27 May 2017

Government of Colombia Specialist, Master and PhD Scholarships for International Students 2017/2018

Application Deadline: 2nd June 2017
Offered Annually? Yes
Eligible Countries: Addressed to all countries cooperating with Colombia, except ecuadorian, peruvian and frencha citizens as there is a program aimed to professionals from these countries.
To be taken at (country): Colombia
Type: Doctorate/ PhD, Especialization, Masters
Eligibility: Eligible candidates must:
  • be foreign professionals in the range of age between 25-49 years old
  • have undergraduate degree (university degree or bachelor) in different disciplines
  • have a grade point average of 4.0 on the Colombian scale of 1 to 5
  • at least 1 year of professional experience in their field of study.
  • The candidate must master the Spanish language (reading, writing and speaking)
  • He/she must deliver us a certificate of these competences and must have an admission letter from the Colombian educational institution in any career determined in the catalog annex to this call.
  • The candidate must not live in Colombia and must not have Colombian nationality
  • Prove minimum one year experience in their field of study, after obtaining the degree.
  • The candidate must have successfully completed college.
  • The academic program should start in the second semester of 2017. Admission to programs starting in 2018 will not be contemplated.
  • The documents must arrived through the embassies or directly to the International Relations Office of ICETEX in Bogotá-Colombia before the 2nd June 2017.
Selection Criteria: 
  • Academic excellence
  • Coherence between the academic trajectory, work experience and academic program
  • Professional working experience Study Project
  • Reciprocity on educational cooperation
Number of Awards: Not specified
Value of Program: :
  • TUITION: 100% coverage of all these costs granted by the Colombian universities (only for academic programs found in the catalog of this call).
  • INCIDENTAL: Grant of $197.217 COP) for once during the period of studies, just in case of circumstances beyond the beneficiary control.
  • STIPEND FOR BOOKS AND MATERIALS: Grant of $378.962 COP for once, at the beginning of the academic program
  • MONTHLY ALLOWANCE: Grant of the sum equivalent to 3 Minimum Monthly Legal salaries. $2.213.151
  • COP HEALTH INSURANCE: Wide coverage in medical assistance only in Colombia, during the period of studies.
  • INSTALLATION COSTS: Grant of {$378.962 COP for once at the beginning of studies.
Duration of Program:  Postgraduate scholarships in Colombia will have a maximum of twelve (12) months for specialization and twenty-four (24) months to master and up to thirty-six (36) months for doctorate. The scholarship holder of doctorates that last more than 3 years have to assume by themselves the allowance for the rest of the program.
The scholarships are awarded on an annual term, for that reason, for more than 12 months academic programs (master and doctorate) the scholar must request an extension for his second year. The extension is subject to the requirements of the ICETEX. It is clear that ICETEX has no financial obligation to cover the economic expenses incurred once the academic program has ended. The scholarship does not cover the period of degree work
How to Apply:  It is important for interested candidates to go through the Application requirements (See in Link below) before applying. Required documents, which are detailed in this call, should be at ICETEX on the date indicated in the notice. No documents will be received outside the established dates. 11. The documents required in this call must be translated into Spanish
Award Provider: Government of Colombia

International Reporting Project (IRP) Journalism Fellowship in Africa 2017

Application Deadline: 30th June, 2017.
Eligible Countries: All
To be taken at (country): Proposals may focus on any African country, though special consideration will be given to projects in Burundi, Democratic Republic of the Congo, Kenya, Mali, Sudan, South Sudan and Zimbabwe.
Field of Study: Applicants may propose any stories that relate to post-conflict peacebuilding. Topics might include but are not limited to:
 leadership: local, national, individual and organizational;
 human rights initiatives;
 access to education, healthcare and judicial bodies;
 status of marginalized communities and familial hierarchies;
 women and gender;
 violence and threats to safety and security;
 power imbalances and early warning signs;
 migration, land rights and borders;
 opportunities created by shifting dynamics;
 religion, culture and holistic reform;
 climate change, food security and natural resources;
 change-makers, creative approaches and conditions necessary for peace;
 multi-country/cross- border solutions and strategic partnerships.
About the Award: The International Reporting Project’s fellowships are grants awarded to journalists to report on key international issues, particularly stories that are underreported in mainstream media. We support a variety of fellowships, and details of a specific opportunity will be outlined in our calls for applications. Since 1998, IRP has awarded grants to more than 600 journalists to report from more than 110 countries around the world.
Type: Fellowship
Eligibility: 
  • Citizens of all countries are eligible; journalists from across the continent are especially encouraged to apply, though proposed projects should take place in a country other than the journalist’s home country.
  • We encourage applicants to propose stories and destinations not recently covered by IRP fellows (See in link below), although some exceptions may be made. Additionally, we are looking for applications in which journalists are proposing to cover new territory rather than stories they have been focusing on for years. Similarly, we are not likely to support book-related projects.
  • Staffers and freelancers alike are encouraged to apply, and should note their projected outlets for publication as part of their pitch. The fellowships are intended for experienced professional journalists who have a record of outstanding achievement in reporting for influential media outlets. This fellowship is not intended for students or for recent graduates without professional reporting experience.
  • IRP considers and encourages stories in a variety of media, including print, online, radio, television, photography, social media and video. Candidates will be asked to indicate whether they have undergone safety/security and first-aid training for hostile-environment reporting.
Number of Awards: Not specified
Value of Program: The fellowships will support stories in a variety of media, including print, online, radio, television, photography, blog posts, social media and video.
Duration of Program: Fellowships typically last between two and seven weeks. Time spent in the destination country is flexible.
How to Apply: All applicants must fill out an application form in which they should write an essay of at least 1,000 words describing the stories they would pursue during the fellowship. Applicants should note their expected output (e.g. longform, short articles, radio or video documentary, photo essays, etc.). In order to be considered, all application essays must be submitted in English. However, the stories and other updates produced by the fellows may be in English or in other languages.
All applications must include a detailed budget proposal outlining how the funding will be used (i.e. airfare, accommodations, fixer fees, meals, etc.), which assists in determining the amount of the stipend awarded. Fellows are not required to submit receipts or post-fellowship expense reports.
All of the fellow’s stories will be republished on the IRP website and co-owned by the fellow (or his/her distribution partners, depending on arrangements) and the IRP. In addition, the work produced as a result of the trip may be posted on the social media channels of the IRP funders. These fellowships are supported by a grant from Humanity United.
Because of the high volume of applications we receive, we are unable to respond to every applicant, and we do not send automated confirmation receipts. You will be contacted by a member of the selection committee for additional follow-up only if your proposal is selected as a finalist for further consideration.
Award Provider: New America

