27 May 2017

Brazil’s president forced to rescind order calling out the army against protesters

Bill Van Auken 

Brazil’s President Michel Temer Thursday was forced to rescind an executive order he had issued the day before calling the army into the streets and giving it powers of arrest for the period of one week.
The measure was ostensibly taken to quell a protest Wednesday in the capital of Brasilia called by the unions and social movements to oppose pension and labor “reforms” attacking basic social rights and to demand Temer’s ouster and replacement through the calling of direct elections.
Calling out the army, however, had the air of an act of desperation on the part of a president who is facing multiple corruption charges and is viewed as illegitimate by the majority of the Brazilian population.
The most recent opinion polls indicate that Temer, the former vice president who was installed in the presidential palace through the impeachment of his predecessor, Workers Party (PT) President Dilma Rousseff in August 2016 on trumped-up charges of budgetary irregularities, is opposed by 95 percent of the population, with 85 percent favoring the immediate convening of new elections.
Wednesday’s demonstration in Brasilia drew tens of thousands of protesters into the streets of the isolated, inland capital. The protest was largely peaceful until a group of masked members of the so-called black bloc, a group that has frequently been infiltrated by agent s provocateurs, attacked police and vandalized government ministry buildings, setting one, the agricultural ministry, on fire.
Police responded with overwhelming and disproportionate force against the demonstrators as a whole, unleashing massive amounts of teargas, firing stun grenades and rubber bullets, sending mounted police with riot sticks into the crowds and, at one point, firing live ammunition at protesters.
Some 50 people were reported wounded in the repression. Among those most seriously hurt was a street vendor who was not even part of the protest but was shot in the face.
The order calling out armed troops to protect the capital came as the demonstration had already been largely dispersed. The confusion and seeming panic surrounding the decision raised serious concerns that Temer was resorting to the use of the military in a bid to prop up his crisis-ridden government and suppress mass opposition.
Bringing troops into the streets under the present conditions of extreme crisis has historic political implications in Brazil, a country that was ruled for over two decades by military dictatorship following the US-backed coup of 1964.
The issuance of the decree under Brazil’s “Guarantee of Law and Order” statute briefly saw troops deployed around government ministries and elsewhere in the capital. Army soldiers had already been stationed for some time outside Planalto, the country’s presidential palace.
Under the terms of the law, the army is to be called out only for limited periods when regular police forces are unable to cope with a supposed threat to social order and government institutions.
Neither the governor of Brasilia’s federal district, nor, apparently, the army command itself believed that this was the situation Wednesday.
Brasilia’s Governor Rodrigo Rollemberg charged that he had not been consulted, as required by law, before the troops were called out, condemning the decision as an “extreme measure” not warranted by the situation in the capital.
Gen. Eduardo da Costa Villas Bôas, the commander of the Brazilian Army, made a statement Wednesday after the issuance of the order, assuring the population that the military would act in accordance with the Constitution. “Our democracy is not in danger,” he said. That such an assurance was deemed necessary underscored the depth of the current political crisis.
Villas Bôas made his disagreement with the premise of the decree plain, telling the media, “I believe that the police should still have the ability to maintain order.” He said that the military would remain on alert “in case something gets out of control.”
The army commander went on to acknowledge that the atmosphere both in the presidential palace and in the military command itself was one of “shock” and “great insecurity” following recent revelations implicating Temer in corruption and obstruction of justice.
Brazil’s Supreme Court last week authorized the opening of a criminal investigation against Temer after he was taped by the CEO of the country’s giant meatpacking conglomerate JBS, Joesley Batista, voicing his approval for payoffs to buy the silence of Eduardo Cunha, the former head of the lower house of Congress. Temer was also recorded being told that Batista and his company were paying off prosecutors and judges to derail investigations into his company. The tape was given to prosecutors as part of a plea bargain deal.
While Temer has repeatedly declared that he will not resign and will have to be thrown out of office, his closest political allies in Congress are reportedly deserting him and calling for him to step down.
“Political parties allied with Michel Temer’s government have come to the conclusion that the President has lost his ability to remain in office,” the influential daily Folha de S.P. reported Thursday. The paper reported that the right-wing PSDB (Brazilian Social Democracy Party) is leading the move against Temer and has communicated its attitude to the Brazilian president. The PSDB’s own leading member and presidential candidate, who placed a close second to Rousseff in the 2014 presidential election, has been stripped of his Senate seat and ordered to surrender his passport as prosecutors prepare to order his jailing over related corruption charges.
According to Folha, the bourgeois parties that had backed Temer during the ouster of Rousseff are now banking on Brazil’s Federal Superior Electoral Tribunal (TSE) issuing a ruling early next month invalidating the 2014 election of Rousseff and Temer, then her vice presidential running mate, on the grounds that the campaign was illegally financed.
Such a decision would lead to indirect elections by the Congress, whose members’ main concern is to preserve their own skins, with dozens of congressmen and fully a third of the Senate under investigation in connection with the spiraling multi-billion-dollar corruption scandal centered on bribes and kickbacks in connection with contracts with the giant state-run energy conglomerate Petrobras.
The calling of direct elections would require Congress to pass a constitutional amendment, which is presently viewed as improbable. Folha reported that the Workers Party, which publicly is demanding direct elections, touting former President Lula da Silva—also facing trial on corruption charges—as the likely front-runner, is behind the scenes negotiating with other bourgeois parties on a compromise candidate to replace Temer through a congressional vote.
The country’s leading financial journal Valor Thursday published an interview with leading economist Yoshiaki Nakano, dean of the Sao Paulo School of Economy at the Getulio Vargas Foundation, in which he argued that Temer’s “resignation is the most favorable scenario for the economy.”
The concern of Brazilian big business is that the corruption scandal has crippled Temer’s ability to push through the sweeping attacks on the basic rights and living standards of Brazilian workers contained, in the first instance, in the so-called pension and labor reform laws that are now stalled in Congress.
It was to implement such measures, which expand upon the attacks already begun under the PT governments of Lula and Rousseff, that Temer was brought to power. The aim is to place the full burden of the country’s worst economic crisis in a century squarely on the backs of the Brazilian working class.
However, the country’s government and all of the bourgeois parties, including the PT, have become so discredited that imposing such an agenda becomes ever more difficult, outside of a return to dictatorial methods of rule.

