28 Jun 2016

Linux Foundation Training Scholarship Programme for Students in ICT 2016

Brief description: The Linux Foundation Training (LiFT) Scholarship Program is providing opportunities to up-and-coming developers and sysadmins who show promise for helping shape the future of Linux and open source software but do not otherwise have the ability to attend training courses.
Application Deadline: 11:59pm Pacific time on 30th June, 2016
Offered annually? Yes
Eligible Countries: All countries
To be taken at (country): Online
About the Award: The Linux Foundation is committed to bringing more local and international talent into the open source community, which involves reaching people who have traditionally been underrepresented in open source. Our goal is to increase access to Linux and open source training, expand diversity in technology and create a clear pathway to the most in-demand and lucrative jobs in the IT industry.
Offered Since: 2010
Type: ICT Scholarship
Eligibility: Candidates can be based anywhere in the world as long as they demonstrate a passion for these technologies and a proven interest in becoming an open source professional.
Eligible Fields: The Linux Foundation is offering two scholarships in each of the following seven fields:
  • Linux Newbies: ONLY OPEN TO APPLICANTS WHO HAVE COMPLETED LFS101x – INTRO TO LINUX THROUGH EDX: Individuals who are new to Linux but have learned the basics by completing the Intro to Linux online course are invited to apply. Recipients in this category will be awarded a scholarship specifically for the next course in this career-focused series – LFS201 – Essentials of System Administration as well as the Linux Foundation Certified System Administrator exam.
  • Teens-in-Training: Students 13 – 18 years of age who have already started using Linux and/or open source software and want to get a head start on a career in the field.
  • Academic Aces: 2016 high school or college grads already familiar with Linux and/or open source software but who want to prepare for their career with extra training. Applicants must be 18 years or older.
  • Women in Open Source: We invite women who have demonstrated leadership or want to take initiative in creating opportunity for themselves or other women in the Linux and open source community to submit applications in this category.
  • SysAdmin Super Stars: These applicants should have already begun using Linux or open source software in their workplace but want to take their work to the next level with additional training.
  • Developer Do-Gooder: We invite developers who are using Linux and open source software to advance their communities to submit applications, so they might expand that good work while enhancing their skills.
  • Linux Kernel Guru: This category will recognize an individual who has already worked with the Linux kernel community and who can become a more valuable contributor.
Number of Awardees: Fourteen (14). Two for each field
Value of Scholarship: The Linux Foundation Training Scholarships will cover the expenses for one class to be chosen by each recipient from the Scholarship Track choices, representing thousands of dollars in value (travel expenses for in-person classes are not included). Winners in all categories may also elect to take a Linux Foundation Certified System Administrator or Linux Foundation Certified Engineer exam at no cost following the completion of their training course. Scholarships are supported by Linux Foundation members who place a high value on helping to train the developers and IT professionals of the future.
Duration of Scholarship: Varying
How to Apply: Visit Scholarship Webpage to apply
Award Provider: Linux Foundation

Singapore: Nanyang President’s Graduate Scholarships for International Students 2017/2018

Application Deadline: The application for Academic Year 2017-2018 (August 2017 and January 2018) will open from 01 October to 30 November 2016.
Offered annually? Yes
Scholarship Name: Nanyang President’s Graduate Scholarship (NPGS) at NTU, Singapore
Brief description: Nanyang Technological University funds the Nanyang President’s Graduate PhD  Scholarship for International students at Singapore
Accepted Subject Areas: Courses offered at the university
About Scholarship
The Nanyang President’s Graduate Scholarship (NPGS) is a competitive and prestigious scholarship scheme designed to encourage outstanding graduates or final-year students to take their first step towards a leading research career by studying for a doctoral degree programme (PhD) at the Nanyang Technological University (NTU), one of Asia’s leading research universities. Funding will be provided for up to 4 years for NPGS awardees. Up to 30 NPGS awards will be made available in each Academic Year. Successful candidates will be known as Nanyang President’s Graduate Scholars
Scholarship Offered Since: Not specified
Scholarship Type: Full PhD scholarship.
Who is qualified to apply?
  • There is no restriction as to the nationality of candidates but all things being equal, preference will be given to Singapore Citizens and Singapore Permanent Residents
  • You must have a First Class Honours degree or equivalent at Bachelor’s level. If you have not yet completed your undergraduate degree programme, you will need to furnish documentation from your university that you are on track to get a First Class Honours degree or equivalent.
Number of Scholarship Awards: up to 30 NPGS awards to be offered
Value of Scholarship: The NPGS award terms are:
  • Full tuition fees
  • Monthly stipend of $3,000
  • Conference allowance up to S$4,000 per financial year (April previous year to March current year).
  • One-time IT allowance of $1500
  • Annual grant of $500 for journal subscription or book purchase
  • Thesis preparation allowance
  • Priority will be given for subsidised campus accommodation
Duration: Scholarship will last for 4 years
Eligible Countries
There is no restriction as to the nationality of candidates but, all things being equal preference will be given to Singapore Citizens and Singapore Permanent Residents.
To be taken at (country): Singapore
How to Apply
Sponsor: Nanyang Technological University.

