2006 ended with the shock execution of Saddam Hussein, and 2007 ended with the shock assassination of Benazir Bhutto. As 2007 began, Tony Blair’s departure was still months away, but the speculation on when, how and for whom was already getting pretty boring, and as 2008 begins I’m already sick and tired of the race for the U.S. presidential elections in November. That’s not to say nothing has changed though; this review is far from exhaustive, but I think I’ve covered some important trends.
The War Against Terror
Those of us opposed to the violent extension of imperial power spent the year going half-mad over an ever-imminent attack on Iran. Destruction was averted - for now - at the last minute when the neocons were undermined by their own intelligence services, and when events in Pakistan demanded their more immediate attention. Those events were themselves a direct result of T. W. A. T., into which the Pakistani military have been reluctantly drafted, and the response to those events may well be the de facto occupation of Pakistan. What other hope is there for the occupation of Afghanistan, where even with the Pakistani supply lines secure NATO’s only convincing strategy has been to seek an alliance with the evil Taliban.
In Somalia, meanwhile, the progress of 2006 has been more than offset by the catastrophe of 2007, an Ethiopian occupation with U.S. backing that has created a humanitarian crisis to rival Darfur and the Congo. For America military planners, it seems Africa is the new Middle East, and the strategic interest evidenced by the creation of “Africom” goes hand in hand with a propaganda drive. Sudan, home not only of the Darfurian genocide but also of that bloody Teddy bear, is now well and truly part of the Axis of Evil, but the one to really watch is Eritrea which, like Iran, has now been officially branded a terror state.
And then there’s Iraq where, by the sheer monstrosity of the numbers involved, the human costs of war have long surpassed our ability to make sense of them. As Lenin says, these days…
global violence reaches and breaches new threshholds in the space of months, not years. The potential for new peaks of depravity is almost as limitless as the capacity for allowing each new ongoing atrocity to slip tactfully into the background. Soon it becomes normal. 100,000 deaths is shocking until it becomes 650,000, which is in turn stunning until that again almost doubles. So, allow me to remind you of the exponential function: if the rate of death in Iraq doubles each year, as it has been doing consistently, then about 1.3m will have died between June 2007 and June 2008. Then a further 2.6m the next year, and so on. If the occupation were to end in the middle of 2010, which is extremely unlikely, total deaths on current trends would reach ten million. And if it did come to that, it would soon be forgotten about.
For a while, a broad and credible resistance movement seemed to be taking hold in Iraq, though the “surge” and the concurrent intensification of bombing raids (the robotastic “secret air war”, also being fought in Afghanistan and even Pakistan) have put it in its place for the moment.
The ethnic partition of Iraq is now more or less a done deal; the death squads have done their work, although the construction of Berlin Walls through Baghdad was thwarted by massive peaceful protests in Spring. A similar wall is being built along the U.S.-Mexican border, by an Israeli company and based on lessons learnt through the walling in of the Palestinians. It’s one of many examples of the sick Naqba industrial complex that Naomi Klein revealed in one of the year’s most important articles:
Israel’s economy isn’t booming despite the political chaos that devours the headlines but because of it… Many of the country’s most successful entrepreneurs are using Israel’s status as a fortressed state, surrounded by furious enemies, as a kind of twenty-four-hour-a-day showroom–a living example of how to enjoy relative safety amid constant war. And the reason Israel is now enjoying supergrowth is that those companies are busily exporting that model to the world….
The key products and services are high-tech fences, unmanned drones, biometric IDs, video and audio surveillance gear, air passenger profiling and prisoner interrogation systems–precisely the tools and technologies Israel has used to lock in the occupied territories.
And that is why the chaos in Gaza and the rest of the region doesn’t threaten the bottom line in Tel Aviv, and may actually boost it. Israel has learned to turn endless war into a brand asset, pitching its uprooting, occupation and containment of the Palestinian people as a half-century head start in the “global war on terror.”
While we’re on the subject of Palestine, this year has been of the grimmest yet for the inhabitants of beseiged Gaza. To bolster their new quisling Mahmoud Abbas in the West Bank, the Israelis have relaxed some of the restrictions on life in that territory, but the annexation rolls on with the costruction of the new E-1 settlement bloc set to completely sever the North of the West Bank from the South. All this, alongside another farcical round of talks about talks about peace talks. For more detail on Israel/Palestine, I can but recommend The Heathlander.