Conflict between Europe and America dominates NATO summit

Johannes Stern

The first trip by US President Donald Trump to Europe has exposed the deep rift in the transatlantic NATO alliance.
Officially, agreement was reached at yesterday’s NATO summit for all members to increase defence spending to 2 percent of gross domestic product and for the alliance to join the US-led coalition against the Islamic State. However, the conflicts between the imperialist powers, and between the United States and Germany in particular, are now so sharp that they are becoming increasingly difficult to conceal.
Prior to the evening’s “working dinner,” Trump raked the visibly concerned European leaders over the coals. “Twenty-three of 28 member nations are still not paying what they should be paying,” blustered the US President. This was unfair to “the people and taxpayers of the United States.” Trump then repeated his assertion that many member states owe the alliance “massive sums of money” from previous years.
He also called on the NATO states to intensify their joint struggle against terrorism. “We must be tough, we must be strong, we must be vigilant,” said Trump, declaring that terrorism threatens humanity as a whole. “The NATO of the future must include a great focus on terrorism and immigration, as well as threats from Russia and on NATO’s eastern and southern borders.”
Shortly before Trump’s warning, German Chancellor Angela Merkel described Germany’s planned increase in military spending as sufficient. She added that NATO was merely going to confirm its 2014 agreement to increase defence spending, but would go no further. “Confirmed means nothing more and nothing less,” she stated.
There can be no doubt that Trump’s statements were directed above all at Berlin. According to the German news magazine Der Spiegel, during a meeting with European Commission President Jean-Claude Juncker and Council President Donald Tusk, Trump declared, “The Germans are bad, very bad.” He reportedly added, “Look at the millions of cars they sell in the US. Terrible. We’re going to stop that.”
Shortly after Merkel’s visit to Washington in March, Trump wrote on Twitter, “Germany owes vast sums of money to NATO & the United States must be paid more for the powerful, and very expensive, defense it provides to Germany!”
Since then, the economic and geostrategic conflicts between Washington and Berlin have intensified. Trump’s speech in the Saudi Arabian capital of Riyadh last weekend, in which he described Iran as “the most important state sponsor of terrorism,” was met with sharp criticism in Europe. Berlin is not seeking war with Iran, but rather an opening up of the country in order to secure new energy supplies and markets for German exports.
Berlin is also opposed to the US confrontation with China, which had already accelerated under the Obama administration, but has been aggressively intensified under Trump. China is a major source of profits for the German auto industry, and Berlin is also interested in Beijing’s new “silk road” project, which aims to integrate the Gulf region and Russia to develop trade ties with Europe.
Significantly, German Foreign Minister Sigmar Gabriel made it to the NATO meeting only by cutting short a visit to China. Shortly after his appointment to the post of foreign minister, which came just a week after Trump’s inauguration, Gabriel announced the creation of an Asia strategy to “exploit the spaces vacated by America.”
Ahead of the Brussels meeting, Gabriel began a coordinated offensive against US foreign policy with Martin Schulz, the SPD (Social Democratic Party of Germany) candidate for chancellor. Both criticized the US demand for Germany’s defence spending to be increased to 2 percent of GDP by 2024. There would be “absolutely no way to double military spending in Germany,” Gabriel said in an interview, adding that he had “no idea what we would spend the money on.”
In an op-ed published in Der Spiegel titled “Invest in peace—not weapons,” Schulz warned, “The debate about NATO’s alleged 2 percent goal” revealed “a dangerous tendency.” It would “mean almost a doubling of Germany’s annual defence budget to a gigantic €70 billion.” He then hypocritically asked, “Did the founding fathers have this picture of Germany in front of them in 1949? United, firmly integrated in Europe, surrounded by friends and partners—but armed to the teeth?”
In reality, Schulz’s comment has nothing to do with pacifism. He is not concerned with reducing military spending, but rather with securing Germany’s independence from Washington. He does not want military policy to be dictated by the White House, but instead intends to strengthen the German and European militaries to the point where they can act independently of—and in opposition to—the US.
Schulz appealed in his Spiegel Online comment for a massive military build-up of the German army and more foreign military interventions. He wrote, “The army will take part in interventions in conformity with international law in the future. Our soldiers need the best possible equipment for that.”