Apply to Become a Queen’s Young Leader – 2017

Brief description: The Queen’s Young Leaders Programme is looking to award exceptional young people who’ve proved themselves to be inspiring leaders in their communities.
Application Deadline: 4th September 2016.
Offered annually? Yes
Eligible Countries: All Commonwealth Countries
To be taken at (country): United Kingdom
Eligible Field of Study: None
About the Award: This unique, life-changing Award is comprised of a tailored package of training and mentoring. Winners will also receive a one-week residential programme in the UK, during which they will receive their Award from Her Majesty The Queen. With this support, Award winners will be expected to continue and develop the amazing work they are already doing in their communities.
Offered Since: 2015
Type: Training
Eligibility: Each application/nomination must meet the following criteria:
  • Candidates need to have proven experience of working to improve their communities locally, regionally or at a national level and be able to show evidence of their achievements.
  • Candidates need to have proven experience of working to improve their communities locally, regionally or at a national level and be able to show evidence of their achievements.
  • Candidates must be aged between 18 and 29 throughout 2017; your date of birth must fall between 1st January 1988 – 1st January 1999;
  • Candidates must be citizens of and working in a Commonwealth country or citizens of an Overseas Territories (of a Commonwealth Member).
  • Candidates need to demonstrate evidence of their leadership qualities.
  • All candidates need to be supported by a suitable referee (a professional in one of the following occupations; a teacher or counsellor; a registered physician or nurse; a church or community leader; social worker or family services; or business leader). Referees must not be related to you.
  • Priority will be given to individuals who have overcome challenges to achieve their goals.
Selection Process: All applications/nominations will be considered based on the young person’s achievements to date as well as their potential and future ambition. Award winners will be shortlisted by an Advisory Panel made up of young people from across the Commonwealth and a Board of advisors representing the three partners. The shortlist for Award winners will then be presented to The Queen’s Young Leaders Programme Board, which contains members from all three partner organisations, for final selection and decision.
Number of Awardees: 60
Value of Programme: 
  1. Mentoring
    As a Queen’s Young Leader candidate will be allocated a mentor with relevant experience and expertise who will support them over the course of the year to continue and develop their work.
  2. Online learning
    Online learning will be provided with materials relevant to candidate’s area of interest, as well as serving as a place for them to meet and share experiences and knowledge with other Queen’s Young Leaders.
  3. One-week residential programme in the UK
    The Award winners will have the opportunity to meet with inspiring people and visit organisations in the UK that have expertise in areas such as media and communications, social action and advocacy. During this week, Awards will be presented by Her Majesty The Queen at Buckingham Palace.
Duration of Programme: One (1) week programme, One (1) year mentoring.
How to Apply: Candidates who are interested should apply here
Award Provider: The Queen’s Young Leaders Programme is a partnership between The Queen Elizabeth Diamond Jubilee Trust, Comic Relief and The Royal Commonwealth Society.

Scholarships Available at Musicians Institute, USA for International Students

Brief description: Musicians Institute offers many different types of scholarships that can help international students with tuition to enroll and complete their studies at MI. Interested candidates should refer to each scholarship application form for details.
Application Deadline: 26th August, 2016
Offered annually? Yes
Eligible Countries: All countries
To be taken at (country): USA
Eligible Field of Study: The following scholarships are available to international students who wish to undertake study in the following fields:
  • Guitar Program Scholarships 
  • Bass Program Scholarships
  • Vocal Program Scholarships
  • Drum Program Scholarships
  • Keyboard Program Scholarships
  • Audio Engineering Program Scholarships
  • Music Business Program Scholarships
  • Guitar Craft Program Scholarships
  • Bachelor of Composition Scholarship
  • MI Scholarships
About the Award: The Musicians Institute scholarships are available for US citizens and non US citizens enrolling into various programs beginning in September 2016 at Musicians Institute, USA. The scholarships range from $1,000 to $2,500 which would be applied as tuition credit. Scholarships will be divided between new students and current students, so candidates should make sure they apply for the exact scholarship they need. New students beginning Fall 2016 must have already received their letter of acceptance before applying for the scholarships. Scholarships available for different criteria such as guitar, vocal, drum, music, arts, including certificates in performance.
Type: Scholarship
Eligibility: 
  • Available to international students.
  • Scholarship candidates must have submitted the Application for Admissions by the scholarship application deadline and must be entering the program for the first time.
  • May only be applied to one of the Programs.
  • Scholarship is credited toward the first quarter of the program as long as the student maintains satisfactory academic progress.
  • Scholarships are non-transferable, and may not be applied to any person, program or start date other than the one for which it was awarded.
Number of Awardees: Several
Value of Scholarship: Between $1,000 to $2,500
Duration of Scholarship: Renewable
How to Apply: Each scholarship has it’s requirements. Interested candidates should visit the Scholarship Webpage to learn how to apply.
Award Provider: Musicians Institute, USA

