23 Jan 2018

“Fake news” hysteria set to take center stage in Brazil’s October elections

Miguel Andrade

Under the pretext of guarding Brazil’s October presidential election against the impact of “fake news,” security agencies are seeking to amass vast repressive powers that will have a lasting impact upon the country’s decaying Brazilian democracy, regardless of the immediate electoral outcome. With such measures, the Brazilian bourgeoisie is preparing itself for the inevitable eruption of class struggle in reaction to the sharp turn to the right taken by Brazilian politics since the last election in 2014 and subsequent ouster of President Dilma Rousseff from the Workers Party (PT) on trumped-up charges of budget manipulation in 2016, in favor of her vice president, Michel Temer.
As in 2014, Brazil will elect, between October and November, the president, the governors of all 26 states and the autonomous capital, Brasília, as well as all of the state parliaments, the whole 513-strong Lower House of the Federal Congress and two-thirds of the 81-strong Senate.
The front-runner in the presidential polls is former PT President Luiz Inacio Lula da Silva, followed by the fascistic congressman and former army captain Jair Bolsonaro. A ruling by a Porto Alegre appeals court scheduled today on Lula’s conviction on corruption and money laundering charges, the first in a series, may ultimately decide the fate of his candidacy.
In anticipation of the election, top officials, including Defense Minister Raul Jungmann, several Supreme Court members, and the chiefs of the Federal Police (PF) and the intelligence agency, the ABIN, have made declarations affirming that the alleged threat of “fake news” justifies the use of a 1983 National Security Law that forbids “the spread of information that may cause panic or disorder.” This law, passed under the outgoing military dictatorship, was written to justify censorship and repression and, crucially, says nothing about supposedly threatening information being “fake.”
Brazil’s High Electoral Court (Superior Tribunal Eleitoral, TSE) is spearheading the current censorship plans. Its outgoing president, Supreme Court Justice Gilmar Mendes, in late December appointed a Consultant Commission made up by TSE members and representatives of the Defense and Science ministries, the Federal Police, the ABIN, the Safernet consulting firm and the Fundação Getúlio Vargas (FGV) think tank, Brazil’s main government and business school.
From the start, Mendes has firmly placed the “fake news” hysteria under a “national security” framework, telling the public broadcaster EBC on December 15 that “our laws are only valid in Brazil, but we will have to act against websites hosted overseas.” With such concerns in mind, Mendes in October summoned Google and Facebook to Brazil to guarantee they would disclose the funding of political advertisements and comply with Brazilian justices’ orders to bring down content.
National security concerns were cited as the motivation for Defense Minister Jungmann declaring in October that the Army’s Electronic Warfare Command (CCOMGEX) could be involved in the operations. Additionally, it is highly significant that in his interview with EBC, Justice Mendes declared that one of the main worries during the elections would be the attempt by organized crime to elect officials, which would place the elections as one more arena in the “war on drugs,” a critical ideological pretext for the integration of Latin American armies into US imperialism’s regional aims.
The Consultant Commission’s stated goal is to research the actions of other governments against “fake news,” especially those of the United States, France and Germany. All of these countries are engaged in expanding imperialist interventions the world over and class war at home, in which “fake news” and “Russian interference” are treated as matters of national security and a justification for Orwellian spying and censorship.
According to the Poder360 website, the Commission’s second meeting on January 15 heard from Safernet that no model would be available outside Brazil, since no specific law had yet been approved in any other country targeting “fake news.” The chief of the Federal Police Organized Crime Division (DICOR), Eugênio Ricas, declared a week earlier that if no new law were approved by Congress before the elections, the 1983 National Security Law would be applied.
While no new laws or specific measures have yet been unveiled to censor the Internet, the attitude of Brazil’s repressive apparatus makes clear that this will be hardly necessary, with the dictatorship-era National Security Law being embraced as a legitimate resource once again. Moreover, the Brazilian state has already called upon the vast censorship apparatus set up since April 2017 by Google, Facebook and Twitter to guarantee that “dangerous” information will be kept from the public. The Consultant Commission’s January 15 meeting also decided that Google and Facebook representatives would be invited to all of its following bimonthly meetings.
At the same time, efforts are already being unveiled to revoke Brazil’s law-enshrined net neutrality. Only a day after the US Federal Communications Commission announcement of the end of the net neutrality in the US, Eduardo Levy, the head of Sinditelebrasil, the federation of national telecommunications companies, declared to Globo.com that Brazil’s so-called “Internet Constitution” approved in 2014 guaranteeing net neutrality forced companies to “double efforts” to guarantee that different kinds of data traveled without priority, and that “the concept of net neutrality has to be rethought for 5G and the ‘Internet of Things.’”
João Moreira, the president of the telecom lobby group comprised of some of Brazil’s largest Internet providers, also declared to Globo.com on the same day that the 2014 law was “obsolete,” with the Science Ministry’s Telecommunications secretary adding to the same report that net neutrality guaranteed by the 2014 law doesn’t take into account “technical needs” of the corporations, a declaration which reporter Helton Simões Gomes recognized as echoing the justification given by the FCC’s president, Ajit Pai, for revoking net neutrality in the United States.
At the heart of these right-wing moves to censor the Internet are the unsubstantiated and repeatedly debunked claims that “fake news,” and especially “Russian influence,” have shaped the outcome of the 2016 US election, the 2017 French elections and the Brexit vote in the UK. These claims are being made by the security agencies and go unquestioned in the Brazilian media, from the right-wing to the nominal “left,” all of which have since 2016 been acting as virtual extensions of the New York Times and the Washington Post on the “fake news” and “Russian interference” hoaxes, gaining the confidence of the security apparatus.
This role has owed them the trust of security forces. A Folha de S. Paulo report from January 15 quotes the head of the Paraná State Police Cyber Crime Division as telling readers, “do not share fake news. It is very easy to identify what is fake news: Google it, and check if big papers have reported it,” adding later, in an ominous call for the widest self-censorship: “don’t share it, because politicians that feel offended have every right to make a formal request to come after these people.” The same report makes clear the real target of the “fake news” hysteria by quoting an FGV professor claiming that he had found that “20 percent of social media traffic among those in favor of a general strike last April was produced by robots.”
For its part, the Workers Party mouthpiece CartaCapital takes for granted the influence of “fake news” on the latest major political events. It introduced its own interview with DICOR chief Eugênio Ricas on January 17 stating: “with the ever-increasing spread of fake news on social media, electoral periods have become moments that favor the manipulation of public opinion. The American and French examples, in the 2016 and 2017 elections won by Donald Trump and Emmanuel Macron, show the potential of the so-called fake news.”
Last but not least, it must be said that the growing ranks of small, “fact-checking” oriented websites such as NexoAgência Pública and Lupa, a relatively new phenomenon in Brazilian politics that is chiefly inspired by American liberalism and the privileged petty-bourgeois milieu around the New York Times, as well as the so-called “news satire” television programs, have increasingly fallen prey to the “fake news” and “Russian interference” hoax.
The political orientation of these initiatives made itself felt in the reports made by Agência Pública at the “3i Journalism Festival” held in Rio de Janeiro in early November, which gave a platform for Facebook and Google to voice their worries about assuring “authoritative content” and promote the collaboration of the fact-checking sites in flagging so-called low-quality content. By this they mean primarily oppositional views, especially regarding the war crimes of “democratic” American imperialism, which are excluded from public debate by the “authoritative” sources, such as the New York Times and the Washington Post.
In a revealing moment at the festival, a Guatemalan journalist asked Cláudia Gurfinkel, Facebook’s “media partnership leader” for Latin America, why news feeds were being blocked for users in his country, dropping the access to some websites by 70 percent, to which she replied that “this wouldn’t happen in other countries.” On January 11, however, this was revealed to be a complete lie, as Facebook announced precisely the opposite, that it would extend the “Guatemalan experiment” worldwide.
It is irrelevant if Gurfinkel was consciously lying or misinformed: the whole framework of the festival was designed to promote Facebook and Google as champions of democracy, even as they collaborate intimately with every major government to impose censorship and the blacklisting of socialist and antiwar websites, chief among them the World Socialist Web Site.

