27 Apr 2017

Discovery of mass graves highlights bloody scramble for Congo’s resources

Eddie Haywood

Last week, a team with the UN High Commissioner for Human Rights together with personnel from the United Nations Organization Stabilization Mission in the Democratic Republic of the Congo (MONUSCO) discovered scores of mass graves in Kasai Province, a south central region of the Congo currently wracked by bloody conflict between the Armed Forces of the Democratic Republic of the Congo (FARDC) and Kamuina Nsapu, a local tribal militia.
According to the office of the UN High Commissioner for Human Rights, 17 mass graves were discovered in early April, which had been the location of recent clashes between the militia and FARDC. These discoveries follow the unearthing of several mass graves found in March.
Speaking to the media, UN High Commissioner for Human Rights Zeid Ra’ad Al Hussein said, “The discovery of yet more mass graves and the reports of continued violations and abuses highlight the horror that has been unfolding in the Kasai [Province] over the last nine months.”
The UN High Commission has declared that the human rights violations could be referred to the International Criminal Court for further investigation.
“Should there be no effective national investigation, I will not hesitate to urge the international community to support an investigation by an international mechanism, including the International Criminal Court,” the High Commissioner said.
The conflict has resulted in a mass internal displacement in the Kasai Province, with millions fleeing the region for Angola and other areas of the Congo. Thousands have been tortured, killed and injured, and incidents of rape of women and children on the part of the FARDC have been reported.
In a report by the BBC, a visibly traumatized local villager recounted the horror: “They killed people and raped women. Then, the next day we saw a general. He said ‘Come out of your house; we’re not going to kill any more.’
“He told us to bury the people—even members of my family, even people I knew.”
Another resident of Kananga told the BBC of indiscriminate killings carried out by the FARDC. “When the shooting began, my children ran and hid in a neighbor’s house. But the government soldiers got into that house—three people were killed and one of my children was injured.”
Another Kananga resident told of the extortion carried out by government forces: “Soldiers are coming into neighborhoods and harassing people for money. If you don’t have money, they threaten to kill you.”
Kamuina Nsapu, the militia named after its slain leader, is made up largely of the Luba tribe, the main tribal grouping in the Kasai Province. The militia claims to have the ‘power of voodoo,’ and its leaders claim that they can be protected from death by wearing specific leaves from the heavily forested Kasai region.
Underscoring the militia’s rise is the overwhelming perception within the population of Kasai that the Congo’s president, Joseph Kabila, is illegitimate; in the election of 2011, Kabila claimed to win the province, a stronghold of the late opposition candidate Etienne Tshisekedi. There were reports of impossibly high voter turnout and vote rigging, and intimidation at polling stations throughout the country.
MONUSCO, the UN force charged with peacekeeping and protecting civilians in the Congo, is in reality a force which seeks to maintain the exploitation of the country’s vast economic resources. MONUSCO has little popular support after incidences in which the so-called peacekeeping force has taken the sidelines during massacres of civilians, such as occurred in Goma in Eastern Congo during the M23 rebellion in 2012.
The Kasai Province is rich in diamonds, and is among the world’s leading sources of the precious gems, making clear the capitalist interests that underlay the conflict.
The armed conflict embroiling the Kasai Province traces back to last August when government forces killed the leader of Kamuina Nsapu after the government refused to give official recognition to the tribal leader, and appointed cronies instead, which has been widely perceived in the province as an insult.
Beginning in July, Kabila deployed government forces into the Kasai Province to neutralize the group. Since Kabila’s refusal to step down and hold elections last December, there has been a sharp increase in lawlessness and the rise of armed conflict across the country. With a subsequent sharp decline in support for Kabila the government is desperate to maintain the legitimacy of its rule.
The armed insurgency inflaming Kasai is just one of several bloody conflicts currently wracking the country, mostly located in the Eastern region of the country, where several foreign rebel groups use the Congo as a rear base for operations, such as M23, a rebel militia of former Rwandan Hutu rebels involved in that countries’ genocide in the 1990s, and the Ugandan militia opposed to the government of Yoweri Museveni in Kampala, the Allied Democratic Forces (ADF).
The ongoing simmering conflicts hark back to the Congo War of 1996–2006, which involved the armed forces of eleven African nations and resulted in the deaths of millions.
At stake in the Congo War were the outcome of claims to Congo’s rich and vast mineral wealth, which include gold, diamonds, and cobalt, as well as other rare earth minerals used in the manufacture of electronics for the world market, such as mobile phones and laptop computers.
Similar stakes overshadow the conflict in the Congo today—the scramble to plunder economic resources, and Western capitalist interests attempting to influence the outcome.
There are clear indications that the Kabila government has fallen out of favor with Washington. The former military commander has been in power for more than 16 years, and refused to step down in December 2016 when his term ended as mandated by the Congolese constitution.
In response, the US and European Union laid economic sanctions against Kabila and several top officials in his cabinet last year, sharply condemning Kabila’s refusal to leave office and accusing him of “undermining democracy.”
The appeals on the part of the US and EU to democracy are a cynical fraud, given Washington and Europe’s history of covert warfare in the country, their complicity in the assassination of its first elected president, Patrice Lumumba, and their support for the brutal Mobutu dictatorship. What Washington would like to see in Kinshasa is a government more subservient to its economic interests.
Last November, US Congressional members wrote to then President Obama asking for expanded economic sanctions against the Kabila regime, citing evidence that “significant funds have been diverted from RDC’s treasury to enrich members of the ruling elite,” and asking the administration to freeze Congolese officials’ assets, and to order investigations of the Kabila government.
Figuring into Washington’s objectives of sanctioning government officials is the palpable fear that the Congo’s vast economic resources and its profits will not benefit American corporations and banks.
Weighing heavily on Washington is the fear of China’s economic influence and investment in the Congo. China in recent years has increased its investment in the Congo and across the African continent, an encroachment the US elite regard as intolerable.
In 2013, Chinese construction firm Anhui Foreign Economic Construction Group secured a contract with the Congolese government to construct an electrical power plant in Mbuji Mayi, the capital city of Kasai province. The 4.6 megawatt electrical power generation facility is used in the production of the region’s diamonds. Also, China secured a deal with the government to invest $100 million in Mbuji Mayi’s infrastructure.
Washington is actively working to neutralize the roadblock to its domination of African economies represented by Beijing, and has sharply increased its military presence across the continent in response.
Coinciding with the expanded US military presence on the continent is an increasingly restive African population who in the coming period will become ever more deeply opposed to the capitalist policies of the ruling class.
The expansion of military operations across Africa make clear the ruling class is prepared to violently crush any such opposition to US dominance.
That the Congo, with trillions of dollars in natural resources under the control of a few elites, is also home to the most impoverished mass of people on earth is a devastating indictment of the capitalist system. While the Congolese elite enrich themselves, it is at the expense of the Congolese masses, of which more than half live on $2 a day or less.
The current wars waged by Washington and the European powers for control over markets and resources across the entire globe increasingly resemble the conflicts brought on by the crisis of capitalism which beset the world powers in the last century, leading to two devastating world wars.
The acute crisis of capitalism gripping the world today makes a mockery of the claims made by US officialdom of a “new era of peace, prosperity and democracy” after the dissolution of the Soviet Union. The period since the end of the Soviet Union in 1991 has been marked by unending and ever-expanding war conducted by the US on the rest of the world for domination and conquest.

