical peripheral country in the 1990s. In the early 1990s, China’s labor terms of trade was about 0.05. That is, one unit of foreign labor could be exchanged for about twenty units of Chinese labor. Since then, China’s labor terms of trade has improved dramatically. By 2016–17, China’s labor terms of trade rose to about 0.5. That is, two units of Chinese labor could be exchanged for about one unit of foreign labor. On balance, China remains an economy exploited by the imperialist countries in the capitalist world system, although the degree of exploitation has declined rapidly in recent years.
  • The world population in 2018 was 7.59 billion. Using the more generous 1.4 trillion metric tons as the global emissions budget for the rest of the twenty-first century, an average person in the future is entitled to an average annual emissions budget of about 2.3 metric tons per person per year (1.4 trillion metric tons / 80 years / 7.6 billion people). By comparison, China’s per capita carbon dioxide emissions in 2018 were 6.77 metric tons and the U.S. per capita carbon dioxide emissions were 15.73 metric tons.
  • From 1990 to 2013, China’s per capita carbon dioxide emissions surged from 2.05 metric tons to 6.81 metric tons. If this trend were to continue, China’s per capita carbon dioxide emissions would rise to 12.85 metric tons when China’s per capita GDP rises to $37,734 (75 percent of the imperial standard). If every person in the world were to generate this level of emissions every year between now and the end of the century, global cumulative emissions over the last eight decades of this century would amount to 7.8 trillion metric tons, leading to 5.5 degrees Celsius of additional warming (using the approximate calculation that every one trillion tons of carbon dioxide emissions would bring about 0.7 degrees Celsius of additional warming).
  • China’s current per capita carbon dioxide emissions are substantially above what would be predicted by the cross-country regression given China’s current income level. Using the cross-country regression, if China’s per capita GDP were to rise to $37,734, China’s per capita carbon dioxide emissions should be 8.67 metric tons. If every person in the world were to generate emissions of 8.67 tons every year between now and the end of the century, global cumulative emissions over the last eight decades of this century would amount to 5.3 trillion metric tons, leading to 3.7 degrees Celsius of additional warming. As the global average temperature is already about one degree Celsius higher than the preindustrial level, global warming by the end of the century would be 4.7 degrees Celsius. This will lead to inevitable runaway global warming and reduce the areas suitable for human inhabitation to a small fraction of the earth’s land surface.
  • In other words, climate stabilization and global ecological sustainability can be accomplished if every country either accepts a massive reduction of per capita income to peripheral levels or stays with the peripheral levels.
  • The currently available evidence does not support the argument that China has become an imperialist country in the sense that China belongs to the privileged small minority that exploits the great majority of the world population. On the whole, China continues to have an exploited position in the global capitalist division of labor and transfers more surplus value to the core (historical imperialist countries) than it receives from the periphery. However, China’s per capita GDP has risen to levels substantially above the peripheral income levels and, in term of international labor transfer flows, China has established exploitative relations with nearly half of the world population (including Africa, South Asia, and parts of East Asia). Therefore, China is best considered a semi-peripheral country in the capitalist world system.
  • Given its enormous population, there is no way for China to become a core country without dramatically expanding the population share of the wealthy top layer of the world system. The implied labor extraction (or transfer of surplus value) demanded from the rest of the world would be so large that it is unlikely to be met by the remaining periphery reduced in population size. Moreover, the required energy resources (especially oil) associated with China’s expected core status cannot be realistically satisfied from either future growth of world oil production or conceivable technical change. In the unlikely event that China does advance into the core, the associated greenhouse gas emissions will contribute to rapid exhaustion of the world’s remaining emissions budget, making global warming by less than two degrees Celsius all but impossible.
Ed Webb

Brexit and Boris Johnson Are the Legacies of Tony Blair - 0 views

  • British history has a problem with nationalism, and indeed the nation — they’re not supposed to exist, or they exist in very unusual forms. A central claim of my book is that something I call the British nation, corresponding to the territory of the UK, emerged after 1945, with a national economy, national politics, and a self-consciousness of itself as a nation called Britain. But it had a rather short life and was broken up from the 1980s.
