Pharmaceuticals can be a license to print money

It’s no secret that the United States suffers from by far the world’s highest costs for health care. As the most market-oriented health care system among advanced capitalist countries, this is no surprise. Health care in the U.S. is designed to deliver corporate profits, not health care.

On that score, the U.S. system is quite successful. Pharmaceutical companies are at the head of the class in this regard, frequently justifying the spiraling costs of medications by citing large research and development costs that include the costs for drugs that don’t make it to market. There are many drugs that fail to survive testing and become a cost that will never be compensated, that is true. But are these failures really so high to justify the extreme costs of successful drugs?

It would seem not. Firmer proof of that lack of justification has been published by the JAMA Internal Medicine journal, which found that revenue for cancer drugs far outstrips spending on research and development. The article, “Research and Development Spending to Bring a Single Cancer Drug to Market and Revenues After Approval,” prepared by Drs. Vinay Prasad and Sham Mailankody, found that revenue from 10 drugs (one by each of 10 companies) exceed those companies’ total research and development costs by more than seven times.

The increase in pharmaceutical prices (blue) versus the general increase in commodities prices (red).

The total revenue hauled in from these 10 drugs did vary considerably. Two of them earned more than US$20 billion after approval. Both of these high performers cost less than $500 million in research and development costs. The revenue from each of the 10, however, exceeded costs, with widely varied margins. Still profitable: The median revenue of these 10 drugs was $1.7 billion, more than double the median development cost of $648 million, the JAMA Internal Medicine authors report.

The authors write that the median cost to develop a cancer drug represents “a figure significantly lower than prior estimates,” adding that their analysis “provides a transparent estimate of R&D spending on cancer drugs and has implications for the current debate on drug pricing.”

To obtain these figures, the authors analyzed U.S. Securities and Exchange Commissions filings for pharmaceutical companies with no drugs on the U.S. market that received approval by the U.S. Food and Drug Administration for a cancer drug from January 1, 2006, through December 31, 2015. Cumulative R&D spending was estimated from initiation of drug development activity to date of approval. Earnings were tracked from the time of approval to March 2017.

The sky’s the limit for pharmaceutical prices

Another way of looking at this would be to examine the increases in the cost of pharmaceuticals against other products. Here again the numbers stand out. Using data gathered by the St. Louis branch of the Federal Reserve Bank, the consumer price index for pharmaceutical preparation manufacturing for the first quarter of 2017 was 747.8, with January 1, 1980, as the benchmark of 100. In other words, the price of pharmaceuticals is seven and half times higher than they were at the start of 1980. (See graph above.)

How does that compare with inflation or other products? Quite well — for pharmaceutical companies. That more than sevenfold increase in drug prices is an increase nearly two and half times greater than inflation for the period, and nearly four times that of all commodities.

So, yes, unconscionable price-gouging is the cause here. By the industry as a whole, not simply individuals like “Pharma Bro” Martin Shkreli, who might be an outlier in his brazenness but not in his profit-generation plan.

Although not the entire picture, this snapshot of corporate extortion plays a significant role in why the cost of the United States not having a universal health care system is more than $1.4 trillion per year.

Among 19 broadly defined “major” industrial sectors in the U.S., health technology is again expected to be found the most profitable for 2016, with a profit margin of 21.6 percent. Higher even than finance at 17 percent. When narrowing to more specific, narrowly defined industry categories, generic pharmaceuticals sit at the top with an expected 30 percent profit margin for 2016. Major pharmaceuticals rank fourth at 25.5 percent on a list in which health products and finance claim nine of the top 10 spots.

The sky’s the limit for pharmaceutical profits

That’s a repeat of 2015, when health technology had the highest profit margin of 19 broadly defined industrial sectors, at 20.9 percent, topping even finance, the second highest. When a separate study broke down profit margins by more specific industry categories, health care-related industries comprised three of the six most profitable.

Nothing new there, either. A BBC report found that pharmaceuticals and banks tied for the highest average profit margin in 2013, with five pharmaceutical companies enjoying a profit margin of 20 percent or more — Pfizer, Hoffmann-La Roche, AbbVie, GlaxoSmithKline and Eli Lilly. The world’s 10 largest pharmaceutical corporations racked up a composite US$90 billion in profits for 2013, according to the BBC analysis. As to their expenses, these 10 firms spent far more on sales and marketing than they did on research and development.

If those facts and figures aren’t enough, here’s another way of looking at excessive profits — a 2015 study found that, of the 10 corporations that have the highest revenue per employee among the world’s biggest corporations, three are health care companies. Two of the three, Amerisourcebergen and McKesson, both distribute pharmaceuticals, and the other, Express Scrips, administers prescription drug benefits for tens of millions of health-plan members. Each of these primarily operates in the United States, the only advanced-capitalist country without universal health coverage.

The extra layers represented by those three companies demonstrate that there are ample opportunities for corporate profiteering that contribute to extraordinarily high health care costs in the U.S., beyond drug manufacturing and insurance.

And because corporations have the ear of politicians and other government officials, it’s no surprise that one of the primary ongoing goals of the U.S. government for so-called “free trade” agreements, such as the Trans-Pacific Partnership, is to impose rules that would weaken the national health care systems of other countries. This was done in TPP negotiations at the direct behest of U.S.-based pharmaceutical companies, incensed that countries like New Zealand make thousands of medicines, medical devices and related products available at subsidized costs.

By far the most expensive system while delivering among the worst outcomes and leaving tens of millions uninsured, where tens of thousands die from lack of health care annually. That is the high cost of private profit in health care. Or, to put it more bluntly, allowing the “market” to decide health outcomes instead of health care professionals.

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Can’t we have an honest conversation about Vietnam?

The Ken Burns/Lynn Novick television series on the Vietnam War provides yet another example of the narrowness of “acceptable” political discourse in the United States. More than four decades past the end of that imperialist adventure, having a serious discussion about it remains taboo.

The series also provides a fresh example of how the narrowness of acceptable discourse is disguised through the appearance of a vigorous debate. I will confess here I have not watched Burns and Novick’s The Vietnam War, but the consistency of the many discussions of it I have read confirm what would have been expected: The liberal side of the “debate” on the Vietnam War, that an “honorable” effort was tragically miscarried because of “mistakes.”

The series has a long list of corporate sponsors, typical for a Public Broadcasting System production. One of the Koch Brothers, David H. Koch, provided funding, as did the Andrew W. Mellon Foundation, the Rockefeller Brothers Fund and Bank of America. Such blue-chip sponsors are not going to associate themselves with any organization that has the slightest potential of providing any challenging critique.

Rice paddies in Vietnam (photo by Simon Gurney)

But let us not reverse cart and horse. This is the sort of case where corporate sponsors, including fiercely anti-democratic ones like the Koch Brothers, provide funding because they are confident of what they will be getting. There is no need for any formal censorship because corporate control of the media will see to it that viewpoints challenging the mythologies of capitalism are deemed out of bounds.

