Tuesday, October 31, 2023

Nigeria victim of fraud shock

 Was Nigeria the victim of a 419 fraud, or advance fee fraud?

We’re shocked, shocked we tell you to find that an African country appears to may have been the victim of a scam. Our faith in capitalist enterprises seeming not to be models of virtue, rectitude and probity in their dealings with capitalist states has been deeply shaken. To take advantage of a government like that goes far beyond the pale.

For new readers to SOYMB, let it be noted that the above is sarcasm. Capitalism as a whole is a cut-throat social system that would leave seventeenth and eighteenth pirates gasping at its audacity.

‘ABUJA, Nigeria (AP) — A London judge on Monday overturned an arbitration award that would have required Nigeria to pay $11 billion over a failed gas project, finding the contract was obtained through fraud.

The High Court ruling by Justice Robin Knowles reverses the award to the British Virgin Islands-based Process & Industrial Developments Ltd. over the 2010 gas deal. The payment would have dealt a massive blow to Nigeria’s ailing economy.

The judge said although he did not accept all of Nigeria’s allegations discrediting P&ID and the contract, “the awards (of the contract) were obtained by fraud … and the way in which they were procured was contrary to public policy.”

Knowles said three things showed the case as an “irregularity”: P&ID providing evidence it knew was false in a witness statement, the company’s bribery or corrupt payment to a Nigerian civil servant and the company’s ”improper retention” of Nigeria’s legal document which it received during arbitration.

P&ID in 2017 secured the compensation award, which originally was $6.6 billion but is now estimated to be $11 billion with accrued interest. The company’s main claim in the arbitration was for loss of profit for the 20 years the agreement covers.

The contract signed with Nigeria's government in 2010 was for the company to build a gas processing plant in the south eastern port city of Calabar. The project collapsed not long after it was signed, and P&ID took the Nigerian government to arbitration, alleging a breach of contract.

Nigerian officials said the contract was signed under questionable circumstances while late President Umaru Musa Yar’Adua was critically ill and Goodluck Jonathan, his deputy, was acting president. Officials accused P&ID of bribery and corruption in securing the contract and during arbitration, which the company denied.

https://qz.com/a-british-court-ruling-frees-nigeria-from-paying-11-bi-1850949923




Monday, October 30, 2023

Arms manufacturers looking forward to even more profits

There are many posts on SOYMB about the arms trade. The Underwoods continue to benefit from capitalism’s wars and conflicts fought on their various behalf by the working class. General Dynamics boast of their Stakhanovite efforts. Do shareholders in these companies smile happily at their breakfast table at the rising share prices and the thoughts of the increased dividends to come? The solution, the only solution to this insanity is the replacement of capitalism by socialism. What’s it going to take before the majority understand and implement that?

‘The largest Western military and defence corporations have seen revenues spike due to orders linked to the Ukraine conflict, third-quarter earnings. The surge in revenues is attributed to the sharp increase in military spending by Western countries in order to supply weapons to Ukraine and rearm their own militaries.

US-based Lockheed Martin, General Dynamics, and RTX (formerly known as Raytheon Technologies Corp) all reported better than expected results and guided that they expect still higher revenues in the upcoming quarters.

Lockheed Martin said that its third quarter results “were at or above our expectations across the board” and that the backlog remained “robust at $156 billion as both domestic and international orders were strong.” The company’s net earnings for the past nine months amounted to roughly $5 billion, against $3.8 in the same period last year.

The combat systems branch of General Dynamics saw its revenues spike by nearly 25% in the third quarter against the same period in 2022. The unit makes the armoured vehicles, tanks, and artillery that are sent to Ukraine.

[Artillery] has been a big pressure point up to now with Ukraine, one that we’ve been doing everything we can to support our [US] Army customer,” the company’s chief financial officer, Jason Aiken, said on a call with Wall Street analysts on Wednesday, as cited by Reuters.

Revenue for Boeing’s Defence, Space & Security unit for the quarter totalled $5.5 billion, up 3% from the same time last year. The company has supplied to Ukraine armaments including ScanEagle unmanned aerial vehicles and Harpoon and Hellfire missiles. It also recently delivered its first T-7A Red Hawk jet to the US Air Force.

RTX reported a 12% rise in adjusted revenue in the third quarter. In an earnings call this week, the company revealed it had received $3 billion worth of orders since the start of Russia’s military operation in Ukraine in February 2022, and expects more in the near term.

The defence systems unit of Northrop Grumman posted 6% higher earnings on demand for ammunition and the rocket motors used in guided multiple-launch rocket systems, the company said.

Across the Atlantic, Swedish aircraft manufacturer Saab raised its sales outlook for the year this week amid high demand. Germany’s Rheinmetall is due to report third-quarter earnings next month, but preliminary results unveiled this week show that the company expects operating profit to top estimates by 15% and amount to roughly $202 million on strong demand for weapons and ammunition.

Defence contractors also expect a boost in orders due to the recent escalation of hostilities in Gaza, which already sent their stocks surging this week.

We’ve gone from 14,000 [artillery] rounds per month to 20,000 very quickly. We’re working ahead of schedule to accelerate that production capacity up to 85,000, even as high as 100,000 rounds per month. And I think the Israel situation is only going to put upward pressure on that demand,” General Dynamics’s Aiken was cited as saying.’






Sunday, October 29, 2023

Indian capitalist says work harder!


Indian capitalists want to extract more surplus value from the Indian working class.

It is reported that, ‘Narayana Murthy, the founder of tech giant Infosys, sparked controversy this week when he suggested that youngsters in India should work at least 70 hours every week, as he lamented the country’s “low work productivity.

“Our youngsters must say: this is my country, I want to work 70 hours a week,” Murthy said in a podcast. This is “exactly what Germans and Japanese did” after World War II, he noted, adding that young people in India have a habit of “taking not-so-desirable habits from the West and then not helping the country.”

Unless India improves its work productivity, reduces corruption in the government, and reduces the delays in the bureaucracy in making decisions, it will not be able to compete with countries that have made “tremendous progress,” Murthy said.

This is the first time that India has received some respect,” the Infosys founder claimed, adding that now is the time “to consolidate and accelerate the progress.