Scottish college lecturers walk out over pay and conditions

Stephen Alexander

Lecturers across Scotland’s colleges are striking today, following the breakdown in talks over a pay agreement between the teachers union--the Education Institute of Scotland (EIS)--and the employers, Colleges Scotland.
The dispute concerns the implementation of a pay deal agreed back in March 2016, which included a 9 percent pay rise for lecturers over the next two years and a “harmonised” payment structure standardising pay grades across Scotland’s recently merged colleges. As a result of the deal, more than 30 days of strikes planned for the same time last year were called off.
The EIS accuses Colleges Scotland of seeking to ram through a raft of changes to class contact time, holidays and other conditions in exchange for the pay rise. Colleges Scotland is proposing a package that would include 56 days holiday and 26 hours class contact time, instead of the 21 hours and 66 days holiday demanded by the union. The employers contend that the EIS signed up to their demands as part of last year’s pay agreement.
In a measure of the anger and willingness to fight amongst further education (FE) lecturers, twelve one-day stoppages are planned over the next three months to coincide with the examination period. The EIS said the strike could be escalated to three days per week if lecturers’ demands are not met.
Members of the EIS, which represents more than 4,500 staff at 26 colleges, voted overwhelmingly in favour of action by 96.4 percent to 3.6 percent.
Tensions have been building amongst lecturers and college staff for nearly a decade, in which time further education has been the target of some of the most devastating public spending cuts implemented by the devolved Scottish National Party (SNP) government. Hundreds of millions of pounds have been slashed from college funding according to Audit Scotland, with an 18 percent drop recorded between 2010-11 and 2014-15.
Echoing the austerity drive of the UK Conservative government, the SNP have cynically instructed colleges to do “more for less.” The results have been devastating.
Student numbers have fallen by 152,000, an astonishing 41 percent, since the SNP came to power in 2007. This has impacted heavily on part-time positions, which have been halved. As a result, large numbers of adult learners have been cut off from further education entirely, as have other students for whom full-time courses are inappropriate, such as single parents, disabled students and those with caring responsibilities.
In just a few years, between 2011-12 and 2013-14, staff numbers in Scotland’s colleges fell by 9.3 percent. According to Audit Scotland, employment in the sector rebounded by 5 percent in 2014-15, but jobs remain under threat as many colleges are in serious financial difficulty.
Edinburgh College is the most indebted and ran up a deficit of £7 million for 2015-16 alone. It is heavily reliant on a “voluntary” severance deal to reduce wage overheads. The financial difficulties of Lews Castle College, in the Western Isles, and Moray College, in the northeast, have been singled out for their severity.
The workload of lecturers and learning support workers, both inside and outside of the classroom, has increased significantly as a result of larger class sizes and fewer staff. A survey of 17 colleges carried out last year by the Unison trade union found that 85 percent of support workers regularly experienced stress at work, while 38 percent said they felt bullied and one in five have taken sick leave due to “stress, bullying, anxiety or depression.” Most respondents cited overwork and a demoralising work environment as the main causes.
The recent dismissal of an Edinburgh lecturer simply for allowing his colleagues’ access to his personal supply of paracetamol--a widely used pain relief medication available over the counter at the college shop--sheds some light on the intolerable workplace environment created by years of education cuts. The incident sparked repeated strikes and protests by Edinburgh staff and students this academic year.
The cuts have been carried out as part of a fundamental rationalisation of Scotland’s colleges, which has seen 37 colleges merged into just 20 and placed under the control of 13 regional college boards. Seven other colleges remain unincorporated. The SNP announced efficiency saving targets of £50 million per year upon the completion of the merger in 2014-15.
As well as spending cuts, the purpose of this reorganisation has been to tailor college education even more closely to the interests of Scottish business. Shona Struthers, chief executive of Colleges Scotland, applauded the rationalisation, commenting “It is about delivering quality courses that lead to recognised qualifications relevant to industry.”
The trade unions have been intimately involved in this process. In its consultation with the Education and Culture Committee of the Scottish Parliament, the Scottish Trades Union Congress made a few disposable criticisms before assuring ministers that it “does, however, support much of the [Post-16 Education] Bill and we particularly welcome the requirements to consult with trade unions that have been included throughout.”
In contrast, lecturers, support staff and students have repeatedly demonstrated their resolve to fight in defence of education.
There has been a strike--or an overwhelming ballot in favour of strike action across Scotland’s colleges--every year for at least the past five years. This is just one indication of a much broader opposition among workers and students to a wholesale assault on every level of education and all vital public services in Scotland and across the UK.
The education unions, the EIS and Unison in this case, have worked assiduously to exhaust and derail opposition by organising token protests, isolated to individual campuses and in separate sectors of education. This has taken place alongside a few futile rallies outside Holyrood, based on ineffective appeals for the SNP to change course.
The unions only recently changed tack as a means to best control the mounting anger emerging among education workers and students.
Until very recently, the EIS, which represents 60,000 teachers at all levels of education in Scotland, had not called a national strike since college lecturers joined the union in 1988. For its part, Unison engaged in its first-ever national strike in further education last year. This was over pay for workers in administrative positions, catering, cleaning, security, classroom assistants, and technicians. Unison rapidly wound up the struggle in exchange for a miserly £450 flat rate annual pay rise--a figure that does not even cover the inflation of living costs for most pay grades.
Its record demonstrates that the EIS will seek the first opportunity to betray lecturers. According to a BBC report, "Senior figures within the union are hopeful the dispute will be resolved without the need to escalate action. They believe there could be political pressure to solve the dispute quickly because of both the council elections and the general election campaign."
The lecturers strike must be seen in the context of a growing unrest among workers in every sector of the economy after a decade of relentless austerity.
In Scotland alone, Unison are currently balloting 70,000 local government workers in a pay dispute; janitors employed by Glasgow City Council have begun another two-week strike over pay, conditions and jobs; postal workers in Kilmarnock are engaged in unofficial strike action over management "bullying and harassment"; and 20,000 oil workers are threatening strike action in the North Sea after rejecting the latest pay deal from the Offshore Contractors Association.
These follow strikes throughout the UK by junior doctors, rail workers, BMW autoworkers, Fujitsu workers, teachers and teaching assistants. National strike action is also threatened by nurses, teachers and Royal Mail staff.