Hundreds more jobs being cut at Vauxhall’s Ellesmere Port plant in UK

Margot Miller 

Vauxhall's largest UK car plant at Ellesmere Port, in the northwest of England, has announced a further 250 job losses amid fears that the entire operation could close within two years.
This is on top of 400 jobs lost in October through early retirement and voluntary redundancies—reducing the workforce from 1,900 to 1,150—and plans to reduce the plant to just one shift in April.
Last year, French car giant PSA—owner of Citroen and Peugeot—acquired both the Vauxhall brand and German parent company Opel from General Motors, in a deal worth £1.9 billion. The move, aimed at countering European giant VW, has unleashed a new wave of continental and worldwide job- and cost-cutting.
PSA is using the Macron government’s new reactionary labour laws to target 2,200 jobs in France, while Opel, after thousands of “voluntary” redundancies organized by the IG Metall union, is threatening to slash 4,000 jobs in Germany. In the US, General Motors, Ford and Fiat Chrysler have pushed out thousands of older, higher-paid workers over the last two years, while expanding the use of lower-paid temporary workers.
Vauxhall is scheduled to continue production of the Astra at Vauxhall in Ellesmere Port until 2021 and the Vivaro van in its UK Luton plant until 2025. Thereafter the future of the Astra is uncertain. Production could be moved to Germany, France or Poland, as governments, backed by the trade union bureaucracy in their respective countries, engage in a bidding war to drive down wages and conditions and pony up tax cuts and other incentives.
Asked whether a British brand like Vauxhall—established in the UK in the 1960s—should produce cars in the UK, the firm’s manager, Stephen Norman, said, “The link where a vehicle is actually made and the nationality of the brand, is not as obvious as it was… there are many exceptions.”
Autoexpress, a website covering the car industry, claims the maximum annual pay of assembly line workers ranges from £41,000 (US $57,055) in the US, £39,800 (US $54,272) in the UK, £16,500 (US $22,961) in the Czech Republic, £10,300 (US $14,333) in Brazil, £8,729 (US $12,147) in China, £5,000 (US $6,957) in Mexico, to £1,830 (US $2,546) in India.
While these figures should be read with caution, as they include, in many cases, health care, overtime and bonus payments, and other benefits, they do show the disparities that the global auto companies seek to exploit as they drive to equalize wage rates by slashing the living standards of workers in the most advanced capitalist countries.
Autoexpress poses the question, “Why [should manufacturers] pay car factory workers $20 or $30 per hour, when in certain parts of the world the rate is nearer $2 or $3?... It’s no coincidence that the UK’s cheapest car (the Dacia Sandero) is built by some of Europe’s cheapest workers, in Romania.”
The commentator failed to mention, however, that Romanian Ford workers launched a wildcat strike in December, in opposition to their company-controlled union, precisely to fight poverty wages and sweatshop conditions.
Following the Vauxhall announcement, Conservative Business Secretary Greg Clarke met up with PSA CEO Carlos Tavares to press the case for continued production in the UK. Labour Member of Parliament for Ellesmere Port, Justin Madders, appealed to PSA to give the plant financial support and for the government to invest in car component supply chains in the UK. This would be predicated on undercutting component factories abroad.
In axing the 400 jobs last October, Vauxhall warned, “Current manufacturing costs at Ellesmere Port are significantly higher than those of the benchmark plants of the PSA Group in France. The teams are conscious of the need to accelerate the recovery of plant productivity in order to meet the challenges ahead…”
Integral to the “teams” are the Unite union bureaucracy, which agreed to the move towards single shift operation and the 400 redundancies—on a “voluntary” basis. In response to the latest 250 redundancies, Unite leader Len McCluskey politely urged the company to do all it could to retain its “efficient” base at Ellesmere Port. “This is an additional blow to a world class workforce that is one of the most efficient in the industry. PSA must provide investment guarantees on new models for Ellesmere Port.”
In April, workers face further speed ups with production moving from two shifts to one at Ellesmere Port to cut labour costs and “accelerate the recovery of plant productivity.” The nationalist and pro-capitalist trade unions, as they have demonstrated for decades, will mount no opposition to speed-up and the attacks on jobs.
The job cutting is being accelerated as signs appear of a potential global sales slowdown, particularly in North America and Europe. Car sales fell 6.4 percent in the UK last year, with Fortune magazine predicting a glut of new and used cars in the US. China accounted for 76 percent volume growth in car sales last year and is now the largest platform for the manufacture of cars in the world, rolling out 24 million compared with 7.9 million in Japan, Germany (5.7 million) the US (3.9 million) and the UK (1.7 million).
Last year, UK sales of Vauxhall cars fell by 22 percent compared to 2016—down to 195,137 vehicles—bringing the brand market share down to 7.7 percent, as competition has intensified between brands and premium vehicles become more saleable through pay-monthly deals.
The Ellesmere Port factory produces around 680 Astras every day and exports 80 percent of its vehicles to the continent, while importing 75 percent of component parts. These include engines from Hungary and gearboxes from Austria, Germany and Korea. Like most assembly plants today it operates on low profit margins and the just-in-time production model, so parts arrive from abroad just hours before assembly.
Brexit is set to exacerbate the crisis within the UK auto industry. While UK car production rose to 1.7 million units in 2016, the highest since March 2000, investment fell from £2.5 billion to £1.66 billion. The fall in the value of the pound since Brexit has driven up the price of components from Vauxhall's supply chains.
Some components cross the Channel three, four or five times during production. Lack of access to the European Union’s single market and customs union, and the imposition of costly tariffs, would severely disrupt this.
A hard Brexit, with the UK falling back on World Trade Organisation rules, could mean increased production costs of £2,370 per vehicle, according to research by the PA consulting group. Even an agreed UK/EU 5 percent tariff on imported and exported cars, and 2.5 percent on components would add an extra cost of £1,202.
Vauxhall workers are in struggle against globally organized automotive giants and the banks, and they can only defend their jobs based on an internationalist strategy.
Workers in the UK and Europe must follow the lead of car workers in Romania, who rebelled against the Ford Craiova Automobile union, which signed a sell-out deal with Ford Romania. This is part of growing opposition by the working class to the endless union-backed attacks across the auto industry globally. In 2017, Fiat workers in Serbia and VW workers in Slovakia struck against slave labour wages and conditions. Autoworkers in China and India have taken strike action over the last few years, and in 2015, autoworkers in the US rebelled against sell-out agreements reached by the United Auto Workers union.