Capitalism is the Opposite of Democracy

Manuel E. Yepe

The capitalist socio-economic order is synonymous with freedom … provided you agree that the first of the freedoms is enjoyed by capital and that money can be free to buy everything.
When the ability of money is restricted to acquiring the goods that sustain life in society, or these are prevented from becoming a commodity that can be bought and sold, capitalism is constrained.
That is why it is so important for capitalism to manipulate popular awareness to instill the idea that capitalism is equal to democracy, and that any attack on the freedom of money to buy any of the earthly and moral goods of human beings is an attack on democracy.
Unfortunately, the social system the world lives under today is capitalism; and in very few countries have their peoples have achieved –or are still fighting to do so– a situation in which the moneyed classes do not hold political power. These few countries have undertaken, with enormous difficulties, routes other than the capitalist economic, political and social order.
For that reason, all –or almost all– the rules governing international relations on the planet –in the form of laws, social practices and traditions– have a foundation
convenient to the bourgeois order.
There are times when the global capitalist dictatorship is exercised with more violence than at others; but there is always a struggle between the empowered rich and the poor who suffer the consequences of such alien power.
When conditions dictate, oligarchs are bound to make concessions to their “subjects” in order to prevent them from being encouraged to use their numerical advantage and get organized for a confrontation that would somehow disturb the established order.
But with equal or greater speed the wealthy classes react when their hegemony is in danger. They then support each other in defense of their spurious exploitative interests.
The privileged wonder:  how would a country be where doctors, educators, courts of law, governments, the information, production and services media, the cultural expressions, and even the conditions to make love were to serve all equally in a society in which money could not determine differences in the quality and quantity of the benefits?
They consider that something like this would distort the current precarious and asymetric balance of power in nearly all national societies. Capitalism requires that such ideas continue beyond the citizens’ aspirations.
Why accept that in case of illness, a person with economic resources is doomed to the same quality of care, equal treatment conditions and possibilities of healing as a person who lacks such resources?
Is it logical that the offspring of wealthy people should share the same classrooms and quality of education with the sons and daughters of poor families?
Is it rational that, when they commit crimes, the rich and poor are judged by the same standards, or that cultured corrupt millionaires share prison food with rough and hungry common criminals?
Why should candidates for government positions in their election campaigns have to do without donations from the richest, more influential and responsible members of society so that, in their future roles as leaders, they feel obliged as a priority to protect the security of corporate capital and the most important and powerful segment of the nation?
For international capitalism, the press is only considered democratic in a country where private capital is allowed to buy radio and television stations, newspapers, magazines, news agencies and other media so they can see to it that what is published serves its interests. These interests are the determining factors in the whole society.
The bourgeois order also sees restricting the enjoyment of the best of national and international art and culture to the educated elite of society as legitimate. They are able to pay, through advertising, the price of their expensive productions, or to pay obscenely expensive admission tickets to the shows.
Is it not considered natural and logical that everything in society is structured so that the main attraction for gender relations is money and economic level, and that competition and the struggle for profit is the engine of progress at any level?
History records the existence of a supposed democracy with slaves in Greece, and today the capitalists have tried to appropriate the term as if it were unique to their socio-economic system. This is despite the fact that the word “capitalism” is almost the opposite of “democracy”, a term etymologically claimable only by “socialism”.