Attack on German football club allegedly motivated by greed

Dietmar Henning

At the end of last week, German police arrested a man accused of the recent bombing attack on the coach of the Borussia Dortmund (BVB) football team.
Three bombs hidden behind a hedge exploded as the bus set off from the team hotel on April 11 on the way to a Champions League game. One player, the defender Marc Batra, suffered severe injuries to his wrist. Other BVB players on the bus avoided death or serious injury only because the placement of one of the bombs lessened its impact. Against the plans of the perpetrator, the metal parts contained in the bomb flew over the top of the bus.
The federal prosecutor has accused 28-year-old Sergei W. of attempted murder, responsibility for explosions and serious bodily harm. He intended to injure as many players as possible.
Investigators have said that his motive was greed. W. had bet on the stock market on a drastic fall in the value of Borussia-Dortmund shares following the attack. The sudden drop in share value would have guaranteed him a massive profit win.
The young man is alleged to have taken out a consumer credit of more than 40,000 to buy options on BVB shares on the day of the attack—a total of three different derivatives. The options permit investors to bet on a rise or fall in the prices of shares or other securities and earn high profits as a result.
Spiegel Online reported that W. stood to gain up to 200,000 if the BVB share were to sink from its value of 6 to under 1.
The alleged perpetrator built the three bombs professionally but was utterly amateurish in the execution of his crime. He placed his stock market bets at the same Dortmund hotel, L’Arrivée, where the team was due to stay. W. had moved into a room in the hotel two days earlier.
When booking a room in March, W. is alleged to have asked for a view to the site of the attack. He may also have detonated the three explosions by remote control from inside the hotel.
The letters found at the scene of the crime purporting to stem from an Islamist source were so unusual that doubts about their authenticity arose very quickly.
According to Der Spiegel, information from a source in the financial sector had informed the police two days after the attack about the suspicious BVB share trades. The police then spied on their suspect for a week before arresting him on his way to work.
According to the Federal Prosecutor’s Office, the suspect has both German and Russian citizenship. W., a qualified electrician from Freudenstadt in the Black Forest, worked most recently in a Tübingen heating plant; it remains unclear where he learned to assemble explosive devices.
W. came with his family to Germany from Chelyabinsk in 2003. Neighbours reported that the young man and his parents were “quiet people”. His grandparents lived in the house next door. One acquaintance described W. as withdrawn. He occasionally attended service in a local church about two years ago.
In the meantime, W. had moved to a room in nearby Rottenburg to be closer to his workplace, a heating plant that supplies the university clinic of Tübingen. One neighbour reported that W. never had visitors.
The personal motives that may have led a quiet and discreet young man to carry out such an act will be dealt with in subsequent court proceedings. Contrary to some reports, W. has apparently not yet made a confession.
The cold-blooded attack and his motive of greed met with widespread condemnation—with politicians immediately seeking to take advantage of the situation. “If the accused had tried to kill people merely for money, that would be simply horrible,” was the comment of German Justice Minister Heiko Maas (SPD).
But like every major crime there is a social dimension alongside the personal one. The perverse idea of making money via a terror attack on soccer players could only come about given certain social conditions. The commercialisation of football in particular, and the worshiping of the stock market in general, laid the foundations.
For some time, football has not just been about sport, but also about money. The top teams are global companies with revenues and stock holdings in the billions. Football has become a big business in its own right, especially in recent years.
The first club to register on the stock market was Tottenham Hotspurs in England in 1982. There are now 31 registered clubs. For the past two decades, the super-rich, including European oligarchs and members of the ruling families of Arabian states, have regarded football clubs as profitable investment opportunities and have invested billions.
For example, Russian oil billionaire Roman Abramovich took over FC Chelsea in 2003. Paris St. Germain belonged to the US financial investor Colony Capital (today Colony Northstar) from 2006 until being taken over by the investment group Qatar Sports Investment (QSI) in 2012. Another example is AC Milan, which was owned by the billionaire and Italian Prime Minister Silvio Berlusconi until 2016.
Football is currently attracting new investors and raking in billions in the form of TV contracts for individual national football associations. The international capitalist competition around the game has become quite bloated. The National League, which attracts the greatest interest, wins the most affluent sponsors and investors, and highest TV contract fees.
Top-flight players lead a life reminiscent of the gladiators in ancient Rome. They are at the same time top earners, celebrities, modern slaves and objects of speculation. Success and utter failure are often only a hair’s breadth apart. They must suffer the consequences of a heavy playing schedule aimed at increasing TV ratings, including games at noon for the benefit of Chinese TV stations, and much more. Some players crack under the pressure.
Manchester United, a listed stock company, is said to have 660 million fans worldwide. It has just opened a new sales outlet in Asia, and the club’s sale of jerseys and memorabilia is a major business. The club made a profit of £38.6 million last year via its contract with sports goods manufacturer Nike, which markets Manchester United worldwide.
As is the case with every capitalist competition, inequality grows. While the top two to four clubs in each league attract billions, clubs lower down the league—and especially those in the second or third divisions—face regular financial problems.
In the match between Real Madrid and FC Barcelona last Sunday in Spain, two teams with players worth 764.8 million (Real) and 756.5 million (Barcelona) faced off against one other. The market value of the Barcelona player Lionel Messi is currently listed at 120 million, with the Real Madrid player Christiano Ronaldo valued at 100 million.
The four current Champions League semi-finalists have total debts of €521 million. Real Madrid is the only of these four teams to be debt-free—after the club reported €602 million in debts following the 2013/2014 season.
According to the “Bundesliga Report 2016”, the 18 clubs of the Bundesliga had a turnover of around 2.6 billion in the 2014/2015 season. The largest revenue streams were television and media marketing (28 percent), advertising (26 percent) and gambling (20 percent).
Like all sectors of society, football is mercilessly subordinated to profit in the international markets, and playing with human lives is not new. Workers die on a daily basis in order that a few can make money on the international exchanges. This is described as investment, not greed, and the result is not murder, but rather healthy profit.
Currency speculators have forced entire countries to their knees, and the population is made to bleed for “rescue packages” and privatisations imposed by the IMF. The consequences of food speculation have been catastrophic.
In 2007 and 2008, financial speculators pushed up grain prices in Africa, and maize and wheat prices rose by as much as 300 percent. The rapidly rising food prices led to hunger protests in 61 countries. In 2009, the number of starving people rose to the record mark of 1 billion people for the first time. Every year, more than 10 million children under the age of five die from hunger. In the course of reading this article (two minutes), about 40 children have died from malnutrition.
The 2008 financial crisis, triggered by the bursting of a huge real estate speculative bubble, plunged entire countries into deep social crisis. In Greece, the social cuts imposed by the European Union and implemented by the pseudo-left Syriza government have brought unspeakable suffering to the population. Between 2007 and 2011, the suicide rate rose by 43 percent. The 477 suicides recorded in 2011 mark the highest level in 50 years.
The attack in Dortmund was brutal and inhumane, but in the final analysis it is the product of this brutal and inhumane social system.

