Letter: Nothing has changed (2005)

Letter to the Editors from the August 2005 issue of the Socialist Standard

Nothing has changed

Dears Editors

Twenty years ago, there was a high profile pop concert organised by the Live Aid group, to help the famine in Ethiopia. Now two decades later nothing has changed.

The Live 8 concerts addressed the effects of poverty not it causes. Unless the present social system has changed, for many more decades down the line there will be more Live Aids, more GB summits on this poor continent, and more Bonos and Bob Geldofs, yet all their cries for billions to be spent on aid are still unlikely to make more than the smallest dent in the deprivation.

Although there is criminal incompetence of Africa’s post-colonial black elites (the people who call themselves presidents, prime ministers, and in some instances kings and princes of the continent have waged war on their own people and plundered the continent’s wealth to ever bulging Bank account in Switzerland), the main problem of the continent is capitalism.

It is common knowledge that up to two-thirds of the world’s population are hungry, while millions actually die from starvation each year. Why in a world of potential plenty is so elementary a human need as food neglected for some many people?

Some would deny that we live in a world of plenty and claim that the cause of world hunger is natural scarcity. That in other words, some people starve simply because not enough food can be produced.

In the present state scientific knowledge and productive techniques, enough food could be produced adequately to feed the population of the world.

World malnutrition then is not a natural but a social problem. Its cause must be sought not in any lack of natural resources but in the way society is organised. World society everywhere rests on the basis of the resources of the world, natural and manufactured, by very rich minorities.

Rock stars or any other celebrities will not persuade the rich class to make world poverty history. It’s in fact the world market system that ruled the world. Acting like a natural force beyond human control, it has much power than any national government.

The market creates an artificial scarcity and organised waste that is responsible for poverty and hunger in the world today. The law that governs everywhere is “no profit, no production”.

Michael Ghebre, 

London NW1

Letter: to Bob (2005)

Letter to the Editors from the August 2005 issue of the Socialist Standard

Letter to Bob

Dear Editors

Below is a letter I sent to Bob Geldof.

Dear Bob,

I deeply respect your sincerity in campaigning for the end of poverty through the world. My understanding of poverty is the insufficiency of the necessities of life leading to an inability to enjoy the wealth potentially able to be created in abundance by humankind, including leisure pursuits, the arts and the basic necessities including shelter, warmth, food and water and the freedom from illness. This deprivation leads inevitably to hunger and disease. I believe that this insufficiency is largely caused by money.

As I am sure you will agree, it is important to understand that wide-scale hunger and even famine can occur when the available food supplies are not necessarily less than sufficient to feed the people they should be intended for. For example the well-known study of the 1943 Bengal Famine by Armatya Sen, which I am sure you are familiar with, showed this clearly. Other famines in recent times have occurred when there has been a sufficiency of food. Indeed food exporting from Ethiopia continued during the famine of the 1980’s.

It is also important to understand that not all the population of an area affected by hunger will go hungry. It is often what has been called ‘entitlement’ that denies access to the available food. Under the present way of ordering Society this entitlement can be determined by money or barter and not necessarily by a person’s need for food. Having money alone that would ordinarily secure enough of the basics does not always ensure sufficient access to those basics as, for example, when there is a shortage caused by ‘natural’ or human factors. Generally, as with anything else, when there is perceived to be a shortage, the ‘value’ of goods and services (including food) rises. Because of the way things are ordered it is the poorest who suffer most when the price of commodities rises. Therefore Poverty can be said to cause hunger and hunger to cause poverty, because hunger weakens resistance to disease, which in turn leads to an increasing tendency to an inability on the part of its victims to tend to their needs.

As things are presently ordered, therefore, there is an advantage to those who control the availability of essentials and who in some way or other profit from their sale to regulate the supply of goods and services anywhere in the world.