The Dirty Secret of the Korean War

Thomas Powell

The Korean War has been called “America’s forgotten war”. The heavily weaponized US Army was fought to a draw by Soviet-equipped North Korean and Chinese armies. For the very first time in its storied legacy of military campaigns dating back to American Independence, the US Army did not prevail in war. In its next colonial war against communism in Asia the following decade, the US was soundly defeated by North Vietnam. However, these military setbacks are not the sole reason to forget the Korean War. There is a much darker denial at work in forgetting the specifics of history, and this unwillingness to honestly examine the Korean War is at the root of our ongoing conflict with North Korea.
The US Army’s clandestine deployment of biological weapons (BW) in North Korea and China during the Korean War is our ugly suppressed history. The allegation of American BW use was first made by North Korea in May of 1951. New allegations were made the following year by both North Korea and China that American war planes on night sorties dropped canisters containing insects and voles contaminated with bubonic plague, hemorrhagic fever and other highly contagious diseases on villages and fields in rural North Korea and China.
An International Scientific Commission (ISC) was convened in 1952 to travel to North Korea and China to investigate the BW allegations. The nine-member commission examined the collected evidence, visited sites, performed field tests, and took testimony from witnesses. The commission also took testimony from four captured POW American pilots. After compiling the record, the Commission determined that the testimony and evidence was overwhelming that the US Army had deployed biological weapons in war at several identified places at specific times.
President Truman, Gen. MacArthur, the State Dept., and CIA, vigorously denied the charges that BW had been deployed in the scorched-earth war they were prosecuting in Korea. The Chinese and North Korean BW accusations were denounced as communist propaganda. The ISC Report was ridiculed; the commission members were labeled as communist dupes. The new Eisenhower presidency in 1953 brought the Dulles brothers to power, and US denial of BW use in Korea became the unspoken US policy locked in place. But armistice talks also began.
Simultaneously, there occurred the systematic shredding of the record of all BW related documents in the US Army Chemical Corps files— flight logs, shipping ladings, briefing reports, pilot logs— all the usual military paper trail that historians look for, have gone missing for the past 65 years! The Eisenhower administration also moved to punish public dissent with show trials for the disappointing war results in Korea, and to fan Cold War red-phobia. An American journalist, John W. Powell, was indicted on the federal charge of sedition for his pro-Chinese communist sympathies, his reportage of BW allegations, and his editorials on the Korean War in his news magazine China Monthly Review which he published in Shanghai, China.
After much ado, the show trial began in January 1959 but ended abruptly in a mistrial being declared by the judge. The unofficial but very real “forgetting” of the Korean War really begins here with the collapse of the government’s case. Years later, Powell revisited the topic of BW and published two articles in 1983 outlining how the US Army had acquired biological weapons from Japan after WWII. The Japanese Imperial Army had run a clandestine bio-weapon research facility and prison camp innocuously name Unit 731 under the direction of Surgeon Gen. Shiro Ishii near Harbin, China in Japanese occupied Manchuria. This military laboratory experimented on live prisoners and murdered many thousand prisoners in medical experimentations with contagious disease. Another estimated 400,000 peasants in China, Manchuria and Siberia died from regionally unknown diseases caused by live diseased vectors dropped in canisters by Japanese aircraft.
The similarity of delivery technology and pathogens between the Japanese BW deployment in Manchuria and the subsequent US deployment in Korea and China was noted by the ISC. After the Japanese surrender, Dr. Ishii and much of his staff successfully defected to the US occupying forces of Gen. MacArthur in Tokyo, bringing with them medical records and 8000 slide specimens of their research on disease pathology. This trove of disease experimentation on live subjects was quietly shipped to the US Army’s bioweapon research laboratory at Ft. Detrick, MD. Ishii and his scientists, guilty of some of the worse war crimes of the Pacific combat theater, were given immunity from war crimes prosecution.
The evidence for American BW deployment during the Korean War is overwhelming. Yet, the denial machine of the security state continues today. Recently, a Woodrow Wilson Institute scholar, Milton Leitenberg, has reworked his theory that the entire Korean War BW affair was a giant communist hoax cooked up by Stalin, Mao Zedong, and Zhou Enlai to tar brush the US into ceasefire negotiations. Leitenberg’s conspiracy theory is a B-movie plot, not plausible given his questionable source material and the historical record. Nevertheless, this quasi-official spin demonstrates clearly the extension across time to which the state denial apparatus can reach. The ongoing denial of US war crimes committed during the Korean War has been an enormous stumbling block to the normalization of relations between the US and North Korea. We cannot end hostilities nor seriously negotiate with a nuclear-armed North Korea with lies and a phony history.

