18 May 2018

Dangerous Liaison: Industrial Agriculture and the Reductionist Mindset

Colin Todhunter


Food and agriculture across the world is in crisis. Food is becoming denutrified and unhealthy and diets less diverse. There is a loss of biodiversity, which threatens food security, soils are being degraded, water sources polluted and depleted and smallholder farmers, so vital to global food production, are being squeezed off their land and out of farming.
A minority of the global population has access to so much food than it can afford to waste much of it, while food insecurity has become a fact of life for hundreds of millions. This crisis stems from food and agriculture being wedded to power structures that serve the interests of the powerful global agribusiness corporations.
Over the last 60 years, agriculture has become increasingly industrialised, globalised and tied to an international system of trade based on export-oriented mono-cropping, commodity production for the international market, indebtedness to international financial institutions (IMF/World Bank).
This has resulted in food surplus and food deficit areas, of which the latter have become dependent on (US) agricultural imports and strings-attached aid. Food deficits in the Global South mirror food surpluses in the North, based on a ‘stuffed and starved’ strategy.
Whether through IMF-World Bank structural adjustment programmes related to debt repayment as occurred in Africa (as a continent Africa has been transformed from a net exporter to a net importer of food), bilateral trade agreements like NAFTA and its impact on Mexico or, more generally, deregulated global trade rules, the outcome has been similar: the devastation of traditional, indigenous agriculture.
Integral to all of this has been the imposition of the ‘Green Revolution’. Farmers were encouraged to purchase hybrid seeds from corporations that were dependent on chemical fertilisers and pesticides to boost yields. They required loans to purchase these corporate inputs and governments borrowed to finance irrigation and dam building projects for what was a water-intensive model.
While the Green Revolution was sold to governments and farmers on the basis it would increase productivity and earnings and would be more efficient, we now have nations and farmers incorporated into a system of international capitalism based on dependency, deregulated and manipulated commodity markets, unfair subsidies and inherent food insecurity.
As part of a wider ‘development’ plan for the Global South, millions of farmers have been forced out of agriculture to become cheap factory labour (for outsourced units from the West) or, as is increasingly the case, unemployed or underemployed slum dwellers.
In India, under the banner of a bogus notion of ‘development’, farmers are being whipped into subservience on behalf of global capital: they find themselves steadily squeezed out as farming due to falling incomes, the impact of cheap imports and policies deliberately designed to run down smallholder agriculture for the benefit of global agribusiness corporations.
Aside from the geopolitical shift in favour of the Western nations resulting from the programmed destruction of traditional agriculture across the world, the Green Revolution has adversely impacted the nature of food, soil, human health and the environment.
Sold on the premise of increased yields, improved food security and better farm incomes, the benefits of the Green Revolution have been overstated. And the often stated ‘humanitarian’ intent and outcome (‘millions of lives saved’) has had more to do with PR and cold commercial interest.
However, even when the Green Revolution did increase yields (or similarly, if claims about GMO agriculture – the second coming of the Green Revolution – improving output are to be accepted at face value), Canadian environmentalist Jodi Koberinski says pertinent questions need to be asked: what has been the cost of any increased yield of commodities in terms of local food security and local caloric production, nutrition per acre, water tables, soil structure and new pests and disease pressures?
We may also ask what the effects on rural communities and economies have been; on birds, insects and biodiversity in general; on the climate as a result of new technologies, inputs or changes to farming practices; and what have been the effects of shifting towards globalised production chains, not least in terms of transportation and fossil fuel consumption.
Moreover, if the Green Revolution found farmers in the Global South increasingly at the mercy of a US-centric system of trade and agriculture, at home they were also having to fit in with development policies that pushed for urbanisation and had to cater to the needs of a distant and expanding urban population whose food requirements were different to local rural-based communities. In addition to a focus on export-oriented farming, crops were also being grown for the urban market, regardless of farmers’ needs or the dietary requirements of local rural markets.
Destroying indigenous systems
In an open letter written in 2006 to policy makers in India, farmer and campaigner Bhaskar Save offered answers to some of these questions. He argued that the actual reason for pushing the Green Revolution was the much narrower goal of increasing marketable surplus of a few relatively less perishable cereals to fuel the urban-industrial expansion favoured by the government and a few industries at the expense of a more diverse and nutrient-sufficient agriculture, which rural folk – who make up the bulk of India’s population – had long benefited from.
Before, Indian farmers had been largely self-sufficient and even produced surpluses, though generally smaller quantities of many more items. These, particularly perishables, were tougher to supply urban markets. And so, the nation’s farmers were steered to grow chemically cultivated monocultures of a few cash-crops like wheat, rice, or sugar, rather than their traditional polycultures that needed no purchased inputs.
Tall, indigenous varieties of grain provided more biomass, shaded the soil from the sun and protected against its erosion under heavy monsoon rains, but these very replaced with dwarf varieties, which led to more vigorous growth of weeds and were able to compete successfully with the new stunted crops for sunlight.
As a result, the farmer had to spend more labour and money in weeding, or spraying herbicides. Furthermore, straw growth with the dwarf grain crops fell and much less organic matter was locally available to recycle the fertility of the soil, leading to an artificial need for externally procured inputs. Inevitably, the farmers resorted to use more chemicals and soil degradation and erosion set in.
The exotic varieties, grown with chemical fertilisers, were more susceptible to ‘pests and diseases’, leading to yet more chemicals being poured. But the attacked insect species developed resistance and reproduced prolifically. Their predators – spiders, frogs, etc. – that fed on these insects and controlled their populations were exterminated. So were many beneficial species like the earthworms and bees.
Save noted that India, next to South America, receives the highest rainfall in the world. Where thick vegetation covers the ground, the soil is alive and porous and at least half of the rain is soaked and stored in the soil and sub-soil strata.
A good amount then percolates deeper to recharge aquifers or groundwater tables. The living soil and its underlying aquifers thus serve as gigantic, ready-made reservoirs. Half a century ago, most parts of India had enough fresh water all year round, long after the rains had stopped and gone. But clear the forests, and the capacity of the earth to soak the rain, drops drastically. Streams and wells run dry.
While the recharge of groundwater has greatly reduced, its extraction has been mounting. India is presently mining over 20 times more groundwater each day than it did in 1950. But most of India’s people – living on hand-drawn or hand-pumped water in villages and practising only rain-fed farming – continue to use the same amount of ground water per person, as they did generations ago.
More than 80% of India’s water consumption is for irrigation, with the largest share hogged by chemically cultivated cash crops. For example, one acre of chemically grown sugarcane requires as much water as would suffice 25 acres of jowar, bajra or maize. The sugar factories too consume huge quantities.
From cultivation to processing, each kilo of refined sugar needs two to three tonnes of water. Save argued this could be used to grow, by the traditional, organic way, about 150 to 200 kg of nutritious jowar or bajra (native millets).
If Bhaskar Save helped open people’s eyes to what has happened on the farm, to farmers and to ecology in India, a 2015 report by GRAIN provides an overview of how US agribusiness has hijacked an entire nation’s food and agriculture under the banner of ‘free trade’ to the detriment of the environment, health and farmers.
In 2012, Mexico’s National Institute for Public Health released the results of a national survey of food security and nutrition. Between 1988 and 2012, the proportion of overweight women between the ages of 20 and 49 increased from 25% to 35% and the number of obese women in this age group increased from 9% to 37%.
Some 29% of Mexican children between the ages of 5 and 11 were found to be overweight, as were 35% of youngsters between 11 and 19, while one in 10 school age children suffered from anemia. The Mexican Diabetes Federation says that more than 7% of the Mexican population has diabetes. Diabetes is now the third most common cause of death in Mexico, directly or indirectly.
The various free trade agreements that Mexico has signed over the past two decades have had a profound impact on the country’s food system and people’s health. After his mission to Mexico in 2012, the then Special Rapporteur on the Right to Food, Olivier De Schutter, concluded that the trade policies in place favour greater reliance on heavily processed and refined foods with a long shelf life rather than on the consumption of fresh and more perishable foods, particularly fruit and vegetables.