At the same time, Schulz demanded an expansion of Europe’s defence policy and the creation of a European army dominated by Germany: Europe had to “finally make progress on the EU’s joint security and defence policy. Together with our partners in the EU, who are pursuing the same goal, we want to agree on the foundation of a European defence union.” The “exit from the EU of Britain, which always blocked progress in this area,” provides “new opportunities” along these lines.
Schulz’s call for a German and European great-power policy, pursuing imperialist interests around the globe independently of and in opposition to Washington, is unmistakable.
The EU has to “finally leave the side-lines and take up an active role on the stage of international policy for peace,” he urged. This is “uncomfortable” and will “certainly lead to wide-ranging discussions.” But there is “no reasonable alternative” to a “more active role for Europe.” He added, “Because many of the other global political actors—including those who are our allies—have no or merely a limited interest in such a new policy for peace.”
The attempt by Germany’s Social Democrats to peddle European imperialism as a pacifist alternative to US militarism is a fraud. Over the past quarter-century, the European powers have participated in the illegal wars of aggression waged by US imperialism and are now pursuing policies all down the line that are similar to those pushed by the multibillionaire at the head of the US state. They are slashing social spending throughout Europe, engaging in a military build-up and strengthening the state apparatus. They are also increasingly prepared to take action against their American “ally.”
The reason for this dangerous development is to be found in the insoluble crisis of capitalism, which is incapable of overcoming the contradiction between the international character of production and the nation-state system. As on the eve of the First and Second World Wars, the scramble among the imperialist powers for raw materials, markets and spheres of influence is provoking sharp conflicts that will inevitably culminate in a major war unless the working class intervenes with its own, independent socialist program.

25 May 2017

WISE Accelerator for Education Technology Projects 2017

Application Deadline: 14th June 2017
Eligible Countries: All
About the Award: The WISE Accelerator is a program designed to support the development of innovative projects in the field of education. Selected projects receive the guidance and expertise of qualified mentors and partners who provide effective strategies and practical support for their further development. Each year, five projects are selected to join the one-year program, during which time they benefit from tailor-made mentorships to address their specific needs. In addition, the WISE Accelerator assists the selected projects to connect with an international network and create opportunities to share knowledge and find support among donors and investors.
The WISE Accelerator supports innovative projects that have a high potential for:
  • scalability
  • a positive impact in education Projects addressing education challenges through the use and/or design of technology in all sectors and regions are welcome to apply.
Projects in this particular field may cover a wide range of activities. From the conception of apps and digital games to the creation of online platforms or the design of new curricula and pedagogies integrating technology, all education projects that are using or linking technology to their DNA are invited to apply.
Type: Entrepreneurship
Eligibility: Ideal candidates for the WISE Accelerator will be existing projects at an early stage of development, with the following attributes:
  • Established for at least two years;
  • A significant and growing number of beneficiaries or customers;
  • A record of activities with a product or service that has been successfully implemented and beyond proof of concept;
  • Existing, stable revenues, and new opportunities for growth;
  • A dedicated team, with an established physical space or office;
  • Deep knowledge of the market/education context and of their beneficiaries’ or customers’ needs;
  • Clear future objectives and motivation to develop further;
  • Good understanding of the project’s current challenges in scaling.
Projects from all sectors and regions of the world are invited to apply for the WISE Accelerator.
Selection Criteria: The WISE Accelerator Committee, composed of leading experts in education and social entrepreneurship, will conduct a rigorous selection process.
Applications will be assessed according to the following criteria:
  • Solution and innovation;
  • Strategy and management;
  • Development beyond proof of concept, and potential for growth
Number of Awards: Not specified
Value of Program: The year-long program is designed to assess and meet project needs as fully and precisely as possible in order to bring them to the next stage of successful development.
Duration of Program: 1 year
How to Apply: APPLY NOW
Award Provider: Project WISE