Kapital Krunch
The increased military aggression of the U.S. goes hand in hand with its waning economic power. The economies of America and some of its closest allies have been increasingly based on consumption, on demand rather than supply, and that demand has been financed with staggering, unprecedented debt. That debt, on the macro level, comes from the privileged role of the U.S. dollar as the reserve currency of the world, which comes from other nations’ faith in the enduring value of Uncle Sam’s IOUs, which is in turn reliant on American hegemony preventing the emergence of a rival currency.
It’s possible - and I’m probably guiltier than most - to read too much into the politics of the petrodollar, but it seems like the notorious Project For a New American century, intended to consolidate the American grip on the world through the destruction or annexation of any dissident state, has ended up revealing just how tenuous that grip was. It began with Iran and Venezuela wondering whether their money would be better placed elsewhere, and before long the spell was broken. Faith in the dollar wavered, and the U.S. treasury suddenly found no takers for the money it was printing to fund the war and the trade deficit. In this saturated market the price started to fall, shaking confidence further, and before you could say “vicious circle” the exchange rate was hitting all time lows.
Macro debt is only half the story, though. Capitalism is predicated upon spiralling debt, and requires sustained economic growth to keep mass bankruptcy at bay. During the good times, this is all well and good (except, of course, when you consider the environmental costs associated with this growth), but the times they aren’t so good. Competing with the neoliberal hyperrich in the housing market (and coping with the rising price of oil and, consequently, oil derivatives and oil substitutes) has unbalanced everyone’s budget.
The subprime mortgage crisis was when the debt bubble burst, but none of the forces have gone away that inflated the bubble in the first place, and the crisis can only deepen. Even editorials in the Torygraph are now concluding that
The strategic failure of a whole generation of economists, bankers, and policy-makers has been so enormous that it may now take a strong draught of socialism to save the Western democracies. We start - but may not end - with the nationalisation of Northern Rock.
The oil and biofuel supply shock that precipitated this long overdue crisis of capital is making itself felt worldwide. The populist Third Way on which the rulers of Iran and Venezuela have been spending their oil revenues is being overtaken by inflation. In Iran this has coincided with a break from the global media spotlight, leading to the (equally long overdue) come-uppance of Ahmedinajed. In Venezuela, it coincides with a botched constitutional reform, making the need to deepen and quicken the Bolivarian Revolution more urgent than ever.
Having considered the above, now consider the effects of this inflation in very different contexts. Consider Iraq:
The Iraqi government announcement that monthly food rations will be cut by half has left many Iraqis asking how they can survive. The government also wants to reduce the number of people depending on the rationing system by five million by June 2008.
Iraq’s food rations system was introduced by the Saddam Hussein government in 1991 in response to the UN economic sanctions. Families were allotted basic foodstuffs monthly because the Iraqi Dinar and the economy collapsed. The sanctions, imposed after Saddam Hussein ordered the invasion of Kuwait, were described as “genocidal” by Denis Halliday, then UN humanitarian coordinator in Iraq. Halliday quit his post in protest against the U.S.-backed sanctions.
The sanctions killed half a million Iraqi children, and as many adults, according to the UN. They brought malnutrition, disease, and lack of medicines.
Iraqis became nearly completely reliant on food rations for survival. The programme has continued into the U.S.-led occupation. But now the U.S.-backed Iraqi government has announced it will halve the essential items in the ration because of “insufficient funds and spiralling inflation.”
The cuts, which are to be introduced in the beginning of 2008, have drawn widespread criticism. The Iraqi government is unable to supply the rations with several billion dollars at its disposal, whereas Saddam Hussein was able to maintain the programme with less than a billion dollars.
“In 2007, we asked for 3.2 billion dollars for rationing basic foodstuffs,” Mohammed Hanoun, Iraq’s chief of staff for the ministry of trade told al-Jazeera. “But since the prices of imported foodstuff doubled in the past year, we requested 7.2 billion dollars for this year. That request was denied.”
The trade ministry is now preparing to slash the list of subsidised items by half to five basic food items, “namely flour, sugar, rice, oil, and infant milk,” Hanoun said.
…According to an Oxfam International report released in July this year, “60 percent (of Iraqis) currently have access to rations through the government-run Public Distribution System (PDS), down from 96 percent in 2004.”
The report said that “43 percent of Iraqis suffer from absolute poverty,” and that according to some estimates over half the population are now without work. “Children are hit the hardest by the decline in living standards. Child malnutrition rates have risen from 19 percent before the U.S.-led invasion in 2003 to 28 percent now.”