Germany: IG Metall seeks to impose new contract

Gustav Kemper

At the start of this week, thousands of industrial workers took part in limited “warning strikes” organised by the IG Metall trade union. While workers are keen to broaden and extend the strikes, the union is striving to reach a speedy agreement with management on the terms of a new contract.
Above all, IG Metall wants to ensure that the negotiations currently taking place between the conservative Christian Democratic Union/Christian Social Union and the Social Democratic Party on forming a new federal government take place without pressure from striking metalworkers.
Reuters reported that IG Metall and the employers' organisation, Südwestmetall, aim to end the wage dispute with a "negotiation marathon" on Wednesday.
More than 620,000 employees have been involved in short warning strikes since the beginning of the year as part of IG Metall's campaign for a 6 percent wage increase and the introduction of a temporary reduction in weekly working hours.
On Monday, more than 20,000 workers from many factories participated in strike action. Among the companies affected were major corporations such as Siemens, Daimler and BMW. Also affected were Procter & Gamble, Hilite and Warema in Marktheidenfeld, Düker in Laufach, automotive plants and WA production in Waldaschaff, Schaeffler and other companies in Wuppertal, Bosch in Bamberg, the Engine Plant in Chemnitz, the Daimler engine plant MDC Power in Kölleda/Thuringia, Bombardier Transportation in Hennigsdorf, plus a number of other concerns.
As in previous labour disputes, the contract bargaining in the state of Baden-Württemberg is regarded as a template for a deal for the entire country. An agreement is expected on Wednesday. According to Reuters, union reps and management have met since mid-January, “with representatives from both sides struggling to make compromises almost every day.”
Details of any deal have not yet been announced. Instead, IG Metall speakers at rallies have repeated the union’s usual slogans and complaints about the unreasonable stance taken by the national employers' association, Gesamtmetall. Stefanie Jahn, from IG Metall in Oranienburg and Potsdam, criticised employers for failing “to respond to the demand for the equalisation of working hours between East and West.” How loudly, she asked, “do we have to announce that?” In general, she complained lamely, the “creativity of employers in the first three rounds of negotiations” left much to be desired.
On Monday, Anne Borchelt, IG Metall's political secretary for the same region, told striking workers at Bombardier Transportation in Hennigsdorf that the employers’ side offered only “a can of beer” in wage bargaining last Friday. In contrast, the union was working “with intensive pressure” in Baden-Wuerttemberg to reach a solution.
Many workers fear that the union’s call for a voluntary reduction in working hours from 35 to 28 hours per week (limited to a two-year period) will be used by the employers to increase the average work week to 42 hours.
The head of the Südwestmetall employer’s federation told Reuters he saw a chance for employers to “reach a significant share” of their goals in terms of longer working hours. So far, employees can work more than 35 hours a week only in a few districts.
At the start of the year, IG Metall announced its intention to achieve a quick negotiation result, possibly in January. IG Metall’s determination to achieve a rapid agreement and end the current strike movement was underlined by a quote from the head of the union, Jörg Hofmann, in Deutschlandfunk.
Hoffman said he wished for “moderation” in the coming talks and said a good result for both sides could be achieved “without further escalation.”
Thousands of jobs are currently under threat at companies such as Siemens, Bombardier and Thyssenkrupp, but the union has excluded the issue of jobs from the contract bargaining process. The IG Metall leadership is opposed to a broad mobilisation of workers against job cuts. The majority of trade union leaders are also Social Democratic Party (SDP) functionaries and support the formation of a grand coalition.
The union’s complaints about miserable working conditions and low wages are entirely hypocritical. The union is in the pocket of the party that has headed the Ministry of Social Affairs and Labour for the past few years and it supports the formation of a new government that will impose even more drastic attacks on past social gains.
For their part, many workers want to extend the strikes to encompass the entire country in order to defend jobs and end the nerve-racking insecurity of temporary contract employment.
Robert, a contract worker at Bombardier Transportation in Hennigsdorf, spoke on behalf of many of his colleagues when he told the World Socialist Web Site: “I have been working as a temporary worker at Bombardier since last October. We face quite different problems here than a reduction in working time. We will never be made full-time and that’s sad. As contract workers we earn about 400 euros less than the core workforce for doing the same work, sometimes even more work, because as a temporary worker you have an insecure job and are under pressure to work harder. One feels like a third-class person.”
New temporary workers arrive every week. He had the impression that almost half of the workforce in his department were temporary workers. “It’s easier for the company to get rid of contract workers when orders decrease. The core workforce are paid severance money, but we are not paid,” he added.
The most important issue was to secure jobs. “If people here were asked by the union what they want, I think 90 percent would reply a secure job. Especially those over 50 years old. They still want to work until they retire.”
Regarding the tactics of IG Metall and the holding of short warning strikes, he said: “The warning strike was organised to benefit employers. They are carried out at the end of a shift, when there is hardly any interruption to production. It is not really a means to exert pressure.”
Colleagues of Robert, who are also employed as temporary workers, said: “It would be good if we were to strike all over the country, including against foreign companies. But there is no all-European union. In fact, there should be something like that.”
There were also critical comments from the full-time workforce regarding the union. A young skilled worker said, “The open letter the union sent to the government did not help. There may have been a meeting between the Bombardier board and Economics Minister Sigmar Gabriel, but that did not help. I think little of politicians anyway. They make sure we pay our taxes, and then we are robbed of any influence. So much for equality.”
The union and the SPD are doing their utmost to keep the growing radicalisation in factories under control. Although the corporations are transnationally organised, labour disputes are reduced to mini-strikes limited to individual regions or plants.