Murthy’s comments triggered debate on social media, which highlighted the stark contrast in the expectations of the country’s young workforce and the corporate leaders who have witnessed India’s emergence as a powerful global player, particularly in sectors such as IT development and business process outsourcing.

While some business leaders expressed support for Murthy’s views, many people criticized them, raising concerns about disparities in earnings and work-life balance.

Billionaires agree to have cheap labor and long working hours (in other words, low-cost slaves)! They are probably praying for an even worse job market to make this a reality,” Amitranjan Gantait posted on X (formerly Twitter). According to Forbes, Murthy has a net worth of $4.3 billion.

“Youth unemployment in India is 45%,” S.L. Kanthan wrote. “Perhaps, we can employ 2 workers who work 40 hours a week?

India’s Infosys founder #NarayanaMurthy: “Young IT workers should work 70 hours a week. A new work culture is needed.”Umm… youth unemployment in India is 45%. Perhaps, we can employ 2 workers who work 40 hours a week?Let’s reject Neoliberalism & America’s cruel capitalism. pic.twitter.com/QlRntWEjKf

— S.L. Kanthan (@Kanthan2030) October 27, 2023

Millions of Indians have left the job market without even looking for a new job, Indian media outlets reported last year, citing data from a Mumbai-based private research firm, the Center for Monitoring Indian Economy, which showed that between 2017 and 2022, the overall labor participation rate dropped from 46% to 40%.

Prominent members of India’s corporate sector who came to Murthy’s defense included Bhavish Aggarwal, the co-founder of Indian cab company Ola, a rival to Uber. He said he “totally agreed” with the billionaire’s views. “It is not our moment to work less and entertain ourselves,” he replied on X. “Rather it is our moment to go all in and build in one generation what other countries have built over many generations.”

Sajjan Jindal, the chairman of JSW Group, also came to Murthy’s defence: “It’s not about burnout; it’s about dedication. We have to make India an economic superpower that we can all be proud of in India 2047.”

Jindal added that “a 5-day week culture” is not what a rapidly developing nation of India’s size needs, as the country’s “circumstances are unique and its challenges distinct from those of developed nations.”

Journalist Chandra R. Srikant said, “To disparage the Indian IT industry and Infosys with terms like sweatshop and coolie is uncalled for.”

“These companies put India on the global map,” she wrote on X, adding that these firms “created superb outcomes for the Indian middle class and shareholders.”’




Saturday, October 28, 2023

Workers have no country

 



Foreign Minister Pandor made a similar sttement last year: ‘As South Africans, we find similarities in our past with the Palestinians, and now I remember the funeral of Shereen Abu Akleh and what happened to her coffin. It reminds me of the gravesites that we had to carry out under the persecution of the apartheid soldiers’ (South Africa calls for holding Israel accountable for ‘inhumane conditions’ Palestinians live under, Middle East Monitor, 17 June, 2022).

In May that year Nokuthula Mabaso, an Abahlali baseMjondolo (AbM) leader was buried following her assassination in front of her children. She was the third activist of the shack dwellers’ movement to be killed in less than two months.    To date, 24 Abahlali activists have been killed.   Members of AbM are thus well acquainted with the state as a coercive machine of class oppression and likely know the fairytale Freedom Charter adopted by the ANC in 1955 envisaged a post-Apartheid South Africa where ‘The police force and army… shall be the helpers and protectors of the people’, ‘the right to be decently housed’ enshrined and ‘Slums shall be demolished …‘.   AbM are credited with starting UnFreedom Day, which coincides with the official South African holiday called Freedom Day, the orthodox annual celebration of the country’s first non-racial democratic elections of 1994. On the 16 August 2012 17 workers were killed and 78 wounded by the police in the Marikana Miners’ Massacre, the most lethal use of force by South African security forces against other workers since 1976. Worse still, former President Mbeki’s support for alternative remedies such as vinegar rather than antiretroviral drugs saved the state’s funds at a cost of at least 300,000 lives. 

And ‘More than two decades after South Africa ousted a racist apartheid system that trapped the vast majority of South Africans in poverty, more than half the country still lives below the national poverty line and most of the nation’s wealth remains in the hands of a small elite’ (NPR, 2 April, 2018) led by billionaire Ramaphosa.

Friday, October 27, 2023

The Socialist Party ADM and Workshop

 

AUTUMN DELEGATE MEETING AND WORKSHOP


Event Details

  • Date:  – 

LONDON
Saturday 28 October
Autumn Delegate Meeting and Workshop.
(Hybrid meeting – to join, click https://zoom.us/j/7421974305
Socialist Party Head Office, 52 Clapham High St, London SW4 UN (nearest tube: Clapham North)

Thursday, October 26, 2023

Poverty in the UK

 

A report from the Joseph Rowntree Foundation says that ‘Almost four million people, including more than a million children, in Britain experienced the most extreme form of poverty last year.

‘According to the charity, the number of Britons experiencing ‘destitution’ surged 61% between 2019 and 2022, with 3.8 million people going through these levels of poverty.

‘Destitution’ is defined as the inability to meet basic physical needs, like staying fed, warm, clean and dry either due to lack of essentials – such as clothing, heating, shelter and food – or because an income is so low that people cannot afford to buy these items.

Household income dropped below a minimum level after housing costs, ranging from £95 ($115) a week for a single adult to £205 ($249) a week for a couple with two children. Over half of destitute households had a weekly income of less than £85 after housing costs, the study concluded, adding that a quarter reported no income at all.

The number of ‘destitute’ children has nearly tripled since 2017, marking a dramatic increase by 186%.

Adults from across the country reported a frequent inability to have more than one meal a day, saying that they are often forced to go without to ensure their kids could eat. Around two-thirds of respondents (61%) said they had gone hungry in the past month, having relied on food banks or relatives for groceries.

Over half of destitute adults (51%) regularly went without hygiene and cleaning products, along with toiletries like shampoo and toothpaste, reporting heavy reliance on food banks for these items.

Most of the polled adults were not able to afford clothing and footwear, claiming they only purchased new clothes that were necessary, such as school uniforms and trainers for their children.’