Turkish warplanes hit Washington’s Kurdish proxy forces in Syria

Bill Van Auken

Turkish cross-border attacks against Kurdish militia positions in Syria and Iraq continued for a second day Wednesday, following dozens of airstrikes on Tuesday that left at least 70 people, including both Kurdish fighters and civilians, dead.
The attacks were met with protests from both Washington and Moscow, as well as the Syrian government. One of the main targets of the strikes was the Kurdish People’s Protection Units (YPG), which constitutes the backbone of so-called Syrian Democratic Forces (SDF), which serves as the main proxy ground force in the US intervention against ISIS in Syria.
The US State Department said Tuesday that it was “deeply concerned” about the airstrikes, which it charged were launched “without proper coordination” and had “led to the unfortunate loss of life of our partner forces.”
A spokesman for the US-dominated anti-ISIS “coalition” told a Pentagon teleconference Wednesday that Turkey had provided less than an hour’s warning before bombs fell on Iraq and Syria.
“That’s not enough time and this was notification, certainly, not coordination as you would expect from a partner and an ally in the fight against ISIS,” US Air Force Col. John Dorrian said.
The spokesman added that the hour’s notice combined with the “vague” character of the Turkish warning made it impossible to “ensure safety of our forces on the ground.” US troops were reportedly deployed within six miles of the areas targeted.
The unilateral military intervention by Turkey, Washington’s NATO ally, targeting forces armed and trained by the Pentagon, has further escalated the multi-sided conflict provoked by the six-year-old US-orchestrated war for regime change in Syria. It further threatens to turn it into a region-wide and even global conflict. Tensions had already escalated sharply in the wake of the US launching cruise missiles against a Syrian government airbase on April 7, on the pretext of retaliating to a chemical weapons attack that Washington blamed on the Syrian government.
Russia, which has also sought ties with the YPG and sent military advisors into the Kurdish-controlled areas of northern Syria, denounced the Turkish bombings, issuing a statement warning that “in a situation where the war on terror in Iraq and Syria is far from over, such actions clearly do not contribute to the consolidation of anti-terrorist efforts.”
In reality, the bombings only underscore the fact that, in the name of the “war on terror,” Washington, Turkey and Russia are all intervening in Syria to further their own, opposing interests.
Washington has sought since 2011 to effect “regime change” in Syria in order to impose a more pliant puppet regime in Damascus to further its drive for hegemony over the oil-rich Middle East. Russia has sent forces to back the government of President Bashar al-Assad, its principal ally in the Middle East, against the Al Qaeda-linked militias supported by Washington and its regional allies, including Turkey. For its part, Ankara has sought to further its own regional ambitions and, most crucially, to prevent the consolidation of an autonomous Kurdish region along its southern border.
Turkish officials have rejected the US protests over the attacks. Foreign Minister Mevlüt ÇavuÅŸoÄŸlu said on Wednesday that his government had given both the US and Russia notice “two hours” before launching the airstrikes. Speaking to reporters in Uzbekistan, ÇavuÅŸoÄŸlu also claimed that Turkey had discussed its planned attacks over the “last few weeks” with Washington.
Turkey’s President Recep Tayyip ErdoÄŸan bluntly defended the actions, saying that Turkey would continue its attacks in both Iraq and Syria “until the last terrorist is eliminated” and that it would “drain the swamp.”
The ErdoÄŸan government claims that its military actions are aimed against the PKK (Kurdistan Workers’ Party), a Kurdish guerrilla group that has waged a decades-long fight for an independent Kurdish state inside Turkey and has been outlawed by Ankara. The Turkish authorities consider the Syrian YPG a branch of the PKK.
The Turkish airstrikes in Iraq were supposedly aimed against the PKK, which has had a presence in the Sinjar region near the Syrian border since it intervened there in 2014, backed by US air power, to drive out ISIS. Ankara has allied itself with the Iraqi Kurdistan Regional Government (KRG), controlled by the Barzani clan, against the PKK.
Tuesday’s air strikes, however, killed at least six members of the KRG’s peshmerga forces, something that Ankara said it regretted. The attacks may serve to deepen hostility among Iraqi Kurds to the Barzanis’ close ties to Turkey.
Wednesday also saw clashes on the Syrian-Turkish border between the YPG and Turkish troops as well exchanges of artillery fire across the border, with the Turkish military targeting both the YPG and Syrian government forces, allegedly in retaliation for attacks against Turkey.
Clashes were also reported in northern Aleppo between the YPG and Turkish-backed militias, which are dominated by the Islamist Ahrar al-Sham, whose forces in Idlib province have joined the Syrian Al Qaeda affiliate.
Meanwhile, the Syrian Kurdish forces have called on the US-led “coalition” to establish a no-fly zone over northern Syria, a measure that would entail a qualitative escalation of the US military intervention, intensifying the threat of a military confrontation with Russia, whose warplanes operate in Syrian airspace.