Most large, influential broadcast stations and print publications are owned by large corporations, and a typical small-city newspaper is owned by a prominent local businessperson if it is not owned by a large corporation. Powerful corporate interests appoint the top editors and managers of their media properties — these mass media decision-makers are men and women who already see the world through the prism of dominant ideologies, and those ideologies will be reflected in the way that news stories are covered. Those ideologies are also reflected in indirect ways — pressure to increase readership or viewership easily leads to pandering to perceived (and sometimes manufactured) consumer interests such as wall-to-wall coverage of celebrity gossip and exhaustive coverage of sports teams simultaneous with the shrinking of news sections.

The press isn’t free if you don’t own one

Many folks on the Left have the idea that there is some sort of organized conspiracy among owners and managers of major media outlets to make sure that ideologically inconvenient perspectives are shut out. That simply isn’t so. Competition alone would prevent any such collusion; within “acceptable parameters” reporters and editors want to be the first to report news. It is enough that corporate-inspired ideologies pervade a society and that corporate ownership ensures that decision-making positions are filled with those who hold to some variant of prevailing ideologies or are inclined to “play it safe” by cautiously remaining within “acceptable” boundaries.

The mass media will then simply reflect these dominant ideologies, and continual repetition through multiple mass media outlets reinforces the ideologies, making them more pervasive until the emergence of a significant countervailing pressure. The very competitive nature of mass media ownership helps dominant ideologies prevail — if so many different outlets report the same news item in a nearly identical way, that “spin” can easily gain wide acceptance. Or if stories are reported differently by competing media outlets, but with the same dominant set of presumptions underlying them, those dominant presumptions, products of ideologies widely propagated by elite institutions, similarly serve as ideological reinforcement.

Editors can reign in reporters with independent mindsets by not running unacceptable stories, or revising them so that dominate ideologies and mythologies are not challenged. When a reporter is fearless enough to follow the trail until some semblance of the truth can be published, even if in watered-down fashion, an exemplary punishment can be made of him or her (such as was done to Gary Webb after his reporting on the CIA). But even when that is not the case, a simple ignoring of a story can make it disappear.

The persistence with which stories are reported is another reinforcement — stories that serve, or can be manipulated, to uphold dominant ideologies can be covered for long periods of time with small developments creating opportunities to create fresh reports at the same time that stories that are ideologically inconvenient are reported briefly, often without context, then quickly dropped. An inconvenient story run once, then ignored, can even misleadingly be pointed to as “proof” that news is being reported no matter what interests are at stake.

One well-documented example will provide an illustration — coverage by elite media of Jerzy Popieluszko, a pro-Solidarity priest in Poland murdered in 1984 by Polish secret policemen in contrast to coverage of priests and other church personnel murdered in U.S.-backed Latin American dictatorships.

Human rights depends on if the U.S. supports the régime

In their classic book, Manufacturing Consent, Noam Chomsky and Edward Herman analyzed four U.S. media outlets that then often set the tone for the press — the most influential newspaper (The New York Times), the two main news magazines (Time and Newsweek) and the most authoritative television news broadcaster (CBS). Their study found 140 articles/broadcasts on Popieluszko and eleven articles/broadcasts on 23 victims in Guatemala during a period that overlapped with Popieluszko’s murder; the Times ran ten front-page articles on Popieluszko, none on the others.

The articles on Popieluszko routinely featured graphic descriptions of the details of his murder and consistently tied his murder to Polish communist authorities despite the fact that the murderers were swiftly arrested and found guilty in an open trial. By contrast, only four of the 23 Guatemalan victims had their names mentioned in any news account, little detail was offered for any of these murders, no remark was made concerning the fact that no arrests were made in any of these cases, nor was U.S. material support of the Guatemalan government that was behind the murders once mentioned.

None of the prevailing situation precludes energetic debate in capitalist mass media within the parameters set by prevailing ideological interpretations. Ideas that directly challenge corporate orthodoxy can be excluded at the same time that a debate among two or more “acceptable” ideas rages. This brings us back to interpretations of the Vietnam War. At the end of the 1990s a strong debate played out in the mass media outlets of the United States concerning the Vietnam War (one in which the Times was a significant participant).

A U.S. Air Force plane drops a white phosphorus bomb on Vietnam in 1966.

This debate had all the appearances of a serious dissection of a bloody, deeply divisive blot on U.S. history. But although the debate was heated and lively, it was only between two “acceptable” viewpoints — an honorable effort that tragically failed or a well-intentioned but flawed effort that should not have been undertaken if the U.S. was not going to be “serious” about fighting. Left out were the widely held views that the war should never have been fought because it was a war to extend U.S. hegemony or that the U.S. simply had no business fighting in someone else’s civil war.

Further, the first “acceptable” viewpoint implied, and the second explicitly stated, that the U.S. didn’t really fight hard to win the war, ignoring the actual intensive level of the U.S. war effort in which most of North Vietnam’s larger cities were reduced to rubble, much of the farming lands were destroyed and three million Vietnamese were killed. The total tonnage of bombs dropped by the U.S. in Vietnam exceeded that of all bombing by all countries during World War II. Reports of the countryside at the end of the war spoke of entire regions as “bare, gray and lifeless.”

So much for the proverbial “fighting with one hand tied behind the back.” And let’s not forget that the Vietnamese had already spent years freeing themselves from the grip of France, only to have the U.S. sabotage elections and resume the fight. That the Vietnamese have the right to decide for themselves how their economy will be structured, or even be allowed independent development at all, and that the U.S. used the full might of the world’s biggest military machine to prevent that, is still outside “acceptable” discussion.

Debate in the service of obfuscation

The liberal conception of an honorable effort that tragically failed is every bit an obfuscation as the conservative perspective that a well-intentioned but flawed effort that should not have been undertaken if the U.S. was not going to be “serious” about fighting. But that these two narrow perspective were allowed to fight it out provided the appearance of a free and open media at the same time that the media obscured.

To return briefly to Guatemala, there has only rarely been any effort in the U.S. to discuss Washington’s bloody role (and elsewhere in Latin America). The Eisenhower administration overthrew Guatemala’s democratically elected government, after a 1952 “national intelligence estimate” (a joint document put together by the CIA and other U.S. intelligence agencies) declared that the United Fruit Company’s massive profits there were a “U.S. interest” requiring intervention.

Allen Dulles, then the CIA director, met with a United Fruit official, promising that whomever the CIA would select as the next Guatemalan leader would not touch the company. The overthrow would institute a 40-year nightmare of state-organized mass murder. A series of military leaders, each more brutal than the last and fortified with U.S. aid, unleashed a reign of terror that ultimately cost 200,000 lives, 93 percent of whom were murdered by the state through its army and its death squads.

The worst of these dictators was General Efraín Ríos Montt, whose régime murdered more than 1,000 people a month during 1982. Ríos Montt was an evangelical Protestant preacher who declared that his presidency was the will of God. Ronald Reagan responded by paying a visit to Ríos Montt, declaring him “totally dedicated to democracy” and claiming that reports of human rights abuses were a “bum rap.”

Do you ever see of this (only one of dozens of examples that could be cited) discussed in the U.S. corporate media? I don’t, either.

In countries in which the media is controlled by the government, it is easy for people to disregard what they read or hear because it is all coming from the same source, even when there is room for different opinions. A system in which the mass media is believed to be independent is far more effective at suffusing a society with an ideology. Such a system is not the result of some sort of conspiracy or a conscious plan, it is simply a natural outgrowth of corporate institutions growing so powerful at the expense of all other institutions.