Indian factory fire kills 17 workers

W. A. Sunil 

An explosion and fire at a fireworks packaging factory on January 20 in the Bawana industrial district, northwest of New Delhi, killed at least 17 workers and seriously injured two others who jumped from the building’s second floor.
The fire began in a ground floor storage area and quickly spread throughout the building, which then collapsed. Although the cause of the fire is not yet known, police suspect it was the result of an electrical short-circuit.
Some of those killed were women and children who were trapped inside the building because illegal constructions blocked their escape, one fire official told the media.
Indian police released the names of seven women killed—Baby Devi (40), Afshana (35), Sonam (23), Reeta (18), Nadeen (55), Rakho (65) and Dharma Devi (45). Police are still attempting to identify other victims.
Fires and other social catastrophes are frequent in the poverty-stricken and overcrowded district. The area was established in 2010, after government authorities ejected tens of thousands of shanty town dwellers from Yamuna Pushta in New Dehli in preparation for the Commonwealth Games.
In 2013, a fire incinerated 800 shanty dwellings, killing two children and one woman. In April 2017 one man and two children died in another fire.
Commenting to the media on the latest tragedy Anwar Ali, a local street trader, said: “Fire accidents aren’t accidents, they’re the norm in places like Bawana.”
Grief-stricken relatives of victims spoke to the media.
Mubeena, whose mother Madina has not been found, said: “We used to work together at a water bottle packaging factory. Around 15 days ago, she changed jobs. The previous one required heavy lifting and she was getting old. My mother and I were the main breadwinners [for the family] but how will I be able to manage, with her gone?”
Bantu Lal, 45, who was waiting for news about his 23-year-old daughter, Sonam, said: “This was her first job [and] and she was due to be married in a few months. She wanted to work, so she could pitch in with the expenses.”
According to press reports, the fireworks factory operated illegally. The building owner had a licence for a plastics facility but rented the building to Manoj Jain who early this month established a fireworks packaging plant. It employed some 40 workers, including children. Jain was arrested and detained by the police, pending a court appearance.
It is illegal to manufacture, import, sell or use explosives without authorisation. North District magistrate Sakshi Mittal said the plant ran without a licence or adequate safety measures.
The case has been transferred to India’s Crime Branch for a “detailed investigation.” Desperate to deflect popular anger, the government ordered an inquiry and quickly offered 500,000 rupees ($US7,845) in compensation for the family of each killed and 100,000 rupees for the injured.
Three women left the factory an hour before the explosion, following a dispute with a supervisor over the lack of basic safety equipment. One told the media: “Employees spent close to seven hours filling gunpowder into small packets—without masks and protective clothing apart from a pair of gloves.
“I told the supervisor that we could not work in these conditions, and they should give us our wages. Three of us took 600 rupees in all and left. The air inside was making me cough. While leaving, we tried to persuade two other women to leave too, but they did not.”
Meenakshi Lekhi, an MP from the ruling Bharatiya Janata Party (BJP), attempted to blame the Delhi government’s labour department, saying it was “responsible for ensuring that no explosives are manufactured.”
Delhi industries minister Satyendar Jain washed his hands of any responsibility, declaring that it was the fault of the municipal corporation, which “could shut down any illegal factory but did not prevent the [illegal] business from continuing.”
The fireworks packaging workers were paid just 200 rupees per day, with a monthly income of about 6,000 rupees. Most worked 12 hours per day—from 9 a.m. to 9 p.m.—and were paid an extra 3,000 rupees a month for the overtime.
An estimated one million workers are employed in the Savakis industrial zone in Tamil Nadu, the centre of India’s fireworks industry, with an estimated 700 legal and 1,200 illegal factories.
Most employees are women , youth and children. They work without formal training or safety equipment and suffer from asthma, eye complaints and tuberculosis.
According to the National Commission for Protection of Child Rights, 90 child labourers in Tamil Nadu’s fireworks industry have health problems. The workers are generally employed on a “piece-rate” basis, with children paid 30 to 50 rupees ($US47 to 78 cents) per day.
Explosions, fires and building collapses are commonplace in India’s fireworks industry because of poor safety standards. Last June, 25 workers were killed and 10 injured after an explosion at a fireworks factory in Kheri village, Madhya Pradesh. Five workers were killed in a blast in northern Uttar Pradesh in November. In October 2016, another 20 people were killed in a fireworks factory explosion in Tamil Nadu.
These disasters are not limited to the fireworks industry. In recent industrial accidents, 13 garment factory workers died after fire broke out last November in Ludhiana, Punjab. In the same month, 26 workers died and more than 100 were injured in a fire at a state-owned power plant in Uttar Pradesh.
In its ongoing efforts to attract foreign investment, India’s BJP government plans to water down the country’s limited labour regulations, guaranteeing that the number of people killed and maimed in industrial accidents will increase.