Breaking The Poverty Cycle

Moin Qazi

An imbalance between rich and poor is the oldest and most fatal ailment of all republics.
― Plutarch
It has been said that women who are closest to the world’s most pressing issues are best placed to solve them. Women are economic factors: They produce and process food for the family; they are the primary caretakers of children, the elderly and the sick; and their income and labor are directed toward children’s education, health and well-being.”Women hold up half the sky,” in the words of a Chinese saying, yet that’s mostly an aspiration: in a large slice of the world, girls are uneducated and women marginalized. Most aid programmes   are just trying to make poverty tolerable rather than working to   eliminate it.  What is now needed is   empowerment of women in ways to enable them to work out their own path out of poverty.
In India there is  home grown and popular model for empowering village women through financial access and provision of other services .it is known as  the self help group mechanism. It is in practice for more than two decades and has   transformed the lives of millions of women, several of whom now occupy important positions in village administration. A typical Indian SHG consists of 10-20 poor women from similar socio-economic backgrounds who meet once a month to pool savings and discuss issues of mutual importance. The women cross guarantee each other’s debts. Their collective strength is used as social collateral to avail loans from financial institutions.
I recently decided that it would be a good moment to go back to the villages in Maharashtra to find out what local people had to say about our twenty years’ of work among them.  , I wondered what the villagers would have to say. Would there be the same story of initial enthusiasm and hope worn down by a string of disappointments, as had been the fate of the social actions programme before me? Did villages still suffer much poverty?    Swati    showed off the new brick lanes, electrical poles and street lights installed under her supervision and checked on the progress of a new community hall, being built for Rs 90,000. I found that the villagers had now put a premium on educating girls. This was in contrast to the trail of unkempt, unwashed children who would circle me during my stay in the village. I overheard a group of children in school singing a series of what sounded like nursery rhymes. On closer listening they turned out to be catchphrases from popular television commercials. The women’s bright clothes were flashy symbols of their newfound prosperity and some had jazzed up their houses. Irrigation previously had consisted of asking the gods for the rainbow. It was sprinklers and ponds all around.
Rupali was so excited that she could barely stop talking about her experiences. “I used to be so ignorant—I barely stepped out of my house—but now I know where the BDO sits and where the Collector’s Office is located. If the village sarpanch (headman) does not listen to our problems, I do not hesitate to go straight to the higher officials to lodge my protest.” Her confidence stems from her involvement with the literacy programme operating in her village for over five years. The women explain how they discovered their inner strength since their involvement with the Self Help Groups. It is no longer possible for anybody to short-change them by paying them less wages. “Now we are armed with information. We know what the minimum wage is and demand it without hesitation,” says Malabai. Earlier, the sarpanch would bring in cheap labour from neighbouring villages to work on government projects. “This is absolutely illegal. We fought against it and battled it out to ensure that the work was allotted to our villagers and that they were paid their rightful wage.”
You will find that life is far different from what it was a few years ago. Not substantially richer, no—there is still drought, no industry, only rain-dependent agriculture—but better. Warora’s villages have clean water, and many have pipes carrying that water to a pump in every backyard. Most houses have soak pits, a simple and cheap drainage system dug outside every house that eliminates standing wastewater; they are moving on to toilets.
What we need today are innovative solutions that can take into account the peculiarities of the people at the bottom of the pyramid. . When poor communities think at the human level, all their goals are interconnected. But under the   top-down model, with the absence of a global grass-roots movement with the communities as equal partners, the goals have been broken up compartmentally into project mode, to suit donors and governments. Now more than ever, it is important to reaffirm that significant advances are attainable for the rural poor, who are a potential source of great wealth and creativity, but who must first and foremost seek their own survival under present institutional, cultural and policy conditions. Their poverty deprives not only themselves but also the rest of us of the greater value they could produce under more conducive circumstances. I feel that the people who have pioneered the various programmes that have now become transformative and revolutionary models, recognised this potential and sought to evoke it.
There’s a tendency these days to give up on poverty, to dismiss it as a sad but inevitable feature of humanity, particularly at a time when we have deep economic problems of our own .  Aid is sometimes given badly or not as well as it should be. Aid is not responsible when it is used to patch up the effects of basic differences that are built into the structure and values of society. From this point of view, aid can sometimes be seen as actually accepting the injustices of society while trying to mitigate the results of the injustices. Moreover in the case of aid and philanthropy, only a small percentage   was actually going to the needs of the poor; instead it was mostly directed to other causes — cultural institutions, for example, or their alma maters — which often came with the not-inconsequential payoff of enhancing the donor’s status among his or her peers.
The right way to empower women is to equip them with levers of change.A vast range of social financial and political experiments are being undertaken the world over. Social innovation is taking place at multiple levels, driven by passion to make a difference. But as with most trumpeted development initiatives   the present programmes are also struggling to   turn rhetoric into tangible success. A lot of good programs got their start when one individual looked at a familiar landscape in a fresh way. But several of these programmes were difficult to scale up. We increasingly have the tools to combat it. We know what to do if we just can summon the political will.