Women Techmakers Udacity Scholarship (100 Full Scholarships for Online Certification) 2017

Application Deadline: 9th June 2017
Eligible Countries: All
About the Award: The scholarship will provide women around the world with free access to one of Udacity’s Google-certified online Front End Web Development, Android Basics, Android Developer, or Full Stack Development Nanodegree courses, for one year.
We are always developing new ways to increase professional and educational opportunity and provide high value technical resources to women around the world. Women Techmakers is excited to partner with Udacity to offer a Women Techmakers Udacity Scholarship.
Type: Training
Eligibility: To be considered for the Women Techmakers Udacity Scholarship, successful applicants must:
  • Identify as a woman
  • Be at least 18 years of age at the time the application is submitted
  • Have fluency or near-fluency in English
  • Commit to finishing the Nanodegree program within one year
  • Meet Udacity’s technology requirements (See in link below)
Number of Awards: 100
Value of Program: 
  • Resources: Receive a fully-funded scholarship for one year to build your technical skills through one these Google co-created Udacity Nanodegrees: Front-end Web Development, Android Basics, Android Developer, or Full Stack Development.
  • Community: Participate in a global community of women in technology through your specialized Nanodegree cohort hosted by Women Techmakers. Meet Googlers, experts, and mentors through a global Slack team and course forums.
  • Visibility: Nanodegree graduates will receive career coaching and interview tips from Google and our partners. We’ll also share public speaking pro-tips and offer to share your unique story and project across the Women Techmakers platforms.
Duration of Program: 1 year
How to Apply: 
Award Provider: Women Techmakers
Important Notes: Please see the full terms and conditions 

Chinese Government/African Union Scholarship for African Students 2017/2018

Application Deadline: 30th June 2017
Eligible Countries: African countries
To be taken at (University): Scholarships will be taken in the following universities (See list of universities below)
Fields of Study: Various (Click to view acceptable fields of study in the various university links above)
About the Award: The Department of Human Resources, Science and Technology of  the African Union Commission has the role of coordinating AU programs in education and human resource development ; science, technology and innovation and youth empowerment.
The Department provides technical support to Member states in the development and implementation of programs towards harmonisation, intra-African collaboration, and experience sharing, as well as quality assurance in these fields as contribution to the attainment of AU vision of integration, peace and prosperity in Africa. The Government of the People’s Republic of China has made scholarship offers to the AU through the Department of Human Resources, Science and Technology, to enable Africans to study in China for the 2017/2018 academic year.
Type: Masters, Training
Eligibility: 
  • The scholarships are open to all African nationals who meet the Admission requirements below
  • The language of instruction shall be English
  • Candidate with potential, motivation and desire to play transformative roles in Africa, are encouraged to apply
Admission Requirements: Candidates applying for Masters programs must fufil the following
  • Undergraduate degree from a recognised university with at least a second class upper or its equivalent, in a relevant field
  • Maximum of 32 years
  • Fluency in English as it is the teaching language
  • Candidate may be willing to undergo a written or oral examination after pre-selection
List of Universities:
Number of Awards: Not specified
Value of Program: The scholarship will cover the cost related to teaching and the administration of the university and the living expenses of the students from the fund of the foreign aid, supervising thesis.
  • The cost related to teaching includes tuition, teaching materials, field trips and study tours.
  • The basic living expenses include the accommodation, living allowances, the one-time settlement fee, and the medical insurance. Of which, the 3000 RMB of settlement fee will be given to the students in one time.
  • The living allowances (36000 RMB/year for Master students and 42000RMB/year for Doctor students) will be given to the students on a monthly basis. All the other funds will be managed by the university or Chinese
Duration of Program: Duration of program
How to Apply: Applications must be submitted with a cover letter stating motivation and how the qualification will enable you serve the continent
Applications must also be accompanied with the following:
  • Curriculum Vitae including education, work experiemce and publications if any
  • Certified copies of relevant Certificates, transcripts and personal details page of national passport (at least 6 months validity)
  • Clear, coloured passport photograph (3*4)
  • Recommendations from two academic referees,  one professional referee
  • Health certificate
Award Provider: Chinese Government