Continuing crisis used to justify sell-off of Puerto Rico’s electrical grid

Genevieve Leigh

Efforts to exploit the hurricane-ravaged island of Puerto Rico accelerated Monday evening, four months after Hurricane Maria made landfall, as governor Ricardo Rosselló announced his intention to sell off the Puerto Rico Electric Power Authority (PREPA), the largest public utility in the United States.
Governor Rosselló shamelessly leveraged the ongoing crisis of the island’s electrical grid to justify his decision, declaring that PREPA “has become a heavy burden on our people, who are now hostage to its poor service and high cost.” The governor concluded that privatization would bring more affordable rates and better service to consumers, and even went so far as to claim that proceeds from the sale of assets and contracts would be “used to capitalize the retirement funds of employees.”
These claims are a pack of lies. The privatization of PREPA will mean a massive attack on the working class of Puerto Rico and will lead to higher utility costs and major layoffs of electrical workers. The privatization of this basic necessity, electricity, is part of a broader strategy to extract recovery costs of the hurricane from an already impoverished working class and make Puerto Rico more attractive for investors. Far from “capitalizing the retirement funds of employees,” the money made from selling assets will be used to pay the $9 billion of debt owed by PREPA to a group of wealthy investors.
Plans to privatize PREPA have been long in the making. In 2016 the Obama administration created the financial control board, known on the island as “la Junta Fiscal,” which is essentially an assembling of eight right-wing political operatives charged with dictatorially imposing austerity on the population and funneling money to Wall Street. Since its implementation, the board has rejected restructuring the territory’s $74 billion debt and has openly called for the privatization of PREPA.
Months before Hurricane Maria landed, oversight board chair José B. Carrión III explicitly reported to local newspaper Metro that the main goal of the utility’s newly appointed “Emergency Manager,” Noel Zamot, was to “privatize the Electric Power Authority as soon as possible.” When Hurricane Maria knocked out the entire electrical grid in September, the corporate and government vultures saw the devastation as a golden opportunity to finally achieve this goal.
These same figures have cynically lamented PREPA’s botched recovery efforts, which have been crawling along at a historically slow pace, over the last four months. On top of this, there have been reports of desperately needed materials for restoring electricity being hoarded in warehouses, suggesting that there may have been deliberate efforts to sabotage the recovery in order to provide a further pretext for privatization.
It is no secret that PREPA has been in a state of complete disintegration for over a decade. The utility has been starved of resources and, like every industry on the island, it has been struggling to keep afloat through the territory’s 11-year-long recession.
Thousands of PREPA workers have been laid off, bringing the workforce from 8,628 workers in 2012 to 6,042 in April of 2017. Even before the hurricane, large-scale electrical blackouts were a common feature of everyday life.
Furthermore, the transition of power from former utility board members and officials to a new energy commission created by 2014 legislation has resulted in rampant corruption and mismanagement. The height of this corruption was displayed in the aftermath of the storm when PREPA awarded a major emergency contract—which they were eventually forced to cancel—to Whitefish, an inexperienced Montana company with only two employees.
Four months after Hurricane Maria, about 40 percent of electric customers remain without power in what is the longest and largest power outage in modern US history.
The third-world conditions this has created for the workers in Puerto Rico is a crime against humanity for which the ruling class in Puerto Rico along with both big-business parties of the US government hold complete responsibility.
The figures who have run PREPA into the ground would have the people of Puerto Rico believe that its state of disrepair is simply the product of its public ownership or mismanagement. In truth it is the result of more than a century of colonial exploitation of the island’s working class as a cheap-labor platform and tax haven for multibillion-dollar corporations. Now the same figures who have made their fortunes creating this catastrophe are attempting to profit off the destruction.
The efforts of officials like Rosselló and corporate mouthpieces such as Zamot to use this crisis to their advantage come from a well-used playbook. The modus operandi of the ruling class is to take full advantage of these “natural” disasters to push through long-desired financial schemes under the cover of the “unavoidable” devastation.
The past two decades in the United States offer countless examples, foremost among them the crimes carried out against the working class after Hurricane Katrina destroyed significant portions of New Orleans in 2005. In the aftermath of the storm, a full-scale assault was launched on public education, which was almost entirely dismantled or handed over to private for-profit companies; social services were slashed or removed altogether; hundreds of thousands of residents were forced to leave the city, many of whom could never return; and the privatization of public assets was carried out in the name of “rebuilding” New Orleans.
The same scheme was employed against Detroit workers during the city’s 2013-14 bankruptcy. Like in Puerto Rico, an Emergency Manager with unlimited dictatorial powers was brought in to oversee the destruction of pensions, the privatization of public utilities and schools, and he even attempted to sell off the city’s art work to private foundations. In fact, the federal judge who oversaw the criminal bankruptcy proceedings in Detroit, Steven Rhodes, was brought in as an advisor for the Puerto Rican bankruptcy.
Notably, Puerto Rico is facing both of these disasters at once—the aftermath of a hurricane and the largest municipality debt crisis in US history. As in New Orleans and Detroit, the storm and the financial crisis will be used to accelerate a social counterrevolution that was already well under way.
The central lesson of these struggles is that the elementary requirements of mass society are incompatible with a system that subordinates everything to the enrichment of a financial oligarchy. The greatest allies of the workers and students in Puerto Rico who want to fight against the coming attacks are not any local bourgeois politicians but fellow workers on the mainland and around the world.