Wednesday, October 25, 2023

Death and destruction now costs fifty per cent more


'The price of artillery shells produced by German arms manufacturer Rheinmetall have soared by more than half since the start of the Ukraine conflict, an investigation by the Welt am Sonntag newspaper.

Confidential documents showed that Rheinmetall, which brands itself as “a strong partner on Ukraine’s side,” raked in huge profits by selling artillery shells to Kiev, paid for by the German government, as ammunition prices have surged since early last year, the outlet said.

According to the document, in July the German Defence Ministry signed a deal with Rheinmetall on the supply of 155-mm calibre shells that can be fired from the self-propelled howitzer 2000 and hit targets dozens of kilometres away. The contract will reportedly serve both German and Ukrainian needs.

Kiev’s troops allegedly used 155-mm calibre shells in a series of artillery strikes on civilian infrastructure in the city of Donetsk in May.

Under the deal, Rheinmetall will supply Kiev with up to 333,333 rounds of the large-caliber ammunition with each shell costing at least €3,600 ($3,813), the outlet noted, adding that shell prices are expected to rise further.

According to the German Finance Ministry, in the “current market situation, Rheinmetall was not prepared to unilaterally set binding order quantities over the entire contract period, specific delivery times or prices.

Before February 2022, artillery shells were sold at a standard market price of €2,000 per unit.

You can no longer produce bullets in Europe for €2,000 euros,” a military economist who asked not to be identified told Welt am Sonntag.

Industry experts point to rising raw material and production costs in the EU, that have been driven up by supply chain disruptions and soaring energy prices triggered by the Ukraine conflict.'




Socialist Sonnet No. 119

Tongue Tied

 

Self-appointed people’s tribunes shout

And chant that righteous death be visited

On those proclaimed other, who, it’s said,

Challenge righteous certainties with doubt.

Ernest professed defenders of free speech

Then demand banning of hate words they see

As inimical to democracy:

Language isn’t allowed beyond the law’s reach.

All too readily from good intentions

Voices may be silenced, tongues shackled,

Stopping difficult issues being tackled

Through a malignant state’s intervention.

 But then, advocates for better times to come

Can be confounded, arrested; struck dumb!

 

D. A.

Tuesday, October 24, 2023

French winemakers whine.

 

Supporters of, or propagandists for, capitalism will holler the benefits of competition to the consumer. Not everyone is in favour of competition of course.

‘French winemakers have been staging a mass protest against Spanish wine imports, arguing that they create unfair competition in the local market, which is already suffering from a surplus.

According to a report from Le Parisien, around 500 protesters gathered on a highway near the French border town of Boulou and stopped several trucks with Spanish products, and destroyed their cargoes. As a result, more than 240 hectoliters of Spanish rosé were poured on the road and 10,000 bottles of Spanish sparkling were smashed.

The demonstrators said they are suffering losses due to cheap Spanish wine entering the French market.

The problem is the price,” Antoine, a 79-year-old French winegrower, told the news outlet.

The Spanish have minimum charges, the right to put all the chemicals they want on their vines while we have the right to nothing… As a result, Spanish wine costs half as much as French wine. When their hectoliter costs €40, it is almost €80 with us,” he said.

Aude wine union leader Frederic Rouanet pledged to continue the protests, with a major mobilization of winemakers scheduled for the end of November.

It is out of the question to accept the situation as it is. Starting from today, we are going to remove the possibility of buyers being able to get cheap wines from elsewhere... We are going to stop Spanish imports. This is the start of an economic war that we are going to wage,” Rouanet said.

Earlier this week, French wine growers gathered in Ferrals-des-Corbieres to discuss the crisis in the industry, which they consider the worst in around two decades. The union prepared a letter to be sent to French wine merchants and importers that called for “a total halt in buying wine from other regions or abroad until the [local] wines are sold at a fair price.

Renowned for its centuries-old winemaking traditions, France has been suffering from a massive surplus of wine due to a strong harvest in 2022 and low consumption caused by soaring inflation. The French government introduced a drastic plan in August to allocate €200 million ($216 million) to destroy wine surpluses. Officials have also been offering financial incentives to growers to switch to other products.

The drop in the demand for wine has not been limited to France. The European Commission reported in June that wine consumption fell by 15% in France, but it also dropped by 7% in Italy, 10% in Spain, 22% in Germany, and 34% in Portugal. The EU’s wine exports have also been dropping. Between January and April 2023, cross-border sales fell by 8.5% compared to the same period last year.

Some analysts say the drop in EU wine exports partly stems from Ukraine-related sanctions that Brussels placed on Russia last year, banning wine sales that exceed €300 per bottle. As a result, while in 2022 Spain and Italy were among Russia’s top-three wine suppliers, this year they were replaced by Lithuania and Georgia.’

Monday, October 23, 2023

Suburbanisation of Poverty

From the Urban Big Data Centre comes a report titled ‘Private renting and the suburbanisation of poverty. What would Karl Marx and Frederick Engels made of this date one wonders. The UBDC notes that five years ago ‘one in three children in poverty lived in private renting, three times the level of 20 years earlier.’ What might that figure be now?

UBDC asks the pertinent question, ‘We need to examine the impacts this has on the welfare of poorer households as they are pushed to locations which tend to have worse public transport, and worse access to jobs and vital services. But we also need to be asking whether this is the kind of city we wish to create – one marked by deepening spatial divisions between richer and poorer.’

The solution lies within everyone's grasp. It is the replacement of capitalism with a social system based on the production of quality goods and services for use, not profit. The abolition of capitalism results not only in the abolition of the exploitation of the majority working class but the abolition of landlords too.

One of the most marked changes in the UK’s housing system over the last 30 years has been the rise – or rather, the re-growth – of the private rented sector (PRS). Many more low-income households now find homes in this sector. In a new paper we show how this is leading to the steady exclusion of poorer households from more central locations in our towns and cities, a phenomenon known as the suburbanisation of poverty. For the ten largest cities, we estimate that one-in-nine low-income PRS households was displaced in just eight years as a result – 15,000 households in total. Changes were particularly stark in the largest conurbations but were by no means confined to those cities.