100 University of West London International Ambassador Scholarships 2017/2018

Application Deadline: 16th July 2017
Offered annually? Yes
Eligible Countries: International
To be taken at (country): UK
About the Award: International Ambassadors are active representatives for the University. The International Ambassador Scholarship is intended to recognise and provide financial support for outstanding students who wish to act as ambassadors for the University of West London.
As an ambassador you will act as an active representative of the University. You will be expected to participate in current and future promotional activities, and as such, will be interviewed and photographed by our marketing department. The scholar will also contribute from time- to-time in the promotion of the University of West London by supporting events organised for scholars, and events organised by the International Office. The scholar agrees no payment will be made by the University to the scholar for their participation in promotional activities. The scholar assigns to the University any intellectual property or other rights which are created as part of the promotional material. The University reserves the right to revoke the scholarship in the event the scholar is not fulfilling the requirements of the role.
As outstanding students, ambassadors will also contribute from time to time in the promotion of the University of West London by supporting events organised for scholars and by the International Office.
Type: Masters
Eligibility: Students are eligible to apply for the scholarship if they have been offered a place to study on a full-time undergraduate or postgraduate course at the University of West London, commencing in September 2017.
The International Ambassador Scholarship will be awarded on a competitive basis to candidates who demonstrate enthusiasm and the ability to be an excellent international student ambassador.
Applicants must be:
  • A self-funded overseas full fee-paying paying student (please note: EU applicants are not eligible).
  • An offer holder for an undergraduate or postgraduate course at UWL, to commence study in September 2017.
Number of Awardees: 100
Value of Scholarship: £5,000
How to Apply: You can apply for the International Ambassador Scholarships by completing a scholarship application form (doc, 158 kb).
If you are unable to save a completed version of the form, you may not have the required software. If this is the case, please print off the form, complete the application and scan and sent it to int.app@uwl.ac.uk.
A decision will be made by Friday 28th July 2017 and successful recipients will be notified by e-mail.
Award Provider: University of West London

Civil Society Leadership Awards (CSLA) Fully-Funded Masters Degree Scholarship for Developing Countries 2018

Application Deadline: 15th July, 2017
Offered annually? Yes
Eligible Countries: Azerbaijan, Belarus, Cambodia, Democratic Republic of Congo, Egypt, Equatorial  Guinea, Eritrea, Ethiopia, Laos, Libya, Myanmar/Burma, Republic of Congo, South Sudan, Sudan, Syria, Turkmenistan, Uzbekistan
To be taken at (country):  Host countries
Eligible Field of Study: Awards are available in the following fields at host universities across the world:
  • communications and media
  • culture, history, and society
  • development studies
  • economics
  • education management and leadership
  • environment and natural resource management
  • human rights and/or gender studies
  • law (including human rights law)
  • politics and international studies
  • public health policy and health management
  • public policy and administration
  • social work and social policy
About the Award: CSLA directly assists future leaders in countries where civil society is challenged by a deficit of democratic practice in local governance and social development.
Competition for the Civil Society Leadership Awards is open and merit-based. Selection is based on an applicant’s fit with the program’s objectives as well the graduate admissions criteria of the participating universities. Academic excellence, professional aptitude, leadership potential in the field of specialization, proven commitment to open society values, and appropriate language proficiency are all important factors in evaluation.
All eligible applicants will be reviewed by an international selection committee. The proposed field of study should be logical for the goals expressed in the essays, and the application itself should be organized and complete. Compelling candidates will be interviewed by a selection committee comprised of university representatives, CSLA staff, and partner organization representatives, such as the German Academic Exchange Service (DAAD).
Type: Master’s degree study
Eligibility: CSLA does not discriminate on the basis of age, race, color, sex, religion, sexual orientation, or disability.
Selection Criteria: Candidates must meet the following criteria:
  • Be a citizen of an eligible country
  • Demonstrate maturity, flexibility, and civil society leadership potential
  • Have a bachelor’s degree awarded before July 15, 2017 and an excellent academic record
  • Demonstrate professional experience in a relevant area
  • Demonstrate proficiency in the language of instruction (English, German or French) at a level required for admission by host universities
  • Be able to participate in an intensive pre-academic summer school in July or August 2018 and start their degree program in August or September 2018
  • Be able to receive and maintain a visa or study permit as required by the host country
  • Demonstrate a clear commitment to return to their home country or region to continue supporting open society development
Number of Awardees: Not specified
Value of Scholarship: Fully-funded. Successful applicants will receive the following support:
  • Tuition and mandatory university fees;
  • Monthly stipend for room, board, and other living expenses;
  • Program-related travel;
  • Accident and sickness insurance during the program;
  • Funds for educational materials and professional development;
  • Attendance at a regional grantee conference;
  • Pre-academic preparation via summer schools
Duration of Scholarship: Duration of course
How to Apply: Interested applicants must complete an online or paper CSLA application and submit along with supporting documentation to be considered for CSLA support.
Online Application
All candidates are strongly encouraged to apply online if possible using Submittable, an online platform. To apply online, please register on Submittable and then follow instructions.
Paper Application
Paper applications may be accessed in the Download Files section of this page. Please download the application form before completing or printing, and review the accompanying materials before submitting your application.
Award Provider: Open Society Foundation
Important Notes: Applicants will be notified of their status via email in September 2017.