IMF upgrades global growth forecast amid warnings of "fracture points"

Nick Beams

As the World Economic Forum summit of global elites got underway in Davos, Switzerland, the International Monetary Fund (IMF) upgraded its prediction for world economic growth over the next two years.
The IMF pointed to the “broadest synchronised global growth upsurge since 2010,” when the world economy pulled out of the recession of 2008–2009. It estimated that global output increased by 3.7 percent in 2017, a 0.1 percentage point rise on its forecast last October and 0.5 percentage points higher than 2016. The IMF revised its predictions of global growth for 2018 and 2019 upward by 0.2 percentage points to 3.9 percent.
However, a report issued by Oxfam for the Davos summit demonstrated that virtually all of this increase will flow to the oligarchs who dominate the world economy. Last year saw the biggest increase in the number of billionaires in history, as 82 percent of the increase in global wealth flowed to the top 1 percent, while the bottom 50 percent received no increase at all.
Not surprisingly, as the Financial Times reported, the mood among the chief executives gathering for the summit was more upbeat than at any time in the past decade. “With the stock markets booming … it’s no surprise CEOs are so bullish,” Bob Moritz, the global chairman of the accounting and financial firm PwC commented.
While attention is focused on the headline predictions for a rise in global growth, there are warnings, including from within the IMF itself, that the spurt may not last.
In a blog post, IMF chief economist Maurice Obstfeld said the upturn was “good news” but the present economic momentum “reflects a confluence of factors that is unlikely to last for long.” Without prompt action to address structural impediments to growth, the building of policy buffers and enhancing the inclusiveness of growth, “the next downturn will come sooner and be harder to fight.”
Obstfeld said the current upturn “is unlikely to become a new normal.” Instead, “medium-term downside risks” were “likely will grow over time.” He noted that the two biggest economies driving the present upturn—the US and China—both faced slowing growth prospects in the future.
China would cut back both the fiscal stimulus and credit expansion of the recent period, in order to “strengthen its overheated financial system.” In the US, the short-term stimulus provided by the Trump administration’s tax cuts would wear off.
Easy financial conditions, important as they were during the recovery, had left a legacy of debt, Obstfeld said. A sudden rise in interest rates from their current very low levels could tighten financial conditions globally. “Elevated equity prices would also be vulnerable, raising the risk of disruptive price adjustments,” he warned.
Summing up his views on the longer-term outlook, Obstfeld wrote: “Perhaps the over-arching risk is complacency. While the current conjuncture might appear to be a sweet spot for the global economy, prudent policymakers must look beyond the near term … The next recession may be closer than we think, and the ammunition with which to combat it is much more limited than a decade ago because public debts are so much higher.”
A sharper warning of the dangers facing the global economy and financial system came from former Bank for International Settlements chief economist William White.
In an interview with the UK-based Telegraph, White, who was one of the few to warn of the 2008 crash, said the world financial system was as dangerously stretched as it was during the previous bubble. This time, however, financial authorities had few defences left.
This was because of the policies pursued over the past decade—the reduction of interest rates to record lows and the pumping of trillions of dollars into the financial system under the program of quantitative easing (QE).
“All the market indicators right now are looking very similar to what we saw before the Lehman crisis, but the lesson has somehow been forgotten,” White said. He cited the revelation that the bankrupt US construction group, Carillion, had raised £112 million through German Schuldschein bonds, and a South African retailer also had tapped into this obscure market to raise £730 million.
Schuldschein loans were once issued to family-owned, middle-sized German companies. The transformation of this corner of the market into a high-risk, shadow banking operation showed how badly the lending system had been distorted by QE and negative interest rates.
White noted there is always an intoxicating optimism at the height of every boom when people convince themselves that risk is fading. But that is precisely when the worst mistakes are made. “Central banks have been pouring more fuel on the fire,” he said.
Since the 2008 crisis, global debt ratios had surged by 51 percentage points relative to global gross domestic product and stood at a record 327 percent, with every part of the world economy exhibiting some form of deformation.
“Should regulators really be congratulating themselves that the system is now safer? Nobody knows what is going to happen when they unwind QE. The markets had better be careful because there are a lot of fracture points out there,” White warned.
While the elites gather at Davos to wallow in their fabulously increased wealth, the international working class should draw a balance sheet of the policies pursued by governments and financial authorities around the world over the past decade.
What have these policies produced? The siphoning of wealth and income to the heights of society, paid for by stagnant and declining wages, worsening working conditions and intensified exploitation, savage and ongoing cuts in all forms of social spending. These are coupled with the creation of conditions for another financial disaster potentially more serious than that of 2008.

