brad brace contemporary culture scrapbook

March 31, 2009

PRISON JUMPING SPIDERS BANKRUPT STRANGLED PARADISE WAR APPAREL AID AMID INDEPENDENT CYCLONED TREE PLANTATIONS

South Asia’s export based apparel industry is reeling under the impact of
the global recession as demand for clothing from Western countries slows
down. The industry is one of the biggest employers in this region.

Burmese people beg for food in the rain as aid begins to arrive following
cyclone Nargis. International aid for cyclone victims in Burma was
deliberately blocked by the military regime.

One in every 31 adults, or 7.3 million Americans, is in prison, on parole
or probation, at a cost to the states of $47 billion in 2008.

Police found the body of a strangled woman in a suitcase dumped at
Bangladesh’s Zia International Airport. Security officials alerted customs
and police after the suitcase was found on a trolley outside the airport’s
departure door late yesterday.

It began with British betrayal after the Second World War and has
stubbornly outlived every other conflict. But now, as it marks it diamond
jubilee, the world’s longest-running war is nearing its endgame. The
guerrilla army of the Karen ethnic group, which has been fighting since
1949 for independence from Burma, is facing the greatest crisis in its
history. If Karen resistance collapses, as some believe is likely, it will
be a triumph for the Burmese junta as it consolidates its hold on power.

A British man is allegedly killed by thieves in a raid on his yacht during
a boating holiday off the southern coast. Malcolm Robertson and his wife
Linda were sailing their boat off the coast of southern Thailand when he
was allegedly beaten with a hammer and thrown overboard by a group of men
trying to steal a dinghy.

The Seychelles, the idyllic archipelago in the Indian Ocean off the coast
of Africa, is best known as an island paradise playground for celebrities,
royalty and the ultra-wealthy. These days, it’s better known for something
else: bankruptcy.

The junta’s wilful disregard for the welfare of the 3.4 million survivors
of cyclone Nargis – which struck the Irrawaddy delta last May, killing
140,000 people – and a host of other abuses amount to crimes against
humanity under international law. The storm surge coupled with intense
winds swept away homes, fields, livestock and rice stores, leaving little
or nothing for survivors. But the military regime, which was at the time
preparing for a national referendum on its plans to hold elections in 2010,
insisted it could cope with the disaster despite its scale and shunned most
international relief for weeks.

Criminal correction spending is outpacing budget growth in education,
transportation and public assistance, based on state and federal data. Only
Medicaid spending grew faster than state corrections spending, which
quadrupled in the past two decades. The increases in the number of people
in some form of correctional control occurred as crime rates declined by
about 25 percent in the past two decades.

Customs officials scanned the luggage and found the body of a 35-year-old
woman dumped inside. She was strangled by a rope. She is a married woman
with two children and her husband lives in Malaysia.

After a three-year offensive by the junta, the Karen National Liberation
Army (KNLA) has been forced into increasingly small pockets of resistance.
Deprived of funds and equipment, it is able to do little more than slow the
advance of the Burmese Army as it lays waste to hundreds of villages,
driving thousands of terrified civilians before it.

Executions around the world increased by more than 90 per cent last year.
2,390 people were executed last year. China, Pakistan, Saudi Arabia and the
United States were responsible for 93 per cent of the executions. China had
the highest figures, carrying out 72 per cent of all executions. Fifty-nine
countries retain the death penalty worldwide but only 25 of them carried
out executions in 2008. In Europe only Belarus carried out the death
sentence. Africa, Botswana and Sudan were the only countries to have
carried out executions. The fact that fewer countries carried out
executions shows we may slowly be moving toward a world that is free of the
death penalty.

The tiny country’s debt burden may be tiny compared to Iceland, which
needed a $2.1 billion bailout from the International Monetary Fund last
fall, but the Seychelles’ problems illustrate the degree to which the
global economic crisis has leveled some economies altogether. And because
of its small size, with just 87,000 people, the Seychelles now has the
unenviable stature of being perhaps the most indebted country in the world.
Public and private debt totals $800 million – roughly the size of the
country’s entire economy.

For the last three years, 40-year-old Phekan sewed buttons on cotton shirts
in a small factory in Gurgaon, on the outskirts of New Delhi earning about
$100 a month. But she lost her job earlier this month after the European
retailer buying the shirts slashed orders. Phekan is worried how she will
continue to live in the city while searching for another job. Phekan says
her landlord will demand rent on the first of the month, and she does not
know how she will pay the money.

The Burmese army obstructed private cyclone relief efforts even among its
own concerned citizens, setting up checkpoints and arresting some of those
trying to provide help. Supplies of overseas relief materials that were
eventually allowed into Burma were confiscated by the military and sold in
markets, the packaging easily identifiable.

As US states face huge budget shortfalls, prisons, which hold 1.5 million
adults, are driving the spending increases. States have shown a preference
for prison spending even though it is cheaper to monitor convicts in
community programs, including probation and parole, which require offenders
to report to law enforcement officers. A survey of 34 states found that
states spent an average of $29,000 a year on prisoners, compared with
$1,250 on probationers and $2,750 on parolees. The study found that despite
more spending on prisons, recidivism rates remained largely unchanged. As
states trim services like education and health care, prison budgets are
growing. Those priorities are misguided.

Three new case studies and a video have been released on the impacts of
monoculture tree plantations on women in Nigeria, Papua New Guinea and
Brazil. These tree plantations provide rubber for car and bus tires, palm
oil for processed foods and pulp for toilet paper – all items being used in
the west. They are also destroying local communities.

Most serious of all, the Karen leadership is losing the support of
neighbouring Thailand, where it was formerly able to organise, arm and –
when necessary – retreat. Trapped between the Burmese Army to the west and
an increasingly unfriendly Thailand to the east, with hundreds of thousands
of their people in wretched refugee camps, the Karen are experiencing a
humanitarian and military catastrophe.

Conservationists searching through the undergrowth of a remote mountain
region have identified up to 50 new species of jumping spiders. Medical
science could benefit from the discoveries through the study of the
chemicals contained in their venoms. Insights into how to develop vision
for robots and how to miniaturise could also be made by the study of the
jumping spider eyes.

Last year, as tourism and fishing revenue began slowing, the Seychelles
defaulted on a $230 million, euro-denominated bond that had been arranged
by Lehman Brothers before its own bankruptcy. The IMF came in in November
with a two-year, $26 million rescue package, and the country has since
taken a series of emergency steps: It laid off 12.5% of government workers
(1,800 people), floated its currency (the Seychelles rupee, which has
fallen from eight to the U.S. dollar to 16, effectively doubling the prices
of imports), lifted foreign exchange controls and agreed to sell state
assets.

Bigger manufacturers are able to absorb the impact of the slowdown, but
many smaller units are badly hit. “The bigger people, because economies of
scale and cost pressures are important, are still going to grow, but it is
small companies which don’t have economies of scale, they might go out of
business.”