Bavarian Government/DAAD Scholarships for International Students at Hochschule Hof 2018/2019

Application Deadline: 27th October 2017
Eligible Countries: International
To be taken at (country): Germany
Type: Undergraduate, Postgraduate
Eligibility: Applicants must fulfil the following requirements:
  • international students must be enrolled as full-time students or double-degree students (not possible for exchange students) at the Hochschule Hof for the respective semester (summer semester 2017 or winter semester 2017/18).
  • international students must be academically (previous examination performance) and personally qualified. Foreign students enrolled in Bachelor courses must have achieved a minimum of 90 ECTS to be eligible. Please attach proof.
  • international students in financial need. Hochschule Hof may at any time ask for proof of given information. Students receiving any additional public funding (e.g. BAföG, DAAD, Erasmus, any kind of governmental scholarship) for the same period of time cannot be considered and are exempted from this scholarship!
Selection Criteria: Only complete, legible and personally signed applications will be considered.
Number of Awards: Nor specified
Value of Program: The scholarships shall provide financial support for foreign students to cover extra costs for living and study materials during their studies at Hochschule Hof. The scholarship depends on the financial means provided available for the respective semester. It lies between 100,00 € – 659,00 € per month.
How to Apply: 
  • completed online application form
  • Declaration of application – proof of enrolment
  • latest transcript of records (Master students add a copy of their final transcript of their Bachelor degree in either German or English language)
  • with average rating – short CV
  • proof of nationality (e.g. copy of passport)
Award Provider: Bavarian Ministry of Science, Research and the Arts (Bayerische Staatsministerium für Bildung und Kultus, Wissenschaft und Kunst) and the DAAD
Important Notes: “Bildungsinländer”, which means foreign students holding a German university entrance qualification (e.g. Abitur, Fachabitur) must present a written confirmation following §8 of the BAföG-law, that they are not eligible for BaföG funding.