If the products of human labour and indeed the plentiful raw materials throughout the world – including Africa – were freely available to those who needed them and indeed to those who help make them available for human consumption without the intervention of money or any other limiting factor imposed by a minority of humans then there could not be need of any kind, much less catastrophes like famines. Where there were factors held to be beyond the immediate control of humankind, for example floods or droughts, then the technology presently widely available could be used to ameliorate their worst effects. Water can be transported, sea water can be desalinated, rivers can, to some extent, be contained in their capacity to cause widespread damage to the lives of people who happen to live in their flood plains.

Presently some African countries are troubled by, among other things, wars, corrupt government as well as crop failure due to drought and other factors. To some extent many other parts of the world have also been affected in similar ways over the last few centuries. The ‘debt’ that is owed by many countries in Africa and elsewhere is often at least in part due to the efforts of other countries to trade with them. With things ordered as they presently are – in other words governed by money – there is no incentive for traders with Africa or anywhere else to be ‘fair’. These traders are bound by the same rules all traders in the present system are – i.e. to maximise their profit in trading with anyone. If they were ‘fair’ they would quickly go out of business because their profits would decline.

Therefore ‘wiping out’ present debts is no guarantee of a long term solution to the poverty that has been more or less imposed on many African countries. Rather the abandoning of the money system itself by the entire world and sharing the resources of the earth in common is the only real way. Perhaps those countries that have experience in combating the worst effects of droughts could be called upon to help. There are many examples of international co-operation at present under the money system, Space Exploration to name one large one. Another example near to my home is the construction of the Thames Barrier, which utilised the expertise of the Dutch in Flood Defences, the Americans in producing heavy duty waterproof bearings for the gates, the British with their expertise in large scale steel structures, and Austrians with other necessary skills. If this can all be done now, with money as a limiting factor – imagine what could be done when the entire world is united in the will to solve the problems any other area may suffer! We could all share the skills and resources we all have in plenty for the benefit of all humanity! Imagine what kind of world that could be!

Yours,

Tony Norwell, 

London SE2 

Making poverty history or helping capitalists exploit Africa? (2005)

From the July 2005 issue of the Socialist Standard

Who is the G8? In a nutshell, it is a clique of the 8 leading industrial States who have appointed themselves rulers of the world. The G8 leaders are actually the executive of the capitalist class of their respective countries and are the staunchest defenders of neoliberal corporate globalisation, the custodians of privilege and corporate power and the guardians of world capitalism. They help rule the world and maintain the playing field for profit-hungry western corporations. Together they have the power to dictate who eats and who starves, who lives and who dies, to declare war regardless of the wishes of the people who elected them. Their policies have resulted in global poverty and environmental destruction. They are meeting in Edinburgh this July to decide on which international strategies they can commonly pursue, allegedly in the interests of the people of the word and the natural environment.

Lined up against the G8 leaders this July in Edinburgh is the campaign group Make Poverty History, a loose coalition of  some 450 NGOs, unions and charitable organisations, united in the demand for fairer trading conditions for developing States, debt cancellation and increased and improved aid.

Oxfam’s role

By far the biggest development organisation within Make Poverty History is Oxfam, which has been widely accused of pandering to the whims of New Labour and propagating objectives which are identical to those of a Blair government frantic, in the face of the Iraq fiasco, to implement a foreign policy that campaign movements can stomach. Indeed, there are individuals and groups associated with Make Poverty History who identify with the objectives of Messrs Blair and Brown. The celebrity Bono, for instance, referred to the smiling duo at the last Labour Party conference as the “Lennon and McCartney” of poverty reduction.

Loud-mouthed celebrity Bob Geldof, a week after Bono’s remark, revealed he was backing Tony Blair and Gordon Brown’s attempts to deliver development to Africa because of their Christian values. Geldof can well support New Labour and obsessively promote the agenda of the MPH campaign, but you have to begin asking questions when even Blair has been spotted wearing a white Make Poverty History wristband.