The researchers were repeatedly told that surviving men, women and even
children were used as forced labour on reconstruction projects for the
military. “[The army] did not help us, they threatened us,” said one
survivor from the town of Labutta. “Everyone in the village was required to
work for five days, morning and evening without compensation. Children were
required to work too. A boy got injured on his leg and got a fever. After
two or three days he was taken to [Rangoon], but after a few days he died.”

States are looking to make cuts that will have long-term harmful effects.
Corrections is one area they can cut and still have good or better outcomes
than what they are doing now. Focusing on probation and parole could reduce
recidivism and keep crime rates low in the long run. But tougher penalties
for crimes had driven the crime rate down in the first place. One of the
reasons crime rates may be so low is because we changed our federal and
state systems in the past two decades to make sure that people who commit
crimes, especially violent crimes, actually have to serve significant
sentences.

In the case of Nigeria, in 2007, the French tire maker Michelin came in to
the Iguóbazuwa Forest Reserve, a biologically diverse region supplying food
for around 20,000 people. Michelin bulldozed the forest and local farm
lands to convert them into rubber plantations. Women living there lost
their subsistence farms and the local forest which provided medicinal herbs
and plants.

The military situation is as bad as it’s been at any time in the past 60
years. The Karen have less territory, fewer soldiers and fewer resources to
sustain resistance. The Burmese have them more and more surrounded, and
their backs are up against the wall. A Karen leader on the Thai border said
that the KNLA and Burmese Army were fighting near the town of Kawkareik,
close to the Thai border. All year there have been reports of Karen
villagers being driven into the jungle by marauding soldiers.

Along with spiders, which can leap 30 times their own body length,
researchers discovered three previously unknown frogs, two plants and a
stripy gecko. The great age of discovery isn’t over by far. Spider venom
has evolved for millions of years to affect the neurological systems of the
spider’s insect prey and each species of spider gives us another
opportunity to find medically-useful chemicals.

The IMF has given a thumbs-up to the initial progress, but it warned that
the economy would contract 9.5% this year. The government of Australia is
sending tax experts to help overhaul the revenue collection system and
audit local companies. Now the Seychelles is negotiating with the
governments of Britain, France and other Western countries including the
U.S. – the so-called Paris Club – to reschedule $250 million in debt it
owes them. It is asking for 50% of it to be forgiven – a rate it hopes its
commercial creditors will then apply to its remaining $550 million
outstanding.

The industry is impacted slightly less in India, where strong domestic
consumption is providing a market for manufacturers. But the export
dependant industries in Bangladesh and Sri Lanka have been impacted more
severely by shrinking retail sales in the West. An estimated 25 percent of
orders have been cancelled by Western buyers.

The Burmese regime’s response to the disaster violated humanitarian relief
norms and legal frameworks for relief efforts. The systematic abuses may
amount to crimes against humanity under international law through the
creation of conditions where basic survival needs of people are not met,
intentionally causing great suffering, or serious injury to body or to
mental or physical health.

Over all, two-thirds of offenders, or about 5.1 million people in 2008,
were on probation or parole. The study found that states were not
increasing their spending for community supervision in proportion to their
growing caseloads. About $9 out of $10 spent on corrections goes to prison
financing (that includes money spent to house 780,000 people in local
jails). One in 11 African-Americans, or 9.2 percent, are under correctional
control, compared with one in 27 Latinos (3.7 percent) and one in 45 whites
(2.2 percent). Only one out of 89 women is behind bars or monitored,
compared with one out of 18 men.

In Papua New Guinea, monoculture oil palm plantations provide palm oil
which is used to produce soap, cosmetics, processed foods and agrofuels for
the European Union (EU) and other western countries. These plantations,
however, also destroy forests, biodiversity, and local community
livelihoods. Small farmers were promised the opportunity to benefit
financially from the palm plantations and have been using much of their
land for palm oil production, depleting the soil, but earning less than was
promised. Women living near these plantations don’t have enough arable land
to farm and are exposed to toxic pesticides. “Health is a very big concern
in our place right now we breathe in the chemicals… I’m pretty sure we are
inhaling dangerous substances and definitely are dying every minute. Some
women had babies who developed asthma when they were just one or two months
old.” said a woman from the community of Saga.

It’s a cat-and-mouse kind of struggle. The Burmese burn down villages and
relocate the people close to their own camps. The Karen conflict has its
origins in the Second World War, when many Karen fought alongside the
British Army against the invading Japanese. The seven million Karen were
promised their own state by the British but when independence came in 1948
the promise was forgotten. A year later, in January 1949, the Karen began
the armed struggle that has continued ever since.

Jumping spiders with their remarkably miniaturized yet acute eyes could
help us understand how to push the limits of vision. In addition to filling
in the gaps in our planet’s natural history, exploring spider biodiversity
and evolution could potentially inform fields as diverse as medicine and
robotics. Jumping spiders have better vision than other types of spider and
two of their eight eyes are especially well developed for high resolution
vision. In effect, they have evolved a design that has deconstructed the
eyeball and put it together, with modifications, section by section in
miniature. The retina of the spiders could be of particular interest
because instead of the three-dimensional hemisphere in the human eyeball it
has developed like a flat scanner.

“We borrowed more than we can repay. This was wholly irresponsible.”

Heavily reliant on tourism, the Seychelles is desperately searching for
ways to raise capital – at a time when tourism is forecast to drop
precipitously this year. The country has already seen a drop of 15% in
visitor arrivals from the start of 2009; tourism revenue for the year could
drop by some 25% more as a result of the global recession.

The industry was hoping to exceed last year’s exports which totaled over
$10 billion, but is unlikely to meet the target. “The export goal initial
in this year was $13 billion, and we are little scared whether we will be
able to achieve that goal. Buyers are delaying the goods because of falling
demand. We are struggling for survival in these bad days.”

Georgia had 1 in 13 adults under some form of punishment; Idaho, 1 in 18;
the District of Columbia, 1 in 21; Texas, 1 in 22; Massachusetts, 1 in 24;
and Ohio, 1 in 25.

In Brazil, Eucalyptus plantations provide pulp for paper that is used for
toilet and facial tissue, as well as other disposable paper products in the
west. These Eucalyptus plantations, push out local agriculture, deplete the
soil and are water-use intensive, devastating local flora and fauna. One
woman, anonymously interviewed in Southern Brazil, explains that “the
companies only give work to men. The few jobs they give to women are the
ones that pay the least.” Even in the case of men, the companies tend to
hire workers from outside the region, and this influx of strangers
invariably leads to a rise in sexual harassment cases.