World Economic Forum meets in Davos under shadow of crisis and war

Bill Van Auken

On Tuesday, the World Economic Forum (WEF) opened in the exclusive Swiss Alpine resort of Davos, with some 3,000 corporate executives, government officials and celebrities convening for the ostensible purpose of discussing this year’s theme of “Creating a Shared Future in a Fractured World.”
The gathering is overshadowed, however, by the accelerating fracturing of the global capitalist order, manifested in unprecedented levels of social inequality in every country, a sharp growth in trade war and the ever more immediate threat of an eruption of armed conflict, including nuclear war, between the major powers.
The well-heeled crowd at Davos, paying $55,000 each to attend, is guarded by a small army of 4,000 Swiss troops and 1,000 police, with a no-fly zone imposed overhead. Protests have been banned in the village—on the pretext that there has been too much snow—but thousands of people demonstrated Tuesday in the Swiss financial capital of Zurich in opposition to the WEF and, in particular, to the attendance this year by US President Donald Trump. Marchers carried placards reading, “Trump - You’re not Welcome,” “You Are a Shit-Hole Person” and “Smash WEF.”
The gathering of global billionaire CEOs, bankers and hedge fund managers embodies the very social “fracturing” that the Davos organizers pretend to be addressing. The summit opened just two days after the aid group Oxfam issued its annual report on social inequality, exposing the fact that of all global wealth growth in 2017, 82 percent went to the top one percent, while the bottom half of the world’s population, some 3.8 billion people, saw nothing at all.
Personifying this crisis will be Trump, the first US president to attend the global summit since 2000. He is set to meet with global CEOs on Thursday night and to present his “America First” agenda to the forum in its final session on Friday.
Trump set the stage for his appearance by imposing tariffs against Chinese and South Korean manufacturers amounting to 50 percent on washing machines and 30 percent on solar panels, invoking a rarely used statute to protect domestic manufacturers from “serious injury.” Administration officials portrayed the action as a fulfillment of campaign promises to protect “American workers,” even as the solar power industry forecast that its net result would be the loss of over 23,000 jobs.
China’s commerce ministry responded with a sharply worded statement expressing Beijing’s “strong dissatisfaction” with the tariffs and warning that that China would “resolutely defend its legitimate interests.” There is growing speculation that Trump may follow up his first tariffs with far more consequential ones on steel and aluminum, igniting a full-scale trade war with unpredictable consequences for the global economy.
India’s Prime Minister Narendra Modi gave the opening speech to the WEF, warning, “Forces of protectionism are raising their heads against globalization. It feels like the opposite of globalization is happening.”
While not naming Trump, it was clear that Modi’s remarks were directed principally against the US administration. “The negative impact of this kind of mindset cannot be considered less dangerous than climate change or terrorism,” he said.
Much has been made of the supposed stark contradiction between Trump’s right-wing economic nationalism and Davos’ supposed globalist ethos, amid predictions of some kind of a showdown between the US president and his European counterparts, particularly German Chancellor Angela Merkel and French President Emmanuel Macron.
In reality, both Merkel and Macron will have left Davos before Trump even arrives. Moreover, their governments are also pursuing national interests under conditions in which the entire post-World War II system of trading relations established under the aegis of the then-unchallenged dominance of US imperialism is breaking down.
The source of this breakdown is to be found not in the demagogic rants of Donald Trump, but rather the insoluble contradictions of the capitalist system, which is driving every country into a war of each against all in a ruthless struggle for profits and markets. This is creating the same kind of global tensions and conflicts that paved the way to the Second World War.
Both the Wall Street Journal and CNN Tuesday published interviews with leading corporate and financial CEOs in Davos praising Trump for enacting the recent sweeping tax cuts for US corporations and the rich and carrying out unprecedented deregulation of big business.
Citigroup CEO Michael Corbat told CNN that tax cuts would lead to business expansion. “Maybe this is the catalyst that takes us from optimism to confidence.”
“There is extreme optimism,” Sir Michael Sorrell, chief executive of the ad group WPP PLC, told the Journal. “It is remarkable the psychological difference—whatever you think of Trump—that he has brought... It has improved (executives’) already positive psychology.”
The “optimism” and “positive psychology” of this layer is driven by expectations that the vast growth they have experienced in their personal fortunes since the 2008 crash, fueled by free money from the global central banks and sweeping austerity measures imposed upon the world’s population, will now be further accelerated.
There were, however, less sanguine opinions expressed on the opening day. Axel Weber, the chairman of the Swiss banking giant UBS Group AG and former chairman of Germany’s central bank, warned: “We’re seeing inflation pressures largely ignored. We’re starting to see output gaps closing, with tighter labor conditions and wage pressure... Inflation could come back as a surprise this year.”
The fear of “wage pressure” is well-founded. What more conscious elements within the capitalist ruling class see on the horizon is an explosive growth of the class struggle, which has already found expression in the first weeks of the new year in the mass upheavals in Iran and Tunisia, as well as the wildcat strike by Ford workers in Romania and industrial actions by workers in Germany.
Meanwhile, a televised discussion between CEOs on the first day of the Davos summit heard similar expressions of disquiet.
“It feels like 2006 again,” said Barclays CEO Jes Staley, who insisted that the next crash will not start with the banks.
David Rubenstein, cofounder of the Carlyle Group, a Washington-based global private equity investment firm, warned against the exuberance over the rising stock market, “Usually when people are happy and optimistic, that’s when something bad happens.” He cautioned that “black swans,” unanticipated events, including global geopolitical conflicts, could plunge the world into crisis.
The so-called “black swans” are coming home to roost as the conferences and lavish parties play out in Davos.
In Syria, the Turkish invasion of the northwestern Kurdish enclave of Afrin has raised the specter of an armed confrontation between two NATO allies, with Ankara seeking to crush Syrian Kurdish forces on its border that have served as the main proxy ground force for US imperialism’s intervention in the country.
The New York Times warned Tuesday that the invasion was bringing US and Turkish “interests into direct conflict on the battlefield.” The newspaper quoted a security analyst who stated that Washington would have to chose between “another U.S. betrayal of the few groups that have consistently supported and helped the U.S. in Syria and Iraq—or risk indirect and even direct conflict with Turkey, a fellow NATO member.”
The confrontation in Syria comes in the wake of a series of documents issued from Washington—the National Security Strategy, the Nuclear Posture Review and the National Defense Strategy—which lay out a strategic shift by US imperialism toward the open preparation for military confrontations, including nuclear war, with both Russia and China.
US Secretary of State Rex Tillerson issued a statement Tuesday accusing Russia of responsibility for an alleged chemical attack in Syria, signaling Washington’s intention to shift the crisis it is confronting with Turkey to a confrontation with Russia in a country where both Washington and Moscow have military forces.
This is the grim reality overshadowing the supposed “optimism” of the billionaires and multimillionaires gathered in Davos.