  • Before the nation came both the empire and a set of places that were located in a global, free-trading space. What came after the nation? A fresh commitment to a globalist, and in particular European, liberal economic perspective.
  • Most recently, we’ve had a claim for the centrality of empire in twentieth-century British history, coming right up to the present. I think this very often involves a misrepresentation of what empire was, a failure to distinguish imperialism from nationalism, and an implicit continuity thesis that the empire as it was in 1914 remains a potent ideological force today.
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  • The imperialists certainly made the empire and in particular the white dominions central to politics and economics. In many ways, today’s anti-imperialists have followed them rather naively in this.
  • For the Conservatives, the white dominions in particular were central. They provided an image of the empire as a brotherhood of free white nations — a very important part of the overall story. But it was also important because the white dominions really were the important bits economically. That was where the investment went, and where a lot of the food for the United Kingdom came from.
  • India is a different matter. That was a place, of course, with a massive population. It was an important market for exports, but it was in a different league from the white dominions, and both were in a quite different position from what were strictly speaking called the colonies. It is very important to remember that before the 1940s — that is to say, in the great age of empire — trade with foreign countries was greater than with “British” countries, to use the language of the time. Liberals pointed this out again and again. They argued that the great glory of the British economy was not the empire but rather free trade. That meant trading with everybody and in practice trading a very great deal with Europe. That was where British bacon, British eggs, British iron ore, or British timber came from, and much else besides. Before the 1940s, the UK was a profoundly European economy, deeply integrated into trade and production within the European continent.
  • The UK was the largest overseas investor and the largest trader, but it was also the most industrial country in the world — far more industrialized than Germany or the United States at this time. It was more industrialized precisely because it was more globalized. It didn’t need to grow all its own food. The City was investing overseas in UK-owned enterprises, whose business was often to supply food to the UK, directly or indirectly. That in turn allowed the UK to be industrial and indeed to supply the railways, the factories, and the ships that made all this trade possible in the first place. In fact, the relations between overseas investment and industrialization were synergistic, at least in this period.
  • it’s striking how little impact decolonization had. Take the cases of India and Palestine in the 1940s: there were no major convulsions at home — nothing compared to what was happening in France during the 1950s.
  • there was actually a silent revolution brought about by “de-imperialization.” That was best exemplified by the extraordinarily rapid transition of the Conservatives from being the party of empire and Imperial Preference to being the party of free trade and of applying for accession to the Treaty of Rome in 1961. It is extraordinary that, just a few years after World War II, the Tory Party in government applied for membership of what was then called the Common Market.
  • There was a movement of people from the Caribbean in particular during the 1950s, but they were people coming from a colonial territory who had the same nationality as most people living in the United Kingdom. They were what were called “citizens of the United Kingdom and Colonies,” so they weren’t really immigrants. They were people moving within the space of British nationality. Interestingly, there were more immigrants, in the sense of aliens or semialiens, coming from Ireland and continental Europe in the 1940s and ’50s. Indeed, the dominant movement of population from the 1940s right up into the 1980s was outward rather than inward. The UK was a place of net emigration in that period. A lot of that emigration was to the Commonwealth, and Australia in particular.
  • It comes as a surprise to many people that in the 1950s, the United Kingdom was still the most industrialized economy on Earth. This doesn’t fit with the “declinist” images that have so affected our understanding of this period in particular. In terms of growth rates, poorer European countries and countries elsewhere were often growing faster than the UK economy — they were catching up. The German economy caught up with the UK and overtook it in terms of GDP per capita in the 1960s, and France did the same in the 1970s. But the overall result was that the West European economies, which had been quite different in 1945 or 1950, came to be very similar by the 1980s and ’90s or the 2000s when one includes poorer countries like Spain.