In the early decades of the war, the KNU dominated the Irrawaddy Delta,
close to the former Burmese capital Rangoon, as well as areas north of the
city and all of Kayin State. But in the 1990s an increasingly well-armed
Burmese Army made steady gains and in 1995 the KNU was driven out of its
capital, Manerplaw. At this time, Buddhists in the Christian-dominated KNU
broke away to form the Democratic Karen Buddhist Army (DKBA), which now
fights alongside the Burmese Army. Formerly, the KNU had operated as a
quasi-government, providing schools and clinics and receiving income from
tax, as well as from a profitable trade through Thailand in timber, gold,
zinc and antimony. The loss of territory brought a loss of funds, which
made it harder to arm and equip itself. The KNU claims to have 10,000
soldiers, including village militia men, but the number of active fighters
is probably between 3,000 and 5,000.

The 30 to 50 new species of jumping spiders were spotted and caught during
a survey of a region of Papua New Guinea. Among the new spiders were types
that came from particularly unusual evolutionary branches and zoologists
hope that these will offer new clues into how jumping spiders evolved, a
question that remains a puzzle. There are 5,000 species of jumping spider
yet to be discovered around the world. They evolved much more recently that
other spiders.

Seychelles officials have another idea though: to promote the country’s
longstanding virtue of being an off-shore business haven, with no corporate
tax, no minimum capital requirements, only one shareholder or director
required, and an annual licensing fee of just $100. It also hopes to grow
revenue from fishing licenses in its territorial waters, and soon it will
present a proposal to the United Nations to expand its exclusive rights to
the surrounding seabed, potentially increasing prospects of revenue from
underwater minerals, oil and gas.

The textile and garment factories in the region provide jobs to tens of
millions of people, especially women, and are the biggest employers in the
region after agriculture.

States started spending more on prisons in the 1980s during the last big
crime wave. Basically, when we made these investments, public safety and
crime was the No. 1 concern of voters, so politicians were passing all
kinds of laws to increase sentences. Now, crime is down, but we’re living
with that legacy: the bricks and mortar and the politicians who feel like
they have to talk tough every time they talk about crime.

The impacts of these monoculture plantations are not gender neutral. As
much attention should be placed on gender equality in the nations supplying
the raw materials to support the western lifestyle as they do within their
own borders. They argue that consumers need to understand the impacts of
their consumption on both environmental and social justice, and consider
reducing consumption rates. At the same time, benefitting countries must
push for policies and protections for the environment and the people that
live there. The current monoculture plantation system is not
environmentally or socially sustainable.

Last year the KNU suffered another blow when its respected and charismatic
leader, Pado Mahn Shar, was assassinated at his home in Thailand by
unidentified gunmen. Among many Karen there was a suspicion that the ease
with which the killers escaped, and the failure to apprehend them,
reflected a cooling of the welcome afforded by Thailand. Last month Karen
military commanders were ordered out of Thailand and back across the
border. This probably reflects the Thai Government’s increasing dependence
on Burma for raw materials and energy – the two governments are jointly
planning ambitious hydroelectric dams along the Salween River which forms
part of their border.

Instead of building webs or responding to the motion of prey they have
learnt to distinguish between different animals and their attack techniques
depends on what they are tackling. Instead of sitting at the centre of a
web, jumping spiders found a new way to make a living by wandering around
their habitat and pouncing – like cats – on their prey. Some of them are so
cute. There is a whole lot of beauty in these small spiders if we look
closely enough.

And hopes for expanding tourism remain high. In addition to the usual
roster of luxury-seeking royals and high-spending celebs, the middle-tier
traveler is now being heartily courted, too. The government in early March
announced an “Affordable Seychelles” campaign – what would have until
recently been an oxymoron – with the motto: “Once-in-a-lifetime vacation at
a once-in-a-lifetime price,” based on lower prices caused by the halving in
value of the currency.

The border is a valuable conduit not only for the Karen but for Burmese
struggling to overthrow the military dictatorship. After the junta cracked
down on large pro-democracy demonstrations of monks and activists in 2007,
many of them escaped into Thailand.

January 30, 2009

CLINICAL SLUMDOG KWASO GOLD TRIALS

Lihir Gold has reported a 26% rise in annual gold production to 882,000
ounces and forecast output this year would exceed 1 million ounces as new
mines in Africa and Australia are fully developed.

Armed police guarded cinemas in eastern India after slum dwellers ransacked
a picture house showing Slumdog Millionaire because they didn’t like the
use of the word “dog” in the title.

Seven officers were hurt in an attack and the blame is being attributed to
the illegal home-brew alcohol known as kwaso.

Expectations for a higher gold yield come despite a landowner wrangle over
royalties at the company’s main mine in Papua New Guinea that brought it to
a standstill.

Several hundred people rampaged through the cinema in Patna, capital of the
eastern state of Bihar and tore down posters advertising the film. They
said the title was humiliating and vowed to continue their protests until
it was changed.

Around 1500 litres of the brew was seized but that is considered to be only
a tiny drop in a very big ocean.

Lihir chief executive Arthur Hood said he was hoping for a quick resolution
that would enable the mine to restart but conceded he did not know how long
it would take. “I’d like to think we could get back to work in the next day
or so, but I’ve worked in Papua New Guinea a long time and these things are
always a little bit unpredictable,” he told reporters.

The protest was organised by Tateshwar Vishwakarma, a social activist who
filed a lawsuit over the title against four Indians involved in its
production – a lead actor, the music director and two others.

The explosion of the illegal trade, which results in potentially volatile
situations, is not easy for the police trying to contain it.

The dispute involves local islanders in the province of New Ireland, about
700 kilometres north-east of the capital Port Moresby, who want a bigger
share of the mine’s revenues.

Mr Hood said the company was already paying a 2% royalty to islanders on
all gold produced at the mine as well as awarding supply contracts worth
millions of dollars to local firms.

“Referring to people living in slums as dogs is a violation of human
rights,” said Mr Vishwakarma, who works for a group promoting the rights of
slum dwellers. We will burn Danny Boyle [the film’s British director]
effigies in 56 slums here.”

“The police can only do so much. We have a licensing squad of about 12
members and the community, chiefs and religious people have to get stuck in
too,” says Peter Marshall, Solomons Acting Police Commissioner.

“Last year we were looking at about $US130 million ($195 million) worth of
our supply contracts going to Lihirians,” he said.

The case will be heard in a Patna court, according to police. Kishori Das,
another activist, said: “We are in touch with like-minded organisations
across India to take the issue on a large scale.”

Prime Minister John Key visited Honiara to assess New Zealand’s role in the
regional assistance mission and he says it will be some time before NZ
assistance in the islands can be pulled out. “At least three to five years
and it could in all probability be longer than that,” Key says.

The overall increase in the company’s gold production was boosted by a
record yield of 315,000 ounces in the fourth quarter, Mr Hood said. It cost
on average $US400 to mine each ounce in 2008 but only $US353 per ounce for
the fourth quarter, he said. “This is exactly where we want to be,” he
said.

Social, political and religious activists in India often organise violent
protests over films to try to win publicity for their cause. In 1996, Fire,
a film about lesbianism, enraged Hindu fundamentalists who burnt down
several cinemas. In 2000, production of Water, a film about Hindu
widowhood, was moved from India to Sri Lanka after violence by Hindu
nationalists.