Australian Labor’s fraudulent apprenticeship scheme

Elle Chapman

Australian Labor Party leader Bill Shorten has set out to create the impression that a government he heads would work to alleviate the severe decline in apprenticeships, one of the factors leading to ever-worsening employment prospects for workers and youth.
Earlier this month, he announced that under Labor’s proposed Infrastructure Fund, one in ten jobs would be apprenticeships, a total of just 2,600. The absolute inadequacy of the measure is indicated by the fact that over the past four years, spanning both the previous Gillard-Rudd Labor governments and the Liberals’ Abbott-Turnbull rule, the number of apprenticeships has dropped precipitously from 516,000 to 295,000.
Despite the fact that Labor’s measure, even if it went ahead, would be a drop in the ocean, Australian Council of Trade Unions (ACTU) president Ged Kearney, gave it her full endorsement, saying it showed “a real commitment from Labor to introduce thousands of full-time apprenticeship positions on government and large infrastructure projects.”
The trade unions, no less than the Coalition and Labor Party, are responsible for the destruction of large swathes of industry over the past three decades that has led to falling numbers of jobs and apprenticeships.
Figures from the NCVER (National Centre for Vocational Education Research) show that apprenticeship commencements have declined overall since December 2005 for “trades” (including engineering, medical technicians, building, automotive and many other jobs). They stood at 50,000 in that year, peaked at over 70,000 in 2012, and then fell sharply to 20,000 in December 2015.
According to NCVER, in non-trades apprenticeships, the figure was around 20,000 in December 2005, subsequently fluctuating between 20,000 and 30,000, and now stands at the same level as a decade ago.
Reports in the Fairfax press today have underscored the overall decline. They indicate that the number of registered apprenticeships fell by more than 15,000 in the working class suburbs of western Melbourne and Sydney between December 2013, and December 2015. For instance, in Parramatta, a suburb in Sydney’s west, the number of apprenticeships dropped by 47 percent over that period, from 4,347 to just 2,286.
Apprenticeships are undertaken by workers of varying ages, pointing to the fact that older workers who have lost their jobs are looking to re-skill and re-enter the workforce, essentially starting over again from scratch.
According to 2012 NCVER figures on apprenticeship commencements, just over a quarter were aged 19 years and under, with around another 20 percent aged between 20 and 24 years. Just under half of all apprentices commencing in 2012 were over 25 years of age, including a substantial portion (around 20 percent of total commencements), aged over 45 years.
The Labor party bears a major responsibility for the nosedive in the number of apprenticeships. Under the Gillard Labor government that held office from June 2010 to June 2013, backed by the Greens, a number of financial incentives for businesses taking on apprentices were axed.
In October 2012, Labor reduced the payouts to employers taking on part-time apprentices in non-skills shortage areas. Then, in August 2013, non-skills shortage apprenticeship incentives were removed by Labor altogether. These cuts caused a steep decline in non-trades apprenticeship commencements during this period, as reflected in the NCVER figures.
This record is an exposure of the latest plan. Shorten has also pledged to create 10,000 places in an “Apprentice Ready” program, supposedly targeted to young people who have been unable to find a job for more than six months. This program is to be delivered at TAFE (technical and further education) colleges, over 20 weeks, as a “pre-apprenticeship” course.
Labor has promised to provide funding to the states and territories to conduct the program, despite the fact that TAFE has been the subject of brutal funding cuts since the Gillard government’s acceleration of the privatisation process, in favour of private colleges, in 2012.
The gutting of the TAFE system was highlighted by a recent report that at one TAFE college alone, the South Western Sydney Institute, five carpentry teachers will be made redundant, following three glaziers, four painters and six plumbers axed last year.
The attack on the working class and youth is bipartisan. Since the Abbott-Turnbull Liberal government came to power in September 2013, 120,000 apprenticeships have been lost.
TAFE cuts have been deepened through the New South Wales state Liberal-National government’s “Smart and Skilled” program, which came into effect in January 2015. Fees for courses have skyrocketed, course delivery times have been slashed, and support services for disadvantaged students have been eliminated.
The Turnbull government’s budget, handed down on May 3 this year, introduced an “internship” scheme for young people, whereby they would be pushed into working 25 hours a week. In return they would receive a meagre $200 on top of their Newstart dole payments, which amounts to only an additional $4 an hour.
This scheme, known as PaTH (Prepare, Trial Hire) will do next to nothing to assist participants into secure decently paid jobs. Rather, it will benefit businesses, giving them access to a cheap and free-flowing pool of labour.
Both Labor and the Liberals have responded to the declining number of apprenticeships by pointing the finger at one another for the purposes of trying to secure advantage in the election campaign. The reality is that whichever of them wins power, the attacks on apprenticeship conditions and young people more generally will deepen.
The underlying factor in the apprentice decline is the worsening state of the Australian economy. The director of education at the Australian Chamber of Commerce and Industry (ACCI), Jenny Lambert, claimed the Labor plan would be “useful” but would not fix the underlying problem.
“The very essence of the reason the trades have fallen off is due to economic conditions, employers are not taking anybody on at the moment. Preparing people for jobs does not create jobs,” she said.
According to ACCI chief executive James Pearson, “apprentice numbers in the construction industry today are near record highs, but other industry sectors have hit rock bottom.”
The high figure in construction is due to the speculative property boom, fuelled by low interest rates. But this bubble could collapse at any time.
The overall situation points to the fraud of the measures proposed by both major parties, based on subsidising employers and providing them with cheap labour. It underscores the necessity for a political program aimed at challenging the very foundations of the private profit system if a future for young people is to be secured.