Trump tax cuts: A bonanza for corporations and the wealthy

Patrick Martin

The Trump administration is proposing the largest tax cut for the wealthy in American history. The plan outlined on Wednesday would transfer trillions of dollars from future tax collections into the pockets of the super-rich. Its purpose is twofold: to enrich the financial aristocracy and force the destruction of programs such as Social Security and Medicare by depriving the federal government of the revenue needed to fund them.
Secretary of the Treasury Steven Mnuchin and Gary Cohn, chairman of Trump’s National Economic Council, issued a one-page statement of principles at a White House press conference Wednesday afternoon, where they gave only a few highlights and took a handful of questions, which they largely avoided answering.
The entire exercise seemed rushed. Press accounts suggest that the tax plan was thrown together in haste in response to mounting criticism from Wall Street, particularly in the wake of the abortive attempt to repeal Obamacare, that the administration was failing to live up to its commitments to carry out a major transfer of wealth from working people to the multi-millionaires.
That said, the press conference Wednesday did give a glimpse of the naked personal greed that is a major driving force of American capitalist politics. Mnuchin and Cohn could scarcely control their excitement over what Cohn called a “once in a generation opportunity” to transform the tax code. The two former Goldman Sachs bankers, each worth more than half a billion dollars, spelled out the main features of a plan that will add to their own immense wealth.
Among the main measures that will benefit those in the highest income brackets are:
* Abolishing the estate tax, so that the wealthy can pass on their fortunes intact
* Abolishing the Alternative Minimum Tax (AMT), established in response to widespread tax evasion by the wealthy
* Cutting the tax rate for business profits taken as personal income (so-called “pass-through” income) from 39.6 percent to 15 percent
* Cutting the top income tax rate from 39.6 percent to 35 percent
* Ending the capital gains tax surcharge of 3.8 percent for Obamacare
Many of these measures will benefit President Trump personally, particularly the abolition of the AMT. According to Trump’s leaked 2005 partial tax return, he paid $38 million in income tax that year, rather than $5 million, because of the AMT. He also takes much of his real estate investment income in the form of “pass throughs,” for which the rate would be cut by more than half.
Abolishing the estate tax, which currently applies only to fortunes of $5 million or more, would allow Trump to pass on his billions to his five children without them paying a penny. The same applies to Cohn (net worth $610 million) and Mnuchin (net worth $500 million).
The tax bonanza for corporate America is even greater than that for wealthy individuals. The biggest single proposed cut is the reduction in the corporate income tax rate from 35 percent to 15 percent, at an estimated cost of $2.4 trillion over the next ten years. In 2018 alone this action would cut the tax bill for corporations from $340 billion to $125 billion, a direct injection of $215 billion onto their bottom line. The bulk of those funds would be returned to wealthy shareholders via stock buybacks and dividends.
Added to that is the proposed change in the taxation of US-based global corporations through the establishment of a “territorial” tax system, in which only income earned by the corporation within the United States would be subject to corporate income tax. Given the ability of corporations to manipulate the flow of income, there will be a renewed incentive to record income in overseas tax havens rather than in the US, and thus escape taxation altogether.
This would be coupled with a one-time incentive for corporations to repatriate profits being held in offshore accounts. The rate at which these profits are taxed could be set as low as 5 percent, a huge boondoggle for a handful of corporations, including Apple and General Electric, which are holding trillions of dollars overseas.
The business tax cuts are expected to win support from many congressional Democrats, who will verbally oppose the reduction to a 15 percent rate for corporate income, but trumpet a cut to 18 or 20 percent as an acceptable “compromise” forced on Trump by their supposedly determined resistance.
The Obama administration had previously proposed a reduction in the corporate income tax rate from 35 percent to 28 percent, and 25 percent for manufacturers—a windfall of “only” $100 billion a year—while Senate Minority Leader Charles Schumer is the co-author of a bipartisan plan to “incentivize” the repatriation of overseas profits through a tax holiday for the corporations involved.
Ahead of Wednesday’s announcement, Schumer struck a pose of opposition, declaring on the Senate floor, “That’s not tax reform… That’s just a tax giveaway to the very, very wealthy that will explode the deficit.”
The last phrase is the key. Opposition from Democrats, and some Republicans, will focus on the fiscal impact of the tax cuts. To the extent that tax cuts are enacted—and they are virtually certain to pass in some form—there will be bipartisan demands that the cost of the handout to the wealthy be “paid for” through cuts in spending. These cuts will not be made in the gargantuan Pentagon budget, which will be increased, but rather in so-called entitlements such as Social Security, Medicare and Medicaid, the most expensive domestic social programs.
This perspective was spelled out by the Washington Post in an editorial published on the eve of the tax plan’s release, bemoaning the effect of the tax cuts on the federal deficit without mentioning the issue of economic inequality and the plundering of the country for the benefit of the super-rich. The editorial concluded, “For eight years, Republicans mercilessly attacked President Barack Obama for doing too little to cut federal deficits. Will they really turn around now and approve a budget-busting tax cut?”
The tax plan outlined Wednesday includes a number of provisions that will affect middle-income taxpayers, both positively and negatively. The net result cannot be seriously calculated because so many details remain undetermined.
Cohn said the White House is proposing to double the standard income tax deduction to $24,000 for a married couple. This would be offset by the elimination of the tax deduction for employer-paid health insurance and for payment of state and local taxes.
Lower income workers would gain nothing from the increased standard deduction, since they generally pay little or nothing in income taxes and are far more affected by payroll taxes for Medicare and Social Security, which would be unchanged under the Trump plan.
Cohn and Mnuchin described the tax plan outlined Wednesday as an “opening bid,” preparatory to lengthy negotiations between the White House and Congress. There are two possible legislative tracks—a bipartisan deal, which would require the support of at least eight Senate Democrats to overcome any filibuster, or passage under a procedure known as “reconciliation,” which requires only a simple majority but limits the duration of the tax cuts to a ten-year period.