The Merry Life of Dragnet Surveillance

Binoy Kampmark

In the aftermath of Edward Snowden’s revelations in 2013, a grudging acceptance was made by the Obama administration that something had to be done about a roguish surveillance complex unhinged from its foundations.  The National Security Agency had overstretched its powers, to the point where it was not only conducting its standard mischief against foreign targets, but against US citizens roped into the exercise.
The NSA has been in the news again, this time with the reversal by a US appeals court of a lower tribunal’s decision that the Wikimedia Foundation has standing to object to the Upstream program in court.
The central problem to any legal challenge against dragnet surveillance has been proof – proof, that is, of violation and damage to the subject in question.  This was the case in Clapper v Amnesty International, where the Supreme Court observed, almost disdainfully, that Amnesty was mounting a novel approach based on a “speculative chain of possibilities” that could not “establish that injury based on future surveillance [was] certainly impending or [was] fairly traceable to [Section 702 surveillance].”
In October 2015, the point was further tested by Wikimedia and eight other organisations, among them Human Rights Watch and Amnesty International, who faced another sceptical judicial survey.
Alleged again were points that that the NSA’s interception, collection, review and storing of the communications by the groups constituted a violation of both the First and Fourth Amendments. But the parties were hoping that Clapper could be distinguished.
The Upstream program was the main bone of contention, as it could not be said to be limited to communications sent or received by NSA specific targets.  Internet communications about the targets, a sort of eager beaver reach around, could still be caught.
The NSA contended, as it did in all cases on the subject, that the plaintiffs lacked Article III standing, taking the ever predictable ground that necessary secrecy on its operations prevented the adducing of any documentation that damage to the plaintiffs could be proved.
The 2015 opinion found in favour of the NSA, as it was not possible to show that injury had been “real and immediate” as opposed to “conjectural and hypothetical”.  While there had been differences with Clapper, the issue of actual injury, causation and redressability, still remained.
The Fourth Circuit Court of Appeals this week needed little convincing that the foundation’s reach – compromising a trillion communications a year – would at some point fall into the NSA net.  “Wikimedia has plausibly alleged that its communications travel all of the roads that a communication can take, and that the NSA seizes all of the communications along at last one of those roads.”
Another troubling aspect was also heeded, notably the subject of injury under the First Amendment: “And, because Wikimedia has self-censored its speech and sometimes forgone electronic communications in response to Upstream surveillance, it has standing to sue for violation of the First Amendment.”
This news accompanied the revelations of a Foreign Intelligence Surveillance Court opinion during the week that the NSA had shown a distinct lack of “institutional candour” on the subject of breaches to the Fourth Amendment.
The issue of section 702 surveillance under the Foreign Intelligence Surveillance Act remains the persistent problem.  Upstream collection sourced through transits on the backbone routes of the Internet takes the matter beyond mere incidental collection, something bound to happen between American and non-American sources.
As Andrew McCarthy explains, “The NSA must instead capture packets of email-data – which include lots of emails beside the targeted email.  It sifts through these packets, finds and assembles the components of the email it was looking for and discards the rest.”
The clues from the FISA opinion, despite being, at points, heavily redacted, reveal that the entire process the NSA engages in on the subject of upstream collection is bound to fall foul of constitutional protections.
Even if the organisation is, in fact, sifting and discarding received communications, there are still warrantless seizures of material in the absence of probable cause or relevant foreign intelligence purpose. Despite minimisation procedures the NSA is compelled to take, the Fourth Amendment requirement on seizure and search without adequate cause has been the subject of persistent violation.
Added to this the routine use of identifiers of American citizens, used to search databases, a practice specifically disapproved of by the FISA court in 2011, and we are left with an organisation that remains to be tethered. How little has, in fact, changed at the top, leaving the courts to do some necessary, and much needed judicial cleaning.

Political tensions in Indonesia after jailing of Jakarta governor

John Roberts 

On Monday, Jakarta Governor Basuki Tjahaja Purnama withdrew his appeal against a two-year jail sentence imposed by the North Jakarta District Court. Basuki was convicted on the concocted charge of “blasphemy” on May 9.
The frame-up was part of a politically motivated campaign organised by right-wing Islamist groups, undertaken in collaboration with political opponents of Indonesian President Joko Widodo. Elements within the country’s ruling elite are seeking to weaken Widodo’s coalition in the run up to the 2019 presidential and parliamentary elections.
The anti-Basuki campaign was based on chauvinism and racialism, attacking the governor’s Christian background and Chinese ethnicity. The campaign played a major role in bringing about Basuki’s defeat in the gubernatorial race on April 19—the blasphemy trial ran throughout the latter stages of the election campaign.
In a letter written from jail and read by his wife Veronica Tan at a press conference, Basuki said that he decided to withdraw his appeal “for the sake of our people and our nation.”
Basuki called for a halt to candlelight vigils and protests against his jailing, and Islamist counter-demonstrations, saying the “congestion and economic losses due to demonstrations disrupt traffic” in Jakarta.
There is an element of legal calculation in Basuki’s move. The prosecution’s appeal against the severity of the sentence—they had asked for probation—will still go ahead. The possibility of Basuki receiving an even harsher sentence via his own appeal will be removed.
There is no doubt, however, that deeper political considerations are involved. Basuki and the ruling elite as a whole are concerned about the possibility of unrest engendered by intense social divisions.
It was not just because of religious fervour that relatively small hardline Islamist groups, such as the Islamic Defenders Front (FPI) and Muslim Peoples’ Forum, were able to mobilise hundreds of thousands of people at Jakarta anti-Basuki rallies on November 4 and December 2. That can be seen from the dynamics of the gubernatorial election itself.
These groups, as well as some leaders of the two largest Muslim organisations, Nahdlatul Ulama and Muhammadiyah, endorsed the candidacy of Agus Harmurti Yudhoyono, son of Widodo’s predecessor, Susilo Bambang Yudhoyono. For the election, the latter formed an electoral coalition of his Democratic Party with the three major Muslim parties—the United Development Party, National Mandate Party and National Awakening Party.
Yudhoyono senior had cultivated relationships with the conservative Muslim groups to shore up his shaky parliamentary support. During his presidential term, from 2004 to 2014, the reactionary 1965 blasphemy law was used 106 times, compared with eight times during the 1965 to 1998 Suharto military-backed dictatorship. Despite this clerical support, however, Agus was eliminated in the first round of voting on February 15 with a humiliating vote of less than 18 percent.
This left the run-off election in April to Basuki and the winner Anies Baswedan.
Anies is the front man for Prabowo Subianto, a Suharto-era general who was Widodo’s opponent in the 2014 presidential election. His Gerindra Party and its ally, the Islamist based Prosperous Justice Party, ran a three-pronged campaign for Anies and his deputy Sandiaga Uno, one of Indonesia’s richest men.
First, they tacitly supported the Islamists attacks on Basuki, while posing as champions of the poor.
Second, Anies solidarised with the 16,000 families forcibly evicted by Basuki’s flood mitigation and development land reclamation program. Anies promised to end evictions, claiming he would create jobs and impose price controls.
Third, Prabowo who has associated himself with a more nationalist and protectionist economic program, presented himself as a maverick in an attempt to distance himself from the detested political establishment.
Widodo and his protégé Basuki are associated with the major infrastructure projects in Jakarta demanded by big business and foreign investors.
Widodo has pushed for pro-investor reforms to finance transport and energy sectors projects. In 2014 he met the demands of finance capital to slash fuel subsidies, raising prices and provoking widespread anger.
Widodo’s coalition, led by former President Megawati Sukarnoputri’s Indonesian Democratic of Struggle, is seen by millions of people as part of the long line of administrations that promised economic growth while only benefitting the rich.
The Asian Development Bank estimates that to provide infrastructure and have any impact on deteriorating social conditions, $US1.2 trillion is needed by 2030. Sixty percent of the $400 billion required to finance Widodo’s 2019 energy, clean water and transport plans must come from foreign investors.
Bloomberg has quoted analysts warning that the challenge from right-wing religious groups will make the president more reliant on his “rent-seeking” supporters, defer his pro-market “reforms” and scare off investors.
The stagnant world economy and the Trump administration’s trade war threats make the economic and social situation even more precarious.
The Jakarta Post reported on a May 17 meeting at the State Palace between Widodo and the chief media editors that underscored the rising tensions.
Widodo criticised the ongoing demonstrations and use of sectarianism to undermine his administration and its agenda. Widodo told the assembled editors that if demonstrations took place outside “the legal corridor, then we should clobber [the perpetrators].”
Editors reminded Widodo that the word “clobber” (gebuk) was used by Suharto in 1989 when he began a 10-year crackdown on dissidents.
Widodo said he knew that but if he only twisted the ears of protesters he would be “considered lenient.” He again echoed Suharto, whose military security apparatus is still intact, saying he would defend the constitution and the state ideology Pancasila against groups attacking it.