From fewer than one-in-ten households in 1991, the PRS is now home to almost one-in-five. The Government encouraged this re-growth because the sector provides an important source of flexibility for those that need quick access to accommodation without long-term commitments. But few expected the sector to grow as fast as it did.

Even fewer anticipated the extent to which it would become home to increasing numbers of low-income households and, especially, poorer families with children. By 2017/18, one in three children in poverty lived in private renting, three times the level of 20 years earlier. Where previously most low-income families would expect to find secure housing in the social rented sector, now they are faced with raising children while living with the insecurities which go with private renting and all the disruptions to schooling and social life that that entails.

The other consequence of the growing reliance on private renting is how it affects where low-income households can afford to live. Here there are two factors at play: rent levels and subsidy levels from Housing Benefits. On rent levels, PRS housing in more central locations isn’t always more expensive: a lot of cheaper housing can be found close to city centres because it is older, smaller or in worse condition. But in our paper, we show how this housing is becoming less affordable over time with the steady gentrification of these areas. Using the detailed data on private renting from Zoopla plc (available through UBDC’s data collection), we can see that rents are rising everywhere but they are rising faster in more central locations, particularly in the larger cities ; London is the exception but rents for the central parts of that city were exceptionally high to start with. In the social rented sector by contrast, rents vary very little across the different locations within a city so central locations remain affordable.

On Housing Benefits, we have seen increasing restrictions on the subsidies available to pay rents at exactly the same time as we have pushed more low-income households into private renting. In the years leading up to the pandemic, increases in Housing benefits were restricted to levels well below rental inflation rates so that poorer households were restricted to smaller and smaller sections of the PRS market. In 2012/13, 20 per cent of listings on Zoopla were affordable for those on Housing Benefit. By 2019/20, this had fallen to just 9 per cent.

One of the most marked changes in the UK’s housing system over the last 30 years has been the rise – or rather, the re-growth – of the private rented sector (PRS). Many more low-income households now find homes in this sector. In a new paper we show how this is leading to the steady exclusion of poorer households from more central locations in our towns and cities, a phenomenon known as the suburbanisation of poverty. For the ten largest cities, we estimate that one-in-nine low-income PRS households was displaced in just eight years as a result – 15,000 households in total. Changes were particularly stark in the largest conurbations but were by no means confined to those cities.

From fewer than one-in-ten households in 1991, the PRS is now home to almost one-in-five. The Government encouraged this re-growth because the sector provides an important source of flexibility for those that need quick access to accommodation without long-term commitments. But few expected the sector to grow as fast as it did.

Even fewer anticipated the extent to which it would become home to increasing numbers of low-income households and, especially, poorer families with children. By 2017/18, one in three children in poverty lived in private renting, three times the level of 20 years earlier. Where previously most low-income families would expect to find secure housing in the social rented sector, now they are faced with raising children while living with the insecurities which go with private renting and all the disruptions to schooling and social life that that entails.

The other consequence of the growing reliance on private renting is how it affects where low-income households can afford to live. Here there are two factors at play: rent levels and subsidy levels from Housing Benefits. On rent levels, PRS housing in more central locations isn’t always more expensive: a lot of cheaper housing can be found close to city centres because it is older, smaller or in worse condition. But in our paper, we show how this housing is becoming less affordable over time with the steady gentrification of these areas. Using the detailed data on private renting from Zoopla plc (available through UBDC’s data collection), we can see that rents are rising everywhere but they are rising faster in more central locations, particularly in the larger cities; London is the exception but rents for the central parts of that city were exceptionally high to start with. In the social rented sector by contrast, rents vary very little across the different locations within a city so central locations remain affordable.


On Housing Benefits, we have seen increasing restrictions on the subsidies available to pay rents at exactly the same time as we have pushed more low-income households into private renting. In the years leading up to the pandemic, increases in Housing benefits were restricted to levels well below rental inflation rates so that poorer households were restricted to smaller and smaller sections of the PRS market. In 2012/13, 20 per cent of listings on Zoopla were affordable for those on Housing Benefit. By 2019/20, this had fallen to just 9 per cent.

The combination of these two factors has meant the steady exclusion of low-income households from the inner-city locations. In Figure 2, we can see that the number of PRS households on Housing Benefit fell in most of the largest cities between 2011 and 2019 but the falls were greater – and sometimes much greater – in the inner-city areas. Here we define ‘inner city’ as the most central fifth of neighbourhoods.

Another way to capture the scale of the change is to ask how many more low-income households would have been in the inner-city areas in 2019 if the change in households on Housing Benefit there had been the same as in the outer areas of each city. In Bristol, for example, there were 6300 PRS households on Housing Benefit in the inner city in 2011 and this had fallen by 2400 by 2019, a reduction of 38%. In the rest of Bristol, however, the fall was just 15%. If that rate had applied in the inner city, the reduction would have been just 900 households. There are therefore 1500 fewer Housing Benefit household in the inner city than there might otherwise have been – equivalent to nearly one-in-four of those present in 2011. Across the ten largest cities, the total number of households affected was 15,000 or one-in-nine of those present in 2011.

Continuing cuts in Housing Benefit levels, combined with the rising costs of inner-city renting, are engineering a fundamental change in the social fabric of our cities. We need to examine the impacts this has on the welfare of poorer households as they are pushed to locations which tend to have worse public transport, and worse access to jobs and vital services. But we also need to be asking whether this is the kind of city we wish to create – one marked by deepening spatial divisions between richer and poorer.’

https://ubdc.ac.uk/news-media/2023/october/private-renting-and-the-suburbanisation-of-poverty/






Capitalist company profits down: sacking workers

 

It is reported that 'Finnish telecom multinational Nokia has announced that it will slash up to 14,000 workers as part of a broader cost reduction plan after the company’s earnings plunged 69% in the third quarter.

The announcement was made on Thursday as the company reported a 20% year-on-year drop in sales between July and September to €4.98 billion ($5.26 billion). Nokia’s profit over the period plunged by 69% year-on-year to €133 million.

The company said that the decision is expected to help it to lower its cost base and increase operational efficiency to “address the challenging market environment.”