An organised gang member who agreed to talk on the condition of anonymity
says the gangs sell 60-70 litres of kwaso a day. The sellers, mostly in
village based gangs, take a quarter of the takings.

Gold currently sells for around $US900 an ounce. The Lihir mine produced
247,000 ounces in the last quarter, taking full year production to 771,000
ounces.

Slumdog Millionaire, which recently opened in India has been generally well
received, especially since it won four Golden Globes and 10 Oscar
nominations – including one for AR Rahman, the veteran composer.

Police believe the potent home-brew is fuelling violence and crime.

In the fourth quarter some 22% of the company’s gold was derived from
newly-developed mines in Australia and Ivory Coast, reflecting efforts to
geographically diversify operations, according to Mr Hood.

However, some reviewers, commentators and film industry insiders have
criticised it as “poverty porn” which glamourises the squalor of slums and
perpetuates Western stereotypes of India.

A carton of beer costs around 165 Solomon dollars but for the same effect
you can buy a bottle of kwaso for just $10. A small joint of marijuana
costs 50 cents (NZ$).

There had been no violence against employees or vandalism at the Lihir mine
site stemming from the dispute, he said.

About 40 Mumbai slum dwellers, organised by another social activist, held
up banners reading “Poverty for Sale” and “I am not a dog” outside the home
of Anil Kapoor, one of the film’s stars.

Many sellers say they do so for survival as the Solomon Islands are filled
with a lot of young unemployed people.

Lihir’s shares were up 4% at $3.15 in early afternoon trade, outpacing a
gain of 1% in the benchmark S&P/ASX 200 index. Analysts expect Lihir to
report 2008 net profit of $US135 million, against a $US24 million loss in
2007.

Amitabh Bachchan, the veteran Bollywood star, also caused a stir when he
accused the film in his blog of portraying India as a “third-world, dirty,
underbelly developing nation”. Mr Bachchan has since apologised to Mr
Boyle, but was conspicuously absent from the film’s star-studded premiere
in Mumbai.

“Money is very hard to come by and the making of kwaso is an easy way of
making money,” says Marshall

After selling $1.2 billion in shares in 2007 to close out an unprofitable
gold hedge book, Mr Hood said the company was now benefiting from exposure
to rising prices of gold, one of the few commodities not ravaged by the
financial crisis.

Mr Kapoor, who grew up in a Mumbai slum, has denied that “slumdog” is
offensive, saying that children from the slums are called many worse things
in India. Simon Beaufoy, the screenwriter, said last week: “I just made up
the word. I liked the idea. I didn’t mean to offend anyone.” Two hours
after opening, the pediatric waiting room at All India Institute of Medical
Sciences is like the anteroom to hell. Families, anxious, restless, sweaty
in the soupy air, cram into plastic chairs, crouch in corners, crowd
doorways, clog up aisles. Cries jangle off the ceiling. Feces litter the
floor. Signs in the corridor attempt to impose order on the chaos:

Don’t spit.

Don’t feed the monkeys.

Don’t pay bribes.

“I think gold will remain very strong,” he said, adding that a weak US
dollar and the requirements for a flight to quality were keeping the yellow
metal from falling.

This overstretched government hospital and medical college treats about
4-million people a year. It’s also one of a growing number of Indian
hospitals that use their patients to gather data on experimental drugs
destined for Western markets. It recently was revealed that 49 children
have died during clinical trials at the institute.

January 15, 2009

Corporate Tax Havens as California Cops Kill

Filed under: corporate-greed,government,police,usa — admin @ 4:16 pm

A former transit officer has been charged with murder in the shooting death of an unarmed black man that set off violent protests, officials said.

Johannes Mehserle, 27, was arrested Tuesday in Nevada and on Wednesday appeared briefly in court, where he waived extradition to California. He was expected to be returned to California.

Witnesses said Mehserle, who is white, fired a shot into the back of 22-year-old Oscar Grant while the man was lying face down on a train platform at a station in Oakland. Grant and others had been pulled off a train after reports of fighting, as New Year’s Eve revelers were shuttling home after midnight.

Alameda Country District Attorney Tom Orloff said he would not speculate on whether the charge would end up being first-degree murder or second-degree murder.

“At this point, what I feel the evidence indicates, is an unlawful killing done by an intentional act and from the evidence we have there’s nothing that would mitigate that to something lower than a murder,” Orloff said at a news conference announcing the charge.

Mehserle’s attorney, Christopher Miller, planned a news conference later at his office in Sacramento.

The shooting, captured on cell phone cameras and widely viewed on the Internet, has inflamed long-running tensions between law enforcement authorities and many African-American residents.

Hundreds of people have taken to the streets calling for the prosecution of Mehserle, with one rally last week spiraling into violence that resulted in more than 100 arrests and damage to dozens of businesses.

Another demonstration was planned Wednesday afternoon.

Mehserle surrendered without incident Tuesday at a family friend’s house in an upscale neighborhood on the east shore of Lake Tahoe in Douglas County, Nev., law enforcement officials said.

Douglas County Undersheriff Paul Howell said he believes Mehserle went to Nevada for his own safety.

“He just wanted to get out of the Bay Area due to the magnitude of the incident,” Howell said. “He wasn’t trying to run.”

John Burris, the attorney for Grant’s family, said the news of the charge was “terrific.”

“It is consistent with the evidence I have seen. I think the family will be pleased,” Burris said.

Mehserle had refused to talk to Bay Area Regional Transit investigators before resigning last week.

“I want to know why he did it,” said BART board member Carole Ward Allen. “We’ve heard from everybody else but him. While I can’t speak for the entire BART board, we want to make this process as transparent as possible.”

State Attorney General Jerry Brown assigned a prosecutor to monitor the case, and the U.S. Department of Justice sent mediators to help avert additional violent demonstrations.

•••

Most of the 100 largest U.S. companies, including big banks that recently received federal bailouts, have foreign subsidiaries that may help the corporate parent avoid paying U.S. taxes, according to a report released by congressional auditors.

Hundreds more companies operate tax havens under strict secrecy laws in places such as Switzerland, Hong Kong, Panama and Mauritius.

Tax havens are typically jurisdictions that have low or no taxes, provide high levels of client confidentiality, and do not exchange information with foreign tax authorities.

December 29, 2008

The 10 Worst Corporations of 2008

Filed under: capitalism,corporate-greed — admin @ 9:47 am

What a year for corporate criminality and malfeasance!

As we compiled the Multinational Monitor list of the 10 Worst
Corporations of 2008, it would have been easy to restrict the awardees
to Wall Street firms.

But the rest of the corporate sector was not on good behavior during
2008 either, and we didn’t want them to escape justified scrutiny.

So, in keeping with our tradition of highlighting diverse forms of
corporate wrongdoing, we included only one financial company on the 10
Worst list.