Royal Bank of Scotland seeks to avoid High Court action by shareholders

Jean Shaoul 

The £700 million court case brought by the Royal Bank of Scotland (RBS) Shareholders Action Group has been adjourned for a third time.
This is supposedly to give RBS two more weeks to persuade shareholders to accept an improved offer. The most important effect of the suspension is that it prevents the disgraced Fred Goodwin, the former RBS chief executive, having to appear in court on June 8, the day of the general election.
Preceded by other executives taking the stand, this would have opened a can of worms—not just for RBS and other financial institutions rocked by the 2008 global financial crisis, but also the Labour and then Conservative governments in allowing, encouraging and then concealing the criminal practices of Britain’s banks.
This would take place under conditions where anger among workers and youth over the austerity measures—imposed to pay for the bailout of the banks and further enrich the financial elite—is gathering pace and taking on political dimensions, that even threaten a shock defeat for Theresa May’s Tory government.
Former senior RBS executives have never had to make a public account of the events leading up to the bank’s collapse in 2008, when it was rescued by then Labour Prime Minister Gordon Brown.
Shareholders are suing RBS for £520 million over its £12 billion cash call in April 2008, just months before its collapse, claiming they were misled about the lender’s financial health. RBS, 71 percent of whose shares are owned by the government following its £45 billion bailout—the largest in British history—is desperate to secure a settlement with its shareholders to prevent “Fred the Shred” Goodman and company having to appear in court.
RBS chairperson Sir Howard Davies said, “The settlement does not constitute any admission of liability by the bank, but allows us to minimise material litigation expense and management distraction.” Chief executive Ross McEwan said, “It will take the organisation back to 2008. ... One of the reasons I was keen to get it resolved ... was so the bank could move forward again.”
The bank has spent more than £100 million in legal costs over the case, including the cost of defending Goodwin and other defendants. This will climb a further £25 million if the case goes ahead, making it one of the most expensive legal cases in the history of the High Court.
Last December, RBS reached settlements, without admitting liability, with four other claimant groups including large fund managers, representing 87 percent of the original £4 billion damages claim, in a deal valued at around £800 million.
This suit was launched by the RBoS Shareholder Action Group, many of whose 27,000 members were former and current RBS employees, plus a handful of major City institutions and local authority pension funds, who lost money after subscribing to the new RBS shares. Under the deal, they would receive double the amount offered just a few weeks ago, and much more than the settlement struck with four other claimant groups, in a £200 million deal.
While many members of the group are willing to settle at around 92p-per-share, about half of what they paid for the rights issue, others are determined that Goodwin and other senior executives should have to publicly account for the bank s collapse after nearly a decade of state ownership.
If these shareholders accept the offer, that will leave two other groups still pursuing their claim against RBS.
When RBS, Lloyds Bank and HBoS faced bankruptcy in October 2008, the Labour government took them into public ownership following secret talks over a weekend, with no strings attached and no discussion in parliament, much less any public consultation. It later transpired that the Bank of England had secretly loaned RBS a further £36.6 billion and that the government had agreed to underwrite RBS’s debts should it default on its loans. Since then the banks have been provided with other forms of public support, including “quantitative easing,” worth in total more than £1 trillion—demonstrating that as far as the financial elite is concerned, governments of whatever political complexion function as their personal piggy bank.
In 2010, the Financial Standards Authority (FSA) claimed that its investigation into RBS had found no evidence of wrongdoing. It was therefore party to the massive theft of working people’s earnings. Far from cleaning out the Augean stables, the FSA sought to ensure that it was business as usual for the banks, political leaders and the regulators.
After initially refusing to publish its evidence and findings, it was forced into a humiliating climb-down after the WikiLeaks release of US embassy cables, revealing that RBS’s new chairman, Sir Philip Hampton, flatly contradicted the FSA’s line.
The report, published at the end of 2011, said that it was not dishonesty, fraud, a breach of regulations or governance that was the cause of the problems at RBS, but “a series of bad decisions.” RBS’s collapse was due solely to its decision to pay, along with its European partners Fortis and Santander, the astronomic sum of £71 billion to buy the Dutch bank, ABN Amro, at the onset of the subprime mortgage collapse and the credit squeeze.
The FSA blamed international banking regulation for RBS’ low capital ratios, and insisted that the ABN Amro takeover that left the bank with too low capital levels would not have taken place under new rules put in place since the banking crisis. The FSA was silent on its own role in sanctioning the takeover, despite the fact that it left RBS woefully undercapitalised.
The WikiLeaks cables and the FSA’s report opened the door for British and US shareholders, who for years had profited from generous dividends that far exceeded those of manufacturing corporations, to bring class action suits against RBS for the losses stemming from the £71 billion takeover and the £12 billion rights issue. In doing so, they sought to take advantage of the fact that RBS is essentially government-owned.
According to the cables, incoming RBS chairman Hampton told visiting US Congressmen that the former directors were in breach of their fiduciary responsibilities. He said RBS had made “several enormous” mistakes. First among them was its heavy exposure in the US subprime market and the bank’s purchase of ABN Amro, which occurred at the height of the market and without RBS doing proper due diligence prior to the purchase. The board never questioned this purchase, which Hampton labelled a failure of their fiduciary responsibilities.
In the intervening nine years, not one banker, regulator or politician has been held to account, let alone prosecuted, for their role in facilitating an economic catastrophe that is devastating workers’ living standards the world over, and reducing entire countries to penury. Likewise, there has been no substantive reform of the banking system.
Instead, numerous other examples have come to light of criminal activity on the part of RBS—and other British banks—including the mis-selling of financial products in the US and Britain, tax evasion, rigging key interest rates Libor and Forex, breaching US sanctions and regulations. In almost every case, it was US, not British, authorities that imposed any penalties.
The fines were in any case so much loose change for the banks, part of the cost of business passed on to customers in innumerable charges, while top executives walk away with massive bonuses.