Government’s “plan for safe El Salvador” fuels death squads

Andrea Lobo

While the Farabundo Martí National Liberation Front (FMLN) government in El Salvador celebrates a purported reduction in crime resulting from its “Plan for Safe El Salvador” program, recent massacres of workers and alleged gang members suggest that violence has not really been reduced. Rather, the government’s “iron fist” has actually fueled widespread death squad activity, some of it directly related to the armed forces.
Last Friday, eight “civilians,” who had formed a death squad, were sentenced to life in prison for killing at least three gang members in the municipality of Jujutla; two of the known victims were 25 years old and one of them was 20.
On May 6, six National Police officials were arrested along with 16 other people for comprising a heavily armed death squad. The group was found to have police and military uniforms and is suspected of having carried out at least twelve murders, some of them hired killings. Death squad activity has continued to accelerate.
Four men, presumably gang members, were kidnapped at a funeral service on June 1 in the El Amatón county, and were later killed with machetes by a group of hooded attackers. Then, on June 13, at least eight men killed a 17-year-old, also presumably a gang member, and his two parents in their home near Santa Ana.
Throughout the month, the Salvadoran government has repeatedly boasted that its “Plan for Safe El Salvador” uses 77 percent of its budget on violence prevention, that it has been active in 70 percent of the country and has cut the homicide rate in half during April and May. While officials haven’t really given any details on what “prevention” encompasses, this year has seen 2,271 homicides up to the end of May, a 25 percent increase compared to the same period in 2015, the year that made El Salvador the most violent country in the hemisphere.
On June 15, Costa Rica’s vice president, Ana Helena Chacón, praised the FMLN government plan as “a policy that will bring us good results in the long-term,” and, in April, Guatemalan President Jimmy Morales also praised the plan while agreeing to the creation of a regional High Level Security Group (Ganseg) for joint action.
Contradicting this optimism, Zeid Ra’ad Al Hussein, the UN High Commissioner for Human Rights, warned last week: “Pervasive violence has forced thousands of people to migrate, mainly to the US, including unaccompanied children who fear they will be killed if they refuse to enroll in gangs. While the government has launched a comprehensive ‘Plan for a Safe El Salvador’ that included accountability and work to rehabilitate former gang members following prison sentences, more recently much harder-line security measures have been put forward.”
“Recent allegations of extra-judicial killings by death squads are intolerable and are likely to fuel even greater violence,” he added.
He was referring to the denunciations made by the Salvadoran human rights ombudsman, David Morales, blaming the police and military for comprising death squads and carrying out 13 extrajudicial killings in 2015, including the killing of one child, actions that “if tolerated, the only thing that will happen is that the violence will escalate.”
During the 1970s and 80s, death squads, acting as part of the “anti-communist crusade,” killed or “disappeared” an estimated 40,000 people, while the “Black Shadow” death squads during the 90s killed dozens of alleged gang members, workers, human rights advocates and politicians. César Flores Murillo, who was accused in 1995 of being part of the “Black Shadow”, was recently appointed deputy director of the National Police by President Sánchez Cerén, himself a former FMLN guerrilla commander.
It is not merely an historic irony, but rather a confirmation of the class character of bourgeois nationalist movements like the FMLN, that this movement, which previously saw thousands of its supporters butchered by death squads, now presides over their revival.
Death squad activity, also called “social cleansing,” made a striking return in 2010, after then-president Mauricio Funes of the FMLN implemented new “iron fist” measures to fight gangs, increasingly joining military activity with that of the police.
The first reported killing happened in February 2010, when hooded attackers gunned down seven youth who were bathing in a river in the Milingo county. Four days later, five young construction workers and students, confused for gang members, were murdered in a restaurant in Tonacatepeque.
“Because of history, theater of operations, armament, mode of ambush, garments, style, and, above all, their ability and determination to attack a big group, the executioners exhibited characteristics of commandos and combat experience,” concluded political analyst, FMLN civil war commander and former president of the National Council on Public Security, Salvador Samayoa.
In April of this year, Samayoa commented that, “If we let the National Police (PNC) turn into a force that doesn’t respect laws nor human rights, it will become a cancer hard to remove.”
That same month, the FMLN government deployed a new military police to join the war against gangs, composed of 600 army commandos and 400 elite police officers.
Workers in unions have faced increasing harassment by gangs and other groups of union breakers. A 2015 document by the Center for Global Workers’ Rights at Penn State University and the Workers’ Rights Consortium—called “Unholy Alliances: How Employers in El Salvador’s Garment Industry Collude with a Corrupt Labor Federation, Company Unions and Violent Gangs to Suppress Workers’ Rights”—reports an increase in death threats against workers in the maquila (garment) sector, which accounts for half of total sales abroad in El Salvador.
In one instance, two women who had been protesting to get their severance pay after the factory where they worked closed in 2011 were confronted by four men, who warned, “I told you to stop your protests and now it’s your time; we are going to kill you.” The attackers fled after seeing police, and the workers fled soon after to the US to seek asylum.
It’s precisely this long history of state and gang violence against workers and its strong relationship with stagnant poverty, both imposed by US imperialism, that have led one-fifth of Salvadorans to emigrate, over two million of them to the United States.
The number of Salvadoran migrants reaching the US southern border this year has already surpassed that of 2015 by a third. The Obama administration, for its part, continues to carry out brutal raids against immigrants, while deporting around 3,100 Central Americans per month.
The Obama administration and the local ruling elite are carrying out a campaign to prevent class tensions from exploding in El Salvador, while also setting up a strong police state to prepare for coming social upheavals.
The Plan for a Safe El Salvador is a response to unceasing waves of Central American migration, gang violence and, above all, the fear that working class struggles will endanger private investments and the extraction of profit from ultra-cheap labor and natural resources.
According to the UN’s Economic Commission for Latin America (ECLAC), foreign direct investment (FDI) into El Salvador has doubled since 2013, mainly flowing into manufacturing. However, the Salvadoran ruling class fears that the situation could be quickly reversed by economic stagnation in Europe and the US, the slowdown in China, the shift of investments towards Asian economies and the growing class tensions produced by violence and overwhelming poverty and inequality.
During its first term in power in 2009, the FMLN used increased revenues from rising commodity prices to implement limited social programs to reduce poverty, which fell from 49.8 percent in 2009 to 40.9 percent in 2013. However, according the ECLAC, the reduction has not only stopped, but poverty is increasing again, now affecting 41.6 percent of the population. On the other hand, the number of millionaires increased from 150 to 160, with collective wealth equal to as much as 87 percent of the GDP, according to Oxfam.
The dire economic conditions for workers, the refusal by the government to institute significant increases in real wages and the strong spike in drug-related violence, which is itself a symptom of economic vulnerability, has led to a rise of mass demonstrations against the FMLN and the business elite.
To defend the interests of the bourgeoisie, the FMLN has raised this year’s security budget to $680 million, surpassing the total spent on health care.