The Espoo-based multinational is aiming to reduce its cost base on a gross basis from 2023 by between €800 million and €1.2 billion by the end of 2026.

Under the plan, the number of employees would be slashed from the current 86,000 to between 72,000 and 77,000.

“The most difficult business decisions to make are the ones that impact our people. We have immensely talented employees at Nokia and we will support everyone that is affected by this process,” the Nokia chief executive Pekka Lundmark said, commenting on the decision.

The corporation did not detail where the job cuts would occur, but said that they are likely to affect its operations in Europe, the UK, and US.

The exact scale of the cost-cutting program will depend on demand for the company’s products, Nokia said, adding that it “expects to act quickly” in order to save as much as €400 million next year and another €300 million in 2025.

“We continue to believe in the mid-to-long-term market, but we are not going to sit and wait and pray that the market will recover anytime soon,” Lundmark said. “We simply don’t know when it will recover.”

The company’s shares were down over 6% on Thursday.'




Sunday, October 22, 2023

Must do better

 In an article titled The USSR flag and student communism: a controversial combination, we read:

'The ideological concept of communism originated in 18th-century Western Europe as a result of the work of German philosopher Karl Marx.'

Marx lived and died during the 19th century, 5 May 1818 – 14 March 1883.

'The brutal totalitarian practices initiated by the USSR’s leaders, particularly Joseph Stalin, lead to enormous suffering.'

Indeed, but they had nothing to do with socialim/communism.

Marx wrote; 'the existence of the state is inseparable from the existence of slavery' (Vorwärts, 7 and 10 August 1844).   Speaking about the modern state Engels, Marx's collaborator,  pointed out:      'The more it proceeds to the taking over of the productive forces the more does it actually become the national capitalist, the more citizens does it exploit. The wages workers remain wages workers—proletarians' (Anti-Duhring)    Lenin wrote of Russia in 1918: ‘reality says that State capitalism would be a step forward for us; if we were able to bring about State capitalism in a short time it would be a victory for us’ (The Chief Task of Our Time).

It was Lenin who instituted severe censorship, established one-party rule and resorted to terror against his political enemies.    Stalin took these measures to further extremes.

‘Future society will be socialist society. This also means that with the abolition of exploitation, commodity production and buying and selling will also be abolished and, therefore, there will be no room for buyers and sellers of labour power, for employers and employed—there will be only free workers… Where there are no classes, where there are neither rich nor poor, there is no need for a state, there is no need also for political power, which oppresses the poor and protects the rich. Consequently, in socialist society there will be no need for the existence of political power’ (Anarchism or Socialism? 1906).

Ironically, the author of this piece would thirty years later, in a complete volte-face, declare the USSR to be socialist. That same year, on the 28th August, Pravda proclaimed him divine: ‘O Great Stalin, O Leader of the Peoples,Thou who didst give birth to man, Thou who didst make fertile the earth, Thou who dost rejuvenate the Centuries, Thou who givest blossom to the spring… ‘ And a mere mortal observed:

‘There are in the USSR privileged and exploited classes, dominant classes and subject classes. Between them the standard of living is sharply separated. The classes of travel on the railways correspond exactly to the social classes; similarly with ships, restaurants, theatres, shops, and with houses; for one group palaces in pleasant neighbourhoods, for the others wooden barracks alongside tool stores and oily machines… It is always the same people who live in the palaces and the same people who live in the barracks. There is no longer private property, there is only one property – State property. But the State no more represents the whole community than under preceding régimes’ (What the Russian Revolution Has Become, Robert Guiheneuf, 1936).

And today, ‘Russian elites and oligarchs are probably some of the best in the world at hiding their wealth…’ (Washington Post, 11 April, 2022).

And finally, this howler:
'Trinity College Dublin Students Union (TCDSU) President...offered his perspective: “I am from Eastern Europe. I am a communist. I am not offended by the display of this flag … [The hammer and sickle] is a symbol of the communist movement globally, and this is a movement of equality, justice and the liberation of humankind.” '

Verily, 'flags are bits of colored cloth that governments use first to shrink-wrap people’s brains and then as ceremonial shrouds to bury the dead. When independent-thinking people (and here I do not include the corporate media) begin to rally under flags, when writers, painters, musicians, film makers suspend their judgment and blindly yoke their art to the service of the “Nation,” it’s time for all of us to sit up and worry' (Arundhati Roy, c. 2008).




Friday, October 20, 2023

Republic of Congo higher fuel costs due to IMF

 

In the Republic of Congo, diesel prices have risen by 25 percent in October, marking another increase following a hike in January. Similarly, since July, the pump price of gasoline has also surged by 25 percent.

Authorities in Brazzaville attribute the soaring fuel prices to recommendations made by the International Monetary Fund (IMF) in 2019 under the Extended Credit Facility (ECF), which provided financial assistance to the Republic of Congo, grappling with a severe economic crisis and unsustainable debt (more than 80% of the GDP). Among the IMF-recommended reforms was the removal of fuel subsidies.

However, the Congolese branch of What You Pay coalition (PCQVP) vehemently opposes these fuel price increases.

"We have the right as an oil-producing country to sell petroleum products at lower prices in our nation. Why are we asked to sell these products at the same price as on international markets? Are we not capable of refining petroleum products for our domestic consumption to eliminate the need for subsidies? If we can refine oil for our local use, then subsidies will vanish," said Brice Mackosso, deputy chairman of PCQVP coalition.

"We believe that the fight against corruption in the oil sector will bring sufficient revenue to the State's budget. We call for the prohibition of petroleum product exports. We urge the government to consider a report from the ITE of Congo and the International ITE Secretariat on fiscal modelling, showing that the Republic of Congo loses about $1 billion annually due to high costs, tax prices, and the threshold of high costs" added Brice.