War clouds over South Asia

Keith Jones

While the attention of the Western press has been focused on Trump’s visit to the Middle East, which he used to threaten Iran, and the NATO summit, where he attacked Germany, relations between India and Pakistan, South Asia’s rival nuclear-armed powers, have gone from bad to worse.
New Delhi and Islamabad made rival boasts this week of provocative military action. On Tuesday, the Indian Army released video to support its claim that it had destroyed forward positions of the Pakistani military in the disputed Kashmir region with “punitive fire assaults.” Pakistan denied the claim, then posted its own video, saying that it showed it had inflicted even greater damage with its own artillery barrage across the Line of Control (LoC) that divides Indian- and Pakistan-held Kashmir.
On Friday, India said its military had killed two Pakistani soldiers trying to infiltrate across the LoC. Islamabad denied there was any such incident.
Amid the claims and counter-claims, both countries are increasingly on a war footing. Pakistan has “operationalized” all its forward air bases, reputedly in response to a letter from the Indian military high command instructing 12,000 Indian Air Force officers to be ready for operations at “very short notice.”
Yesterday, the Pakistan-based Daily Times published an editorial titled “Looming Nuclear War?” It warned that were New Delhi to implement its Cold Start military strategy, which calls for India to mount a massive lightning strike on Pakistan’s heartland, Islamabad, due to its more limited conventional forces, “would appear” to have just one option—“use of nuclear weapons.” Pakistan’s defense minister has repeatedly vowed that an Indian invasion would be met with tactical nuclear weapons.
India’s relations with its northern neighbor, China, are also fraught. Both countries are building up military forces and infrastructure along their disputed border, and they are locked in an increasingly bitter strategic competition for resources, markets and geopolitical influence across South and South-East Asia, Africa and the Middle East.
India’s ruling elite bitterly resents Beijing’s military and economic support for its arch-rival Pakistan.
Cognizant that US imperialism was intent on harnessing India to its efforts to contain and, if need be, militarily thwart China’s rise, Beijing long sought to foster improved relations with New Delhi. While it fired back at what it considered Japanese affronts and provocations, it downplayed differences with India.
But with India under Prime Minister Narendra Modi and his Bharatiya Janata Party (BJP) government incorporating the country ever-more completely into Washington’s military-strategic offensive against China, Beijing’s attitude has undergone a pronounced change.
Over the past two years, India and China have engaged in one diplomatic spat after another, and they have begun to publicly exchange military threats, both implicit and explicit. Beijing responded angrily to India’s most recent test of its Agni ballistic missile, which, with a range of 5,500–8,000 kilometers, would be capable of delivering nuclear warheads to any Chinese population center. On becoming head of India’s Army last January, General Bipin Rawat boasted of India’s readiness to fight a “two-front war” against China and Pakistan simultaneously.
The Sino-Indian and Indo-Pakistani rivalries go back decades. But US imperialism, in its drive to escape the consequences of its economic decline and reassert hegemony over Eurasia through aggression and war, has fueled the growth of geopolitical tensions in South Asia.
Fifteen years ago, while the United States was using the so-called “war on terror” to pursue regime-change in the Middle East and establish a strategic foothold in Afghanistan, the Pentagon and CIA were already promoting India as a “strategic prize.” India was uniquely placed, they claimed, to bolster US power in Asia and Africa because of its large military, growing economic heft and potential to serve as a vantage point for dominating the Indian Ocean, the world’s most important commercial waterway.
Since then, Washington has spared no effort to transform India into a “frontline” state in its military-strategic offensive against China. Under Democratic and Republican administrations alike, it has showered strategic favors on India. To cement an “Indo-US global strategic partnership,” the Bush administration carved out a unique status for India in world nuclear trade. Under Obama, India was declared a “major defense partner,” giving it access to the advanced weaponry the US provides its closest allies.
The Indo-US alliance has overturned the “balance of terror”  between New Delhi and Islamabad. During the Cold War, Pakistan was Washington’s principal regional ally. But over the past decade, it has been reduced to a poor cousin.
Under Modi and his Hindu supremacist BJP, India is seeking to leverage its growing strategic advantage and Washington’s eagerness to expand their anti-China alliance to pursue a belligerent policy toward Pakistan. Last September, after ordering Indian Special Forces to mount an illegal cross-border raid, Modi declared that the days of Indian “strategic restraint” toward Pakistan were over.
The Indo-US alliance has also become an increasingly pronounced threat to China. Modi has aligned India ever-more completely with the US drive against China, diplomatically and militarily. India now parrots the US line on the South China Sea; it has greatly expanded bilateral and trilateral strategic ties with America’s chief regional allies, Japan and Australia; and it has thrown open its ports and air bases for use by the Pentagon to resupply and repair its warplanes and battleships. Recently, the head of the US Pacific Command, Admiral Harry Harris, revealed that the US and Indian militaries are sharing intelligence on Chinese ship and submarine movements.
Facing a common threat from the Indo-US alliance, Pakistan and China have moved to strengthen their own longstanding military-strategic and economic ties. This is exemplified by the $50 billion China Pakistan Economic Corridor, which will link western China with the Arabian Sea port of Gwadar and thereby provide Beijing a means of partially circumventing the Pentagon’s strategy to impose an economic blockade on China by seizing various Indian Ocean and South China Sea chokepoints.
South Asia is thus becoming more and more geo-politically polarized between an India allied with US imperialism and a Pakistan backed by Beijing.
The enmeshing of the Indo-Pakistani and Sino-Indian strategic rivalries with the confrontation between American imperialism and China adds highly volatile new charges to what are already explosive conflicts between nuclear powers.
In the past, Washington intervened to defuse tensions between New Delhi and Islamabad, but its ability and willingness to do so are increasingly in doubt.
Anxious not to jeopardize their anti-China alliance, the US supported India’s “surgical strikes” inside Pakistan last September, first tacitly and then explicitly. Moreover, there is growing animosity toward Pakistan in the Washington establishment over Pakistan’s maintenance of ties with sections of the Taliban as an “insurance policy” against the growing Indo-US partnership, and over Pakistan’s burgeoning ties to Beijing.
The US ruling elite confronts numerous geopolitical crises and mounting social tensions at home. The Trump administration, the product of a quarter-century of war and decades of social reaction, epitomizes its recklessness, violence and loss of historical perspective. Whether Trump and his aides are even aware of the explosive and interconnected conflicts that are roiling South Asia and how quickly the low-level fighting between India and Pakistan could spiral into war—a war that could quickly involve other great powers, including the US—is a real question.
What is incontestable is that the US drive for global hegemony is stoking conflict around the world and forcing the other imperialist powers, including Germany and Japan, to aggressively assert their own interests.
If the imperialist pyromaniacs are to be prevented from consuming the world in a conflagration that will dwarf the world wars of the last century, the international working class must be mobilized to impose its own solution to the capitalist crisis—socialist revolution. The development of a working class-led anti-war movement in opposition to all the rival bourgeois cliques and their nationalist and chauvinist appeals is the cutting edge of the mobilization of the working class as an independent political force in the fight for all its social and democratic rights.