The praise is of course reciprocal. On 3 June, Gordon Brown expressed his support for Sir Bob the Gob’s Live8 concerts and encouraged demonstrations at the G8 summit, as long as they take the form of a “peaceful march”. Any other government would have feared a march by one million demonstrators, but not New Labour. Blair and Brown are so happy with the convergence of their own overseas agenda and the demands of the Make Poverty History campaign that they rather see a million person march as being a rally in support of Labour Party policies.

Chancellor Gordon Brown is nowadays advised on international development by former Oxfam trustee and former director at the US bank UBS Warburg, Shriti Vandera, and Blair has the backing of Justin Forsyth – one time Director of Policy and Campaigns at Oxfam – on the Downing Street Policy Unit. Said the latter back in 2002: “When you speak to Tony Blair and Gordon Brown, they really understand [the] issues. They are easily some of the best leaders when it comes to talking about development and dismantling subsidy, and they are making the right arguments time and again.”

Of course there are some within Making Poverty History that see through the scam. War on Want is dismayed at the way New Labour’s overseas policies are winning widespread acceptance and undermining their own campaigning efforts. And neither is Christian Aid happy at Oxfam’s over-cosy, less critical relationship with the government. Friends of the Earth likewise believe there are disadvantages to the privileged position Oxfam enjoys with the government, believing the demands of campaign movements are becoming diluted and generalised.

They have a point. Blair sees himself as somewhat spearheading the MPH campaign at Gleneagles and queries why the MPH are heading for Edinburgh when he speaks their jargon. In Dundee, in March of this year, he commented: “It would be very odd if people came to protest against this G8, as we’re focusing on poverty in Africa and climate change. I don’t quite know what they’ll be protesting against.” 

Making Poverty History has been so linked to the government as to be rendered toothless. When the main players in the coalition demanded a meeting with the government, Whitehall couldn’t accede fast enough. So closely have Blair and Brown been identified with the objectives of the coalition that they have been criticised by other EU member states for softening their pro-liberalisation stance.

And who is it that rallied to the defence of the government to counter the claims of Blair’s cynics in Europe? None other that Oxfam who issued a statement criticising Blair’s detractors for trying to hamper Britain’s attempt to help the world’s poor. It is no secret that Oxfam has informed other developmental groups linked to Make Poverty History that it is important not to be perceived as being confrontational with the government now that Blair and Brown are singing from the same hymn sheet as them.

Opening up Africa

Meanwhile, John Hilary, Director of Campaigns and Policy at War on Want, says that the British contingent at the WTO told him to “get real. The development agenda does not go very far. We have to be pro-business and pro-trade” (New Statesman, 30 May).

Hilary appears to have been well-informed when one considers the agenda emerging from the much praised Commission for Africa Report. This report, which was published on 11 March is the showpiece of the Blair government’s strategy for the G8. responding to its launch, the BBC, (http://news.bbc.co.uk/1/hi/world/africa/4337239.stm) listed eight areas necessitating action by the West, inclusive of doubling or trebling aid, cancelling debt, spending more on HIV/AIDS, financing African universities and the removal of trade barriers to African exports in the West. (The report can be downloaded in full or in sections at the following link.)

There is much in the report to whet the appetite of the anti-poverty campaigner. But, you need only read the precis of the various chapters to suss out what is in fact the real schema.  In chapter 7, for instance, objectives for fiscal growth in Africa are alleged to be possible “only if the obstacles of+ a discouraging investment climate are overcome”. And it proposes the “public and private sector working together to identify the obstacles to a favourable investment climate”. How else can this be interpreted other than in suggesting more liberalisation and privatisation and more opportunities for western corporations to exploit African resources and labour?

The summary of Chapter 8 says: “Investments in infrastructure and the enabling climate for the private sector are at the top of the agenda.” Is this not the government spearheading neoliberal reform in Africa on behalf of big business?

Business Action for Africa has been in cahoots with the Commission for Africa. This coalition of 250 business representatives met with the Commission in February following formal dialogue between the Commission and the private sector on the continents of Africa, North America and Europe – a meeting arranged via the Business Contact Group, itself set up to provide private sector input to the Commission for Africa, and the result of a meeting co-chaired chaired by Gordon Brown and Reuter’s chairman, Niall Fitzgerald.