He added that the overweight and obesity emergency that Mexico is facing could have been avoided, or largely mitigated, if the health concerns linked to shifting diets had been integrated into the design of those policies.
The North America Free Trade Agreement led to the direct investment in food processing and a change in the retail structure (notably the advent of supermarkets and convenience stores) as well as the emergence of global agribusiness and transnational food companies in Mexico.
The country has witnessed an explosive growth of chain supermarkets, discounters and convenience stores. Local small-scale vendors have been replaced by corporate retailers that offer the processed food companies greater opportunities for sales and profits. Oxxo (owned by Coca-cola subsidiary Femsa) tripled its stores to 3,500 between 1999 and 2004. It was scheduled to open its 14,000th store sometime during 2015.
In Mexico, the loss of food sovereignty has induced catastrophic changes in the nation’s diet and has had dire consequences for agricultural workers who lost their jobs and for the nation in general. Those who have benefited include US food and agribusiness interests, drug cartels and US banks and arms manufacturers.
More of the same: a bogus ‘solution’
Transnational agribusiness has lobbied for, directed and profited from the very policies that have caused much of the above. And what we now see is these corporations (and their supporters) espousing cynical and fake concern for the plight of the poor and hungry.
GMO patented seeds represent the final stranglehold of transnational agribusiness over the control of agriculture and food. The misrepresentation of the plight of the indigenous edible oils sector in India indicates encapsulates the duplicity at work surrounding the GM project.
After trade rules and cheap imports conspired to destroy farmers and the jobs of people involved in local food processing activities for the benefit of global agribusiness, including commodity trading and food processor companies ADM and Cargill, there is now a campaign to force GM into India on the basis that Indian agriculture is unproductive and thus the country has to rely on imports. This conveniently ignores the fact that prior to neoliberal trade rules in the mid-1990s, India was almost self-sufficient in edible oils.
In collusion with the Gates Foundation, corporate interests are also seeking to secure full spectrum dominance throughout much of Africa as well. Western seed, fertiliser and pesticide manufacturers and dealers and food processing companies are in the process of securing changes to legislation and are building up logistics and infrastructure to allow them to recast food and farming in their own images.
Today, governments continue to collude with big agribusiness corporations. These companies are being allowed to shape government policy by being granted a strategic role in trade negotiations and are increasingly framing the policy/knowledge agenda by funding and determining the nature of research carried out in public universities and institutes.
As Bhaskar Save wrote about India: “This country has more than 150 agricultural universities. But every year, each churns out several hundred ‘educated’ unemployables, trained only in misguiding farmers and spreading ecological degradation. In all the six years a student spends for an M.Sc. in agriculture, the only goal is short-term – and narrowly perceived – ‘productivity’. For this, the farmer is urged to do and buy a hundred things. But not a thought is spared to what a farmer must never do so that the land remains unharmed for future generations and other creatures. It is time our people and government wake up to the realisation that this industry-driven way of farming – promoted by our institutions – is inherently criminal and suicidal!”
Save is referring to the 300,000-plus farmer suicides that have taken place in India over the past two decades due to economic distress resulting from debt, a shift to (GM)cash crops and economic ‘liberalisation (see this report about a peer-reviewed study, which directly links suicides to GM cotton).
The current global system of chemical-industrial agriculture, World Trade Organisation rules and bilateral trade agreements that agritech companies helped draw up are a major cause of food insecurity and environmental destruction. The system is not set up to ‘feed the world’ despite the proclamations of its supporters.
However, this model has become central to the dominant notion of ‘development’ in the Global South: unnecessary urbanisation, the commercialisation and emptying out of the countryside at the behest of the World Bank, the displacement of existing systems of food and agricultural production with one dominated by Monsanto-Bayer, Cargill and the like and a one-dimensional pursuit of GDP growth as a measure of ‘progress’ with little concern for the costs and implications – mirroring the narrow, reductionist ‘output-yield’ paradigm of industrial agriculture itself.
Agroecology offers a genuine solution
Across the world, we are seeing farmers and communities pushing back and resisting the corporate takeover of seeds, soils, land, water and food. And we are also witnessing inspiring stories about the successes of agroecology.
Reflecting what Bhaskar Save achieved on his farm in Gujarat, agroecology combines sound ecological management, including minimising the use of toxic inputs, by using on-farm renewable resources and privileging natural solutions to manage pests and disease, with an approach that upholds and secures farmers’ livelihoods.
Agroecology is based on scientific research grounded in the natural sciences but marries this with farmer-generated knowledge and grassroots participation that challenges top-down approaches to research and policy making. However, it can also involve moving beyond the dynamics of the farm itself to become part of a wider agenda, which addresses the broader political and economic issues that impact farmers and agriculture (see this description of the various modes of thought that underpin agroecolgy).
Jodi Koberisnki’s nod to ‘systems thinking’ lends credence to agroecology, which recognises the potential of agriculture to properly address concerns about local food security and sovereignty as well as social, ecological and health issues. In this respect, agroecology is a refreshing point of departure from the reductionist approach to farming which emphasises securing maximum yield and corporate profit to the detriment of all else.
Wei Zhang – an economist focusing on ecosystem services, agriculture and the environment – says that ‘worldview’ is important “to how you conceptualise issues and develop or choose tools to address those issues. Using systems thinking requires a shift in fundamental beliefs and assumptions that constitute our worldviews. These are the intellectual and moral foundations for the way we view and interpret reality, as well as our beliefs about the nature of knowledge and the processes of knowing. Systems thinking can help by changing the dominant mindset and by addressing resistance to more integrated approaches.”
Agroecology requires that shift in fundamental beliefs.
A few years ago, the Oakland Institute released a report on 33 case studies which highlighted the success of agroecological agriculture across Africa in the face of climate change, hunger and poverty. The studies provide facts and figures on how agricultural transformation can yield immense economic, social, and food security benefits while ensuring climate justice and restoring soils and the environment.
The research highlights the multiple benefits of agroecology, including affordable and sustainable ways to boost agricultural yields while increasing farmers’ incomes, food security and crop resilience.
The report described how agroecology uses a wide variety of techniques and practices, including plant diversification, intercropping, the application of mulch, manure or compost for soil fertility, the natural management of pests and diseases, agroforestry and the construction of water management structures.
There are many other examples of successful agroecology and of farmers abandoning Green Revolution thought and practices to embrace it (see this report about El Salvador and this interview from South India).
In a recent interview appearing on the Farming Matters website, Million Belay sheds light on how agroecological agriculture is the best model of agriculture for Africa. Belay explains that one of the greatest agroecological initiatives started in 1995 in Tigray, Northern Ethiopia, and continues today. It began with four villages and after good results, it was scaled up to 83 villages and finally to the whole Tigray Region. It was recommended to the Ministry of Agriculture to be scaled up at the national level. The project has now expanded to six regions of Ethiopia.
The fact that it was supported with research by the Ethiopian University at Mekele has proved to be critical in convincing decision makers that these practices work and are better for both the farmers and the land.
Bellay describes another agroecological practice that spread widely across East Africa – ‘push-pull’. This method manages pests through selective intercropping with important fodder species and wild grass relatives, in which pests are simultaneously repelled – or pushed – from the system by one or more plants and are attracted to – or pulled – toward ‘decoy’ plants, thereby protecting the crop from infestation. Push-pull has proved to be very effective at biologically controlling pest populations in fields, reducing significantly the need for pesticides, increasing production, especially for maize, increasing income to farmers, increasing fodder for animals and, due to that, increasing milk production, and improving soil fertility.