And when a particularly skilled team of producers is able to uphold the interests of elite institutions, corporate and otherwise, the red carpet will be rolled out. Slick, beautifully presented work beats ham-fisted propaganda every time.

The problem is fascists, not those who stand up to them

The ongoing debate of recent weeks around how, or if, to confront demonstrations of white supremacists and fascists is the latest manifestation of arguments the Left and liberals have been having for many years. For this is not simply a question of tactics but incorporates broader ideas of how we conceptualize the threat from the extreme Right.

For decades, the liberal “solution” to fascists, including marches by undisguised neo-Nazis, has traditionally been to go to the other side of town, pray and hope they go away. Critiques of antifa and other groups who courageously stood up to the white supremacists in Charlottesville, Virginia, are variations on that pacifist theme. We need do no more than refer to Cornel West’s support of “the anti-fascists, and then, crucial, the anarchists, because they saved our lives, actually. We would have been completely crushed, and I’ll never forget that.”

Raleigh-Durham IWW stands with clergy at the stairs to Emancipation Park in Charlottesville, Virginia (photo by Anthony Crider)

The problem with liberal-pacifist responses is that, if adopted, the only result would be to embolden the fascists. The white-nationalist gangs behind the Charlottesville rally unmistakably intended to intimidate. Remember that another demonstration was scheduled for Boston the following weekend and several others were planned. Instead, because they were confronted in Charlottesville, their Boston rally became a fiasco for them and appearances in other locations were called off. Communities showed what they think of them. The result for speaks for itself.

The foremost problem with liberal-pacifist responses is that it tells people they have no right to defend themselves. That should be rejected, emphatically. The violence of hate-mongers like those carrying the torches in Charlottesville and any violence that is used in defense by people who have no choice but to physically defend themselves has no equivalence. Should people have just stood there and allowed violence to be perpetrated against them and allow gangs of white supremacists and fascists to intimidate the majority — the vast majority — into silence? Do we really need to ponder this question?

Sufficient numbers in themselves stop fascists

Fighting back needn’t be physical, and generally does not need to be if there are sufficient counter-forces. I’ll draw here on two examples from late 1990s in New York City.

In the first example, a small band of neo-Nazis were running loose on Staten Island, the city’s right-wing outpost situated at a distance from the rest of the city. There were five of them, apparently inspired by a truly loathsome “novel” called The Turner Diaries, which features scenes of vast groups of people hung by Nazis during a race war. (To give you an idea of the demographics there, Donald Trump won Staten Island even though he received only 18 percent of the overall New York City presidential vote.)

A small group that I was then a member in, New York Workers Against Fascism, organized a coalition to confront the neo-Nazis. It was quickly decided to organize a series of peaceful demonstrations on the belief that a violent response would only alienate the community we were attempting to rally against the neo-Nazis. At one rally, in a park, the neo-Nazis actually showed up in uniform, across a busy street, and started giving Hitler salutes while shouting “white power.” They were simultaneously pathetic and representative of a potentially highly dangerous trend. In this instance, we had to hold back a group of anarchists from Love and Rage who wanted to charge, one of whom angrily told me “I came here to smash fascists.” I answered that today we were going to smash them peacefully. Conceding to the coalition’s consensus, he didn’t charge although he remained angry. Tactics had to be a serious consideration here.

Note the coalition did not go to another part of the island and pray the neo-Nazis would go away. In this case, a confrontation needed to be non-violent, although we did have some baseball bats hidden in case we were attacked. Fortunately, they stayed hidden as the coalition significantly out-numbered the neo-Nazis.

A few years later, a Ku Klux Klan group decided to have a rally in Manhattan. Setting aside the idiocy of them thinking they could get a foothold in a place like New York City (fascists aren’t the brightest bulbs, to put it mildly), one can’t help but wonder how they thought they could get any reception other than the one they got. Their appearance was scheduled for Foley Square, a downtown location with wide spaces. Eight of them showed up, guarded by hundreds of police officers and surrounded and heckled by about 80,000 counter-demonstrators. Yes, we outnumbered them 10,000 to one! The Klan ended its event early and were said to have received an escort by the police to the Holland Tunnel, the nearest exit from the city.

Similarly, the white supremacists were badly outnumbered in Boston last month and had to be protected from the people of Boston by rings of police and metal barricades. They had to slink home. They were successfully confronted. Not by praying they would go away but by so out-numbering them that they had to concede defeat and realize how unpopular their racism and misogyny is, even if they are highly unlikely to admit to themselves.

Communities are entitled to defend themselves

Questions of tactics, based on the immediate situation, the size of the forces on the two sides and the community being defended and/or reached out to, should predominate. Should we condemn antifa for a physical defense in light of the other outcomes discussed here? Emphatically no. The situation in Charlottesville called for such a defense, as Professor West directly said. The next time a community needs to defend against physical jeopardy, we can only hope there will be people ready to provide it.

Let’s not forget what fascists stand for. They stand not simply for hate, but for supremacy of one group over another, violence to enforce such supremacy and ultimately the annihilation of demonized peoples and groups. We all understand what fascism led to Nazi Germany.

Boston Free Speech rally counter-protesters on August 19, 2017 (photo by GorillaWarfare)

The Holocaust should not be out of our minds when fascists carrying torches march in formation chanting “Jews will not replace us.” When we think about where fantasies of white supremacy lead, such as in the apartheid systems of South Africa and the United States South of the pre-civil rights era, and in slavery, ideologies of white supremacy should not be taken lightly. When we see the results of misogyny globally, especially but far from only in régimes run by religious fundamentalists, talk of making women subordinate to men can’t be laughed off as nothing but the fantasy of losers who can’t get a girlfriend.

Liberals who don’t want to confront these threats but insist on an absolutist free-speech position, even to the point of saying we should engage with fascists, are playing with fire. You don’t “debate” people who deliver their message only with violence. You don’t debate whether one racial group if superior to another. You don’t debate whether we should adopt social forms reminiscent of Margaret Atwood’s The Handmaid’s Tale. You don’t debate whether the Holocaust happened or if there is an international Jewish conspiracy. Just as the proverbial “you can’t yell fire in a crowded theater” puts limits on free speech, advocating the annihilation of people (always conveniently different) is outside any reasonable definition of free speech. Yes, that means “no platform for fascists” — we shouldn’t apologize for such a stance, which is what the non-violent confrontations recounted above amount to.

All working people are ultimately threatened by fascist ideologies. Beyond all the reasons already discussed (more than sufficient in themselves), there is the question of who fascist movements serve. That there is no immediate danger of a fascist takeover in the United States (or almost any other global North country, Hungary and Poland excepted) does not mean we should ignore the class nature of fascism.

Who would a dictatorship serve?

As always, we should carefully distinguish between right-wing demagogues like Donald Trump (whose election is ultimately a product of decades of routine Republican Party rhetoric) and his ability to actually implement fascist rule. Once again, it might be best to see the Trump phenomenon as constituting the seeds for a potential fascist movement rather than a fully fledged fascism. That ought to be scary enough, and enough for all of us to make a stand against it. To say this is not to ignore the glaring connections between the Trump administration and white supremacists and the so-called “alt-right” (let’s retire that silly term and just call them fascists or fascist wannabes), but rather to note that most of the U.S. ruling class — industrialists and financiers — backed Hillary Clinton and not President Trump in the 2016 election.