Referring to the Business Contact Group, Corporate Watch observed:

  “Its 16 or so corporate members read like a roll call of the most exploitative and despised companies currently operating on the continent including Anglo American, Shell, De Beers, Rio Tinto and…Diageo, who also own the Gleneagles hotel where the G8 Summit will take place. Its programme was managed by Shell International’s Senior Business Development Advisor for Africa. Also managing the Contact Group is the Commonwealth Business Council (CBC). The Corporate Council on Africa and the Canadian Council on Africa also gave input, thus allowing oil corporations, ExxonMobil and ChevronTexaco, a say.” (http://www.corporatewatch.org.uk/?lid=1535)

Dave Miller, writing for Znet in an article entitled Spinning the G8, commented:

  “The corporations involved can barely contain their excitement. The ‘outlook’ of the business community is a ‘positive one’ says one of the CFA commissioners.  ‘It believes Africa is the next frontier for investment’. James Smith, the UK chair of Shell, which co-hosted the meeting, noted that progress ‘requires that the private sector has a bigger role’. The chair of the Commonwealth Business Council, the business lobby group co-hosting the meeting, read out the concluding statement. Dr Mohan Kaul affirmed that ‘getting the conditions right for doing business in Africa is the biggest single investment for the future well-being of its citizens’. A ‘vibrant and successful private sector+ is required’ he noted. (http://www.zmag.org/content/showarticle.cfm?ItemID=7852)

EU states may well be critical of Britain’s new pro-Africa stance as being influenced by celebrities and NGOs, but the truth is that affiliates to Make Poverty History, in applauding Brown and Blair,  are the unwitting accomplices  of a government which forms the vanguard of the latest corporate drive to open up markets throughout the developing world.

World-wide reaction

Increasingly, in the last decade, there has been a worldwide reaction against neoliberal globalisation, corporate power and the injustices associated with modern-day capitalism. Everywhere where the world’s ruling elite have assembled to decide their next step they have been met with protests and demonstrations that have attracted hundreds of thousands. Demonstrations at Seattle, Gothenburg, Cologne, Evian, Birmingham, Prague, Genoa and Quebec, have stimulated debate on the nature of modern day capitalism. Thousands of articles have been written on the subject and hundreds of books have been published that explore the aims, objectives and the alternatives offered by the anti-globalisation movement.

What is now clear is that the anti-globalisation/pro-development movement, however well-meaning, does not seek to replace capitalism with any real alternative social system. At best it attracts a myriad of groups, all pursuing their own reformist agenda. Some call for greater corporate responsibility. Some demand the restructuring of international institutions like the IMF, World Bank and the WTO. Others call for the expansion of democracy and fairer trading conditions, debt cancellation and more aid. All, however, fail to address the root cause of the problems of capitalism and promote the damnable system they are critical of by applauding any meagre reform.

One thing is certain: no amount of high table reform is going to legislate poverty out of existence as the MHP coalition believes. Capitalism cannot be reformed in the interests of the world’s suffering billions, because reform does not address the basic contradiction between profit and need. Moreover, reform can be so packaged and camouflaged as to be acceptable to protestors whilst leaving their real grievances unaddressed. The world’s leaders simply cannot be depended upon to implement real change because they can only ever act as the executive of corporate capitalism.

The protesters at the G8 might think they are united in common cause, but in truth they are only united in supporting capitalism and in their mistaken belief that poverty can be legislated out of existence, They have no blueprint for change other than the three demands put forward by the Make Poverty History campaign – Fair trade, more aid and debt cancellation. – and this is about as radical as it gets. In mirroring in their objectives the overseas goals of Blair and Brown they are anything but the modern day revolutionaries they claim to be.