The Congolese government has implemented a series of measures to mitigate the impact of potential inflation, which would be particularly detrimental to the population. However, the Congolese civil society believes that the of addressing this crisis remains the fight against corruption.’

https://www.africanews.com/2023/10/18/fuel-prices-surge-in-congo-amidst-protests-and-economic-struggles

'It was during this period of beating about the bush for economic direction that the IMF and the World Bank joined in the fray. They came along with a novel package that was going to miraculously propel African economies to the highest degree of development. This new policy was the Structural Adjustment Programme (SAP). This SAP idea condemned the previous method of development as unworkable and maintained instead that making structural changes, including the expansion and re-orientation of production, was the only way forward. African nations were to put the production of “non-traditional exports” and tourism into a higher gear. Thus in a country like Ghana where the traditional exports were mainly cocoa, timber and gold, under the SAP crops like pepper, pineapples, yams, maize, and oranges were to be turned into cash crops and exported. SAP also stipulated that private capital was to be the “engine of growth” and that “governments have no business doing business”. It did not however take long for the people to understand that they were once again fooled by official policy. Hardship and suffering increased a thousandfold. The masses had been moved from the frying pan into the fire.’

From the Socialist Standard October 2001

https://socialiststandardmyspace.blogspot.com/2023/10/financial-wizards-or-great-pretenders.html

Pity the Continent

If ever a continent cried out for justice, for help and, more, for Socialism, it is Africa, a land of 30 million square miles, 54 nations, a thousand languages and 642 million people; a land geographically as rich in diversity as it is in fauna and flora; a land organically as rich in oil and coal as it is in gold and diamonds, and yet, paradoxically, the poorest continent on Earth.

For over a hundred years a spectre has haunted Africa — the demon of world capitalism that sees Africa only as a source of profit, cheap commodities, a gullible market for western exports and an easily exploitable population ruled by corrupt leaders.

The age of overt colonialism may have gone, when the European powers raped and carved up Africa, each with vested interests backed up by huge armies, but now there are new colonists who can do ten times as much damage with the flick of a pen — the World Bank and the IMF.

In ten years, loans given by the IMF and the World Bank have tripled Africa’s debt burden to $180 billion — a figure that represents more than Africa’s aggregate net income. Debt repayments currently stand at $11 billion a year — a staggering four rimes more than what Africa spends on health and welfare.

Since the mid-1980s, African governments have repaid the IMF $2 billion than they have received in loans — a system that is so severe that every adult and child in Tanzania and Zambia owe their nations' external debtors twice their yearly earnings.

African governments secure loans unwittingly to the detriment of their respective nations because they believe this is the only way to domestic stability. Most are forced into accepting loans on terms and conditions regarding policies they would not have hitherto adopted: the privatisation of state-owned industries, the introduction of new constitutions and drastic reductions in public expenditure which hit health and education programmes the hardest.

In the past ten years about 30 African nations have come to regret the acceptance of IMF and World Bank advice. Living standards have dropped by two per cent annually, while unemployment has quadrupled to 100 million, with real wages falling by 30 percent. Africa is now worse off than it was 25 years ago. The June issue of New African declared that "the average African has 10 percent less food to eat than twenty years ago”.

The Guardian (20 July) reported how "in myriad cases, bank projects, supposedly targeted at the poorest of Africa’s poor, not only increased inequality and hunger, but exacerbated ethnic conflicts . . . Across Africa, projects funded by the bank have become synonymous with financial mismanagement, environmental degradation, the displacement of vulnerable populations and corruption”.

Eighteen African nations are amongst the world's poorest 20, 30 amongst the world’s poorest 40. Africa with eight times the land area of the USA and twice its population has only one percent of world trade, while American capitalists are top of the world trade league. In 1991, the total GNP for Africa south of the Sahara, excluding South Africa, was $204.7 billion — only slightly higher than that of tiny Belgium with a population of 10 million. Within six years 300 million Africans will be living below the subsistence level.

Myth of overpopulation

Africa has a population of 642 million. Considering Africa is three times the size of China, it has one sixth the Chinese population per square mile. Yet some experts point to African overpopulation as one of its problems. This is pure fallacy. While 50 percent of Africans are undernourished, it is widely known that the continent is capable of sustaining a population several times its present size were Western farming methods applied there.

While millions were dying in the Ethiopian famine eight years ago. the Ethiopian government were exporting thousands of tonnes of lentils to the West. In 1991, Zimbabwe was forced, by the World Bank, to sell one million tonnes of surplus grain to meet debt repayments. A year later a drought hit southern African cutting Zimbabwe’s grain output by 60 percent, with disastrous effects.

If anything, the problem facing Africa is western capitalism. Shortages of food and overpopulation do not even enter the equation. Guy Arnold, writing in New African in September believes "an enormous deception has been practised upon Africa since I960. It is that all the interference by the World Bank, the IMF and the Paris Club has been for Africa’s advantage".

"Africa", Arnold says, “ is not at all interested in such donor prescriptions, but is obliged to accept them because it is heavily in debt and debt is a primary instrument of control."

This is an intrinsic fact of capitalist society: the wealthy control the poor.

Africa is a land of plenty and only Socialism could truly release its productive potential to the benefit of its people. For a hundred years the West has carved up Africa, diseased its flesh and drained its life-blood. Reforms and loans will only ever be the sticking plaster over the gunshot wound.’

John Bissett

From the Socialist Standard October 1994

https://socialiststandardmyspace.blogspot.com/2019/10/pity-continent-1994.html


WSM Meeting today at 19 30 (18 30 ut) on Zoom: "IS ETHICAL INVESTMENT POSSIBLE?

 Friday 20th October at 19 30 (18 30 ut) on Zoom:

"Is ethical investment possible?"
A discussion on whether ethical investment is possible.

The meeting is on zoom.

Thursday, October 19, 2023

Guinea-Bissau: Unpaid bill punishment. Electricity turned off.


It’s reported that ‘The lights went out in Bissau, the capital of Guinea-Bissau, after a Turkish energy company cut off power supplies over an unpaid debt of $17 million, Economy Minister Suleimane Seidi announced on 17 October.

 According to the official, the state-owned Electricity and Water Company of Guinea-Bissau, which owes the arrears, was due to pay $15 million of the debt within 15 days.

“Karpower has agreed to renegotiate with the government to ensure that the backlog does not become a problem,” Seidi told reporters, acknowledging the arrears.

Karpowership is one of the world’s largest electricity operators and owner of a fleet of powerships supplying several African states. According to its website, the Turkish company, which is part of the Karadeniz Energy Group, has provided 100% of Guinea-Bissau’s electricity needs since 2019.