Russian president seeks closer economic and strategic ties in Beijing

Peter Symonds

Russian President Vladimir Putin has concluded a state visit to China, designed to cement closer ties. The two countries confront provocative steps by the US to isolate them and an American-led military build-up in both Eastern Europe and the Asia Pacific.
Speaking on Saturday, Putin said the relations between Russia and China had “the character of an all-embracing and strategic partnership.” Chinese President Xi Jinping noted that he and Putin had “decided that the more complicated the international situation, the more determined we should be guided by the spirit of strategic cooperation and the idea of eternal friendship.”
While not naming Washington, the two leaders voiced concern over increasingly “negative factors” affecting global security. “Some countries and military-political alliances seek decisive advantages in military... technology, so as to serve their own interests through use of or threatening the use of force in international affairs,” a joint statement declared.
Putin and Xi specifically criticised the “unilateral deployment of anti-missile systems all over the world” and insisted that such weaponry was being placed in Europe and Asia under false pretences. The US has deployed anti-ballistic missile systems to Eastern Europe and East Asia on the pretext of countering so-called rogue states such as Iran and North Korea.
In reality, the Pentagon’s positioning of anti-missile systems close to China and Russia is a key element of its preparations for fighting a war against the two nuclear armed powers. Far from being defensive, this weaponry is designed to counter any Russian or Chinese missiles that survived a devastating US first nuclear strike.
The Financial Times reported on Friday that the Chinese and Russian militaries held a five-day computer simulation last month to test, for the first time, a joint response to a ballistic missile attack. The exercise, according to the Russian defence ministry, “was not directed against any third country,” but no one was in any doubt that the “aggressor” in the simulation was the United States.
Russian analyst Vasily Kashin said the exercise demonstrated “a new level of trust” between the two countries. “The ability to share information in such a sensitive area as missile launch warning systems and ballistic missile defence indicates something beyond simple co-operation,” he told the newspaper.
As part of the Shanghai Cooperation Organisation, Russia and China have engaged, along with various Central Asian countries, in a widening range of military exercises. Russia also supplies China with some of its most sophisticated weaponry.
Nevertheless, while Russia and China are being driven together by common concerns about US aggression, tensions remain.
During his visit, Putin said: “Russia and China stick to points of view which are very close to each other or are almost the same in the international area.” However, both countries have economic and strategic interests in Central Asia, which they are pursuing through competing plans—China through its One Belt, One Road strategy and Russia through its proposal for a Eurasian Economic Union.
Putin emphasised there should be a “converging” of the two national development strategies, in large part because Russia is in no position to compete with China’s planned outlays of tens of billions of dollars to construct transport, pipeline and other infrastructure connecting China with Europe via land and sea. As a concession, China is in discussion with Russia about an agreement to provide loans for a high-speed rail link between Moscow and the city of Kazan.
Putin was also keen to consolidate trade and investment with China. During his 2014 visit to Shanghai, he signed a massive $400 billion gas deal to supply China that followed a $270 billion oil contract with China the previous year. Russia has turned to China in response to sanctions imposed by the US and its European allies to punish Moscow over its annexation of Crimea in 2014. However, most of these framework accords have yet to result in firm contracts, amid ongoing haggling about details, particularly price.
Chinese lenders have agreed to a $12 billion loan to help fund the Arctic Yamal LNG project and limited Chinese investment has started to flow into Russian mining projects and agriculture. However, Boris Titov, chairman of the Russian-Chinese Committee of Peace, Friendship and Development, complained in an email to the Bloomberg website: “The Chinese take a long time to decide. All the big banks are afraid of how sanctions may affect them, since they’re part of the international payments system.”
The collapse of world energy prices has had a huge impact on the Russian economy. According to World Bank estimates, it will again shrink this year—by 1.6 percent—before recovering next year. Russian-Chinese bilateral trade has plunged by 28.6 percent from $95.3 billion in 2014 to $68.6 billion in 2015—in part as a result of falling prices, but also because of the marked slowdown in the Chinese economy.
Energy accounts for two thirds of Russian exports to China. In May, Russia surpassed Saudi Arabia as the largest supplier of crude oil to China for the third month in a row.
Putin and Xi reportedly sealed a raft of agreements during the visit, including the sale of stakes in a number of Russian projects to Chinese firms, an oil supply contract and joint investments in petrochemical projects in Russia.
Rosneft, Russia’s leading oil producer, agreed to the China National Chemical Corporation (ChemChina) taking a 40 percent stake in its planned petrochemical complex VNHK in Russia’s far east. The two companies also signed for Rosneft to supply ChemChina with up to 2.4 million tonnes of crude oil over the coming year.
Frictions between the two countries will undoubtedly continue over economic and strategic matters, but the two countries are being driven closer together by fears of the growing danger of war posed by the United States.