AIG: Money for Nothing

There’s surely no one party responsible for the ongoing global financial
crisis. But if you had to pick a single responsible corporation, there’s
a very strong case to make for American International Group (AIG), which
has already sucked up more than $150 billion in taxpayer supports.
Through “credit default swaps,” AIG basically collected insurance
premiums while making the ridiculous assumption that it would never pay
out on a failure — let alone a collapse of the entire market it was
insuring. When reality set in, the roof caved in.

Cargill: Food Profiteers

When food prices spiked in late 2007 and through the beginning of 2008,
countries and poor consumers found themselves at the mercy of the global
market and the giant trading companies that dominate it. As hunger rose
and food riots broke out around the world, Cargill saw profits soar,
tallying more than $1 billion in the second quarter of 2008 alone.

In a competitive market, would a grain-trading middleman make
super-profits? Or would rising prices crimp the middleman’s profit
margin? Well, the global grain trade is not competitive, and the legal
rules of the global economy– devised at the behest of Cargill and
friends — ensure that poor countries will be dependent on, and at the
mercy of, the global grain traders.

Chevron: “We can’t let little countries screw around with big companies”

In 2001, Chevron swallowed up Texaco. It was happy to absorb the revenue
streams. It has been less willing to take responsibility for Texaco’s
ecological and human rights abuses.

In 1993, 30,000 indigenous Ecuadorians filed a class action suit in U.S.
courts, alleging that Texaco over a 20-year period had poisoned the land
where they live and the waterways on which they rely, allowing billions
of gallons of oil to spill and leaving hundreds of waste pits unlined
and uncovered. Chevron had the case thrown out of U.S. courts, on the
grounds that it should be litigated in Ecuador, closer to where the
alleged harms occurred. But now the case is going badly for Chevron in
Ecuador — Chevron may be liable for more than $7 billion. So, the
company is lobbying the Office of the U.S. Trade Representative to
impose trade sanctions on Ecuador if the Ecuadorian government does not
make the case go away.

“We can’t let little countries screw around with big companies like this
— companies that have made big investments around the world,” a Chevron
lobbyist said to Newsweek in August. (Chevron subsequently stated that
the comments were not approved.)

Constellation Energy: Nuclear Operators

Although it is too dangerous, too expensive and too centralized to make
sense as an energy source, nuclear power won’t go away, thanks to
equipment makers and utilities that find ways to make the public pay and
pay.

Constellation Energy Group, the operator of the Calvert Cliffs nuclear
plant in Maryland — a company recently involved in a startling,
partially derailed scheme to price gouge Maryland consumers — plans to
build a new reactor at Calvert Cliffs, potentially the first new reactor
built in the United States since the near-meltdown at Three Mile Island
in 1979.

It has lined up to take advantage of U.S. government-guaranteed loans
for new nuclear construction, available under the terms of the 2005
Energy Act. The company acknowledges it could not proceed with
construction without the government guarantee.

CNPC: Fueling Violence in Darfur

Sudan has been able to laugh off existing and threatened sanctions for
the slaughter it has perpetrated in Darfur because of the huge support
it receives from China, channeled above all through the Sudanese
relationship with the Chinese National Petroleum Corporation (CNPC).

“The relationship between CNPC and Sudan is symbiotic,” notes the
Washington, D.C.-based Human Rights First, in a March 2008 report,
“Investing in Tragedy.” “Not only is CNPC the largest investor in the
Sudanese oil sector, but Sudan is CNPC’s largest market for overseas
investment.”

Oil money has fueled violence in Darfur. “The profitability of Sudan’s
oil sector has developed in close chronological step with the violence
in Darfur,” notes Human Rights First.

Dole: The Sour Taste of Pineapple

A 1988 Filipino land reform effort has proven a fraud. Plantation owners
helped draft the law and invented ways to circumvent its purported
purpose. Dole pineapple workers are among those paying the price.

Under the land reform, Dole’s land was divided among its workers and
others who had claims on the land prior to the pineapple giant. However,
wealthy landlords maneuvered to gain control of the labor cooperatives
the workers were required to form, Washington, D.C.-based International
Labor Rights Forum (ILRF) explains in an October report. Dole has
slashed it regular workforce and replaced them with contract workers.

Contract workers are paid under a quota system, and earn about $1.85 a
day, according to ILRF.

GE: Creative Accounting

In June, former New York Times reporter David Cay Johnston reported on
internal General Electric documents that appeared to show the company
had engaged in a long-running effort to evade taxes in Brazil. In a
lengthy report in Tax Notes International, Johnston reported on a GE
subsidiary’s scheme to invoice suspiciously high sales volume for
lighting equipment in lightly populated Amazon regions of the country.
These sales would avoid higher value added taxes (VAT) in urban states,
where sales would be expected to be greater.

Johnston wrote that the state-level VAT at issue, based on the internal
documents he reviewed, appeared to be less than $100 million. But, he
speculated, the overall scheme could have involved much more.

Johnston did not identify the source that gave him the internal GE
documents, but GE has alleged it was a former company attorney, Adriana
Koeck. GE fired Koeck in January 2007 for what it says were “performance
reasons.”

Imperial Sugar: 14 Dead

On February 7, an explosion rocked the Imperial Sugar refinery in Port
Wentworth, Georgia, near Savannah. Days later, when the fire was finally
extinguished and search-and-rescue operations completed, the horrible
human toll was finally known: 14 dead, dozens badly burned and injured.

As with almost every industrial disaster, it turns out the tragedy was
preventable. The cause was accumulated sugar dust, which like other
forms of dust, is highly combustible.

A month after the Port Wentworth explosion, Occupational Safety and
Health Administration (OSHA) inspectors investigated another Imperial
Sugar plant, in Gramercy, Louisiana. They found 1/4- to 2-inch
accumulations of dust on electrical wiring and machinery. They found as
much as 48-inch accumulations on workroom floors.

Imperial Sugar obviously knew of the conditions in its plants. It had in
fact taken some measures to clean up operations prior to the explosion.
The company brought in a new vice president to clean up operations in
November 2007, and he took some important measures to improve
conditions. But it wasn’t enough. The vice president told a
Congressional committee that top-level management had told him to tone
down his demands for immediate action.

Philip Morris International: Unshackled

The old Philip Morris no longer exists. In March, the company formally
divided itself into two separate entities: Philip Morris USA, which
remains a part of the parent company Altria, and Philip Morris
International. Philip Morris USA sells Marlboro and other cigarettes in
the United States. Philip Morris International tramples the rest of the
world.

Philip Morris International has already signaled its initial plans to
subvert the most important policies to reduce smoking and the toll from
tobacco-related disease (now at 5 million lives a year). The company has
announced plans to inflict on the world an array of new products,
packages and marketing efforts. These are designed to undermine
smoke-free workplace rules, defeat tobacco taxes, segment markets with
specially flavored products, offer flavored cigarettes sure to appeal to
youth and overcome marketing restrictions.