That matters, because at its most basic level, fascism is a dictatorship established through and maintained with terror on behalf of big business. It has a social base, which provides the support and the terror squads, but which is badly misled since the fascist dictatorship operates decisively against the interest of its social base. Militarism, extreme nationalism, the creation of enemies and scapegoats, and, perhaps the most critical component, a rabid propaganda that intentionally raises panic and hate while disguising its true nature and intentions under the cover of a phony populism, are among the necessary elements, although not sufficient in themselves.

Despite national differences that result in major variations in the appearances of fascism, the class nature is consistent. Big business is invariably the supporter of fascism, no matter what a fascist movement’s rhetoric contains, and is invariably the beneficiary. For even if it is intended to benefit them, these big businessmen are giving up some of their own freedom since they will not directly control the dictatorship; it is a dictatorship for them, not by them. After using violent militias to gain power, those militias are quickly sidelined.

Hitler would never have reached power without significant material support from German industrialists. German industrialists and aristocrats, and the conservative politicians who served them, thought they could control Hitler if they put him in government. They couldn’t, but profited enormously as wages for German workers declined sharply and were enforced by labor codes that even a Nazi paper once said were “reminiscent of penal codes.” It was little different in Mussolini’s Spain or Franco’s Spain or Pinochet’s Chile.

Think it can’t happen in your country? It can. Any country dominated by the capitalist system is at risk of fascism because fascism is capitalism with all the democratic veneers stripped away, when capitalists come to believe they can’t continue to rule and maintain profits any other way. That fascist groups, even the Nazi Party, start out as small bands of deluded misfits lashing out at scapegoats because they don’t have the intellectual capacity to understand the world they live in, in no way alters this picture.

Better to definitively defeat fascist grouplets now, before they have any chance of becoming tools. Anti-fascist organizers are doing humanity a service, whether peacefully counter-demonstrating or using more militant tactics such as those of antifa.

Creating a participatory system of economic democracy in Rojava

Out of repression has emerged one of the world’s most interesting experiments in democracy. And by democracy, what is meant is not the formal capitalist variety of elections every few years in which consumption of consumer products is substituted for participation in societal decisions.

Surrounded on all sides by hostile forces intent on destroying them, in a part of the world that Western pundits claim can only be ruled by dictators, the Kurds of Syria are intent on creating a society more democratic than any found in North America or Europe. This is not simply a matter of creating institutions of direct and communal, as opposed to representative, democracy but, most importantly, democratizing the economy. In the words of the imprisoned Kurdish leader Abdullah Öcalan, “In self-government, an alternative economic system is necessary, one that augments the resources of society rather than exploiting them, and in that way satisfies the society’s multitude of needs.”

The many sides of that equation are explored in detail in Revolution in Rojava: Democratic Autonomy and Women’s Liberation in Syrian Kurdistan,* a study of Rojava’s experiment in radical democracy by three activists who spent months in Rojava studying the society being constructed, and who themselves have been involved in Rojava in various capacities. One of the authors, Anja Flach, spent two years in the Kurdish women’s guerrilla army. Her co-authors are Ercan Ayboga, an environmental engineer, and Michael Knapp, a historian. Although the three authors make clear their sympathies for the Rojava revolution, their book is not hagiographic, but rather a serious analysis of a developing process.

The Kurdish people are split among four countries — Iran, Iraq, Syria and Turkey — and have long suffered persecution in each of them. Their persecution in Turkey is well known; successive Turkish governments have attempted to disrupt organizing, obliterate Kurdish culture and ban the Kurdish language through waves of lethal military crackdowns. Mr. Öcalan escaped Turkey after a military coup that led to hundreds of thousands of Kurds thrown into jail; he and the Kurdistan Workers Party (PKK) he leads were granted asylum in Syria. In the late 1990s, under Turkish pressure, Syria expelled the PKK, and a year later, Mr. Öcalan was abducted from a Greek consulate (a kidnapping believed to be a CIA operation) and has been imprisoned in Turkey since.

But that the Syrian régime found the PKK a useful lever against Turkey for a time did nothing to ameliorate ruthless repression against the Kurds of northern Syria. The Ba’ath Party of the Assad family implemented a policy of “Arabization” against Kurds and the other minority groups of the areas now comprising Rojava. Kurds were routinely forcibly removed from their farm lands and other properties, with Arabs settled in their place. Bashar al-Assad, in contrast to the misplaced hopes that he might institute a thaw upon succeeding his father in 2000, instituted a harsh neoliberalism. Mass privatization, suppression of unions, the shredding of the social safety net and a channeling of investment capital into tourism and away from production had a particularly devastating impact on Rojava.

After the uprisings in Syria against the Ba’ath régime began in 2011, the struggle quickly became militarized. The Kurds avoided being overrun by the Syrian army or the various Islamist forces because of their own organization. Grassroots organizing had been done steadily since the 1990s, and when local government collapsed following the 2011 uprisings, that organizing, a nascent council system and the formation of militias enabled the carving out of an autonomous territory. People surrounded government buildings, demanding the surrender of all arms while guaranteeing the safe passage of all Syrian government officials. This tactic worked, quickly sweeping through all three “cantons” of Rojava. (A canton is a portion of a province, perhaps bigger than a U.S. county or French department but smaller than a U.S. state or a French region.)

The aim here was to create a democratic territory through peaceful means. This takeover was accomplished nearly without bloodshed, although Rojava’s militias have had to repeatedly repulse attacks from Islamic State, al-Qaeda and other hostile forces, as well as fend off the sometimes active hostility of the Turkish government, which has allowed Islamic State terrorists to freely cross the border and re-arm themselves. Sadly, Rojava has also been subjected to periodic blockades and political harassment from the two corrupt parties that control Iraqi Kurdistan, which borders Rojava to the east.

The system of democratic autonomy

The basic units of Rojava’s organization are councils and commissions. These constitute the building blocks of Rojava’s system of “democratic confederalism.” The authors of Revolution in Rojava explain this concept in this way:

“Democratic Confederalism aims at achieving the autonomy of society, that is, a society that administers itself through small, self-governing decentralized units. It entails a permanent social revolution, reflected in every aspect of social structure. All institutions are self-organized and self-administered.” [page 44]

Concurrent with that concept is “democratic autonomy,” which is defined as “the autonomy of the commune” in an “anti-centrist, bottom-up approach.” The commune is the basic unit of self-government, the base of the council system. A commune comprises the households of a few streets within a city or village, usually 30 to 400 households. Above the commune level are community people’s councils comprising a city neighborhood or a village. The next level up are the district councils, consisting of a city and surrounding villages. The top of the four levels is the People’s Council of West Kurdistan, which elects an executive body on which about three dozen people sit. (“West Kurdistan” is the portion of Kurdistan that lies within Syria.)

Integrated within the four-level council system are eight commissions — women, defense, economics, politics, civil society, free society, justice and ideology — that work with councils at all four levels; in turn commissions at local levels coordinate their work with commissions in adjacent areas. There is also a ninth commission, health, responsible for coordinating access to health care (regardless of ability to pay) and maintaining hospitals, in which medical professionals fully participate. Except for the women’s commission, all bodies have male and female co-leaders.