China-Philippines Ties: Lessons for India and Japan

Tapan Bharadwaj


China and Philippines are in discussion to establish a bilateral consultation mechanism on South China Sea (SCS). This could re-establish direct talks between both countries after a long pause of six years. This upswing in bilateral ties however is a placebo. While China’s strategic position will almost certainly improve in the region, the Philippines stands detached from traditional allies, with some trade deals to gain from Beijing at best.
By aspiring to be a net security provider in this region, China is challenging US' presence and its provision of security to the sea lines of communication (SLOCs). However, the Chinese military does not currently have the capability to take on this role. Above all, the role is unlikely to be neutral as China itself has territorial claims in the region and is still in disputes with India and Japan on territory-related issues.
Almost 55 per cent of India's total trade, 85 to 90 per cent of Japan’s oil imports, and 33 per cent of its LNG imports pass through the (SLOCs) in this area. This gives both India and Japan critical commercial interests in the region of the dispute even though they are not parties to the dispute itself.
Commerce through the region has become much more dangerous with a sharp increase in piracy in the region. China does not recognise the freedom of military navigation, which means that Indian and Japanese commercial traffic cannot be protected by any security provider other than China. The visuals of such a situation are alarming to both India and Japan. Hence, turning a blind eye and ignoring the developments in the SCS can cause severe economic disruptions for both countries.
India is currently bogged down in Chinese activities in the Indian Ocean, and Japan in the East China Sea. This effectively means that both India and Japan are playing one game each, while China is playing three games simultaneously. It is then clearly myopic for both India and Japan to ignore Chinese activities in the SCS because it represents the first line of defence. If China gets away unchallenged in this region, its normal and natural tendency will be to expand towards hegemony in all three domains. Holding China down in the SCS ensures that its navy remains a defensive littoral navy, whereas allowing it to break out from the SCS dispute will mean that China will naturally transition to a big, power projecting navy across Asia.
The problem that both countries face however is that some countries in the region are notoriously fickle and unreliable. For example, the Philippines has disowned its traditional strategic alliance with the US and sought to engage China bilaterally in the hope of finding a better deal. This has created a severe dilemma for any country seeking to support the regional disputants against China. The fear is that they will be used to forward a local agenda, but sold out at the negotiating table, much like President Rodrigo Duterte did.
However the good news is that Duterte's gamble does not seem to have paid off, and with the benefit of hindsight, he may have been much better off retaining the help of the US. For example, Duterte’s 'ice-breaking' visit to China in October 2016 - which included meeting with Xi Jinping, Li Keqiang, and other important leaders, and the signing of thirteen agreements covering a wide range of subjects - delivered absolutely no concrete benefit for the Philippines, save some investment and photo opportunities. These improved ties have neither led to a softening of China's territorial claims in the SCS nor have they led to any decrease in the aggression of China's military patrolling and construction activities.
The Centre for Strategic and International Studies (CSIS) published a report on 27 March 2017 which stated that China had nearly finished constructing aircraft hangers, radar sites, surface-to-air missile shelters and runways on three of China's largest artificial islands, Fiery Cross, and Subi and Mischief Reefs, all part of the Spratly islands. These islands are at the heart of the SCS dispute. Further, President Duterte's less than stellar results seem to have spurred internal opposition to his rapprochement with China. Defence Secretary Delfin Lorenzana remained openly suspicious, citing ever more provocative Chinese patrolling - closer to the Philippines than before.
On 6 April, Duterte seemed to finally reverse course by asking troops to occupy uninhabited islands and shoals the Philippines claims in the disputed SCS, which contradicts what he said in March - that it was pointless to challenge China’s fortification of man-made islands in SCS: “We cannot stop them because they are building it with their mind fixed that they own the place. China will go to war,” he said.
The Philippines' current conundrum may be an object lesson for the rest of ASEAN: that abandoning old and trusted allies for misguided faith in the benevolence and magnanimity of China will not yield results, and may severely weaken leaders attempting such rapprochement domestically. In that object lesson lies the opportunity for India and Japan to re-engage with the region. 