Instability Widens In Mali And The Sahel Region of Africa

Rene Wadlow

The first foreign visit of the new French President Emmanuel Macron, after a now habitual trip to Berlin, was to Gao in northern Mali as head of the French military. The visit was an attempt to be seen as paying attention to the efforts of French troops in operations in northern Mali and other states of the Sahel region of Africa.
In March 2012, the West African state of Mali was effectively divided into two roughly equal halves, each about the size of France. The northern half was under the control of two rival Touareg groups with additional non-Toureg fighters coming from other Sahel countries and northern Nigeria. The larger Toureg faction was the National Movement for the Liberation of Azawad (MNLA). It was larger than its rivals but less well armed. Its main aim was to create an independent state, to be called Azawad, the name for the area in the Toureg language. The leaders of the MNLA quickly declared the political independence of the area.
One Touareg rival was the Ansar Dine “defenders of the faith” which said it wanted to apply Islamic law to all of Mali. In addition to Ansar Dine, there were at least two other Islamist groups, largely composed of non-Malians: Al-Qaida in the Islamic Maghreb (known by its initials in French, AQMI) and Mujao (Movement for Unity and Jihad in West Africa). The complicated tribal politics of northern Mali and neighboring Sahel areas of southern Algeria, Chad, Niger, and Mauritania has made unity of action difficult.
On January 10, 2013, with outsized ambitions and poor calculations of international reactions, the Ansar Dine and some related allies decided to move toward Bamako, the capital of Mali. The Malian government cried for help. The French government, which has troops and war planes in neighboring states – all former French colonies – responded on January 11 of 2013 with planes destroying armed trucks, thus stopping the advance of the Islamists. French ground troops were flown to Bamako as a fighting, not only a training, force.
The well-trained and equipped French troops moved quickly to take over the cities and larger towns of northern Mali and much of the countryside. The Islamist groups had no desire to fight the more numerous French troops, to which were added Malian forces and small groups of soldiers from other West African countries. Thus, Islamist forces largely melted into the civilian population. Some of the Islamists who were better armed moved north into mountainous areas to live in caves and secluded regions.
The Islamists have integrated a northern Sahel area in which there is an active trade in drugs coming from Latin America. Since cargo and persons coming from Latin America directly to Europe are suspected by officials of being involved in the drug trade, an African stopover has become standard. Planes land in little used airports in Mali or other Sahel areas. The drug cargo is taken by road to ports and then shipped to Europe. Along the way, Malian civil administrators and military are paid to look the other way as the drugs go by. Since salaries are low and often paid late, not much additional pressure is needed to move the drugs. Along with drugs, there is an active trade in arms and in transporting people hoping to go to Europe to find work.
Looking to the north from Gao and Timbuktu to counter the drug and arms trade has left events to the south in Mali largely unnoticed, though trends there may have even more destabilizing consequences. Due in part to the consequences of drought over the last five years, there has been a push south of the Peuls. (Peul is the single person, Fulani is the correct plural, but putting an s on Peul has become common usage). The Peul, probably some 30 million strong are originally from the Sahel zone cutting across parts of Mauritania, Senegal, Mali, Burkina Faso, Chad, and northern Nigeria. Due in part to the 1972-1983 drought, the Peuls started moving south into southern Nigeria, the Ivory Coast, Cameroon, all the way south to the Central African Republic. Since the Peuls are cattle herders, there have always been conflicts with settled farmers as to when the cattle could come into fields after harvest, the use of water, and so on. In areas where there has been long co-existence, rules have been worked out and dispute settlement mechanisms put into place. With the prolonged drought and new areas of occupation, the old rules and dispute-settlement mechanisms have not been able to cope. This is one of the factors in the armed conflict in Darfur, Sudan, although the Peuls are not directly there.
There seems to be an increasing Islamist current among the Peuls, creating insecurity and tensions both among the Peuls and between the Peuls and other ethnic groups. It is difficult to know from outside what is the place of ideological tensions and what are due to socio-economic tensions and how the two may overlap. Emmanuel Macron’s flash visit to northern Mali – more of a public relations effort than anything – may usefully draw attention to an ever-widening troubled area.