Financial market turmoil continues in wake of Brexit vote

Nick Beams

Global financial markets continue to be battered by the fallout from the British referendum decision last Thursday to quit the European Union, with the pound sterling dropping still further after recording its biggest one-day fall on Friday. Sterling has fallen 14 percent against the US dollar after reaching $1.50 on the day of the referendum, and is now down to below $1.32, with predictions that it could go as low as $1.10.
The plunge in the pound is the biggest two-day fall for the currency since the ending of fixed exchange rates following the decision by US President Nixon in August 1971 to remove the gold backing from the dollar.
Overall, global share markets have lost a record $3 trillion in the past two days of trading, with the S&P 500 in the US shedding nearly $1 trillion, its third-worst two-day fall, in value terms. The sell-off on Friday was characterised as the unwinding of short-term positions related to the expectation that the Remain camp would win the referendum vote. Monday’s sell-off was more about the longer-term situation.
Hedge funds, which have control of hundreds of billions of dollars, are reported to be targeting the British currency as well as stocks in the expectation that the economy will dramatically worsen. The rating agency Standard & Poor’s has removed Britain’s AAA credit rating, lowering it two notches. It said the referendum result was a “seminal event” resulting in a less predictable and less stable policy framework in the UK.
The fall in the currency has been matched by the drop in equity markets. The FTSE 250 index, which reflects the domestic economy, fell by 7 percent on Monday, while the broader-based FTSE 100 index lost 2.6 percent. The FTSE 250 index has lost 14 percent over two days in its worst decline since the share market crash of 1987.
The falls in share and currency markets came in the face of statements of reassurance by outgoing Prime Minister David Cameron and Chancellor of the Exchequer George Osborne. Cameron said Britain wanted the strongest possible economic links with its European neighbours, while Osborne said the government’s resolve should not be underestimated and that “we were prepared for the unexpected.” It was all to no avail, as markets fell in Britain, Europe and the US.
British banks were hit hard, with shares in the Royal Bank of Scotland and Barclays down by 26 percent and 18 percent respectively. Both firms had their trading suspended briefly in the course of the day.
European bank shares were also badly affected, after recording an 18 percent fall on Friday, with the Euro Bank Stoxx index dropping by a further 6 percent on Monday. European bank stocks have lost 22 percent of their value over two days and are close to the all-time lows they reached during the sovereign debt crisis in 2012.
There has been a flight to safety as investors move into UK government bonds, sending the yield on ten-year bonds (which move in inverse relationship to their price) falling to below 1 percent for the first time in history, hitting 0.94 percent at one point. German bonds, which recorded below-zero yields before the Brexit vote, went further into negative territory on Monday.
Economic forecasters have significantly reduced their forecasts for British economic growth for 2016 and predict even bigger falls for 2017. The chief economist at Investec, Phillip Shaw, told the Financial Times the economy might enter a period of “near stagnation,” and that recession was a “realistic possibility.”
The investment bank Goldman Sachs said it now expects growth in Britain to be just 0.2 percent in 2017, compared to its pre-referendum forecast of 2 percent. Credit Suisse has advised its clients to expect a British recession next year.
In the longer term, major companies are revising investment plans. According to a report in the Financial Times, a significant proportion of employers in the UK said they were freezing hiring and cutting their investment plans. Two-thirds of business leaders surveyed by the Institute of Directors said the referendum result would be “negative” for them. Financial firms are also reported to be shifting their base of operations out of the City of London.
Besides the falls in equity markets, one of the main transmission mechanisms of the Brexit shock wave is currency values, as vast amounts of money move to what are regarded as safe havens.
Over the past three years, the Bank of Japan has been trying to lower the value of the yen as part of the program of “Abenomics,” aimed at lifting the economy out of deflation. Even before the Brexit vote, the yen had risen significantly, with international financial analyst Mohamed El-Erian, chief economic adviser at the financial firm Allianz, describing the rate of 106 yen to the US dollar as a “total nightmare.” A higher yen value increases deflationary pressures and hits major Japanese firms in export markets.
Following the Brexit vote, the yen hit 99 to the dollar at one point before moving back to above 101. The rapid increase in its value has all but wiped out all the efforts of the Bank of Japan to bring down its value. Further stimulative measures are expected, and there is a possibility that the government will intervene directly in currency markets. When such a move was mooted some weeks ago, it brought sharp opposition from the US.
The Brexit decision has been described as a so-called “black swan” event--a development with seemingly low probability but having vast consequences if it occurs. It is expected to provoke a further expansion of quantitative easing measures by Japan’s central bank.
Two major Asian-based financial firms have been hard hit, with shares in HSBC Holdings and Nomura Holdings, Japan’s largest brokerage firm, falling sharply. Nomura shares dropped a further 6.3 percent on Monday, after falling by 11 percent on Friday. It was the biggest two-day fall since the March 2011 earthquake and tsunami. HSBC shares have dropped more than 9 percent over two days.
The United States is also being impacted via the rise in the value of the dollar, another product of the search for a safe haven. The dollar index, which measures its value against other major currencies, has risen by 3 percent since Thursday’s vote, bringing its rise to 20 percent over the past two years. The dollar rose not only against the British pound, but also against the euro and the yen.
The rise in the currency hits US exporters, making it more difficult for them to compete in international markets. It has all but removed any possibility of an increase in the Federal Reserve’s base interest rate in the short term. A rise in the dollar’s value not only has consequences for the US, but also threatens “spillover effects” in emerging market economies by increasing the burden of their dollar-denominated debts.
The turmoil set off by the Brexit decision is reflected in US bond markets. When the Fed raised interest rates by 0.25 percent last December, the yield on ten-year Treasury bonds was 2.3 percent. It stood at 1.74 percent on Thursday, but in the two days of trading since then has fallen to 1.44 percent.
In much of the media commentary on the Brexit decision, the reassurance is being offered that it is not a “Lehman event”—a reference to the collapse of the US investment firm that set off the global financial crisis of 2008. But it could well turn out to be even more significant. While the demise of Lehman Brothers set off a chain reaction, with far-reaching consequences, it was a financial storm. The Brexit decision has struck a devastating blow to the entire structure within which the global financial system has operated over the past four decades.