Taking with upmost seriousness the full liberation of women (also expressed in the all-women’s militias that fight on the front lines the same as men’s units), the women’s commissions are tasked, inter alia, with adjudicating cases of patriarchal violence and forced marriage. An umbrella women’s movement organizes women across Rojava, taking on activities including educational work, publishing a newspaper, pushing for legislation, and investigating and documenting domestic violence. This work has roots in the 1990s, when PKK women organized door to door. When organizing by men was heavily suppressed after 2004, women organized clandestinely, giving them experience.

Making women’s participation central is of course a glaring contrast with the Islamist groups and the so-called moderate groups of the Free Syrian Army. Every organization in Rojava must include at least 40 percent women. Asya Abdullah, co-chair of the Democratic Party of Kurdistan, Rojava’s largest party, said the revolution is conscious of not repeating the mistakes of the past, in which women’s liberation was often put on the back-burner. She said:

“We’re a still long way from achieving our goals. … But we’ve learned from the failed revolutions in the past. They always said, ‘Let’s carry the revolution to success, and then we’ll give women our rights.’ But after the revolution, of course, it didn’t happen. We’re not repeating that old story in our revolution.” [page 70]

Creating a new justice system

As with many governmental functions, the judicial system has had to be rebuilt from scratch. Peace committees seek consensus through dialogue at the commune and neighborhood levels. The goal is rehabilitation rather than punishment. Most cases are settled in peace committees, but felonies and those cases not adjudicated in the peace committees are assigned to district-level people’s courts. There are separate women’s peace committees that handle cases of male violence against women in which all-women panels hand down decisions.

Parallel to these systems of democratic self-activity is the Democratic-Autonomous Administration. This is essentially a dual government, created primarily for foreign governments. Because Rojava’s councils have been ignored elsewhere, the DAA was created so that world’s governments would have a government they could recognize. Each of three Rojava cantons has a DAA, which includes an elected parliament and ministries that are distributed among the various political parties so that each has at least one minister. These, however, rely on the earlier-established council system and work with the councils. The division of labor between the councils and the DAA has yet to be worked out, nor how to reconcile a dual-government structure.

Civil society associations also play large roles in Rojava. These groups perform educational work, organize grassroots activity and place representatives on the councils. Many of these associations are occupation groups. In contrast to what the Kurdish movement sees as the state existing as a means of extracting profits for favored social groups or classes and inculcating a fixation on authority, civil society is substituted for a state. The authors write:

“The Kurdish movement, in its anti-statism, thus draws on [Antonio] Gramsci’s concept of civil society in proposing to strengthen civil society for the purpose of overthrowing the state. In contrast to the abortive Bolshevist strategy of seizing state power, Öcalan posits, like Gramsci on the ideological, political struggle for civil society, a ‘war of position’ beyond military confrontation. Through empowerment, a civil society tries to free itself from the hands of the state and its religious, economic and administrative structures and so to build a counter-hegemony and to activate individual parts of the society to represent civil society in councils and communes.” [pages 122-123]

Economic development on a democratic basis

This democratic concept extends to the economy. Food and fuel prices are controlled, working conditions are negotiated among several interest groups, workers’ rights are defended and the pursuit of profit maximization is blocked to avoid the destructive tendencies of capitalism. The principals of the “communal economy” are described in this way by the Union of Civil Society Associations:

“The state system exploited the society’s labor power and trampled the rights of workers. Under Democratic Autonomy, civil society associations solve problems according to principles of moral politics and an ecological society. The unity of society is the foundation. These associations hold society together. They ensure the unity that is needed to satisfy everyday social needs. Of course, they do this as part of democratic, communal life. They are how society organizes itself.” [page 124]

Rojava, the authors write, was a “quasi-colony” under the Ba’ath régime. There was an enforced agricultural monoculture with no local production allowed. Oil, gas and agricultural products were shipped out, and canned food and finished products from elsewhere shipped in. Not even trees were allowed to be planted. So although there is much productive farmland, Rojava could not come close to self-sufficiency in food as all farmers were forced to raise wheat or cotton. Farming is now being re-oriented toward local needs so that a much higher percentage of food can be produced locally; this is partly a necessity as the area is often blockaded by neighbors.

The city of Qamishli in Syrian Kurdistan

The councils, already in existence, organized the economy to prevent a collapse after Rojava’s liberation. Price controls, measures against hoarding food and medicine, agricultural diversification, planting fruit trees, and building grain mills and industry were implemented and are ongoing projects. Rojava’s economic underdevelopment is seen locally as a disadvantage and an opportunity. It is the latter because, the authors write, it “allows the traditional social collectivism of the Kurdish people to be channeled positively to build a new, alternative economy.” [page 197]

Much of this new economy rests on cooperative enterprises. Cooperatives are required to be connected to the council system; independence is not allowed. Cooperatives work through the economics commissions to meet social needs. Much of this cooperative production is in agriculture or small shops but there are plans to create more industry to meet local needs. Thirty percent of all coop proceeds must be given to local self-government administrations. And this is seen as a route to eliminating unemployment. The authors write:

“The cooperative system is solving the problem of unemployment. ‘Through the communes and cooperatives and the needs-based economy,’ explains [Afrin University chair] Dr. [Ahmad] Yousef, ‘each person can participate in production in his own way, and there will be no unemployment. Where communes are established, it will become clear that unemployment is a result of the capitalist system itself.’ ” [page 206]

Such a system can’t work without an educated population:

“To ensure that society is able to make decisions about the use of water, soil, and energy, information about the society’s needs are taken out of the hands of the experts and socialized. Education is critical for this purpose. ‘We school the people in how cooperatives can form a social economy,’ says [Union of Kurdish Communities leader Cemil] Bayık. ‘We are establishing economics academies to advance this.’ ” [page 207]

Surrounded by a hostile world

All this is at odds not only with the existing institutions and state organizations surrounding them, but with the capitalist powers as well. How can Rojava’s experiment possibly survive in a such a hostile world? The authors of Revolution in Rojava strongly urge the building of Left support sufficiently strong to influence North American and European governments. The people of Rojava, the authors stress, are in need of material support from the West at the same time they are acutely aware of the dangers of a U.S. embrace.

The idea that Rojava’s acceptance of Western aid is a “betrayal” is called “naïve” by the authors, drawing parallels with Republican Spain of the 1930s. Describing Rojava as an “anti-fascist project,” they note that the capitalist West turned its back on the Spanish Revolution, allowing fascism to triumph.

The danger of U.S. material support, of course, can’t be underestimated, given that a communal economy oriented toward people’s needs rather than private profit is anathema to U.S. corporate and government power, which have teamed up to throttle many a revolution attempting to transcend capitalism or simply assert independent development. Moreover, the U.S. wrongly classifies the PKK, which seeks to implement the same system as their fellow Kurds in Syria, as “terrorists” and has long supported Ankara’s scorched-earth repression of Kurds.

In the short term, material support from the West is needed if Rojava is to successfully defend itself from Islamic militants and the Turkish government. Syrian (and Turkish) Kurds, who see their model as one that can be expanded across Syria and the entire Middle East, have their eyes open to the narrowness of the path that must be thread through these contradictions. Nor are their eyes closed to their unsolved problems of pollution, water, waste management, and the stop-gap use of diesel generators that is causing serious environmental problems.