It is now no utopian fantasy – but a practical, revolutionary proposition – to suggest we can live in a world without waste or want or war, in which each person has free access to the benefits of civilisation. That much is assured. We certainly have the science, the technology and the know-how. All that is missing is the will – the global desire for change that can make that next great historical advance possible; a belief in ourselves as masters of our own destiny; a belief that it is possible to free production from the artificial constraints of profit and to fashion a world in our own interests. And how soon this happens depends upon us all – each and every one of us.

John Bissett

Show Biz re-visits world poverty (2005)

From the July 2005 issue of the Socialist Standard

Can Live 8 and the host of attendant charities campaigning this month really make a difference to world poverty?

“Make Poverty History” is an imaginative slogan. Who could disagree with the idea of a society in which all people enjoy good health and material security, with all the miseries of world poverty consigned to the past?  Sir Bob Geldof is one who believes in such a world and, as a rock performer with credibility, is trying to mobilise millions of like-minded people in great demonstrations aimed at bringing pressure on the G8 governments to assist the desperately poor in the undeveloped countries. If his plans succeed a million people will go to Edinburgh, and added to these will be many more attending concerts in London, Paris, Rome, Berlin and Philadelphia, all to celebrate their solidarity and to make the point that the people of the richest countries should spend more money to end hunger. The aim is also to persuade world leaders to drop third world debt, reform trade laws and double aid to the undeveloped regions.

It is not for socialists to spoil a good party.  On the contrary, we can take some heart from these popular demonstrations of care and concern. It would be even more depressing if millions of people were dying every year from easily preventable causes while those better off never gave it a thought. However, this is not the case, so at least there is something reassuring about the willingness and enthusiasm of many people to join together to focus attention on the tragedies of needless death in a world that could so easily provide the good things of life for all.

However, we are bound to ask some critical questions. The staging of pop concerts aimed at making poverty history is beginning to acquire a history of its own.  It is twenty years since the first Live Aid Concert was staged at Wembley in 1985 and was thought to be a great success.  The aim was to make a difference but what difference did it make?

Reality behind the hype

No doubt in a very minor way the money raised following concerts and channelled through organisations like OXFAM has done a bit of good. But this should be seen against the scale of the problem and whether the actions led by Live Aid, or as it is now called Live 8, in any way address its causes. Over the years, agencies of the United Nations such as the Food and Agricultural Organisation have posted the numbers suffering poverty. For example, in 1975, 435 million people were seriously undernourished. By the year 2000 this had almost doubled to 820 million. UNICEF states that approximately 40,000 children under five die every day from preventable causes.  These figures indicate that since the first Live Aid concert in 1985 the numbers dying from poverty have been increasing horrendously, which leaves little doubt that pop concerts and the charities have made no significant impact on the problem. The grim facts are that the present methods of the “Make Poverty History” campaign stand no chance of ending deaths from hunger. If we are to be serious about stopping this perpetual holocaust, the many thousands of people who support this campaign should have a serious re-think about how best to go about it.

We don’t see much by way of analysis, but judged by its methods the “Make Poverty History” campaign appears to think that the fault lies with the developed countries in not cancelling third world debt, not opening up more free trade, and not being more generous in sending money aid to the undeveloped countries, particularly in Africa. However, there is not a shred of evidence that any cancellation of debt will result in improved conditions for workers in Africa.  It is claimed that the aim of loans to African states is to improve services such as health and education and build up infrastructures such as communications, port facilities, roads and bridges, etc. In theory these would assist the development of trade with a prospect of raising living standards throughout the continent.  A more realistic view is that loans enable Western governments, banks and global corporations to maintain an economic stranglehold on the economies of countries that are rich in resources such as oil, natural gas, gold, diamonds, iron ore, titanium ore, bauxite, timber, rubber, copper and other vital materials.

One example is Nigeria with a population of 135 million, GDP per capita of $275  per annum, an external debt of $1.1 billion and producing 750 million barrels of oil per year under the control of global oil companies such as Shell (Anglo Dutch), Exxon Mobil (US), Sasol (South Africa), AGIP International (Italy), Chevron (US), Total (France), BP (UK), Statoil (Norway).