Friedrich-Ebert-Stiftung (FES) Doctoral Scholarship Program for Students from Developing Countries 2018

Application Deadline: Applications will be accepted no later than:
  • diploma / magister / state examination: by the end of 6th semester
  • Bachelor/ undergraduate programmes: until 3 semesters before finishing the standard period of study (if 6 semesters by the end  of 3rd semester; if 7 semesters by the end  of 4rd semester)
  • postgraduate/ Master programmes: by the end of 1st semester
  • duration of application process:
    4-7 months
Offered Annually? Yes
Eligible Countries: Students from Developing Countries already studying in Germany.
About the Award: The promotion of young talent has been one of the founding principles of the FES.
At the time when Friedrich Ebert was elected as the first president of the Weimar Republic, it was almost impossible for talented children from socially disadvantaged backgrounds to study at universities or take part in research programmes. With the foundation of the Friedrich-Ebert-Stiftung in 1925, the first scholarships were awarded to particularly talented young individuals from a working class milieu who were taking an active part in the young democracy of the Weimar Republic.
To address social disadvantages by supporting students who actively work for freedom, justice and social cohesion in their commitment to social democracy, or will do so in future, continues to be one of the aims of the FES.
Type: Doctoral
Eligibility: The FES can only award scholarships to applicants from abroad who have already enrolled in a German university or have a supervisor for their doctoral studies.
  • For the FES, service to the common good deserves recognition. It is therefore not only the applicants’ academic achievement but their social and political involvement and personal attitudes that play an important part in the selection process.
  • The FES also supports foreign applicants who are already studying, or doing their postgraduate studies, in Germany at the time of application. Up to 40 students from Africa, Asia, Latin America and Eastern Europe may qualify for the scholarship programme every year with the exception of those who are already receiving some support from public sources.
  • Students are expected to be living in Germany before they apply and have to provide proof of an adequate command of the German language by submitting a language proficiency certificate ( C 1, TestDAF)
  • Since foreign scholarship holders will receive an extensive social and political side programme, German language proficiency is crucial even when the study programme itself (M/B) is carried out in English.
  • We do not support foreign students from Western European countries at present, but only those from the developing countries of Asia, Africa, Latin America and Eastern Europe.
  • At the time of application, foreign students should be able to submit proof of their initial academic achievements/marks with the exception of those enrolled in Master or other postgraduate programmes.
Selection Criteria: The FES supports
  • all academic subjects
  • students from public or state-approved universities and from universities of applied sciences/polytechnical colleges (FH)
  • postgraduate programmes (PhD)
The FES does not support
  • second degree courses
  • study visits outside Germany
  • final phases of academic studies
  • postgraduate courses in medicine
Number of Awards: This year, about 2.700 students and postgraduates will receive a grant from FES.
Value of Award: Foreign scholarship holders receive:
  • 650 € per month (basic scholarship programme) / 1000 € per month (graduate scholarship programme)
  • 276 € of family allowance, if applicable
  • refund of health care costs
  • any income exceeding 400 € per month will be credited against the scholarship.
Expectations: FES expects scholarship holders:
  • to participate in extra-curricular seminars and activities of FES campus groups on a regular basis
  • to achieve above-average results in their degree courses
  • to continue and intensify their socio-political commitment.
At the end of each term, a semester report has to be submitted to FES which describes the scholarship holder’s current academic performance and his/her social engagement.
How to Apply: 
  • Self Application: Please use the “Online-Bewerbung” on the Internet – in German only! supplementary sheet
  • Individual interviews: In a second step, selected candidates will be invited to two individual interviews. The first interview will be conducted by one of the lecturers from the FES, and the second interview by one of the members of the FES scholarship committee (AWA). Two reports are written on the basis of these interviews and presented to the AWA.
  • Discussion and final decision by the AWA: The AWA will eventually make a final decision about your application. The AWA is an independent body composed of university lecturers as well as other persons from the fields of science, politics, art and media. The committee meets at least three times a year. The AWA will discuss every application at great length and then make the final decision.
  • Written notification: You will be notified of the AWA’s decision.
Award Providers: Friedrich-Ebert-Stiftung (FES)

International Centre for Theoretical Physics (ICTP) Postgraduate Diploma Scholarship for Students from Developing Countries 2018

Application Deadline: 31st January 2018.
Offered Annually? Yes
Eligible Countries: Developing Countries
About the Award: The Postgraduate Diploma Programme started in 1991, and since then, many of its graduates have gone on to do PhDs at various prestigious universities, including in Europe and North America. Many of them, after a few postdoctoral stints abroad, have returned to their home countries, where they are actively involved in teaching and in developing advanced research groups there. Others have pursued scientific careers in leading scientific institutions worldwide. Many former students continue to maintain an active collaboration with ICTP throughout their careers.
This one-year pre-PhD programme consists of two semesters of basic and advanced courses given by experts in the following fields:
  • High Energy, Cosmology and Astroparticle Physics (HECAP)
  • Condensed Matter Physics (CMP)
  • Earth System Physics (ESP)
  • Mathematics (MTH)
After the completion of the courses (including examinations), participants are required to work on a dissertation, to be submitted and defended.
Type: Research
Eligibility: 
  • The Programme is open to young qualified graduates in physics, mathematics or related fields.
  • Scholarships are awarded to successful candidates from developing countries (with particular emphasis on students from the least developed regions of the world).
Selection Criteria: The selection of the candidates is based on their university performance as well as on academic recommendations. The selection committee aims to select the best academically qualified candidates while striving for gender balance and geographical distribution.
Number of Awards: A limited number of scholarships (around 10 per field) will be awarded to successful candidates.
Value of Award: Scholarships will be used to cover candidate’s travel and living expenses during their stay at ICTP.
How to Apply:  Apply online.
Award Providers: ICTP