The book ends on an optimistic note, readapting Rosa Luxemburg’s famous phrase to declare the future is “communalism or barbarism.” Although brief discussions of Thomas Jefferson, Luxemburg and Gramsci (who was no opponent of the Bolsheviks) are poorly argued and their views misstated, this is at most a minor irritant in a work ably presenting the first comprehensive study of Rojava’s inspiring experiment in mass-participation democracy. Revolution in Rojava is an excellent introduction to a revolution that is not yet well known but should be.

* Ercan Ayboga. Anja Flach and Michael Knapp (translated by Janet Biehl), Revolution in Rojava: Democratic Autonomy and Women’s Liberation in Syrian Kurdistan [Pluto Books, London 2016]

Life under capitalism: Early deaths a ‘silver lining’ for corporations

Participating in Monday evening’s demonstration at the Trump Tower in Manhattan, I couldn’t help thinking of the connections between a Bloomberg article proclaiming that people dying earlier contains a “silver lining” because corporations will save pension costs and the ongoing savagery of the Trump administration.

Not simply the naked symbiosis between the Trump administration and white supremacists, neo-Nazis and assorted far-right cranks — all too sadly on display in Charlottesville, Virginia, last weekend — but the alliance of corporate titans, Republican Party leaders and President Trump himself. The rush by even conservative congressional Republicans to condemn the tweeter-in-chief for his refusal to condemn his so-called “alt-right” allies for two days should not distract us from the Trump administration’s all-out assault on regulations, civil rights laws, health care and the environment. (Let’s please retire the useless term “alt-right” and call them what they are: white supremacists, fascists and fascist wannabes.)

The health care system of the United States is already by far the world’s most expensive while delivering among the worst results. So of course the solution to this, in Republican eyes, is to make it worse. That effort has, so far, failed, thanks to massive grassroots activism. But plenty else is being rammed through under the radar through executive decrees — which is why we shouldn’t hold our breath waiting for Congress to impeach President Trump. He’s much too useful to Republicans and corporate executives. Should that change, of course, all bets are off, but short a Democratic tidal wave in 2018 Republican members of Congress turning on the president anytime soon isn’t likely.

On the march against Trump in New York City August 14 (photo by Mark Apollo/Hashtag Occupy Media)

So what does this have to do with an article published by Bloomberg? The headline on this particular article says it all: “Americans Are Dying Younger, Saving Corporations Billions,” complete with a subhead declaring “lower pension costs” a “silver lining.” As not only a proud member of the corporate media, but one specializing in delivering news to financiers and industrialists, extolling a benefit to corporate bottom lines and ignoring the, ahem, human cost of said benefit is only to be expected. The article is not at all atypical of the business press, even if this one is a little more obvious than usual.

But, as a friend who is an activist with a Marxist party but who once ran a chemical industry consultancy by day (if only his clients knew his politics!) once taught me, the business section is where they hide the news. So the point here isn’t the attitude of Bloomberg toward working people (no more hostile and sometimes less so than your average business publication) but the attitude of corporate titans toward employees. The article states:

“In 2015, the American death rate—the age-adjusted share of Americans dying—rose slightly for the first time since 1999. And over the last two years, at least 12 large companies, from Verizon to General Motors, have said recent slips in mortality improvement have led them to reduce their estimates for how much they could owe retirees by upward of a combined $9.7 billion, according to a Bloomberg analysis of company filings.”

Austerity costs human lives

Gains in U.S. death rates had been improving until 2009, Bloomberg reports, citing a Society of Actuaries analysis, but those rates then flattened before reversing in 2015. This isn’t necessarily unique to the U.S. — the Institute and Faculty of Actuaries in the United Kingdom last month reported that U.S., Canadian and British seniors have ceased seeing longevity improvements, suggesting the impact of austerity since the 2008 economic collapse is a primary culprit. The Actuaries report said:

“The rising mortality rates among US working age demonstrates that the historical fall in mortality rates cannot be taken for granted. The pace of life expectancy gains of older ages has slowed down, with some age groups showing signs of increasing death rates. These signs should be taken as warnings that worsened health care, behaviour and environment can reverse decades of success in health and longevity. Actuaries need to have a better understanding of the drivers of longevity to consider how to incorporate recent experience into forecasts of future longevity.”

As welcome as a new quantification of the toll of austerity is, such a notion is far from new, nor is it simply the latest variant of capitalism, neoliberalism, that is at work here. The increased deprivation of capitalism caused a half-million U.S. deaths from 1999 to 2015. Specifically, nearly half a million excess deaths have occurred since 1999 among middle-aged White non-Hispanic United Statesians, according to a paper published in 2015 by two Princeton University researchers, Anne Case and Angus Deaton.

A shuttered hospital (photo by Jim Henderson)

From 1978 to 1998, the mortality rate for U.S. Whites aged 45 to 54 fell by 2 percent per year on average, matching the average rate of decline in five comparison countries (Australia, Britain, Canada, France and Germany). But although, from 1999, other industrial countries continued to see a decline in mortality rates for the middle-aged, the U.S. White non-Hispanic mortality rose by half a percent a year, an increase that is unique, Drs. Case and Deaton reported. African-American death rates have not similarly risen although remain considerably higher than those for Whites.

The authors do not speculate on the reason for White deaths to increase in contrast to the trend of minority groups, but we might reasonably conclude that People of Color have had deprivation and economic difficulty imposed on them in greater numbers and more intensely, and thus are experiencing less of a change in historic circumstances than are Whites. The economic downturn that the world has lived through since 2008 certainly hasn’t bypassed People of Color — far from it — but the decline has not spared Whites, a group not as hardened to lower living standards thanks to their privileges.

Privatization costs human lives

Privatization and intensified reliance on “the market” has already been demonstrated to worsen health outcomes. A 2009 study published by The Lancet concluded that the mass privatization in the former Soviet bloc resulted in one million deaths. Mass privatization caused the average number of deaths to increase by 13 percent from the 1992 onset of shock therapy. An Oxford University press release summarized these findings:

“David Stuckler, from Oxford’s Department of Sociology, said: ‘Our study helps explain the striking differences in mortality in the post-communist world. Countries which pursued rapid privatisation, or ‘shock therapy’, had much greater rises in deaths than countries which followed a more gradual path. Not only did rapid privatisation lead to mass unemployment but also wiped out the social safety nets, which were critical for helping people survive during this turbulent period.’ ”

During Soviet times, we were assured by Western commentators that high levels of alcoholism were a sign of despair in Russia, yet alcohol per-capita consumption rates in 2007 were three times that of 1990.

When a health care system is designed to deliver corporate profits rather than health care — and this is precisely what privatized health systems do — such are the results. Throwing more than 20 million people off the roles of health insurance, as all Republican Party plans would have done, could only have exacerbated poor health outcomes. But doing so is consistent with Republican plans to shred what remains of the U.S. social safety net, sure to lead to further early deaths. As the more reliable instruments of the will of corporate plutocrats (Democrats having to sometimes make concessions to their voting base), Republicans see Donald Trump in the White House as a gift.