By 2015, the number of farmers using this practice increased to 95,000. One of the bedrocks of success is the incorporation of cutting edge science through the collaboration of the International Center of Insect Physiology and Ecology (ICIPE) and the Rothamsted Research Station (UK) who have worked in East Africa for the last 15 years on an effective ecologically-based pest management solution for stem borers and striga.
But agroecology should not just be regarded something for the Global South. Food First Executive Director Eric Holtz-Gimenez argues that it offers concrete, practical solutions to many of the world’s problems that move beyond (but which are linked to) agriculture. In doing so, it challenges – and offers alternatives to – prevailing moribund doctrinaire economics and the outright plunder of neoliberalism.
The scaling up of agroecology can tackle hunger, malnutrition, environmental degradation and climate change. By creating securely paid labour-intensive agricultural work, it can also address the interrelated links between labour offshoring by rich countries and the removal of rural populations elsewhere who end up in sweat shops to carry out the outsourced jobs.
Thick legitimacy
Various official reports have argued that to feed the hungry and secure food security in low income regions we need to support small farms and diverse, sustainable agroecological methods of farming and strengthen local food economies (see this report on the right to food and this (IAASTD) peer-reviewed report).
Olivier De Schutter says: “To feed 9 billion people in 2050, we urgently need to adopt the most efficient farming techniques available. Today’s scientific evidence demonstrates that agroecological methods outperform the use of chemical fertilizers in boosting food production where the hungry live, especially in unfavorable environments.”
De Schutter indicates that small-scale farmers can double food production within 10 years in critical regions by using ecological methods. Based on an extensive review of scientific literature, the study he was involved in calls for a fundamental shift towards agroecology as a way to boost food production and improve the situation of the poorest. The report calls on states to implement a fundamental shift towards agroecology.
The success stories of agroecology indicate what can be achieved when development is placed firmly in the hands of farmers themselves. The expansion of agroecological practices can generate a rapid, fair and inclusive development that can be sustained for future generations. This model entails policies and activities that come from the bottom-up and which the state can then invest in and facilitate.
A decentralised system of food production with access to local markets supported by proper roads, storage and other infrastructure must take priority ahead of exploitative international markets dominated and designed to serve the needs of global capital.
It has long been established that Small farms are per area more productive than large-scale industrial farms and create a more resilient, diverse food system. If policy makers were to prioritise this sector and promote agroecology to the extent Green Revolution practices and technology have been pushed, many of the problems surrounding poverty, unemployment and urban migration could be solved.
However, the biggest challenge for upscaling agroecology lies in the push by big business for commercial agriculture and attempts to marginalise agroecology. Unfortunately, global agribusiness concerns have secured the status of ‘thick legitimacy’ based on an intricate web of processes successfully spun in the scientific, policy and political arenas. This allows its model to persist and appear normal and necessary. This perceived legitimacy derives from the lobbying, financial clout and political power of agribusiness conglomerates which set out to capture or shape government departments, public institutions, the agricultural research paradigm, international trade and the cultural narrative concerning food and agriculture.
Critics of this system are immediately attacked for being anti-science, for forwarding unrealistic alternatives, for endangering the lives of billions who would starve to death and for being driven by ideology and emotion. Strategically placed industry mouthpieces like Jon Entine, Owen Paterson and Henry Miller perpetuate such messages in the media and influential industry-backed bodies like the Science Media Centre feed journalists with agribusiness spin.
When some people hurl such accusations, it might not just simply be spin: it may be the case that some actually believe critics are guilty of such things. If that is so, it is a result of their failure to think along the lines Zhang outlines: they are limited by their own reductionist logic and worldview.
The worrying thing is that too many policy makers may also be blinded by such a view because so many governments are working hand-in-glove with the industry to promote its technology over the heads of the public. A network of scientific bodies and regulatory agencies that supposedly serve the public interest have been subverted by the presence of key figures with industry links, while the powerful industry lobby hold sway over bureaucrats and politicians.
The World Bank is pushing a corporate-led industrial model of agriculture via its ‘enabling the business of agriculture’ strategy and corporations are given free rein to write policies. Monsanto played a key part in drafting the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights to create seed monopolies and the global food processing industry had a leading role in shaping the WTO Agreement on the Application of Sanitary and Phytosanitary Measures (see this). From Codex, the Knowledge Initiative on Agriculture aimed at restructuring Indian agriculture to the currently on-hold US-EU trade deal (TTIP), the powerful agribusiness lobby has secured privileged access to policy makers to ensure its model of agriculture prevails.
The ultimate coup d’etat by the transnational agribusiness conglomerates is that government officials, scientists and journalists take as given that profit-driven Fortune 500 corporations have a legitimate claim to be custodians of natural assets. These corporations have convinced so many that they have the ultimate legitimacy to own and control what is essentially humanity’s common wealth. There is the premise that water, food, soil, land and agriculture should be handed over to powerful transnational corporations to milk for profit, under the pretence these entities are somehow serving the needs of humanity.
Corporations which promote industrial agriculture have embedded themselves deeply within the policy-making machinery on both national and international levels. From the overall narrative that industrial agriculture is necessary to feed the world to providing lavish research grants and the capture of important policy-making institutions, global agribusiness has secured a perceived thick legitimacy within policymakers’ mindsets and mainstream discourse.
It gets to the point whereby if you – as a key figure in a public body – believe that your institution and society’s main institutions and the influence of corporations on them are basically sound, then you are probably not going to challenge or question the overall status quo. Once you have indicated an allegiance to these institutions and corporate power, it is ‘irrational’ to oppose their policies, the very ones you are there to promote. And it becomes quite ‘natural’ to oppose any research findings, analyses or questions which question the system and by implication your role in it.
But how long can the ‘legitimacy’ of a system persist given that it merely produces bad food, creates food deficit regions globally, destroys health, impoverishes small farms, leads to less diverse diets and less nutritious food, is less productive than small farms, creates water scarcity, destroys soil and fuels/benefits from World Bank/WTO policies that create dependency and debt.
The more that agroecology is seen to work, the more policy makers see the failings of the current system and the more they become open to holistic approaches to agriculture – as practitioners and supporters of agroecology create their own thick legitimacy –  they more willing officials might be to give space to a model that has great potential to help deal with some of the world’s most pressing problems. It has happened to a certain extent in Ethiopia, for example. That is hopeful.
Of course, global agribusiness nor the system of capitalism it helps to uphold and benefits from are not going to disappear overnight and politicians (even governments) who oppose or challenge private capital tend to be replaced or subverted.
Powerful agribusiness corporations can only operate as they do because of a framework designed to allow them to capture governments and regulatory bodies, to use the WTO and bilateral trade deals to lever global influence, to profit on the back of US militarism (Iraq) and destabilisations (Ukraine), to exert undue influence over science and politics and to rake in enormous profits.
The World Bank’s ongoing commitment to global agribusiness and a wholly corrupt and rigged model of globalisation is a further recipe for plunder. Whether it involves Monsanto, Cargill or the type of corporate power grab of African agriculture that Bill Gates is helping to spearhead, private capital will continue to ensure this happens while hiding behind platitudes about ‘free trade’ and ‘development’.
Brazil and Indonesia are subsidising private corporations to effectively destroy the environment through their practices. Canada and the UK are working with the GMO biotech sector to facilitate its needs. And India is facilitating the destruction of its agrarian base according to World Bank directives for the benefit of the likes of Monsanto, Bayer and Cargill.
If myths about the necessity for perpetuating the stranglehold of capitalism go unchallenged and real alternatives are not supported by mass movements across continents, agroecology will remain on the periphery.