Moody’s downgrades China’s debt rating

Nick Beams 

The downgrading of Chinese sovereign debt by the credit rating agency Moody’s has underscored the dilemmas facing the regime of Xi Jinping as it tries to maintain economic growth on the one hand and comply with the demands of international financial capital to reduce its debt levels and open up its financial system on the other.
On Wednesday Moody’s reduced its rating of Chinese debt by a notch from Aa3 to A1, its fifth highest rating, in the first such downgrade since 1989. At the same time, it softened the blow somewhat by changing its outlook from “negative” to “stability.”
The news, which initially saw a fall in markets before they staged a recovery, brought an immediate reaction from the Chinese finance ministry. It stated Moody’s had “overestimated the difficulties faced by China’s economy and underestimated the government’s ability to deepen reforms.” The agency, the foreign ministry continued, had not given sufficient credit for the “steady upward momentum” for growth, with stronger than expected results in the first quarter, and the year’s “strong beginning” showing the “achievement of China’s reforms.”
In its statement on the downgrade, Moody’s said that economy-wide debt, which includes that of state-owned enterprises, would continue to rise, notwithstanding reforms to the financial system, as the growth potential of the Chinese economy slowed.
“While ongoing progress on reforms is likely to transform the economy and financial system over time, it is not likely to prevent a further material rise in economy-wide debt, and the consequent increase in contingent liabilities for the government.”
It said the government’s direct debt burden would rise to about 45 percent of the economy by 2020 from a level of 40 percent in 2018.
It acknowledged that the government had been seeking to make changes to the financial system to cut back debt levels and while these changes would slow the rise they would not reduce it. This is because the government would use increased debt to try to boost the economy under conditions where growth is slowing.
Criticising the regime for its inability to allocate capital efficiently to areas of the economy which needed it most, it said: “The key measures introduced to date will have a limited impact on the productivity and efficiency with which capital is allocated over the foreseeable future.”
Last year the Chinese economy recorded an expansion of 6.7 percent, its lowest rate in more than a quarter of a century and, notwithstanding the better than expected results for the first quarter, the trend appears to be continuing this year with factory output, fixed investment and retail sales showing lower growth in April than for the first three months.
The government provided some stimulus measures in 2016 but their effect is now wearing off with president Xi calling on authorities to prioritise “financial security.” However the prevailing view in financial circles is that the government is proceeding too slowly in clearing away non-performing loans.
Moody’s expects that the growth potential for the Chinese economy will decline to close to 5 percent over the next five years, compared to the levels of over 10 percent reached in 2010 and the government’s stated target of growth rates of “around” 6.5 percent. But lower growth will see further government measures to try to boost the economy.
“The importance the authorities attach to maintaining robust growth will result in sustained policy stimulus, given the growing structural impediments to achieving current growth targets. Such stimulus will contribute to rising debt across the economy as a whole,” it stated.
According to Moody’s, one of the reasons for the rise in debt is that it is needed to finance economic expansion in the absence of significant capital raising through a large equity market and the lack of sufficiently large surpluses in the corporate and government sectors. At present total Chinese debt levels are estimated be 258 percent of gross domestic product.
While Moody’s did not suggest that the downgrade implied any immediate major problems and financial markets generally took the decision in their stride, Marie Diron, an associate managing director for the sovereign risk group at the agency, told Bloomberg that “the combination of slower growth and higher debt poses some contingent liabilities for the government.”
However the downgrade does point to rising financial risks in the longer term.
Eswar Prasad, economics professor at Cornell University and former head of the International Monetary Fund’s China division told the Financial Times: “The ratings downgrade is a stark warning of the risks posed by rapidly rising leverage that could prove costly even if it does not result in a financial crisis. The slow and uneven pace of banking and financial sectors reform suggests that little progress has been made in improving the quality of bank lending.”
Longer-term issues concerning the economy and the financial system are intertwined with political and social relations affecting the stability of the regime itself.
Since the restoration of capitalism under the direction of the Communist Party of China and the abandonment of any commitment to social equality, the regime has been able to maintain a base of support to the extent that it has been able to promote economic growth.
The stimulus measures, based on the rapid increase in debt which expanded after the 2008 financial crisis in response to the loss of more than 23 million jobs in 2008-2009, have been motivated by the regime’s fear that a major economic crisis will lead to a social explosion. The official position used to be that at least 8 percent growth was needed to maintain social stability. Now growth is down to between 6.5 and 7 percent and is expected to go lower.
At the same time, however, the regime recognises that its stimulus measures, based on debt expansion, are losing their effectiveness and continued economic growth, on which its stability depends, require the closer integration of its financial system into global financial relations.
Hence its moves to comply with the demands for a greater opening of the country’s financial system. But this means containing credit expansion and taking action on bad debt and non-performing loans which signifies the closure of whole sections of industry threatening social and political stability.
The Moody’s downgrade and the sharp reaction of the regime to it point to the intensification of these contradictions.