The purported disapproval enunciated by the likes of Senator Jeff Flake are a sad joke — the Arizona Republican has reliably voted for all Trump appointees and legislation. What really “embarrasses” members of Congress are the president’s vulgarity and ham-fisted obviousness. He simply refuses to use code words that way that ordinary Republicans have learned to do. Stop being so obvious! But in reality President Trump is the logical product of 37 years of Republican pandering — half a century if we go back to Richard Nixon’s “Southern strategy.”

We can certainly argue over what constitutes fascism, and whether President Trump is properly called a fascist or that he is simply a Republican who is more willing to show the fist behind capitalist rule albeit someone who carries the seeds for a potential fascist movement. The latter is more than scary enough. But as the casual talk of a “silver lining” for shortened life spans illustrates, human life is expendable in the pursuit of profits under capitalism. And as long as the Trump administration is useful to this pursuit, occasional protests from corporate executives will remain no more than hollow gestures.

No country on Earth fully safeguards labor rights

There is no country on Earth in which violations of labor rights do not occur. The best rating is for those which are merely “irregular violators of rights,” and only 12 countries managed that.

The International Trade Union Confederation, in its annual Global Rights Index report on the state of labor around the world, has once again provided sobering news. Sixty percent of countries exclude whole categories of workers from labor law, the ITUC report says, indicative that “corporate interests are being put ahead of the interests of working people in the global economy.” The ITUC’s general secretary, Sharan Burrow, said:

“Denying workers protection under labour laws creates a hidden workforce, where governments and companies refuse to take responsibility, especially for migrant workers, domestic workers and those on short term contracts. In too many countries, fundamental democratic rights are being undermined by corporate interests.”

Among the key findings of the report:

  • More than three-quarters of countries deny some or all workers their right to strike.
  • More than three-quarters of countries deny some or all workers collective bargaining,
  • Eighty-four countries exclude groups of workers from labor law.
  • The number of countries in which workers are exposed to physical violence and threats increased to 59 countries from 52 a year earlier.
  • Unionists were murdered in 11 countries, including Bangladesh, Brazil, Colombia, Guatemala, Honduras, Italy, Mauritania, Mexico, Peru, the Philippines and Venezuela.

International labor standards

To assess the state of global labor, the International Trade Union Confederation, “a confederation” of national trade unions, sends questionnaires to its affiliates in 161 countries and territories representing 176 million workers, with the intention of covering as many aspects of the right to freedom of association, the right to collective bargaining and the right to strike as possible. The information collected is then used to assess whether a given country meets standards set by the International Labour Organization.

These standards are examined by answering “yes” or “no” to 97 indicators arranged in five categories: Fundamental civil liberties; the right to establish or join unions; trade union activities; the right to collective bargaining; and the right to strike. The reason for a binary “yes” or “no” rather than a gradated scale is because “this method reduces the normative subjectivity of the analyst who carries out the coding,” the ITUC said. Further, because each of the 97 indicators is based on “universally binding obligations,” companies and government are required to meet them in full.

When the ITUC first carried out this survey, in 2014, the highest score attained was 43, meaning that no country had even half of its questions answered with a “yes.” In other words, every country in the world flunked.

For the 2017 report, the ITUC did not indicate the range of country scores, but followed its previous format of grouping countries into five tiers. The top tier, in which countries merely “irregular violate” labor rights, consists of 12 countries, which are marked in green on the map below. Eleven are found in Europe, and one in Latin America, Uruguay. (Yellow represents the second tier, followed by progressively darker shades of orange and red, the worst violators.)

ITUC map of labor rights. Green represents the highest-ranking countries; red the lowest.

The rankings are as follows:

  • 1. Irregular violations of rights: 12 countries including France, Germany and Sweden.
  • 2. Repeated violations of rights: 21 countries including Canada, New Zealand and South Africa.
  • 3. Regular violations of rights: 26 countries including Australia and Chile.
  • 4. Systematic violations of rights: 34 countries including Brazil, Britain and the United States.
  • 5. No guarantee of rights: 35 countries including India, Mexico and the Philippines.
  • 5+ No guarantee of rights due to breakdown of the rule of law: 11 countries including Burundi, Palestine and Syria.

U.S., Britain systematic violators of labor rights

The United States was also rated a “four” in 2014, while Britain has slipped from being ranked a “three” then. Once again, that means the U.S. and U.K. commit “systematic violations” of labor rights — so much for those governments’ endless attempts to assert moral authority over the rest of the world. The Trump and May governments are not likely to improve upon these rankings. In regards to U.S. deficiencies, the ITUC report says:

“Far from consulting with unions regarding labour law and policy, some states and U.S. politicians have taken deliberate steps to roll back workers’ collective bargaining rights. … The National Labour Relations Act (NLRA) and judicial decisions interpreting the law prohibit workers from engaging in sitdown strikes, partial strikes and secondary boycotts, and impose other restrictions on organisational or recognitional strikes.”

Embarrassingly for a country governed by a party calling itself a “Coalition of the Radical Left,” Greece is among the countries with a ranking of “five.” This ranking is due to harsh restrictions on collective bargaining that were implemented beginning in 2010 through several laws on orders of the “troika” — the European Commission, European Central Bank and the International Monetary Fund — which led to “a significant erosion” of labor rights.

Ironically, the Eurogroup president, Jeroen Dijsselbloem, says that collective bargaining is a “best practice” of the European Union, but the EU continues to block any attempt by the Syriza government to restore labor protections. A proposed law to re-establish collective bargaining was not submitted to the Greek parliament because of troika disapproval.

A sobering reminder of what capitalism offers working people: A race to the bottom and more exploitation. Surely, the world can do better.

Trump’s re-negotiation proposal will make NAFTA worse

As a candidate for president, Donald Trump claimed he wanted a better deal for U.S. workers. Surprise! Oh, okay, that he was lying really isn’t a surprise at all. Far from a “better deal,” the Trump administration is now offering a North American version of the Trans-Pacific Partnership.

Although it might have seemed that the TPP was dead and buried after several years of struggle by activists on both sides of the Pacific Ocean (President Trump had as much to do with TPP’s demise as a rooster does for the rise of the Sun), the TPP’s language is being used as a model for a re-negotiated North American Free Trade Agreement.

The Trump administration issued an 18-page document on July 17, announcing its “Summary of Objectives for the NAFTA Renegotiation.” Please try to contain your excitement. But to spoil the fun of actually reading the document, the net result, should these plans come to fruition, would be to strengthen corporate power, not promote the interests of working people. There is almost nothing concrete in the text’s 18 pages but much boilerplate language that reads as if it was lifted from the TPP. In fact some of the language appears to be repeated word for word.

The Sierra Club’s executive director, Michael Brune, summarized the “Summary of Objectives” document this way:

“In a blunt display of hypocrisy, Donald Trump appears to want to copy and paste the weak labor and environmental provisions of the TPP, a deal that Trump claimed to hate. Based on today’s ‘plan,’ one could be forgiven for concluding that Trump’s opposition to the TPP was merely political theater and this administration has no intent of fundamentally changing NAFTA.”

Friends of the Earth was no more inclined to give the benefit of the doubt:

“Trump’s statement indicates he plans to step up his war on public health and the planet by modeling NAFTA’s provisions related to environmental regulation on the TPP. These objectives appear to set the stage for a stealth attack on strong regulation of food, agriculture, chemicals, and biotechnology.”