17 May 2018

Sri Lankan government imposes IMF-dictated increases on essential items

Saman Gunadasa 

Over the past three weeks, the Sri Lankan government has imposed brutal price hikes on essential items, further reducing the living conditions of working people and the rural poor.
* Petrol and diesel prices have been increase by 17 percent and 15 percent, to 137 rupees per litre ($US0.87) and 109 rupees per litre respectively. The cost of kerosene was lifted by 130 percent to 101 rupees per litre.
* A kilogram of milk powder has gone up by 50 rupees.
* Taxes on potatoes and onions have been risen by 10 rupees and 1 one rupee per kilogram respectively.
* The tax on dhal increased by 3 rupees to 12 rupees per kilo.
* Late last month, the cost of a 12-litre tank of cooking gas was hiked by 17 percent to 1,676 rupees per litre.
Addressing a May 10 press conference to announce the fuel price increases, Finance Minister Mangala Samaraweera said it was “unfair” to claim that the rises were the result of an IMF deadline. “We did it for the benefit of the people of this country and for the economy,” he claimed.
This is a patent lie. On April 20, IMF mission chief for Sri Lanka Manuela Goretti stated that the IMF loan installment was “subject to cabinet approval of an automatic fuel pricing mechanism.”
Sri Lanka’s fuel prices will now be adjusted every two months, according to the world crude oil prices and the rupee exchange rate. International oil prices are expected to increase further due to US President Donald Trump’s provocations against Iran and the danger of all-out war in the Middle East.
Kerosene and diesel are extensively used by fishermen to power their vessels. The rural poor and plantation workers use kerosene for cooking and lighting.
Samaraweera also falsely claimed that if oil prices were not increased, the government would have to cut funds “for the country’s development, health and education sectors.”
The Sirisena-Wickremesinghe government is already ruthlessly slashing subsidies to health, education and other services.
Government expenditure on health and education is just 1.5 percent and 1.9 percent of Gross Domestic Product (GDP), respectively. In 2017, there were 3,148 government schools with fewer than 10 teachers and only 3.6 beds per 1,000 people available in state hospitals, according to the Central Bank’s 2017 annual report.
The latest price increases come on top of already declining living standards and social conditions.
According to the Central Bank report, the real wages of formal private sector workers, the largest section of the Sri Lanka workforce, are continuously falling. Real wages declined by 3.6 percent in 2016 and 5.9 percent in 2017. State sector workers’ wages have been stagnating since 2015.
The Sri Lankan rupee is also rapidly depreciating. Last year it fell by 2.5 percent against the US dollar. So far this year, the rupee has dropped 3.3 percent. Sri Lankan economic growth last year fell to 3.1 percent, a 16-year low.
The IMF has advised Sri Lankan government authorities not to spend foreign currency reserves to prop up the rupee and is demanding that the budget deficit be reduced to 3.5 percent of GDP by 2020. This can only be achieved by wiping out remaining subsidies for the working masses and the poor.
Other “reform” measures demanded by the IMF include the privatisation and commercialisation of the Ceylon Electricity Board, the Water Board, state banks, ports and other state-owned enterprises.
Sri Lankan government debts are the result of loans obtained for Colombo’s war against the separatist Liberation Tigers of Tamil Eelam and to address the balance of payment deficit caused by falling exports.
The Central Bank notes that Sri Lanka’s total debt stock rose to 10,313 billion rupees in 2017. Of this, 4,718 billion rupees ($US51.8 billion) is foreign debt. According to one estimate, the Sri Lankan government will need $17.8 billion to service the country’s debt from this year to 2022.
Sri Lanka’s trade deficit has grown from $US8.9 billion in 2016 to $US9.6 billion in 2017, despite a moderate export growth through the GSP+ (General System Preference+) tariff concession given by the European Union, along with other concessions.
The escalating attacks on Sri Lankan workers and the rural poor are in line with the austerity measures imposed on the Spanish, Portuguese and Greek working class by the European Central Bank, the European Union and the IMF.
Growing protests, demonstrations and industrial action by Sri Lankan working people will bring them into direct confrontation with the Sirisena-Wickremesinghe government and other representatives of the ruling elite.

German Chancellor Merkel announces major rearmament program

Christoph Vandreier

Facing a deepening conflict with the United States, Berlin is massively upgrading its military capacity to enable Germany to use its armed forces to pursue its economic and geo-strategic interests around the world. Chancellor Angela Merkel and Defence Minister Ursula von der Leyen made this clear on Monday at the Bundeswehr (Armed Forces) conference in Berlin.
The biennial gathering saw the civilian and military leaders of the Bundeswehr meet with representatives from politics and business to discuss the strategic direction of the army. For the first time in six years, the Chancellor took part in the discussion.
Merkel used her opening speech to announce a massive rearmament programme and campaign for new and brutal wars. She justified this by referring to the growing conflicts between the US and the European powers. She described the unilateral termination of the Iran agreement, the US exit from the Framework Convention on Climate Change and the “rise in protectionism” as the expression of a “crisis-ridden multilateralism.”
It is therefore more important that Germany comply with its commitment to NATO and increase defence spending by 2024 to two percent of its gross domestic product, said Merkel. That would amount to an increase from the current total of 37 billion to between 70 and 75 billion euros, and would far exceed the increase of 5.5 billion euros previously set in the budget over the next four years. This is the biggest expansion of German military spending since the end of World War II.
Merkel emphasized that “the fulfilment of the tasks—our international operations plus alliance and national defence—makes this value necessary.” For the Bundeswehr to function, it needs more equipment. “That’s just the truth,” said Merkel. In her speech, the defence minister also advocated a massive rearmament and declared that “operationally ready forces,” i.e., military power, was the “central instrument enabling us to act in foreign and security policy.”
Merkel elaborated further on this claim in her speech. She invoked the role of the Bundeswehr as an international army of intervention, enforcing German interests across the globe. The civil war in Syria has developed into a “conflict over spheres of influence in a strategically extremely important region,” from which Germany cannot disengage, said the chancellor.
She celebrated the brutal campaign against Afghanistan, which cost tens of thousands of civilian lives and which has pushed the country into poverty and chaos, as a shining example for further wars. Germany can be proud of its involvement in that conflict, Merkel declared. The Bundeswehr is already involved in twelve foreign missions with 7,100 troops, and Merkel and von der Leyen are seeking to massively expand these deployments.
Under the euphemism of “national and alliance defence,” the chancellor spoke of a further confrontation with Russia. The Bundeswehr had made great progress. “For example, airspace control in the Baltic, reassurance in Poland and in the three Baltic states. We are leading the enhanced forward presence—these are all great words—and working as a framework nation in Lithuania.” What the chancellor calls “great words” is the preparation for a military confrontation with nuclear-armed Russia.
In addition to increasing the capacity of the Bundeswehr, Merkel wants to increasingly use mercenary troops in foreign countries to pursue German interests. She advocates not only training but also arming soldiers in Mali, Iraq and Afghanistan. Germany must also ensure that they get “decent pay.” Such involvement of local militias is a “very important aspect” of German foreign policy, Merkel said, suggesting that it could be funded through development aid rather than the military budget.
Von der Leyen made it clear that the Bundeswehr will use its own forces and such mercenaries around the world to defend the interests of the German ruling elite. According to the minister, the tasks of military operations also included the fight against “fake news campaigns”, i.e., the suppression of freedom of the press; against “the infiltration of irregular forces on the borders of the alliance territory; cyberattacks against critical infrastructure, government networks and our banking systems; the threat of missiles of any range and power; attacks on our trade routes at sea,” and “deployments of drone fleets against civilian targets.”
These goals can only be achieved through the massive military rearmament Merkel announced. Von der Leyen spelled out what this implies. She proudly reported that Germany had already undertaken a significant military upgrade in the last four years. Every year, more money had been spent than was allocated to the army at the beginning of the annual budget process.
The result was extensive new purchases, including 181 armoured personnel carriers, 51 armoured fighting vehicles, 31 combat helicopters, 16 transport aircraft, two submarines and 1,800 other military vehicles.
In addition to this upgrade, armaments investments totalling €31 billion have already been launched. “Of course, all this is not yet ready to roll—but much is already in sight,” said von der Leyen. Over the next four years, at least another 129 wheeled armoured vehicles, five new tanker aircraft, 15 marine helicopters, 50,000 suits of body armour, over 33,000 modern digital radios, and more than 70 armoured cranes are scheduled to be delivered to the German military.
But all this is still within previous budget planning, which the planned doubling of the military budget will put in the shade. The aim is to upgrade the Bundeswehr to a fully operational intervention and assault army, and at the same time to promote the “European Defence Union,” which Germany is seeking to direct. For the first time, the European Defence Fund means money from the European budget will be spent on the military.
The German government’s great-power ambitions are supported by all parties in the Bundestag (parliament). The Left Party has proven itself in recent weeks as among the most aggressive advocates of a policy of German imperialism independent of the United States.
This all-party coalition for great power politics confirms what the Sozialistische Gleichheitspartei (Socialist Equality Party, SGP) wrote earlier this year on the formation of the grand coalition of the Christian Democrats and Social Democrats. In February, the SGP declared that the coalition agreement was the “basis for the most right-wing German government since the downfall of the Nazi regime.” It is “the outcome of a conspiracy involving the banks, the employers’ associations, the military, the intelligence agencies and the bourgeois parties… [who] have spent four-and-a-half months negotiating and intriguing to bring a right-wing government to power.”
The SGP pointed out that workers not only have a right to know the contents of the coalition agreement, but also all the secret arrangements made in the course of the negotiations. The SGP pointed to NATO’s declared goal of rearmament and called for the disclosure of all agreements on the specific structuring of armaments projects and their financing. While cutbacks are being imposed on social spending, billions are being spent on armaments and war.
The correctness of this assessment has been confirmed in subsequent months. Merkel and her cabinet have drawn up very concrete plans for a massive military upgrade, which they now want to implement step by step. The conclusion drawn by the SGP in February—“The right-wing conspiracy, which is supported by all the parliamentary parties and large sections of the European bourgeoisie, can be stopped only by the independent political mobilisation of the working class on the basis of a socialist programme”—now acquires even greater significance.