World Wealth Report 2016: The number of German millionaires increases

Marianne Arens

Worldwide, the wealth of millionaires has grown by 4 percent to US$58.7 trillion. In the same period, the number of millionaires has grown by 4.9 percent, to 15.4 million. This was the conclusion reached in the World Wealth Report 2016 by the corporate consulting company Capgemini.
Along with the US, Japan and China, Germany is one of the four countries with the most millionaires in the world. The number of millionaires in Germany has grown to almost 1.2 million. In China, this number has exceeded 1 million for the first time. While the growth was greatest—at 10 percent—in China and the Asia-Pacific region, the number of millionaires in the war-torn Middle East stagnated. The number decreased in Latin America and Africa.
The study took into account only private investors with investable assets of over 1 million US dollars. It came to the conclusion that the assets of the super-rich have quadrupled in the past 20 years in spite of the 2008 financial crisis. According to the study, more than a third of the total assets of millionaires are in the hands of just 0.9 percent of the 15 million super-rich, a minuscule proportion of the world population.
In all of North America, 4.8 million millionaires have a total of US$16.6 trillion. In Europe, the number of dollar millionaires has grown by almost 5 percent, to 4.2 million people, who have total assets of US$13.6 billion. A third of them are most likely in Germany. In comparison with last year’s report (1.14 million dollar millionaires in Germany) shows that in the past year the number of millionaires in Germany has increased by 58,000.
The Wealth Report did not report the total wealth of the 1.2 million dollar millionaires in Germany. There are no exact numbers because asset tax was eliminated in 1997. However, based on the total assets of the approximately 15 million millionaires worldwide, who have nearly US$60 trillion, one can infer that the total assets of German millionaires come to as much as US$5 billion.
The increase in the number of millionaires in Germany by over 5 percent is much greater than the worldwide average. This is not just a consequence of the stock market boom. According to Klaus-Georg Meyer of Capgemini, who presented the report in Frankfurt on Wednesday, it is also a result of the disproportionate rise in housing prices.
Although the study did not take into account houses and apartments occupied by their owners, real estate accounts for more than a fifth of the assets of German millionaires. The reason is that, due to the low interest on capital investments, many of the super-rich put their money into real estate. This has led to increasing monopolization of the housing market by the financial oligarchy, which can determine the housing supply and rent prices on which the entire population is dependent.
The report has cast light on the dramatic polarization of rich and poor worldwide. At the same time, it exposes the hypocrisy of assurances of governments that there is “no money” for social programs. In reality, the awful austerity measures, mass layoffs, wage cuts, deregulation and destruction of all social achievements, combined with tax gifts for the well off, have led to the concentration of wealth at the very top in recent years.
Following the worldwide economic crisis in 2008, the financial elite has been able to massively increase its wealth. As one can gather from the wealth report, the super-rich were able to nearly double their assets from US$32.8 billion in 2009 to almost US$60 billion in 2015. In Europe, their assets totalled 9.5 trillion in 2009 and almost 14 billion in 2015. The number of European millionaires grew in this period from 2.9 million to 4.2 million. At the same time, the number of jobless people officially rose to 25 million people.
In Germany as well, the millionaires obviously took Chancellor Angela Merkel at her word when she called for using the “crisis as an opportunity.” In Germany, the number of millionaires has risen by almost 50 percent, from about 860,000 in 2009 to 1.2 million today.
At the same time, the gap between rich and poor has continued to grow. Even the German government was forced to admit in its report on poverty and wealth that the unequal distribution of private wealth has steadily increased. The top 10 percent possesses more than half (51.9 percent) of the wealth. The poorer half, on the other hand, possesses only 1 percent.
In 2014, every sixth German was poor, according to the poverty report of the Paritätischen Gesamtverband at the beginning of the year. According to a recent report by the Federal Labour Office, every seventh child under age 15 is dependent on his or her parents’ Hartz IV benefits. In Bremen and Berlin this is almost every third child.
All established parties, from the Christian Democratic Union/Christian Social Union (CDU/CSU), to the Social Democratic Party (SPD) and the Greens to the Left Party and the unions, are responsible for this development. The Red-Green coalition under Gerhard Schröder (SPD), which set the tone with the Hartz laws and Agenda 2010 between 1999 and 2005, bears particular responsibility. Since then social inequality has also been increased by the CDU-Free Democratic Party government, the current grand coalition and the state governments in Berlin, Brandenburg and Thuringia, where the Left Party is participating.
This is most clearly demonstrated by the increasing numbers of people in Germany who can no longer make ends meet even though they are gainfully employed. Their number has grown by over a quarter since 2008. If the number of the so-called “working poor” was still about 2.5 million in 2008, by the end of 2013 it had already grown to 3.1 million. In the same period, the “top 10,000” were able to profit without restriction.
Since precise information about capital income such as interest, dividends, and speculative profits is systematically kept from the public, statistics about the developments in wealth are seldom exact. The Capgemini study considers the so-called “high net worth individuals” (HNW), whose investable assets, not including their own homes, is over a million US dollars.
The IT service provider Capgemini, which has published the World Wealth Report every year for 20 years, has considerable insight into the world of mega fortunes. It is the largest business consulting firm originating in Europe. It works closely with the French company Sogeti and took over the consulting division of Ernst & Young 16 years ago.
Other studies, such as that published by the Global Wealth Report of Crédit Suisse, report similar or even higher figures. Several studies confirm that the richest 1 percent of the world population has more wealth than the remaining 99 percent. As a study by Oxfam several months ago showed, 62 individuals have as much wealth as the 3.6 billion who make up the poorer half of the world’s population.
The World Wealth Report speculates that the combined wealth of the dollar millionaires could surpass the hundred million mark before 2025. But this will provoke a struggle by the world’s population. On the same day that the report appeared, a PSA Peugeot-Citroën auto worker named Yannick told a WSWS reporter at a demonstration in Paris: “Sooner or later, there is a reaction. You can’t heat a pressure cooker forever, there is a maximum capacity; afterwards it explodes. Sooner or later, the bosses—they are the same everywhere on the planet—sooner or later they will provoke a social explosion.”