US CEO compensation rose by 8.5 percent in 2016

Shelley Connor

Research group Equilar published its annual report on CEO compensation this week, revealing that compensation for chief executive officers of US-based corporations rose by 8.5 percent between 2015 and 2016. The median compensation for CEOs in Equilar’s study was $11.5 million.
Compensation for CEOs has risen at about twice the rate of pay for workers; between 2011 and 2016, CEO compensation rose by 19.6 percent. Within the same period, median wages for workers have only risen by 10.9 percent.
Industrial goods companies boasted the highest rate of compensation for CEOs. Companies such as 3M, Caterpillar, and GE awarded their CEOs with a median compensation of $13.2 million in 2016. The healthcare industry, which includes pharmaceutical companies, came just behind with median CEO compensation packages of $12.9 million. The utilities sector came in last in the study for CEO compensation, with median compensation of $9.7 million—still significantly higher than rank and file workers in that industry could ever hope to earn.
Compensation packages for CEOs is intimately tied to stock market performance; boards of directors in 2016 overwhelmingly compensated CEOs with stock and options grants, thus incentivizing executives’ focus on stock price. The Standard & Poor’s 500 index returned 12 percent last year and over the past five years, the S&P 500 has risen by 1,000 points.
These robust gains for both stock prices and CEO compensation have not translated in gains for workers. To the contrary, they are predicated upon multiple attacks upon workers’ wages and their standard of living.
Douglas R. Oberhelman, the former CEO for Caterpillar, earned a base salary of $1.6 million in 2016, his last year with the company. However, he also received sizable cash bonuses and stock options yearly. While his compensation decreased in 2016—to just over $15 million down from almost $18 million in 2015—he remained solidly placed among Equilar’s top 100 highest-paid CEOs.
Caterpillar workers, by contrast, are facing layoffs, wage freezes, and plant closures. The company, with the cooperation of the United Auto Workers (UAW), bullied workers in Illinois with threats of plant closures ahead of the union contract’s expiration earlier this year. Caterpillar’s proposal included no cost of living adjustment for workers hired before 2005 (so-called First Tier workers), instead offering them a lump sum of $1,000 at the end of 2020. It dangled a $10,000 early retirement bonus to older workers in an effort to phase out well-compensated workers—a bonus it did not extend to workers at its Aurora, Illinois plant.
Second-tier workers, those hired after 2005, did not fare so well, either. They are guaranteed only two wage increases set at a meager 2 percent in 2018 and 2020. The contract allows Caterpillar the option to increase wages in accordance with market performance.
After Caterpillar, working in concert with the UAW, forced these concessions onto its workers, the company announced its plans to shut down the Aurora, Illinois plant in 2018.
In light of these insulting terms, Oberhalman’s performance-based cut of $2 million is a laughable fig leaf on the part of Caterpillar’s board of directors.
The compensation packages for CEOs in the healthcare sector likewise demonstrate how profits arise from attacks upon the working class.
Healthcare stocks soared in the wake of the passage in the House of the draconian American Health Care Act (AHCA) earlier this month. Trump and his cronies in Congress pushed for a vote on the AHCA ahead of representative’s break so they would not risk pressure from their constituents who would be most affected by the bill.
The act goes beyond the attacks lobbed at Americans’ healthcare by the Affordable Care Act, popularly known as Obamacare, forcing workers with preexisting illnesses off of the rolls, raising premiums and co-pays, and allowing employers wide berth in denying employee coverage for drugs and procedures they find morally objectionable.
The AHCA will cost millions of Americans their healthcare coverage. Those who maintain coverage will likely find that many of their injuries and illnesses will not be covered. This disastrous legislation will most assuredly cost many Americans their lives.
Yet as the general public panicked, unsure of whether they would be able to afford the treatments that allow them a reasonable standard of living, stocks for some of the most offensively malfeasant insurance companies—Cigna, UnitedHealth Group, Aetna, and Humana—saw their stock prices increase handsomely. Significantly, at the same time, investment advisors were warning clients away from investing in hospitals—combined with the Trump budget’s proposed attacks upon Medicaid and Medicare, the AHCA’s passage has made hospitals a risky investment.
This is the backdrop against which the healthcare sector’s stocks reap their greatest windfalls, against which healthcare sector CEOs can expect to sit on the top of Equilar’s list in 2017.
Stephen J. Hemsley, CEO of UnitedHealth Group, took home $14.5 million in 2016. Even non-profit Blue Shield of California Chief Executive Paul Markovich took home $3.5 million in 2016, a 40 percent increase over his beginning pay in 2013.
Wages for workers have mostly stagnated since the Great Recession. In some cases, due to the underhanded collusion of trade union bureaucrats with companies such as Caterpillar, wages have actually fallen. The paltry raises that are given cannot be expected to keep pace with the cost of living for workers in any tier. The collusion of the unions and the corporations has also resulted in workers paying higher health insurance premiums and co-pays.
On its face, bullish stocks and unjustifiably outrageous compensations for CEOs—particularly in industrial goods and healthcare—seem ironic in light of falling wages, factory closures, and poor worker health. Upon closer examination, however, it is clear these disparities are neither ironic nor incidental.