Angola financed its civil war from profits from the sales of oil and diamonds and also relies on oil-backed loans which now burden the economy with an external debt of  $10.45 billion. Average life expectancy in Angola is 36 years.  Its GDP per capita income is $632 per year. Whilst most of its population suffers the most severe poverty its political rulers benefit from corruption. “The IMF found that between 1997 and 2002 some $4.22 billion went missing equivalent to some 12 percent of GDP. Angola’s wealth is concentrated in the hands of a small elite, who often use government positions for massive personal enrichment” (Guardian, 1 June).

The small country of Equatorial Guinea was recently subject to an escapade involving Sir Mark Thatcher who was accused of being part of an intended takeover. It is immensely rich in resources with oil and gas production expected to reach 150 million barrels a year. It carries an external debt of $248 million. Some international companies reaping high profits include Marathon Oil (US), Exxon Mobile (US), Energy Africa (South Africa), Chevron (US), British Gas (UK).

Marathon Oil operates in Equatorial Guinea on very good terms which may be associated with the benefits its politicians enjoy. “Teodoro Obiang Nguema, the country’s president, and his wife and son, were apparently treating themselves to planes, big houses and shopping sprees. Millions of dollars in cash were being lugged around Washington in suitcases” (Guardian, 2 June).

Taking the continent of Africa as a whole the (British) Prime Minister’s Commission for Africa “estimated that the amount stolen and now held in foreign banks is equivalent to more then half the continent’s external debt of $300 billion” (Guardian, 3 June).

There can be little doubt that the world we are now describing is one motivated by greed and pursued through a ruthless exploitation of natural and human resources. The main players are governments, multinational corporations and corrupt local politicians running gangster regimes. It may well be that the governments of the G8 will make a gesture that partially cancels third world debt but the write-off of these dollars will only be a means of continuing their grip on African countries whilst dressing their actions with the phoney rhetoric of care and concern.

There will be no outcome that will solve the problems of the desperately poor of Africa, and however well meaning may be their slogans, workers in the developed countries should not become involved in the machinations of interest groups whose basic concern is profit and the economic strategies of ruling elites.

Weakness of mere protest

Whilst the G8 protests may demonstrate great strength of feeling they will also demonstrate a great weakness; this is the lack of control of those who take part and their dependence on the decisions and actions of present power structures. Because of this, protesters can become victims of a seductive but deadly process. The capitalist system constantly throws up issues that demand action amongst those who are concerned and by many people who think of themselves as socialists. As a result, protest tends to become a demand for an “improved” kind of capitalism which leaves the long-term reasons for protest intact. This has been the history of protest.

In this sense, protest tends to set a stage for further protest and further demonstrations. Though the issues may vary the message stays the same: “We demand that governments do this, that or the other!” The spectacle of thousands demanding that governments act on their behalf is a most reassuring signal to those in power that their positions of control are secure.  In this way, repeated demonstrations do little more than confirm the continuity of the system. The point is to change society, not to appeal to the doubtful better nature of its power structures.

With Sir Bob as its high priest, we could also think of the Live 8 concerts as homage to the god of money and the illusion that it has powers of action on its own.  But the opposite is true. Money is part of a system that prevents us from using our real powers of production for the benefit of all people. Geldof never stops going on about giving more money and this feeds the illusion that without money we have no way to provide for the things we need. This leaves us separated from our powers of action. It ignores the fact that productive resources are not money but labour, land, industry, manufacture, transport and communications. The problems of world poverty require that these should be liberated from the economic constraints of money and the profit system.

Given that the number of people suffering and dying from the effects of world poverty have doubled over the past 25 years and on any realistic forecast will continue to increase, it should be obvious that we must go far beyond mere protests, organise to abolish the profit system and replace it with a world of common ownership, democratic control and production solely for needs. Such a socialist world would be able to stop people dying from hunger immediately and rapidly increase world food production to reach a point where every person on the planet would have free access to sufficient good quality food to maintain good health.

Pieter Lawrence