Consider also Britain, where the government’s response to the rising cost of living has been to cut public sector wages.
Left With Gordon
In the last years of Blair’s decade, Gordon Brown went around dropping subtle hints that he might be at least a little to the left of his predecessor-to-be. Where Bliar’s ascent had been characterised by clear contempt for the Labour Party’s principles and traditions, Brown grunted about how Labour were best “when [they were] being Labour” (as opposed, presumably, to when they were being rebranded Tories). The media, meanwhile, revealed a disturbing obsession with Tony’s balls when they tried to spin Brown the “Atlanticist” into someone who definitely wasn’t up Bush’s arse, and Gordon gave us all cause for a deep sigh of relief by simply Not Being Tony Blair. Anyone who dared to hope, though, has surely been taught a valuable lesson by what followed.
I’m not going to chart the incompetent Blairism that is Brownism. Not only would that be pretty boring, it’s also likely to be a major theme in the mainstream press reviews of the year. I’m far more interested in the responses to Brownism; if Tony Blair’s name is now indelibly linked to the savaging of Iraq, Brown will go down in history as Mr. Incomes Policy. As I’ve said, an important driving force in inflation - and a direct and intended result of New Labour policy - has been the emergence of a new class of the superrich, with whose extravagant spending the rest of us can’t keep up.
None of the political parties would dare suggest lifting a finger against the very rich - only a few rare and hesitant noises from the Lib Dems even broach the idea of a progressive tax regime - but if Gordon is to bring inflation down then someone’s spending has to be restrained, and who better than the working class? 2007’s biggest political story, by far, has been the Brown government’s incomes policy - cutting benefits, cutting public sector employment and public sector wages (in the knowledge that the invisible hand will send private setor wages the same way) - and the resistance it has provoked.
To get an idea of the kind of class battle Brown has provoked, here are some numbers from PublicNotPrivate:
While frontline staff delivering key services such as health and education were expected to be satisfied with a pay freeze, the pay packets of company bosses have boomed over the past decade. In the public sector itself, the top 300 bosses saw their salaries increase by 12.8% last year, boosting their pay to an average of £237,564. The top 10 highest paid on the list earned an average of £799,000 - or 40 times as much as the basic pay for a nurse. Royal Mail’s chief executive Adam Crozier saw his total package increase by 21% in 2006 to £1.25m while a pay freeze was imposed on ordinary staff.
Similarly, private sector bosses continue to enjoy pay bonanzas. In 2005, the average salary for directors rose by 28% - that is, 25% above the rate of inflation. The following year, boardroom pay for UK’s top companies soared £37% as full-time directors were rewarded with inflation-busting increases in basic salaries, big cash bonuses and payouts from share schemes. The surge in pay took the average wages of a chief executive to £2,875,000 and was more than 11 times the increase in average earnings and nearly 20 times the rate of inflation as measured by the consumer price.
In other words, bosses are paid 98 times more than the average worker - up from 93 times a year ago. The gap is increasing at a dramatic speed: the year before, directors’ pay climbed 28%, up from 16% and 13% the years earlier. Meanwhile, bonuses for City workers rose by 30% last year.
In many firms the pay gap between bosses and workers is even more shocking. For example, Giles Thorley, chief executive of Punch Taverns, enjoys a total salary package of over £11m - that is, 1,148 times the average salary of his employees. Meanwhile Bart Brecht, chief of Reckitt Benckiser earns 718 times the company’s average salary, while Tesco’s boss Terry Leahy enjoys a salary 415 times that of the average shelf-stacker. According to the Institute for Public Policy Research in May 2007, the proportion of wealth held by Britain’s richest 10% rose from 47% in the 1990s to 54% in 2004.
While the bank balances of Britain’s bosses are bigger than ever before, two million workers are languishing on the minimum wage. In 2001, one in four households was classed as “breadline poor”. Little wonder that research by the Joseph Rowntree Foundation revealed that inequality in Britain is at a 40-year high after a decade of a Labour Government.
Bosses also enjoy incomparably better pension deals than their staff. A study in 2005 revealed that nearly 8 out of 10 of Britain’s company bosses are able to retire at 60 and enjoy a pension payout on average 26 times higher than the average worker. In other words, the average director’s pension is worth £167,000 a year compared with £6,344 for ordinary workers. NHS workers have an average pension of only £5,400 a year.