“Unfortunately, following a protracted period of nonpayment, our (floating power plant) is now unable to continue operating,” a Karpowership spokesperson said in a statement.

“We are working around the clock with officials to resolve this issue, and we aim to have generation back online as soon as possible,” the company added.

In September, Karpowership turned off the power supply to Sierra Leone’s capital, Freetown, due to an unpaid debt of about $40 million.’

Eighty Three per cent of population lives in extreme poverty.



Draft Dodging: The Rational Choice

Dulce et decorum est

Pro patria mori.

It is sweet and fitting to die for one’s country.

The First World War poet, Wilfred Owen called it ‘The Old Lie.’ It wasn’t sweet and fitting then, it never was, and it isn’t now.

If the report in the New York Times is correct then hasten the day when no one is fit or willing to fight the capitalist’s wars for them. Hasten the day when the structural necessity of capitalism to compete for resources and power is consigned to the trash can of history by socialism, a social system based upon the production of quality goods and services for free use and available to all. Ex capitalists included.

The US Army, Navy and Air Force are facing shortfalls in recruitment targets this year, as the Pentagon struggles to compete with civilian employment, while up to 77% of young people have been deemed ineligible to enlist, the New York Times has said.

By the end of its recruitment year on September 30, the US Army fell short of its target of adding 65,000 people to its ranks, the NYT says, instead ending up with about 50,000 new personnel. It is the third successive year that the army has not met its goal, prompting military bosses to cut unfilled positions and shrink its active duty membership to 452,000 from 485,000 in 2021.

The recruitment logjam has created “an existential issue for us,” Army Secretary Christine E. Wormuth told reporters this month, even as some branches of the military relax recruitment standards and even offer financial compensation of up to $75,000 to join.

Primary factors in the stalled recruitment effort include many Americans seeking employment in the private civilian sector, as well as large sections of US youth being deemed ineligible to even apply. A recent report by the US Department of Defense concluded that up to 77% of young people in the United States cannot enlist for a variety of reasons, including being overweight, drug abuse, or having physical or mental impairments.

The US Navy also fell short by about 7,500 hires this year, despite recruitment initiatives, including financial incentives. Even the Air Force, traditionally considered an attractive destination for new recruits, added about 10% less than expected.

It’s been getting harder to recruit, and the military expects it to continue to get harder,” David R. Segal, a University of Maryland professor who studies historical enlistment trends, said according to the NYT.

However, one US military branch not experiencing such issues is its Marine Corps. By the September 30 deadline, the Marines had already exceeded its goal of 28,900 enlistments – and did so with little-to-no extra perks or financial incentives.

Your bonus is that you get to call yourself a Marine,” a Marine Corps commandant said earlier this year, according to the Times. “That’s your bonus.”’

Draft Resistance and Conscience (1968)

Over Vietnam, the majority of Americans go willingly to war—or at any rate keep their fears and doubts to themselves. President Johnson, under pressure about the war, replies that this is no time to argue; American boys are in battle over there. Most Americans accept this cynically emotional appeal and close their ranks—and perhaps their minds as well.

Only a minority, now graced (or cursed) with the name Draft Dodgers, stand aside and refuse to join in the killing. These young men, opposed to the Vietnam war, refuse service in the army under the United States selective service system. They sometimes destroy their draft cards, sometimes return them to the authorities—even give them to the enemy, the Vietnamese National Liberation Front.

Some of the objectors—for example the Quakers—are acting in line with a persistent opposition to war wherever it is fought. Others resist only the war in Vietnam:

I am not a pacifist or a conscientious objector in the narrow sense, but I am a conscientious objector with regard to the Vietnam war. I do not object to conscription as such. (Michael Haag.)
I totally want to dissociate myself from my country's course in what I consider a disgraceful, cynical war. It is not a war against communism. (Joel Gladstone.)
(Both quoted in The American, 15/12/67.)

We can see how small a minority the draft dodgers are, from the figures issued by the U.S. Justice Department of prosecutions for draft evasion. About 160,000 men are registered for the draft each month, only a part of them being called up. In the year July 1965/June 1966 the call up was 336,530; only 658 men were prosecuted. For the year July 1966/June 1967 the figures were: call up 288,000; prosecutions 1,409.

Young Americans can apply for registration as conscientious objectors but, according to the Sunday Times (21/1/68) the only people likely to be granted this are Quakers or members of the American Friends’ Church. (In this country, during 1914/18, the C. O. Tribunals rarely accepted what they called a "political" objection to war.) Very often, then, the only way out is to evade the draft laws —refuse to register, destroy or return the draft card. The legal penalty for this can be a fine of up to $10,000 and a prison sentence up to five years. There can also be illegal penalties—victimisation in employment or, as some of the card burners have experienced, a beating up from patriotic hooligans.

The draft dodgers are the latest in a long line of war resisters—a line with a mixed pedigree. There were the Christians who refused to serve in the Roman militiae; the Quakers who went by sledge to Moscow to protest against the Crimean War; the unenduring resolutions of the Second International. In this there is a discernible change; the development of capitalism had its effect on the anti-war movement. For capitalism made war total, with everyone under fire and with a modem state machine recruiting all its resources—including people—if necessary by compulsion. But at the same time capitalism needed to school its people in its productive techniques, which gave rise to a working class with political fights, often seeing capitalism’s problems as political issues. Thus when conscription came in, the opposition to it was often in political terms. Pacifism, in the words of Christopher Driver tended to become secularised.

In his book Pacifism and Conscientious Objection Professor G. C. Field, who sat on a C.O. Tribunal from 1940 to 1944, recalls among the people who came before him:

...adherents of fifty one different religious bodies... those, comparatively few in number, whose objections were based on ethical or humanitarian grounds independently of any religious beliefs . . . a few whom we classified as political objectors and a few, also, who could only be described as objectors on aesthetic grounds.

This was the result of a development which started in 1914. Before the First World War, Britain was the only major European power to rely on a volunteer army. As the war drew closer, a conscription pressure group grew in strength and in 1902 gave birth to the National Service League (President the Duke of Wellington; supporters Rudyard Kipling, the Duke of Westminster, the Bishop of Chester.)