  • In the 1970s and ’80s, the UK became broadly speaking self-sufficient in the foods that it could grow itself, much as Germany, France, and Italy were self-sufficient in food. What had been the great factor distinguishing the United Kingdom from continental Europe disappeared as a result of a fundamental change in British political economy. The UK became an exporter of beef and wheat, which would have been unthinkable not just in the Edwardian years but in the 1950s as well.
  • The reality is that the 1970s saw a global crisis. There were important transitions and readjustments in the British economy. That decade was also a period of political radicalism and cultural inventiveness — a period of innovation, of a sort that conservatives didn’t like one bit. That’s essentially why the 1970s have this terrible reputation.
  • She did transform the British economy, but it’s important to note that she did not increase the underlying rate of growth. Since 1979, the British economy has grown more slowly on average than it grew between 1945 and the 1970s. In that sense, she most certainly did not reverse the British decline. Nor did she reverse the British decline in relation to all the other major economies in the world
  • while manufacturing employment did go down very radically, manufacturing output remained high. Indeed, peak manufacturing output in British history came in 2008 — it wasn’t the 1970s, let alone the 1870s
  • North Sea oil was certainly important because, together with the new self-sufficiency in food, it meant that the UK no longer had to import the two things that had dominated its import bill in the past: food and oil. That meant that the UK no longer needed to have a surplus in the manufacturing balance, which went negative in 1981.
  • Quite soon, you had a permanent negative balance of trade in the British economy — a quite extraordinary thing. A tiny negative balance of trade was the stuff of politics in the 1950s and ’60s, yet in the more recent past, a permanent deficit of 4, 5, or 6 percent of GDP has no impact whatsoever. What made this deficit sustainable? The emergence of a new kind of City of London. It was not the City of the Edwardian years. It was something quite different, like an enclave, which was about bringing money into the UK as much as taking it out. It was precisely those net flows of capital into the UK that allowed it to sustain the negative balance of trade.
  • The most important thing Thatcher did, apart from opening up the economy to Europe and the world, was to encourage the increasing inequality between capital and labor and between the regions. There was an extraordinary reversal of the move toward greater equality of income, wealth, and regional development that had been taking place from 1945
  • The loss of trust in government that arose from the obvious, systematic mendacity of the Blair administration around Iraq had and continues to have profound consequences. It generated a new, deep cynicism in politics
  • It’s striking that the Conservatives have increased their vote share in every election since 1997. The idea that Boris Johnson suddenly transformed the fortunes of the party is quite wrong. That’s one legacy of Blairism — not just Brexit, but also a new, revived, and dangerous Conservative Party. If Thatcherism begot Blairism, I think Blairism begot “Johnsonism” by a very different process.
  • The UK has been a place where global capitalism does its business. There’s relatively little we could straightforwardly call British capitalism
  • there aren’t the sort of connections between business and the Conservative Party that there would have been when they were all the same people. There are, perhaps, connections between particular kinds of business and the Conservative Party — particular hedge funds, for example, or Russian oligarchs. Between them, they’re pushing the Conservatives to be a party that’s pressing for an even greater degree of tax-haven status for the British economy, making it even more of a rentier, liberalized economy than it already is.
  • We have an extraordinary politics, in which a particular fraction of capital, allied with hard-right elements of the Conservative Party, are pursuing a policy that they don’t really understand and can’t really come to terms with.
  • We’ve had great programs of political-economic change, from mobilization in World War II to going into the European Economic Community. But those were planned and thought through — there weren’t any great surprises. This one hasn’t been. It hasn’t even really been improvised. It has just been a very peculiar mess.
  • the politics of the Brexiteers themselves aren’t the politics of Brexit voters. The Brexit vote is an old vote, just like the Conservative vote. One has to credit the Conservatives with realizing that their vote was an old one and doing everything they could to sustain that vote — for example, by keeping NHS spending and pension spending up, systematically targeting welfare at the elderly and taking it away from the young
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