26 Apr 2017

Harry Crossley Postdoctoral Research Fellowships at University Of Cape Town 2017

Application Deadline: 4th May, 2017
Offered Annually? Yes
About the Award: The Trustees of the Harry Crossley Foundation through the University of Cape Town are offering Fellowships to early career researchers to support a full-time focus on clinical and translational research at UCT’s Faculty of Health Sciences to support talented young health sciences researchers who completed their PhD within the last 5 years.
Eligibility: Two types of award are available:
Harry Crossley Clinical Research Fellowships to support dedicated research time for early-career clinical, academic and research staff. The award will provide busy clinical researchers and health professionals attached to the Faculty of Health Sciences the time required to, for example, complete a PhD or deliver on an important research project. Ethics approval should be in place for the proposed research. In keeping with the Foundation’s philosophy of supporting researchers in the earlier stages of their career, applicants should be under 45 years of age; in cases where fellowships are intended to support PhD completion, a more flexible age ceiling may be applied.  Applicants should have an employment contract with UCT/PGWC that exceeds the duration of the award. Fellowships must be taken up by September 2017. Value: up to R150, 000 per award (up to one year of support).
Harry Crossley Postdoctoral Fellowships to support talented young health sciences researchers who completed their PhD within the last 5 years. Applicants must be under 40 years of age, and must have submitted their PhD thesis by the application deadline. Applicants should not be registered for study towards any degree at the time of assuming the fellowship. Applications must be supported by a suitable research host in the Faculty of Health Sciences. There are no fringe benefits so that the successful candidate is responsible for his or her own medical aid and insurance arrangements. Tax-free status will be arranged with the South African Revenue Services. Preference will be given to clinical and translation research. The Fellowship may not be held concurrently with any formal fellowship from UCT or national funding bodies such as the NRF and the MRC. Fellowships must be taken up in the second half of 2017.
Ineligibility: Students who will be employed for more than 20 hours per week in 2017; who will register for part-time courses, the 4th year of an undergraduate degree, the LLB, postgraduate certificates and postgraduate diplomas and who will register for degrees in disciplines in Religious Studies and Political Studies
Financial Need Criteria: Financial Need must be illustrated by completing the AFFADAVIT on the reverse side of the Application Form. See Application procedure below.
  • The applicant’s cost of attendance at UCT in 2017 will be calculated to cover actual tuition fees, reasonable accommodation costs based on the least costly UCT residence fee, food, living costs and academic sundry costs (costs for field-trips, conference/other travel and research running expenses cannot be included).
  • Please note that Applicants’ expenses due to life-style choices (such as costly accommodation, payment of clothing bills, etc.) will not be taken into account, nor will costs for the support of dependents, insurances, research running costs, ‘pocket money’ or ‘entertainment’ be considered.
  • The University of Cape Town considers this AFFIDAVIT to be a legally binding document and reserves the right to request you to furnish the relevant documentation in evidence of your answers/statements.
If it is found that you have provided information that is false or untrue, the University of Cape Town further reserves the right to disqualify your application and/or to cancel and recover any scholarship funds that may have been paid out to you.
Academic Criteria:  A minimum of 65% aggregate (GPA) for the undergraduate or Honours degree is required in order for applicants to be academically eligible. This will need to be shown via certified copies of the Applicant’s academic transcripts.
Application Procedure The following documents are required:
  1. The Harry Crossley Research Fellowship APPLICATION FORM, and the AFFADAVIT (on the reverse side of the Application Form) must be duly completed and signed. The Application Form can be sourced from http://www.uct.ac.za/apply/funding/postgraduate/applications/
  2. A LETTER OF APPLICATION in which applicants are required to include a statement that they undertake, as a condition of award, to plan and organise one or more seminar programme(s), per degree (only at Master’s and Doctoral degree levels), directly related to their line of study, to be held in the Seminar Room of the University of Cape Town’s Postgraduate Student Centre. These will form part of the Harry Crossley Seminar Programme. Cross-disciplinary seminars can be arranged by more than one Fellowship-holder. The seminars must add value to the study and area of the research of the students. The letter of application must not be any longer than ONE A4 page. Please include a short statement with regard to your financial need.
  3. ACADEMIC TRANSCRIPTS (certified copies of the originals). UCT graduates need to request the PGC&FO to source these from the system. The transcripts must show that the applicant has achieved the undergraduate or Honours degree with a minimum pass-mark (GPA) of 65%. Please do not attach certificates.
  4. CURRICULUM VITAE This document must be limited to ONE A4 page.
  5. ACADEMIC REFERENCES Letters of reference are required from TWO ACADEMICS who have taught/supervised the applicant at University must be submitted. The PGC&FO will not source these on behalf of the applicant and applicants are responsible for ensuring that the references are sent directly to the PGC&FO.
  6. ACCEPTANCE FOR STUDY BY ACADEMIC DEPARTMENT A document from the academic department indicating that the applicant has been accepted, is likely to be accepted, or provisionally accepted for study in 2017.
  7. BANK STATEMENTS for July & August 2016 must be attached.
Value and Duration of Program: 
  • Harry Crossley Clinical Research Fellowships: Value: R200, 000 per award (one year of support).
  • Harry Crossley Postdoctoral Fellowships: Value: R200, 000 per award (one year of support).
How to Apply: Applications must be completed on the attached form and submitted electronically to: research.health@uct.ac.za by midnight on  4th May 2017.
Award Providers:  University of Cape Town, Harry Crossley Foundation
Important Notes: The University of Cape Town reserves the right to:
  • disqualify ineligible, incomplete and/or inappropriate applications, and
  • change the conditions of award or to make no awards at all.