Roche: “Saving lives is not our business”

The Swiss company Roche makes a range of HIV-related drugs. One of them
is enfuvirtid, sold under the brand-name Fuzeon. Fuzeon brought in $266
million to Roche in 2007, though sales are declining.

Roche charges $25,000 a year for Fuzeon. It does not offer a discount
price for developing countries.

Like most industrialized countries, Korea maintains a form of price
controls — the national health insurance program sets prices for
medicines. The Ministry of Health, Welfare and Family Affairs listed
Fuzeon at $18,000 a year. Korea’s per capita income is roughly half that
of the United States. Instead of providing Fuzeon, for a profit, at
Korea’s listed level, Roche refuses to make the drug available in Korea.

Korean activists report that the head of Roche Korea told them, “We are
not in business to save lives, but to make money. Saving lives is not
our business.”

By Robert Weissman

October 16, 2008

Eat the Rich

People should start getting together in groups to work out collective responses
to the crisis, like making plans to share work and resources. Setting up food and
farming cooperatives and creating local networks for sourcing food is another possible
response. Organizing to push the government to support community production and work
sharing programs is another. The important point is to face the coming crash
collectively, not individually, which unfortunately is the way that capitalism has
socialized us to respond to crisis. The coming period, like the 1930’s, will probably
see a tremendous rise in mass organizing and the reemergence of progressive visions and
politics as a viable alternative to the system. People who have long been depoliticized
will start coming out of the woodwork. Crisis, as the Chinese say, is also opportunity.
•••

On World Food Day, UN urges rich donors to honour aid pledges.

Millions more are going hungry across the world as governments fail to deliver on promised aid, officials warned Thursday on World Food Day.

Only a tenth of the some 22 billion euros in assistance for food and agriculture pledged for 2008 has reached the UN food agency, its chief Jacques Diouf said Thursday.

“Despite enthusiastic speeches and financial commitments, we have received only a tiny part of what was pledged,” Diouf said as he marked World Food Day at the Rome headquarters of the Food and Agriculture Organisation (FAO).

His comments came as an expert warned that soaring food prices had pushed up the number of people in the world classed as hungry to 925 million, while more than 100 million had been driven into extreme poverty.

Olivier De Schutter, the UN special rapporteur on the right to food, said in a statement in Geneva that the whole system of food production needed to be radically overhauled to ensure an equitable outcome.

“The violation on a daily basis of the right to food for hundreds of millions of people worldwide has its roots in an outdated and inadequate production system, rather than in the actual quantity of food available,” he said.

In Dublin former UN secretary general Kofi Annan said aid for the world’s hungry must not be hit by the global financial crisis which cannot be “an excuse for inaction” at a “critical juncture”.

“We must maintain our resolve. We can end hunger and poverty. Doing so is critical to Africa and to a healthy and resilient global food system,” he told a conference Thursday aimed at highlighting global hunger and advocating better ways to combat it.

To underline his point FAO figures revealed Thursday that about a million Burundian children under the age of five suffered chronic malnutrition, while in Ethiopia World Food Programme officials said that 84,000 children were suffering from malnutrition in famine-hit regions of Ethiopia.

Nearly seven billion euros (9.5 billion dollars) were pledged at an emergency summit on the world food crisis that Diouf hosted in June.

“Only 10 percent of the 22 billion euros announced (overall) was disbursed,” Diouf said, adding that most arriving funds were earmarked for food aid rather than urgently needed investment in agriculture.

Diouf reiterated his fear that the global financial crisis is taking attention away from the continuing food crisis, saying the “number of malnourished, instead of diminishing, grew by 75 million in 2007.”

The figure could grow further this year, he added.

“The structural solution to the problem of food security is to raise the productivity and output of the farming sector in low-income countries,” he said.

Diouf lamented that aid to agriculture slumped by more than half between 1984 and 2005, from eight billion dollars to 3.4 billion dollars, while agriculture’s share in development aid also fell, from 17 percent in 1980 to three percent in 2006.

Suzanne Mubarak, the wife of Egyptian President Hosni Mubarak who was honoured with the title of “patron” of FAO’s activities, echoed Diouf’s concern in a keynote speech, saying “falling stock markets have monopolised the world’s attention, turning it away from the poorest countries.”

Meanwhile Pope Benedict XVI blamed the persistence of world hunger on “the contemporary culture that favours only the race for material goods,” in a message to the FAO.

“The means and resources available to the world today can buy enough food to satisfy the growing needs of all,” he wrote, laying the blame on a lack of political will, “unbridled speculation” and corruption in some countries.
•••

Huge income gap grows

The gap between high and low wage earners has increased sharply in most countries,
according to a new United Nations report. It says the huge differences in pay were
counter-productive and damaging for most economies. The current global financial
crisis will widen the gap even further. The UN said top executives were earning
excessively more than average employees, with the chief executive officers of the
15 largest companies in the United States, for example, earning 520 times more than
the average worker in 2007. The huge income inequalities could be associated with
higher crime rates, lower life-expectancy, and in the case of poor countries
malnutrition and an increased likelihood of children being taken out of school to
work.

October 10, 2008

Fiscal Crisis: Migrating Global Spiritual Mess

The crisis is not Euro-centric as it is made out to be. It is global.
The crisis does not seem to affect Asia as much as human life is cheap
fodder in that segment of humanity.

The crisis is also not materialistic or fiscal as made out to be, it
is a spiritual crisis.

There seems to be no solution to the spiritual crisis from the
Eurocentric point of view with the deepest aspects and values of
Christianity having been denied and defaced consistently. Even as
the Judaic notion of Just Law and the Greek philosophical notions
of Quality and Moderation have been chucked into the dustbin of
militarism and consumerism.

As for the Asiatic spiritual solutions, they are multiple, mostly
kaleidoscopic odds and ends, throwbacks to primitivism and animism
and irrationalism or simply prescriptive of treating all crises as
illusion or delusion and reducing the task of salvation to yet another
selfish point of indulgence.

There seems no way out of the global spiritual mess all of which is
finally centred in the “self” of each individual, each tribe, each
ethnic group, each nation and any other human configuration you might
want to name.

Avy

•••

ENVIRONMENT:
Crises Likely to Spur Mass Migrations

As climate change, sea-level rise, earthquakes and floods threaten countries such as Bangladesh, Tuvalu, Vietnam and Tajikistan, the Tokyo-based U.N. University (UNU) warns that by 2050, some 200 million people will be displaced by environmental problems.

This estimated figure is roughly equal to two-thirds of the current population in the United States or the combined population of Britain, France, Italy and the Netherlands.

“All indicators show that we are dealing with a major emerging global problem,” says Janos Bogardi, director of UNU’s Institute on the Environment and Human Security.

The issue of migration, he points out, represents the most profound expression of the inter-linkage between the environment and human security.

Unlike the traditional economically-motivated migrants of today, the environmentally-motivated migration is expected to feature poorer people, more women, children and elderly, from more desperate environmental situations, and possibly less able to move far.