Crisis at Canadian subprime mortgage lender

Roger Jordan 

The deepening crisis at Home Capital, a mortgage lender which provides financing to individuals failing to meet the criteria for loans from Canada’s major banks, has exposed the mounting fragility of the country’s economy. Despite assurances from government representatives and central bank officials that the difficulties are specific to the company, there are growing concerns Canada’s economy could be roiled by a housing bubble, record consumer debt, anemic growth, and the uncertain future of the North American Free Trade Agreement (NAFTA).
The Globe and Mail reported in a lengthy article last week that Home Capital came within hours of total collapse on May 1.
The crisis at Home Capital, which holds around 1 percent of Canadian mortgages, began March 27, when CEO Martin Reid was let go. Since then, savers in Home Capital’s high-interest savings accounts have withdrawn 94 percent of their deposits, leaving the company with a mere $120 million in deposits. The pace of withdrawals increased dramatically after the Ontario Securities Commission accused the lender on April 19 of providing misleading information about its mortgage business to investors, an allegation Home Capital has rejected. Since then, Home Capital’s share price has crashed by 70 percent.
Home Capital executives have repeatedly denied that they will require emergency assistance from the Bank of Canada. At the same time, they acknowledge that the firm only has financing to last several months and that the vast majority of this is drawn from a high interest credit line arranged with the Healthcare of Ontario Pension Plan (HOOPP).
Government officials have sought to downplay the broader impact of the crisis at Home Capital. Federal Finance Minister Bill Morneau said May 15, “We’ve always seen the Home Capital issue as one that’s a Home Capital issue. We don’t see a contagion risk here.” Bank of Canada Governor Stephen Poloz has insisted that a market-based solution can be found for Home Capital and without the Bank of Canada having to step in.
Whatever transpires in the coming weeks, the rapid development of such a crisis at Canada’s largest non-bank mortgage lender has exposed the underlying fragility of the country’s economy. No amount of assurances about the circumstances being specific to one company can disguise the fact that Canada’s property market is dangerously inflated and could trigger a broader economic collapse. Earlier this year, the Globe and Mail compared the situation in Canada’s property market to that in the United States on the eve of the 2007-08 crash. Poloz has previously noted that property prices, which were up on average 10 percent annually in April and more than 30 percent in Toronto, are unsustainable.
The percentage of GDP attributable to property sales is currently 1 percent higher than it was in the United States in 2007, on the eve of the subprime lending crisis and the collapse of the US housing market. David Rosenberg, chief economist at Gluskin Sheff, said in an interview with BNN that the two situations bear a striking resemblance. He noted that the price of an average home in Toronto presently absorbs 13 years of family income, adding, “We’ve never seen this before.”
The unsustainability of the housing market is underscored by the surge in consumer and household debt, both of which are at record levels. Average household debt currently stands at 167 percent of disposable income. This was a major factor behind Moody’s decision earlier this month to slash the credit ratings of Canada’s six major banks. “Today’s downgrade of the Canadian banks reflects our ongoing concerns that expanding levels of private-sector debt could weaken asset quality in the future,” Moody’s said in a statement.
These unprecedented debt levels are linked to stagnant or declining incomes. In 2012, an OECD report noted that among developed countries, Canada had the fifth highest percentage of low-wage workers, earning less than two-thirds of the median income. In 2016, Statistics Canada figures showed that wage growth for salaried workers was zero and there was a decline for hourly workers of 0.4 percent. Such grim figures understate the problem, since they include high-earning positions where incomes have grown significantly.
Home Capital is not the only financial institution to feel the effects of this. Equitable Bank, the country’s ninth largest, has also experienced a run on deposits, although of a much smaller scale than Home Capital. It was forced to arrange a $2 billion lifeline with the major banks in early May. Investors have also increased their bets against the major banks themselves. This mounting uncertainty has led to increased pressure on the Canadian dollar, which is the worst performing major currency in 2017.
Canada’s sluggish economy has come to rely increasingly on a red-hot housing market to sustain growth. Bloomberg noted that in the provinces with the fastest growth rates, including British Columbia, two-fifths of growth could be put down to the real estate sector and related construction projects.
Canada managed to weather the 2008-09 global economic crisis better than most other advanced capitalist economies. But since the bursting of the China-driven commodity-price boom and especially the collapse of world oil prices in 2014, Canada’s economy has performed worse than most of its major rivals. Tens of thousands of relatively good-paying jobs have been wiped out in the energy sector, above all in Alberta, and capital investment has dried up.
The Liberal government of Justin Trudeau promised to increase government spending when it came to power in 2015 to boost economic growth. In reality, its strategy is aimed at placing even more resources in the hands of the financial elite, through privatization and the creation of an infrastructure investment bank dedicated to promoting so-called Private Public Partnerships.
In a recent analysis titled “The worst scenario: What if Canada’s real estate bubble bursts?”, the CBC considered, not without considerable trepidation, the potential impact on the broader economy. It noted that unemployment would increase sharply, consumer spending would fall as borrowers would no longer be able to use their property as collateral in accessing more credit, and the dollar would drop even further, making imports more expensive.
Experts cited in the CBC report stressed that such a worst case scenario was unlikely, due to the efforts of regulators to deflate the housing bubble. But there are other factors at play.
The Bank of Canada has retained historically low interest rates of 0.5 percent since the 2014-15 oil price collapse. It has been prevented from raising rates by a sluggish economy. According to Canada’s central bank the economy will grow by just 2.3 percent this year and the Conference Board of Canada recently projected growth will fall back below 2 percent in 2018.
Meanwhile, the US Federal Reserve has begun what it promises will be a series of rate hikes aimed at returning interest rates to historic levels. A growing gap between US and Canadian rates would further depress the Canadian dollar, fueling inflation and making Canadian companies more susceptible to foreign takeover. This in turn would place pressure on the Bank of Canada to raise interest rates, although this could roil the housing market, resulting in a bursting rather than a controlled deflating of the housing bubble.
The deepening political crisis in the United States will also have major ramifications for Canada. Since Donald Trump won election to the White House last November, the Trudeau government has made its first priority retaining the Canadian bourgeoisie’s privileged access to the US market and limiting the fallout from Trump’s protectionist, “America First” agenda. Toward this end, the Liberal government has moved to further strengthen Canadian imperialism’s military-strategic partnership with Washington, pledging to “modernize” NORAD and increase Canada’s support for the military-strategic offensives that the US is mounting around the world to maintain its global hegemony under conditions where its relative economic power has been massively eroded.
Nevertheless, Canada and the US have become embroiled in a series of tit-for-tat trade disputes and this even before Ottawa, Washington, and Mexico City launch negotiations on revising the North American Free Trade Agreement (NAFTA). Uncertainty surrounding the NAFTA talks—Trump has threatened to scrap the deal entirely—could become a significant factor exacerbating any economic downturn in Canada, since Canada depends on the US market for three-quarters of its exports. Bank of Canada Governor Polloz has warned that concerns about NAFTA’s future have already led to a decline in business investment.