40 UNESCO/Poland Co-Sponsored Fellowships in Archaeology and Conservation 2017/2018

Application Deadline: 12th May 2017
Eligible Countries: Egypt, Iraq, Jordan, Sudan, Syria
To be taken at (country): Poland
About the Award: With a view to promoting human resource capacities and to enhancing international understanding and friendship among nations and the people of Poland, the Polish National Commission for UNESCO, in cooperation with the Polish Centre of Mediterranean Archaeology University of Warsaw and the Academy of Fine Arts in Warsaw (Faculty of Conservation and Restoration of works of Art) have placed at the disposal of certain Member States (see Annex I) three  (3) fellowships of eight (8) months duration each, in Poland, starting on 2 October 2017.
Since its creation UNESCO’s mission has been to contribute to the building of peace, poverty eradication, lasting development and intercultural dialogue, with education as one of its principal activities to achieve this aim.
Field of Study: Studies in the fields of Archaeology and Conservation
Type: Research (Individual)
Eligibility: Applicants must hold the Bachelor’s or M.Sc. degrees. Applicants from outside the home country will often need to meet specific English language/other language requirements in order to be able to study there.
  • Candidates should have a Bachelor of Arts (B.A) or a Master of Arts (M.A) degree, preferably in Archaeology or Conservation
  • Be proficient in reading and writing in English
  • No more than 40 year-old
Number and Duration of Awards: Forty (40) fellowships of six (6) months duration each, in Poland.
Value of Scholarship: Facilities offered by Polish Authorities
  • Free tuition and access to the university facilities based on the local regulations. Accommodation at the AGH UST Student Campus organised for fellows by the UNESCO AGH Chair.
  • Monthly allowance of 1600 PLN (1 USD = approximately 4,0 PLN) corresponding to the salary of a local junior research fellow. Thus, all living expenses and accommodation in Poland are to be borne by the fellow with this allowance; and; (iii) A one-time special allowance of 1600 PLN to be paid upon arrival in Poland, this sum will cover different activities related to your stay in Krakow, such as an obligatory medical check-up upon arrival (in accordance with the internal regulations for all students); cultural, historical and/or touristic visits, conferences, workshops, and seminars related to your studies.
  • No provision to finance or lodge family members is made.
  • At the end of the research studies, the beneficiaries will receive a certificate attesting to their attendance at the host institution, this certificate will be given after receipt of the requested reports and financial clearance from the Institution.
Facilities offered by UNESCO
  • International travel expenses: (by the most direct, economical route) from the beneficiary’s country to and from Poland will be covered by UNESCO under its Regular Programme Budget.
  • Health insurance for fellowship beneficiaries who are declared medically fit: UNESCO fellowship holders may be covered by a health insurance policy, taken-out by the Organization for the duration of fellowship. The costs of this health insurance is subscribed to and covered by UNESCO on behalf of awarded fellows.
How to Apply: Candidatures should be submitted by the invited Member State. Original applications in duplicate must be channelled through the National Commission for UNESCO of the candidate’s country and communicated to Mr Stoyan Bantchev, Chief, Participation programme and Fellowships Section, by 12th May 2017 at the latest (GMT +01:00)  to UNESCO mailing address. An advance copy of the application should be sent by fax (33.1) 45.68.55.03 or by e-mail unesco3(at)agh.edu.pls.bantchev(at)unesco.org; b.qin@unesco.org and l.zas-friz-at-unesco.org. Applications should have imperatively the following attachments in DUPLICATE:
  • UNESCO fellowships application forms, including medical certificate, ALL four (4) pages duly completed in English using capital letter (illegible documents will be eliminated from the procedure, handwriting form must include capital letter only);
  • Two photographs attached to the applications (4×6 cm);
  • Certified copies (in English) of Bachelor’s or Master’s Degree/ PhD obtained; and,
  • UNESCO certificate of language knowledge, duly completed by a relevant authority, if the mother tongue of the candidate is not English.
  • Two letters of recommendation from someone related to the candidate’s work, as well confirming the candidate’s qualifications.
  • The endorsed candidates should register themselves to the Fellowship e-registration system available on the page.
Award Provider: UNESCO, Poland Government

LEAP Africa Graduate Internship Program 2017

Application Deadline: 2nd May 2017
Eligible Countries: African countries
To be taken at (country):
Type: Internship
Eligibility: We are looking for an innovative, passionate individual who can;
  • Monitor and evaluate existing projects with or without supervision
  • Communicate effectively with stakeholders
  • Develop and market leadership programmmes
  • Facilitate trainings
  • Create basic graphic designs
  • Carry out independent research and design curriculum
Selection Criteria: Our ideal interns must have keen project management acumen, strong analytic skills, tremendous drive for results and unparalleled curiosity and focus.
Number of Awards: Not specified
Value of Program: Interns will have the opportunity to participate in many exciting activities designed especially to enhance their knowledge of LEAP Africa and our projects.
Duration of Program: Not stated
How to Apply: 
Video Challenge
  • Step 1: Create a Video on why you are the best person for the role.
  • Step 2: Upload video to Youtube and share the link
Creativity Challenge
  • Step 3: Design a PowerPoint presentation on the topic “Channeling creativity for social change”.
 Personal Data
Kindly note that you are required to send a hand held video using any device of your choice. Video may not necessarily be professionally produced.
Email PowerPoint Presentation, CV and video with appropriate subject “Internship at LEAP Africa” to careers@leapafrica.org.
Award Provider: LEAP Africa