A group of experts who did a two-year research study points out that existing human trafficking networks would gain strength and new ones could emerge as environmental deterioration, climate change and disaster uproot millions of people.

In Bangladesh, women with children, whose husbands either died at sea during cyclone Sidr or are away as temporary labour migrants, are easy prey for traffickers and end up in prostitution networks or in forced labour in India.

Bangladesh is also often considered “the country that could be most affected by climate change” due to projected sea-level rise and flooding from melting Himalayan glaciers. It is also heavily affected by sudden disasters, such as cyclones.

According to preliminary findings, Bangladesh may lose up to one-fifth of its surface area due to rising sea level. And this scenario is likely to occur, if the sea level rises by one metre and no dyke enforcement measures are taken.

Asked if there should be an international treaty to protect the new breed of environmental migrants, Bogardi told IPS: “Yes, there should be a convention or set of treaties and formal recognition of people displaced or migrating due to environmental causes.”

However, he said, such a treaty should be independent of the 1951 Geneva Convention relating to the Status of Refugees.

The new refugees will also come from countries such as the Maldives, Tuvalu, Kiribati, and Palau: small islands in danger of being wiped off the face of the earth due to sea level rise triggered by climate change.

“An entirely different question is how to deal with the disappearance of a state? This is a legal question and international lawyers have already been contemplating ‘solutions’ like governments [in permanent] exile or the model of the Sovereign Order of Malta,” said Bogardi.

“While the submergence of an entire state is unique, we expect that the humanitarian [and economic] challenge [measured by the number of people affected] will be much greater in the deltas of Bangladesh, the Nile River, Mekong River or even the Rhine and Mississippi Rivers, than in small island states,” he added.

A three-day conference on environmental migrants, described as the largest ever conference on this issue, is expected to conclude next weekend in Bonn, Germany.

Hosted by UNU, the conference, which is being attended by officials and experts from about 80 countries, also serves as a platform to introduce the fledgling Climate Change Environment and Migration Alliance (CCEMA).

Meanwhile, addressing the high-level segment of the General Assembly sessions last month, the vice president of Palau, Elias Camsek Chin, told member states they must be guided by a single consideration: “Saving those small island states that today live in danger of disappearance.”

Palau and members of the Pacific Islands Forum, including Kiribati, Marshall Islands and Micronesia, “are deeply concerned about the growing threat which climate change poses not only to our sustainable development but also to our future survival,” Chin said.

“This is a security matter which has gone un-addressed,” he warned the General Assembly.

James Michel, the president of Seychelles, a tiny island in the Indian Ocean, said: “It is not right that small island states have to run the risk of being submerged by rising sea levels, whilst some nations refuse to even acknowledge their responsibility for the high levels of environmental pollution which are now threatening the planet’s resources.”

Kiribati’s President Anote Tong told the General Assembly his country has only several decades before its islands become uninhabitable. The 100,000 people in his country must one day move elsewhere, he said.

Asked if any of the countries neighbouring these small island states have expressed their willingness to accommodate the new migrants, Bogardi told IPS: “There is no recognition [yet] of environmentally [forced] migrants, hence there is no specific expression of obligation to let in migrants who migrate due to sea level rise, frequent storm surges or other such environmental events.”

“It is one of our main goals to establish and have accepted three categories of environmental migrants [namely, environmentally motivated migrants, environmentally forced migrants and environmental emergency migrants],” he said.

The latter category of environmental emergency migrants would account for those displaced by natural hazard events like earthquakes, hurricanes, tsunamis etc.

Bogardi said the frequently reported Tuvalu-New Zealand deal on migrants does not refer to accepting migrants for environmental reasons but rather New Zealand providing a labour migration quota for people from Tuvalu through its Pacific Access Category migration programme.

Asked about the possible extinction of some of the low-lying small island states, Bogardi said some small island states could face “disappearance” in the case of more extreme sea level rise than expected in benchmark reports such as the Intergovernmental Panel on Climate Change (IPCC) Fourth Assessment Report (AR4).

Even if sea level rise exceeds expectations, he pointed out, the process is likely to be gradual over decades.

“Increasing sea level would threaten coastal aquifers, thus feasible life and economic activities would diminish much before the islands would disappear,” he said. Consequently, he added, “we expect migratory trends to emerge” or be stronger than at present in the years and decades to come.

“In summary, we expect depopulation as an ultimate coping measure to be implemented gradually before the physical disappearance of those islands. Time scale is decades, if not centuries.”

October 9, 2008

Corporate Greed

Filed under: capitalism,corporate-greed,usa — admin @ 10:36 am

After shelling out $85 billion last month to shore up the books of financial giant AIG — which is
heavily invested in the huge, shadowy and wholly unregulated market for “credit default swaps” — the Fed authorized another $38 billion in government-backed loans yesterday.

That action may well be a small but necessary step in protecting the larger economy, but it is extremely hard to swallow given that 70 AIG execs went on a half-million dollar junket to a resort spa just a week after the last bailout. Included in the tab at the tony St. Regis resort on the California coast was $150,000 for meals and almost 25 grand worth of spa treatments.

According to the Washington Post, Martin Sullivan, the former AIG chief executive whose “three-year tenure coincided with much of the company’s ill-fated risk-taking,” is receiving a $5 million dollar performance bonus, and Joe Casano, “the financial products manager whose complex investments led to American International Group’s near collapse,” is raking in $1 million per month in consulting fees. His task? Sorting out the obscure investment instruments created on his watch.

Imagine how much easier this “bailout” process would be if we weren’t dealing with some of the most privileged, arrogant bastards this country has ever produced, and if many of them weren’t still living the high-life. The gall of the titans of the financial sector is simply unprecedented.

•••

How Credit Default Swaps Work

Credit default swaps (CDSs) are essentially insurance policies issued by banks (sellers) and taken out by investors (buyers) to protect against failure among their investments. Insurers are forced to open their books to regulators to show that they have the collateral to pay out on every one of their policies. The credit default swap market is not regulated by anyone — at all.

Credit default swaps are derivatives — any kind of financial instrument whose value is based on the value of another financial instrument [source: Risk Glossary]. The value of credit default swaps is derived from whether or not a company goes south. They can be valuable if it doesn’t through premium payments, or they can be valuable as insurance if the company goes under. Think of it in terms of loans. When you invest in a company, you essentially give it a loan. It repays the loan in dividends, increased share prices or both. If a company goes bankrupt and its shares become worthless, then it’s defaulted on the loan you gave it. Bankruptcy is one of several credit events — triggers that allow a credit default swap buyer to call in the coverage it took out on its investment.

This type of swap was initially created in the late 1990s to protect against defaults on extremely safe investments like municipal bonds (loans made to cities to finance projects). Monthly premium payments made these swaps a steady source of extra cash flow for the issuers. As a result, they became increasingly popular among the huge issuing banks and the investors who realized they could be traded as bets on the health of a company. Anyone confident about a company’s health can purchase seller swaps and rake in premiums from swap buyers. Those who doubt a company’s health can purchase buyer swaps, make premium payments on the swaps and cash them in when the company goes under.