European Union tries to salvage Iran nuclear accord from US unilateralism

Jean Shaoul

European Union foreign policy chief Federica Mogherini hosted meetings with the German, French and British foreign ministers, and Iran’s foreign minister, Mohammed Javad Zarif, in Brussels Tuesday in a desperate bid to salvage the Iran nuclear accord.
The meetings followed US President Donald Trump’s May 8 announcement unilaterally withdrawing from the accord that was signed in July 2015 by the US, Germany, France, Britain, Russia and China. Trump stated that the US would re-impose crippling economic sanctions on Iran.
US officials then demanded that the EU sever its trade relations with Iran.
National Security Advisor John Bolton declared, “No new contracts are permitted,” and gave European businesses 90 to 180 days to wind down operations in targeted sectors such as oil, energy, auto and shipping. Failure to comply would mean that the EU would face secondary sanctions.
The European powers, as well as the state and corporate media, condemned Trump’s action, calling for the treaty to be preserved and vowing to defend their business interests against Trump’s threats to impose the “highest level of economic sanctions against Iran.”
In the most immediate sense, the Europeans are concerned that Trump’s withdrawal from the deal cuts across their attempts to exploit Iran economically under conditions where the continent’s economy is slowing.
US trade with Iran was only $170 million in 2017, while EU-Iran trade was worth $25 billion. EU trade with Iran increased from €7.7 billion in 2015 to €21 billion last year, making the EU Iran’s third-largest trading partner, after China and the United Arab Emirates.
The European powers also fear that the re-imposition of sanctions presages a war with Iran, whose impact will be profoundly destabilising and include soaring oil prices and a further mass influx of refugees.
Whether through war or by engineering regime change in Iran, the US intends to consolidate its hegemony over the Middle East at the expense not only of China and Russia but also its European allies.
French Prime Minister Emanuel Macron and German Chancellor Angela Merkel both went to Washington last month to ask Trump not to jettison the Iran deal. British Foreign Secretary Boris Johnson followed to hold talks with Vice-President Pence and Secretary of State Pompeo.
In a bid to convince Trump to remain in the deal, the Europeans agreed to make a series of fresh demands on Tehran, but to no avail.
Since then, the US Treasury has announced more sanctions, including on Iran’s central bank governor and a deputy for allegedly assisting or providing support for Iran’s Islamic Revolutionary Guards Corps Quds Force and Hezbollah in Lebanon just minutes before the Brussels meeting began.
Tehran has promised to keep its side of the deal as long as Iran can sell its oil and has given the EU 60 days to guarantee the implementation of the nuclear deal. Further joint meetings are to be held next week in Vienna and an EU heads of state meeting in Sofia on Wednesday.
Speaking Tuesday evening, Mogherini pledged to keep the 2015 nuclear deal alive without the US by trying to keep trade and investment in Iran flowing, but admitted it would be difficult to provide the guarantees Tehran is demanding. The EU had agreed to find practical solutions and to continue buying Iran’s oil and gas products, maintain effective banking relations and protect European investments in Iran. But, she added, “I cannot talk about legal or economic guarantees…”
Zarif stressed, “We need to reach some sort of guarantee that these benefits can be guaranteed for Iran within that specified period of time … a few weeks.”
There was no disguising the Europeans’ political and economic impotence vis-à-vis the US. The European powers are seeking to pursue trade relations with Iran, under conditions where the EU’s trade and investment with the US is incomparably greater.
Some companies, including Danish shipping’s Maersk Tankers and Torm and German giant Siemens which has signed contracts worth more than $1.6 billion, have already announced they will cease trading with Iran. Airbus, which has a deal to deliver 100 jets to Iran, has yet to decide its course of action.
There have been various suggestions as to how the Europeans could evade “secondary sanctions,” which would mean an economic confrontation with the US. But none of them are very convincing.
One is the “blocking statute,” drawn up in 1996 in response to US sanctions against Cuba, which would make it illegal for EU companies to comply with laws with extraterritorial application. This would need amending for this situation and require the agreement of all 28 member-states.
Another is retaliatory measures such as a “clawback” clause that would allow for the recovery of costs incurred for US sanctions violations via tariffs on US exports to the EU. French Economy Minister Bruno Le Maire, citing the need for the EU to defend its own “economic sovereignty,” called for the creation of a European body with the power—similar to the US Justice Department—to punish foreign companies for their trade practices.
Others have called for the European investment banks to provide lines of credit to Tehran and facilitate loans or substitute the euro for the dollar in international trade.
While this might help medium-sized companies with no trade or investment ties with the US, it would be of no use to the European transnationals, such as automakers Peugeot and Daimler, and Danish pharma group Novo Nordisk, for whom the US is a major market. Most commentators suggest that banks would not be prepared to risk funding such ventures and incurring the wrath of the US.
All these measures risk exacerbating the already-embittered trade relations with the US, under conditions where Trump has threatened to impose trade tariffs on the import of European steel and aluminium.
The European powers are therefore pinning their hopes on an appeal to those factions in the US political establishment opposed to Trump’s decision on Iran, pointing out that it threatens not only trade relations with Europe, but political relations as well.
In addition, while the European powers are publicly putting forward a united front against the US on the Iran nuclear deal, there are clear divisions between them. Some of the smaller countries have little or no trade with Iran, while others, such as Britain, despite their opposition to Trump’s withdrawal from the accord, are deeply anxious to avoid alienating Washington.
Whatever the outcome of the talks, the rift between the US and Europe is deepening.
The EU’s promotion of its business interests in Iran and the broader Middle East is setting it on a collision course with Washington. The European powers defend interests no less reactionary than those advanced by Trump, including through illegal interventions in the Middle East like last month’s bombing of Syria by Washington, London and Paris—following years of covert action in the war-torn country. But the pursuit of a commercial and military policy independent of Washington will require a vast increase in military expenditure if they are to compete with the US.
Such a policy necessitates ramping up attacks on the working class to secure the hundreds of billions of euros needed to create a credible military rival to the Pentagon. This is the road which the European powers are intent on taking.