The outbreak of war, and the growing threat of conscription, threw up an opposition—the No Conscription Fellowship (Chairman Clifford Allen; supporters Fenner Brockway, Bertrand Russell, Bernard Boothryd.) On December 3 1914 the NCF declared itself:

. . . it would, we think, be as well if men of enlistment age who are not prepared to take a combatant’s part, whatever the penalty for refusing, formed an organisation for mutual counsel and action.

Stage by stage, as the war settled down into a pattern of interminable murder, the government progressed towards conscription—its appetite, as Philip Snowden pointed out, growing by what it fed upon. In March 1916 the final blow came; the Military Service Act gave the unmarried man of military age a choice between enlisting immediately or being called up in his group. If he did neither he would be "deemed to have enlisted”—in other words he was a soldier whether he liked it or not.

This was a vital provision. It meant that an objector who was turned down by his tribunal was instructed to report to his unit. If he did not go he was a deserter; if he was taken and then refused to put on a uniform he was disobeying a military command. As he was legally a soldier he was subject to army discipline; he could be sent to a military prison, court martialled, sentenced to undergo such experiences as Field Punishment Number One or even—as happened to thirty four men—could be sentenced to be shot.

Under army detention the C.O.s were subjected to a variety of brutality and torture. In the civil prisons they fared only a little better. J. Allen Skinner was one who spent time in both Wandsworth and Wormwood Scrubs during 1916/17. In 1960 he was in prison again—in Brixton after a Ban the Bomb demonstration. He told the Governor of Brixton of his earlier sentences. "That”, said the governor feelingly "must have been a terrible experience." (See The Disarmers by Christopher Driver.)

And so it was—for Skinner and for all the other objectors to that war. There were about sixteen thousand of them (12,000 with “political” objections) and seventy three died as a result of the treatment they received.

The pacifist movement, dying down after 1918, came back to life in 1935, once more at the approach of a major European war. That was the year when the Peace Pledge Union was formed; over 100,000 signed its renunciation of war. The PPU was swept along on a wave of enthusiasm; in 1937 its Leader, the Rev. Dick Sheppard, was elected Rector of Glasgow University.

The 1939 war, as many thought it would, exposed the Pledge. (Professor Field claimed: ". . . a clear-sighted pacifist friend said to me, the Peace Pledge was really a piece of bluff”) Only about 65,000 men registered as C.O.s during the entire war and of course not all of these had signed the Pledge. British capitalism had learned a lesson. Conscription was in force before war was declared, the tribunals operated with a lighter hand (about seventy per cent of objectors were found to he “genuine”) nobody was “deemed to have enlisted”, sentences (there were about four thousand of them) were served in civil prisons. There was no torture, no death sentences, hardly any discernible victimisation, no outrages worthy of the name.

The Second World War saw a decline in the numbers of “political” objectors; from about 12,000 in 1914/18 to about 3,250 in 1939/45. This can be explained by the fact that most of these in the first war were members of the ILP which was then part of the Labour Party. By 1939 the ILP had all but disappeared arid the Labour Party no longer had any doubts about its support for capitalism’s wars.

What of the pacifists? The word covers a multitude of opinions on war, but implies the basic agreement of regarding war in the idealistic sense, as an evil in itself which can be abolished by a policy of righteousness. Thus Dr. Alfred Salter in his pamphlet Religion of a C.O. (1914):

There is a great place waiting in history for the first nation . . . that will dare to base its national existence on righteous dealing, and not on force . . .

This is typical of the pacifist attempt to deal with war in isolation from the very surrounding conditions which cause it. It avoids the all-important question of why governments base their existence on force—even a government like the Attlee administration, which included men who were objectors with Dr. Salter in 1914/18. What did their pacifism do for their policies, when they had the chance to try a little righteous dealing?

This same question was still being evaded when the Second World War came. On September 8 1939 the PPU Council agreed that “. . .in all ways possible the PPU should strive to make the Government publish terms of peace by consent.” In August 1944 they were demonstrating for a negotiated peace and “just peace terms”. (See I Renounce War by Sybil Morrison.)

It is a massive contradiction to accept all the pre-conditions for war and social violence—to accept the capitalist system and its governments, its diplomacy, its “peace” talks and treaties—and at the same time to object to war. This basic fallacy runs like a thread through pacifist thought. The people who marched from San Francisco to Moscow in 1961 distributed a leaflet along their route which said:

We believe that the Soviet Union and the United States with other countries should pool their resources to remove such suffering—by using the money now wasted on weapons of destruction.

And Richard Gregg, in The Power of Nonviolence, says:

Nonviolent resistance is more efficient than war because it costs far less in money as well as in lives and suffering.

Pacifists like Gregg believe that war and violence are an effect of inferior ideas (“. . . a large part of the activities of the state are founded upon a mistake, namely, the idea that fear is the strongest and best sanction for group action and association.”) But it is impossible to conceive of capitalism without war. The private ownership of the means of production divides the world into antagonistic classes, competing firms, rival nations and international power blocs. It is this competitive nature of capitalism which causes its wars, which are as much a part of the system as the governments, the money and the treaties which the pacifists are prepared to accept. Modern war is fought to settle the squabbles of capitalism’s master class; it does not involve the interests of the ordinary people except that it brings them nothing but suffering. If the working class refuse to fight—as we say they should—it should be on these grounds—and this should apply to all war, not just to Vietnam, or Korea, or Algeria. If the pacifist, idealist objection to war is futile how much more so is that which stands out against only one particular war?

The draft dodgers may claim to have made a start. If so, they must go on to realise that there is nothing special about Vietnam— nothing special about its causes, its history, its horrors. The war resisters have won the honourable distinction of showing that capitalism need not have it all its own way—that even in face of overwhelming propaganda the working class can recognise a problem and protest. They have shown their power, and that courage does not have to wear a uniform. These qualities will stand us in good stead, when we have a society where war is only a black memory.’

Ivan

From Socialist Standard March 1968
https://socialiststandardmyspace.blogspot.com/2018/02/draft-resistance-and-conscience-1968.html