Unsurprisingly, there is overwhelming support for narrowing the gap between corporate fat cats and British workers. A recent YouGov poll revealed that 85% of Britons believed that country would be a better place if the gap was narrowed. The poll also showed that people believed nurses should be paid up to £9,000 more than their current levels; bus drivers £7,500 more; and checkout staff nearly £3,500 more.
Unsurprisingly, then, 2007 ended up being a year of renewed industrial action. Most dramatic was that of the postal workers - reported almost entirely in terms of how it would hurt small businesses - and that of the prison officers, in defiance of a government ban, but I’ve lost count of the number of strikes by council workers and industrial action has been in the air for nurses, teachers, bus drivers, the BBC and even the police. We’re by no means ready to start talking about general strikes, but this is building momentum that shows no signs of slowing down.
Working in a chronically underunionised sector, I’m no expert on the workings of trade unions, but I do know that struggle builds identity here. When a union is dominated by a labour aristocracy, cautious, conservative and sympathetic to the agenda of the capitalists, it becomes fairly legitimate to not want to bother with the union at all. By contrast, a fighting union is a useful union, and it’s not been unusual for recruitment to go up in the aftermath of industrial action.
Perhaps more importantly, it may be pay issues that have galvanised the will to resist, but they are certainly not the only issues. I’ll leave you to judge whether John Pilger’s Sicko II article was better than my post on the subject, but the fact is that the creeping privatisation of the NHS is becoming common knowledge, and struggles are forming around that too. Remember Karen Reissman, who spoke out against the PFI cuts to mental health care in Manchester, and was fired for embarrassing her despised employers? Well, a month of strikes and solidarity demonstrations hasn’t been enough to get her reinstated yet, but this was never really about Karen Reissman herself.
It has got PFI - and resistance to PFI - on the agenda, it has highlighted union-busting policies and thus made us think about why we need unions and, most importantly of all, it is allowing staff to renegotiate the cuts in mental health care provision. The battle isn’t over by any means, but the balance of power is shifting. Anyway, I’m in no position to give an authoritative summary of industrial action this year (in case anyone cares to drop a link in the comments box…), but something’s definitely happening.
Sea changes are going on within the Labour Party, too. There’s always been a significant left-wing to the party, and under Tony Blair it was left to despair and make sense of the new situation. Blair’s departure gave them the impetus to organise around John McDonnell’s leadership campaign. When this campaign was blocked by the whips, and when the party conference was cut down to an undemocratic trade fair, it became clear that those elements of the party that represent the party’s soul are being systematically excluded from the party’s decision making mechanisms. Will the Labour left (and the newly independent Bob Wareing) split off as “Real Labour” and form a united front with Respect? Well, perhaps things won’t turn out quite as I’d really really like them to, but it’s clear that there’s tension to be resolved; the Labour left are now organised and alert, and I don’t expect them to hang around waiting to be deselected forever, nor will the unions keep subsidising their class enemies in Number 10. A massive political realignment is waiting to happen, mark my words.
The polarisation of Labour and the radicalisation of the unions helps put into perspective the other story in the British left this year: the secession from the Respect Coalition of a celebrity faction, led by George Galloway and Salma Yaqoob and egged on by embarrassing swathes of the Life Of Brian left who just can’t stand the Socialist Worker Party. Thus was resolved - in perhaps the worst way imaginable, but still - the tension between activists and electoralists that had been making Respect a victim of its own success lately; with reconciliation not looking particularly likely for the time being, and with the “real” Respect now diminished in numbers and cut off from Parliamentary representation, this is all quite hard to be cheerful about, but if the Party Conference is anything to go by then we are still very live - and operating within a much livelier context than before.
What anguish remains can easily be soothed by laughing at the much messier disintegration of the BNP.
Political Ecology
I said this review was never going to be authoritative, but there’s one story to which I don’t have the time (for now) to do justice but which I can’t in good conscience ignore, and that’s the race between environmental awareness and environmental catastrophe. The subject of sustainability has become a standard mainstream discourse over the last couple of years while, in the background, every prediction the IPCC makes ends up contradicted by things going even worse. By now, most of us are rightly scared of what we’re doing to this world, but the mainstream discourse of ecocide is a dialogue of technocrats, self-conciously apolitical, alternately reinforcing despair and complacency.
Needless to say, we have to make moving on from there into one of the big stories of Twenty Noughtyeight.
Latest Comments