India’s BJP government creates new category of workers who can be fired at will

Kranti Kumara

India’s pro-big business, Hindu supremacist Bharatiya Janata Party (BJP) government recently expanded “fixed-term employment”—a form of contract-work under which employers can fire workers at will—to all sectors of the economy.
Hitherto, “fixed-term employment” had been restricted to the textile industry.
Under the “fixed-term” designation, Indian businesses can hire workers on a “non-permanent” basis, for any length of time of their choosing, whether for days, months, years, or the duration of a project. However, the “fixed-term” appellation is a complete misnomer, since an employer can terminate a worker’s contract at any time, claiming changed business conditions, and the laid-off worker is entitled to no severance pay or compensation whatsoever.
The BJP government implemented this sweeping regressive change to India’s labour laws by fiat in mid-March. Bypassing parliament, it issued a notification in the government Gazette that “Fixed Term Employment has now been introduced irrespective of the industry,” thereby amending the “Industrial Employment (Standing Order) Act, 1946.”
Indian big business has hailed this change and with good reason, since it fulfills one of their major demands. For years Indian and foreign investors have been complaining about labour law restrictions on the laying off of workers. Now in one fell swoop they have been provided a mechanism under which all future hires can be dismissed at will and without having to provide any financial compensation, even if they break the “fixed term” or the laid-off workers have been in their employ for years.
The rightwing Economic Times hailed the change, saying it would enhance India’s “ranking” in the World Bank’s “ease-of-doing-business” rankings and attract investment.
Federation of Indian Chambers of Commerce and Industry (FICCI) President Rashesh Shah joined Finance Minister Arun Jaitley and other government spokesmen in perversely touting this measure, which is aimed at enhancing employer-power and gutting any semblance of job security, as a boost to employment. “Since the provisions under the existing labour laws did not provide such flexibility,” said the FCCI head, “industry had inhibitions in engaging extra labour to discharge timely commitments like export orders. The amendment will certainly remove this hurdle and employment generation will receive an impetus in the coming months.”
In pitching his “Make in India” campaign to big business, Indian Prime Minister and reputed “Hindu strongman” Narendra Modi has boasted about his government’s devotion to boosting investor profits and the huge wage differential that now exists between India and China, where industrial workers earn on average at least four times more than their Indian counterparts.
But fearing a popular outcry, the BJP government has tried, however implausibly, to promote the expansion of “fixed-term employment” to all sectors of India’s economy as a pro-worker measure. In addition to claiming that “labour flexibility” will boost employment, it has made much of the fact that companies can now hire workers on short-term contracts without having to use outside labour-contractors and that workers hired on “fixed-term” contracts are supposed to receive the same wages and, on a pro-rata basis, the same benefits (except severance benefits) as permanent employees.
These claims are completely spurious. First, the government has not prohibited employers from using labour-contractors and temporary work-agencies to hire “temp” or “casual” workers and pay them wage and benefits far below those paid their regular workers; it has simply broadened employers’ options for hiring workers who can be easily dispensed with. Second, the Indian Labour Ministry is notorious for failing to enforce minimum wage, health and safety and other work standards, making the legal guarantees of equal pay essentially meaningless.
The trade unions, including the BJP-affiliated Bharatiya Mazdoor Sangh (Indian Workers’ Union), have all condemned the regulatory change. But the unions will mount no serious struggle against it—just as they have sabotaged any resistance to the proliferation of contract-labour across industry, including in the still large state-owned sector.
The unions’ biggest complaints have been that they were not properly “consulted” and that the government ran roughshod over democracy in using a “gazette-notification” to effectively put an end to permanent employment.
The latter is of course true. As for the unions’ complaints about lack of consultation, not only do they underscore their eagerness to collaborate with the BJP government. They are disingenuous.
The unions in fact knew long in advance that the government was preparing such a measure. Several of them, including the BMS and the Congress Party-affiliated Indian National Trades Union Congress or INTUC, presented a joint submission with employer groups to the government about the impending expansion of term-employment through the Industry-Trade Union Dialogue Forum.
This forum was set up with the support of the previous Congress Party-led government, to foster union-management cooperation and suppress working class resistance in the aftermath of the state-employer offensive against the Maruti Suzuki workers. That offensive climaxed with the purging of the entire workforce at Maruti-Suzuki’s Manesar, Haryana car assembly plant, which had emerged as a center of resistance to precarious cheap-labour jobs, and the imprisonment for life of 13 workers on frame-up murder charges. The thirteen included the entire elected leadership of the newly-formed Maruti Suzuki Workers Union.
Both of the principal Stalinist-led labour federations—the Communist Party of India (Marxist)-affiliated Center of Indian Trade Unions and the Communist Party of India’s All-India Trades Union Congress—are founding members of the Industry-Trade Union Dialogue Forum and continue to participate in it. However, they stopped participating in the forum’s discussions on “term employment” for fear of being identified with so reactionary a measure.
“I attended one meeting initially, but then I decided not to go as I found it to be an employer-centric platform,” CITU General-Secretary Tapan Sen told the Business Standard.
The Stalinists are well aware that there is seething discontent in the working class. While the corporate media and political establishment celebrate India’s purported “economic rise,” the mass of the population confronts mass poverty and harrowing economic insecurity.
The top 1 percent of India’s population appropriates almost a quarter of all income and owns 60 percent of the country’s total wealth. Meanwhile, the government’s most recent “Annual Employment & Unemployment Report,” that for 2013-14, found no more than 16.5 percent of India’s workers are in non-precarious type employment, earning a regular wage or salary.
Over the past decade-and-a-half, the Stalinist unions and parliamentary parties have routinely called one-day national protest strikes against the ruling elite’s neo-liberal agenda. But they themselves have played a decisive role in implementing this agenda. The Stalinists have propped up a succession of rightwing governments in parliament, implemented what they themselves call “pro-investor” policies in the states where the Left Front has held office, and systematically isolated and sabotaged worker struggles.
The Stalinists’ real attitude toward the growing resistance in the working class is exemplified by their complete abandonment of the jailed Maruti Suzuki workers.
On April 2, the Stalinist-led CITU and 15 other unions held a one-day general strike in the southern Indian-state of Kerala to protest the new fire-at-will regulation. The protest was actively supported by Kerala’s state government, which is led by the Stalinist Communist Party of India (Marxist).
According to press reports, the strike paralyzed economic activity and transport in the state. But while workers’ opposition was genuine, on the part of the Stalinists the strike was a political stunt aimed at boosting their tattered “left” credentials.
Only days later, at its triennial national congress, the Communist Party of India (Marxist) or CPM voted to remove all obstacles to forming an electoral alliance with the Congress Party, till recently the Indian bourgeoisie’s preferred party of government, in the 2019 national elections.
Big business, meanwhile, is urging the BJP government to press forward with its plans to further dismantle what little protections exist for Indian workers, in the name of streamlining several dozen national labour laws into just four. In its bi-annual world economic outlook, released last month, the IMF urged India’s government to further “ease labour market rigidities.”