It would be all too easy to say “We told you so,” but, really, was it realistic to expect a billionaire who built his empire on screwing working people and who has populated his cabinet with a rouge’s gallery of corporate plunderers to do otherwise?

Meet the bosses’ panel, same as the old panel

Any re-negotiation that doesn’t eliminate the investor-state dispute settlement (ISDS) provision isn’t a serious re-negotiation. The “Summary of Objectives” document doesn’t, and it isn’t. Instead, the document offers a few reforms that will not change the substance of ISDS. The key passage states: “Establish a dispute settlement mechanism that is effective, timely, and in which panel determinations are based on the provisions of the Agreement and the submissions of the parties and are provided in a reasoned manner.”

That is consistent with the sort of language one can find in most any so-called “free trade” agreement. And that is actually a part of the problem — the one-sided tribunal decisions repeatedly handed down that strike down environmental and health regulations are consistent with “provisions of the agreements.” So the Trump administration’s goal would change nothing.

The only specific changes proposed are that tribunal submissions and final decisions be made publicly available, and that hearings be open to the public. As these proposals are found on the last page they do not appear to be at all a priority. Measures to reduce the secrecy of the process are welcome, but these would have no practical effect on the inherent unfairness of this process.

The same tribunal that handles complaints by multi-national corporations against government regulation, an arm of the World Bank, will still handle these complaints. The same structure, under which corporate lawyers who specialize in representing these corporations in regulatory disputes alternate between being lawyers and judges, handing down decisions with no accountability and no appeal, would remain in place.

There is no mention of NAFTA’s Chapter 11, which is the agreement’s linchpin. Chapter 11 codifies “equal treatment” in accordance with international law and enables corporations to sue over any regulation or other government act that violates “investor rights,” which means any regulation or act that might prevent the corporation from earning the maximum possible profit regardless of harm to others.

The rulings that have previously been handed down will remain as precedents that will be used in future hearings. If an earlier tribunal ruling said that a ban on a known carcinogen is prohibited by NAFTA rules protecting “investor rights,” that precedent will remain in place and be used as a justification to knock down the next health or environmental rule. That the tribunal would have some of the veil of secrecy lifted from its decisions won’t change any of this. As long as Chapter 11 exists, the same one-sided decisions will be handed down. As long as the investor-state dispute settlement provision exists, the same one-sided decisions will be handed down.

There is no “reform” that can make this system fair. There is no alternative to eliminating completely the entire investor-state dispute settlement system. The Trump administration is offering cosmetic changes that leave untouched the ability of corporations to force the reversal of rules protecting health, safety, labor or environmental standards.

Capital beats people in trade language

The “Summary of Objectives” document purports to adopt standards for labor and for the environment, but the language used is very similar to the language proposed for the Trans-Pacific Partnership and in use in other so-called “free trade” agreements. There is little at all in these stated goals that differs from the stated goals that Obama administration put forth for the Trans-Pacific Partnership. They are meaningless window dressing.

In the language of trade agreements, rules benefiting capital and erasing the ability of governments to regulate are implemented in trade-agreement texts with words like “shall” and “must” while the few rules that purport to protect labor, health, safety and environmental standards use words like “may” and “can.” So although the Trans-Pacific Partnership was promoted as constituting a big advance in protections for labor, health, safety and the environment, those were empty platitudes.

The Trump administration’s supposed intentions here are even less sincere given its undisguised contempt for environmental concerns.

The only specific change proposed is the elimination of Chapter 19, which means the elimination of anti-dumping review panels. The Institute for Agriculture and Trade Policy said the elimination of Chapter 19 would ensure that dumping of commodities (illegal for industrial goods) will occur unchecked by countervailing duties. Agricultural dumping of subsidized U.S. crops under NAFTA has driven millions of Mexican farmers off their lands. As more are driven off the land, more Mexicans will be forced to migrate to the United States by whatever means necessary and Mexican agriculture will continue to be badly hurt.

As for employees in manufacturing, The “Summary of Objectives” document does not meaningfully address the offshoring of jobs, or NAFTA’s prohibition of “buy local” rules.

Nor does the above exhaust the list of proposals that will allow multi-national capital to run wild. The objectives concerning “trade in services, including telecommunications and financial services,” appear to be cut and pasted from the Trans-Pacific Partnership and the Trade In Services Agreement. The goal of prohibiting “discrimination against foreign services suppliers” and against “restrictions on the number of services suppliers in the markets” signal the intention to eliminate any meaningful restrictions regulating the financial industry.

One prominent goal of the Trade In Service Agreement was to enable giant financial companies, particularly those based in the U.S., to take over the banking and financial systems of small countries, and it appears the Trump administration seeks to retain this goal, whether to directly target Mexican or Canadian banking, or alternatively as a model to be imposed in future trade deals.

Health and environmental laws will still be “barriers to investment”

Consistent with the objectives of the Trans-Pacific Partnership, the Trump administration says it wants to “Establish rules that reduce or eliminate barriers to U.S. investment in all sectors in the NAFTA countries.” What that passage means is that, consistent with what is written above, the intention is for the elimination of as many restraints on corporate behavior as possible.

Multi-national corporations consider a “barrier” to profits any rules or laws that protect health, safety, labor standards or the environment. Thus eliminating “barriers to investment” means eliminating protective laws. This would reinforce the tendency of the tribunal that renders decisions on corporate complaints to rule against protective laws.

There is nothing to celebrate in this re-negotiation. The North American Free Trade Agreement has been disastrous for working people and farmers in all three countries. The United States had a net displacement of 850,000 jobs through 2010 directly attributable to NAFTA, according to Economic Policy Institute calculations. U.S. food prices have risen 67 percent since NAFTA took effect, despite an increase in food imported from Mexico and Canada.

In Canada, the social safety net has been weakened while corporate revenue has doubled and manufacturing jobs disappeared. Composite revenues of 40 of Canada’s biggest businesses increased 105 percent from 1988 to 2002, while their workforces shrank by 15 percent and unemployment benefits were cut. In Mexico, nearly five million family farmers have been been displaced, inflation-adjusted wages are barely above the 1980 level and an unrestrained increase in mining has devastated Mexico’s environment.

Is it really necessary to make this worse? Yet that is what the Trump administration is proposing for its re-negotiation — another bait and switch. This follows another project for corporate plunder, President Trump’s supposed $1 trillion infrastructure plan, which is actually a plan for new “public-private partnerships.” Public-private partnerships are nothing more than a variation on straightforward schemes to sell off public assets below cost, with working people having to pay more for reduced quality of service.

No actual money is being committed. Rather, senior Trump administration advisers call for handing out $137 billion in tax credits for private investors who underwrite infrastructure projects. These officials estimate that over 10 years the credits could spur $1 trillion in investment.

Trade policy is yet one more front on which a fight must be waged. “Free trade” agreements have very little to do with trade and much to do with imposing corporate wish lists. As with all “free trade” agreements, the fault lines are along class, not national, interests. Industrialists and financiers around the world understand their class interests and are united to promote their interests. Working people uniting across borders, in a broad movement, is only path toward reversing corporate agendas that accelerate races to the bottom.