Trade unions in lock step with the German government

Ulrich Rippert 

In the face of growing transatlantic tensions, trade war, military rearmament, rapid technological change, massive social cuts and growing resistance among workers, the German Trade Union Confederation (DGB) is stepping up its collaboration with the government. That is the quintessence of the DGB Congress, which took place on Sunday in Berlin.
Every four years, several hundred union officials gather, calling their meeting a “Parliament of Labour.” Representatives of the government and the various political parties are always invited. But this year, the alliance between the trade unions and the government was particularly pronounced. The federal president, the chancellor, the finance minister and vice chancellor, the labour minister and the families minister, as well as leading representatives of almost all parties, appeared at the DGB congress.
Federal President Frank-Walter Steinmeier spoke immediately after the welcome address of DGB leader Reiner Hoffmann. He began by saying, “We live amid great upheavals. Certainties that seemed irrefutable a few years ago are beginning to waver.” Since the Brexit vote in 2016, and especially since the US elections, the world is hardly recognizable, he said. “Uncertainty, retreat into nationalism, populism” are spreading everywhere.
The consequences of these changes had to be discussed at the trade union conference, he declared. The central questions were: “Is the centre of our society stable? Does social cohesion remain—between the wealthy and those on low-incomes, between city and country, east and west? Can we reverse the trend of societies polarizing? And if so, how?”
Steinmeier then focused on a question that, as he said, had the potential “to amplify the centrifugal forces in our society”—technological change.
Digitization and all the “waves of technical progress” had been developing ever faster. They “deeply affect all areas of life.” He knew the “worries and fears” about the effects of this development in the factories.
However, he did not share the “doomsday scenarios” that are often disseminated. The claim that half of all jobs were at risk was exaggerated.
Nevertheless, there was no denying that technological change was “having a massive impact on the world of work.” The trade unions and government had to make great efforts to shape this development in the interest of employees.
On Monday, Reiner Hoffmann put the same question at the centre of his keynote speech. Digitalisation was rapidly driving social change, he said.
“The smartphone has been on the market for only a few years—and it has changed our social life in unimaginable ways.” In business, “artificial intelligence and machine learning” were being developed. The “Internet of Things” meant that everything should be networked with everything else: “Smart robots in factories or care robots in hospitals and nursing homes. Online commerce, service platforms for cleaning, driving or deliveries.”
All this was changing working conditions from the ground up, he said. “Digital crowd and click workers, without any labour or social protection and often paid terribly,” should no longer be tolerated, he declared.
The fear of the socially explosive power of a fast-growing “digital day-labour force” was unmistakable in his speech. Again and again, he appealed to the government and the European Union to create a legal framework to better control this development.
But while the DGB leader justifies his call for closer collaboration with the government with a barrage of phrases about the “social design” and “humanization of the world of work,” in reality, something completely different is taking place. The unions are closing ranks with the government to stifle any resistance in the factories against low wages, rising workloads and job losses.
Technological progress is creating unprecedented opportunities to overcome poverty, raise living standards, improve care for the sick and the elderly, and to invest billions in education and culture. But under capitalism, the opposite happens. Modern technologies are used to increase exploitation and drive up profits, while at the same time exacerbating the global battle for markets and resources—ultimately, as in the Middle East, with the use of military force.
In this conflict, the DGB and its component trade unions stand fully on the side of the capitalists and their government. They act as company police, intimidating workers and developing their own rationalization plans. VW works council head Bernd Osterloh, one of the most powerful and highest-paid union princes of Germany, recently told business daily Handelsblatt that he regarded it as his task to streamline the corporate structure in order to improve synergies and increase the efficiency and international competitiveness of Europe’s largest car company.
The DGB also collaborates closely with the government politically. It supports the return of militarism and the establishment of a police state that ultimately targets the working class.
Hoffmann’s lament over growing social tensions and the drastic deterioration of working conditions cannot hide the fact that these conditions were created by a government with which the unions have been collaborating closely for years. Who led the Labour Ministry over the past few years if not the Social Democratic Party (SPD), whose executive and committees include Hoffmann and a large number of DGB functionaries? Who passed the Hartz laws attacking welfare and labour rights, imposed low-wage labour and thereby created the conditions for the growing army semi-employed workers?
The DGB campaigned for the grand coalition of the Social Democrats and Christian Democrats in the months leading up to the formation of the new government, even though its foreign and domestic policies make it the most right-wing administration since the Nazi era. At the DGB Congress, this reactionary policy became clearly visible. The DGB supports military rearmament, the social cuts necessary to pay for this and all measures strengthening the competitiveness of the German economy.
When DGB boss Hoffmann welcomed the federal president on Sunday, he recalled that in his former role as foreign minister, Steinmeier had spoken of the fact that the world was out of joint and Germany had to shoulder more responsibility. At that time, Steinmeier had established a Foreign Ministry website—Review 2014—to promote Germany’s great power politics, which advocated more foreign missions of the Bundeswehr (German armed forces), amongst other things.
The authors of this site also included DGB boss Hoffmann, who was fully behind military rearmament. His predecessor too, Michael Sommer, had maintained close contact with the Bundeswehr. At that time, in a joint declaration by the trade unions and the Bundeswehr, the DGB had, in all seriousness, claimed that the unions and the Bundeswehr were both part of the peace movement. A short time later, the DGB participated in the celebrations of the 60th anniversary of the founding of the Bundeswehr.
The so-called unitary collective bargaining law, passed by the government almost three years ago, serves to suppress resistance in the factories. Then-labour minister and now SPD party leader Andrea Nahles, in collaboration with Hoffmann, drafted the law, which undermines workers’ constitutionally enshrined rights.
The unitary collective bargaining law limits the right to strike and the right to freedom of association. It grants the DGB a monopoly in collective bargaining, making it a form of compulsory union, similar to the German labour front under the Nazis. Since the DGB unions have been collaborating very closely with the employers and the government for years, while at the same time exercising great influence on companies and administrations through their works council members and shop stewards, the law aims to suppress any resistance or independent movement of workers.
The DGB congress in Berlin makes clear how consciously the trade unions act as a fifth column of government and capital against the working class.

US State Department accuses China of “economic blackmail”

Mike Head

The virulent US-driven campaign in the Australian corporate media against China rose another notch this week. Fairfax Media’s Australian Financial Review (AFR) ran a front-page lead on Monday, followed by an editorial on Tuesday, citing an unpublished US State Department report that accuses Beijing of using a combination of loans and economic coercion to take control of the Indo-Pacific region.
The 40-page document reportedly warns that “Chinese loans worth hundreds of billions of dollars are saddling Australia’s smaller regional neighbours with unsustainable debts and giving Beijing crucial economic leverage to gain strategic and military power.”
These charges follow a succession of similar warnings by Washington think tanks and visiting US representatives over the past several years—most recently the defeated Democratic Party president candidate Hillary Clinton.
The anti-China offensive has three purposes. The first is to condition public opinion in Australia and throughout the region in preparation for trade war and war against China. The second is to beat down those within Australian corporate circles who seek to avert or stall a confrontation with Beijing because of the massive profit interests at stake in China, the country’s largest export market. The third is to ratchet up the pressure from the US, on which Australian capitalism depends for foreign investment and military backing, for much more aggressive participation by Australian governments in military and economic operations against purported Chinese influence.
The provocative report alleges that 16 states are vulnerable to Chinese “debtbook diplomacy” and economic blackmail, including Papua New Guinea, Vanuatu, the Philippines, Cambodia, Laos, Thailand, Malaysia, Sri Lanka, Tonga and Micronesia.
The AFR asserted: “The unclassified document, dated 27 March 2018, emerged out of an earlier classified version written confidentially last year for United States Pacific Command (PACOM).” This points to definite military, as well as economic, calculations being made in Washington.
The document says Chinese lending is “likely to play an important role in China’s multifaceted campaign to erode strategic advantages” of America and its allies, and displace the US as the regional hegemon.
This US hegemony was achieved by defeating Japan in World War II, then conducting a series of wars and coups, from Korea and Vietnam to the Philippines and Indonesia, at the cost of millions of lives, to assert total dominance over the region.
While railing against China’s alleged muscle-flexing, the document bemoans the loss of control over the region by the US and its imperialist allies, such as Britain, France, Australia and New Zealand. It quotes former Australian Labor Foreign Minister Gareth Evans who recently characterised Laos and Cambodia—former French colonies that were devastated by the US during the Vietnam War—as “wholly owned subsidiaries of China.”
Reportedly, there is alarm in the US that Papua New Guinea, which has “historically been in Australia’s orbit” has been “rapidly taking on Chinese loans.” PNG, the State Department reportedly claims, “can’t afford to pay and offers a strategic location [for China] in addition to significant LNG [liquefied natural gas] and resource deposits.” Papua New Guinea was an Australian colony until 1975 and is dominated by US and Australian companies and aid programs.
The report warns that Vanuatu is already “deeply in debt” to China and Beijing is “positioning itself to capitalise on the impending fiscal distress of Pacific Island countries.”
The US State Department openly states that US and allied dominance is essential to waging a war against China. It declares that if Pacific countries turn to Beijing, it could undermine US basing rights, “eroding US advantage in any future US-China conflict.”
The report recommends revitalising the Quadrilateral Dialogue between Australia, India, Japan and the US, directed against China, to bolster India’s role as a regional leader and to promote the “rules-based order” in the Indo Pacific—that is, continued US dominance.
The document accuses Filipino President Rodrigo Duterte of backing down on the Philippines’ territorial claims to the Scarborough Shoals in the South China Sea after China stopped buying large quantities of tropical fruit from the Philippines.
While accusing Beijing of coercing governments, the report highlights two countries where the US has intervened to help oust governments that it deemed to be moving too close to China.
The document notes that Sri Lanka, under President Mahinda Rajapakse, borrowed $US8 billion from Chinese-controlled firms for projects such as an airport and port upgrade in Rajapakse’s hometown of Hambantota. The port became a “debt trap,” the report says. The Sri Lankan government could not afford to repay the ballooning debt and last year gave China a 99-year lease to the port, strategically located in the Indian Ocean.
In the January 2015 presidential election, the US backed Rajapakse’s defeat and his replacement by Maithripala Sirisena, whose administration shifted the country’s foreign policy away from China and toward the US and India. However, the government remained so debt-ridden that it retreated from its initial suspensions of Chinese programs and agreed to a modified lease of the port.
Likewise, the report says Beijing invested heavily in projects for Malaysia’s then-Prime Minister Najib Razak, who was under US Justice Department investigation for corruption. It indicts Najib for going “largely silent” on China’s claims to most of Malaysia’s South China Sea economic zone. Corruption allegations against Najib helped create the conditions for the historic election loss of his UMNO government last week.
Washington is sending a blunt message to Canberra. Yesterday’s Australian Financial Review editorial declared the report was a “warning bell.” It insisted that a “failure of diplomacy” by Australia and New Zealand had permitted China to make “steady inroads” that marked a fundamental “geopolitical shift in our region.”
This agitation is escalating a two-year media campaign to whip up anti-Chinese sentiment. Already, extraordinary claims are being made by the Australian establishment that “Chinese interference” in every aspect of political, economic and social life is bound up with plans to take over the country.
Prime Minister Malcolm Turnbull’s government has responded with accusations that China is financing “white elephant” infrastructure projects in South Pacific states to gain influence. Australia demanded assurances from Vanuatu that it would never allow a rumoured Chinese military base; insisted it will build an underwater Internet cable to PNG and Solomon Islands in order to block a rival bid by Chinese telecommunications firm Huawei; and has moved to tighten ties with Fiji where China has also made significant investments.
Pressure from the US intelligence, military and political establishment is ongoing however. During Hillary Clinton’s tour of New Zealand and Australia last week, she insisted that both countries must “stand up” to “Chinese interference.” Former US ambassador to Australia John Berry also told an audience of Australian military chiefs and diplomats that Chinese President Xi Jinping had “lied” about not militarising islands in the South China Sea.
Addressing war veterans in the audience, Berry said it was essential “that America and Australia both refresh and defend the rules-based order … being on guard for authoritarian termites undermining the foundations of these institutions.”
In part, such declarations are aimed at silencing the wing of the Australian corporate elite who are voicing concerns about the potential implications of the anti-China hysteria for their access to Chinese labour, markets and profits.
Yesterday’s Australian Financial Review carried an opinion column by Geoff Raby, a former Australian ambassador to China who heads a Beijing-based business advisory firm that boasts of “helping Australian and Chinese businesses run successful operations across cultures and borders.”
Raby called for Foreign Minister Julie Bishop to be sacked for making “strident public comments” against China and pursuing a policy of “strategic mistrust” that has triggered an apparent freeze on Australian ministerial visits to China.
Despite these alarmed misgivings, the Australian government is ramping up Canberra’s commitment to US war preparations amid rising tensions between Washington and Beijing, which are being intensified by the Trump administration’s trade war measures against China.

Counter-LWE Security Operations: Season of Success?

Bibhu Prasad Routray


On the surface, the months of April and May 2018 appear to have brought about a season of ‘success’ for Indian security forces. Pursuing a hardline approach, the security forces, across Maharashtra, Chhattisgarh, Odisha, and Jharkhand, have been able to kill a large number of left-wing extremists. The government has also truncated the list of the number of extremist-affected districts, bringing it down to just 30. It appears that the state’s objective of total decimation of left-wing extremism (LWE) is much closer than ever before. How real is that spectre?

Over 40 Maoists were killed in two back-to-back intelligence-led operations in Maharashtra’s Gadchiroli district by C-6 commandos of the state police on 22 and 23 April. Among the dead were three senior level commanders of the CPI-Maoist. While the outfit confirmed that only 22 of the killed were members, rights organisations have claimed that the entire operation was fake and among the dead were several villagers - men and women - from the area. The accusation has been refuted by the state authorities. Nevertheless, elimination of even 22 extremists does strike a serious blow to the operational ability of the CPI-Maoist, which is facing multiple challenges to its existence.       

Successes, curiously, help to get over bad memories, even recent ones. Only a month before the Gadchiroli encounter, an explosion in Chhattisgarh’s Sukma district had killed nine Central Reserve Police Force (CRPF) personnel. The dead were among the personnel travelling in a Mine Proof Vehicle (MPV) that bore the maximum impact of the explosion. Post-Gadchiroli, the C-60 commandos were photographed posing with the dead bodies of the extremists and dancing in post-encounter celebrations. Hence, it is fair to conclude that the encounter, in which two of the extremists who had taken part in the Sukma attack were killed, merely fulfilled the urge to avenge loss, rather than advancing any strategic objective.     

The investigation into the March 2018 Sukma attack had revealed a range of problems that continue to affect the counter-LWE security force operations, especially that of the central forces. Blame was heaped on the ill-suited MPV and a culture of indiscipline among the CRPF. Senior police officer and former director general of the Border Security Force (BSF), EN Rammohan, before his passing in April 2018, laid out why the CRPF personnel continue to err, even at the cost of their own lives. “Lack of leadership, failure in skill craft tactics, and lack of training” are the reasons he cited in a media interview. Company commanders and battalion commandants are not leading from the front. Officers of the level of sector inspector general do not even visit the battalions on a regular basis to spend time with the jawans and assess their level of discipline and training.

Rammohan incidentally had led a one-man commission to inquire into the 2010 encounter in which the CRPF had lost an entire company to an ambush by the Maoists. Even then, Rammohan found that the "CRPF had flouted each rule of the rule book" by "laundering around in the jungle without laying an ROP." In eight years, even after the institution of commissions, successive chiefs infusing fresh expertise into the force, and exhaustion of significant resources, the capacities of forces have remained unchanged. This is the state-of-affairs among security forces of all hues, making them good enough for occasional successes such as the Gadchiroli encounter, but not on whose shoulders a decisive victory can be achieved. 

This seemingly harsh assessment can be substantiated by a number of facts. Two are cited below. Firstly, between 1 January 2014 and 15 April 2018 (mostly pertaining to the tenure of the current government), extremists killed 314 and injured 708 security forces, a large number of them mostly in small and isolated encounters. Each of these attacks bore the same lacunae - capacity, training, and discipline deficiency - that Rammohan and others have underlined. Secondly, the government might choose to showcase the truncated list of 30 affected districts as an achievement. But the fact remains that Maoist domination over these 30 districts has remained undisturbed for past several years and eight of those 30 are in Chhattisgarh, a state where a mammoth 70 battalions of central forces are deployed in anti-LWE operations, besides a huge amassment of state police forces and vigilante groups.   

On 11 May, Home Minister Rajnath Singh, while assessing the LWE situation in Chhattisgarh, admitted that his government was reluctantly pursuing a force-centric approach to the LWE problem and promised that Naxalism would be wiped out in the near future. All through his four-year tenure, Mr Singh has made similar predictions. While such promises excite laymen, for serious observers of LWE developments, these statements bear inherent signs of déjà vu. Under the UPA-I government, Home Minister Shivraj Patil gave the false hope that he could bring back ‘misguided’ extremists back to the mainstream. During UPA-II, P Chidambaram’s home ministry once promised that Operation Green Hunt could decimate the LWE in a few months. The current BJP government, in the fifth year of its tenure, is merely pursuing a ‘kill all extremists’ approach, without paying much attention to building capacity among the forces. While such an approach can produce occasional successes that thrill, whether an end to the LWE problem can be achieved is a genuine question begging for an answer.