Unregulated financial instruments like derivatives can be sold over the counter (OTC), meaning they can be purchased outside of the formal exchange markets, like the New York Stock Exchange. Since no regulation exists on the derivatives, they can be traded from one party to another. There’s also no requirement that purchasers of the policies prove they had the cash available to pay out on the policy, should it be called in. A purchaser of a CDS or any OTC instrument can buy it from anyone who owns one. They can also be sold by the policy’s issuer or the purchaser, and either can sell their end of the policy without notifying the other. This can make it difficult to track down the person holding the seller swap in a credit event.

Even worse, if the CDSs protecting a company’s investments turn out to be worthless, the company is forced to rewrite their balance sheet to reflect the losses, since the failed investment wasn’t covered by the swaps. Heavy losses can cause the value of an institution to plummet. If this happens to many institutions at the same time — and the CDSs each institution took out can’t be paid out — then the situation can become dire for entire markets in a chain reaction.

This is the situation world markets faced in 2008.

September 29, 2008

Drinking at the Public Fountain

Filed under: corporate-greed,government,resource,usa — admin @ 3:43 am

The New Corporate Threat to Our Water Supplies
http://waterconsciousness.com/

In the last few years, the world’s largest financial institutions and pension funds, from Goldman Sachs to Australia’s Macquarie Bank, have figured out that old, trustworthy utilities and infrastructure could become reliable cash cows — supporting the financial system’s speculative junk derivatives with the real concrete of highways, water utilities, airports, harbors, and transit systems.

The spiraling collapse of the financial system may only intensify the quest for private investments in what is now the public sector. This flipping of public assets could be the next big phase of privatization, and it could happen even under an Obama administration, as local and state governments, starved during Bush’s two terms in office, look to bail out on public assets, employees, and responsibilities. The Republican record of neglect of basic infrastructure reads like a police blotter: levees in New Orleans, a major bridge in Minneapolis, a collapsing power grid, bursting water mains, and outdated sewage treatment plants.

Billions in private assets are now parked in “infrastructure funds” waiting for the crisis to mature and the right public assets to buy on the cheap. The first harbingers of a potential fire sale are already on the horizon. The City of Chicago has leased its major highway and Indiana its toll road. Private companies are managing major ports and bidding for control of local water systems across the country. Government jobs are also up for sale. For the first time in American history, the federal government employs more contract workers than regular employees.

This radical shift to the private sector could become one of history’s largest transfers of ownership, control, and wealth from the public trust to the private till. But more is at stake. The concept of democracy itself is being challenged by multinational corporations that see Americans not as citizens, but as customers, and government not as something of, by, and for the people, but as a market to be entered for profit.

How the Water Revolt Began

And a huge market it is. About 85% of Americans receive their water from public utility departments, making water infrastructure, worth trillions of dollars, a prime target for privatization. To drive their agenda, water industry lobbyists have consistently opposed federal aid for public water agencies, hoping that federal cutbacks would drive market expansion. So far, the strategy has worked. In 1978, just before the Reagan-era starvation diet began, federal funding covered 78% of the cost for new water infrastructure. By 2007, it covered just 3%.

As a result, local and state governments are desperately trying to figure out how to make up the difference without politically unpopular rate increases. A growing number of mayors and governors, Republicans and Democrats, are turning to the industry’s designated solution: privatization.

Providing clean, accessible, affordable water is not only the most basic of all government services, but throughout history, control of water has defined the power structure of societies. If we lose control of our water, what do we, as citizens, really control?

The danger is that most citizens don’t even know there’s a problem. Water systems are generally underground and out of sight. Most of us don’t think about our water until the tap runs dry or we flush and it doesn’t go away. That indifference could cost us dearly, but privatization is not yet destiny.

A citizens’ water revolt has been slowly spreading across the United States. The revolt is not made up of “the usual suspects,” has no focused ideology, and isn’t the stuff of headlines. It often starts as a “not-in-my-backyard” movement but quickly expands to encompass issues of global economic justice.

September 28, 2008

The World’s 10 Most Wanted White-Collar Fugitives

Filed under: corporate-greed,usa — admin @ 8:32 am

It didn’t take long for the feds to get their hands on Samuel Israel III after he faked his death on the Bear Mountain Bridge just north of New York City. Israel, a former hedge fund manager sentenced to 20 years in prison for defrauding $400 million from investors, just walked into a Southwick, Mass., police station in July after a month on the run. Other white-collar thieves have proved much harder to catch.

White-collar crime is serious business, and some fraudsters are able to elude facing the consequences of their actions. Commodities trader Marc Rich fled the U.S. for Switzerland in the 1980s to avoid tax evasion charges and an allegation of illegally doing business with Iran. He will never be brought to justice after securing a pardon from President Bill Clinton.

Robert Vesco bounced around Latin America for more than 30 years, managing to evade, among other things, U.S. securities charges for stealing $200 million. He did get imprisoned in Cuba in 1996 and is believed to have died there last year.

Now a new breed of financial fugitives is on the run, epitomized by Jacob “Kobi” Alexander, the stock scammer who is currently living well in Namibia. Many white-collar fugitives, like Russian Boris Berezovsky, are controversial because the charges against them are believed by some to be driven more by politics than anything else. Either way, financial fugitives can live free and prosper if they are smart, like Ghaith Pharaon, the wealthy Saudi wanted by the FBI for 17 years.

“These individuals show high intelligence and tend to put together very complex schemes,” says Sharon Ormsby, the Federal Bureau of Investigations’ financial crimes section chief. “They understand international markets–some have multiple passports–and are familiar with the laws.”

Pharaon was indicted for fraud charges by the U.S. government in 1991 for his alleged role in the mammoth collapse of the Bank of Credit and Commerce International. A large shareholder of BCCI, Pharaon was accused of being a frontman for unlawful purchases of American banks. The Federal Reserve fined Pharaon $37 million for his role in secretly taking over banks, and the Harvard University graduate lost his legal challenge of that fine.

Still, Pharaon has had little trouble operating his business empire, which includes a luxury resort hotel in Jordan and the Attock Group, made up of refinery and cement companies in Pakistan. Attock Refinery was even able to snag an $80 million contract from the U.S. government, ABC News reported in June.

The members of our list of white-collar fugitives have followed different paths. Chinese financial fugitives have made a bee-line for Canada, taking advantage of liberal entry rules and refugee laws. Lai Changxing is wanted in China for allegedly masterminding a $6 billion fraud, while Chinese banker Gao Shan is on the hook for allegedly embezzling $150 million. Both men are living relatively unencumbered lives in the Vancouver area.

London also seems to be a destination of choice; it’s currently home to Berezovsky and former Thai prime minister Thaksin Shinawatra, who recently fled to avoid accusations of financial crimes back home. American telemarketing scammer James Eberhart is just sailing round the world in his boat.

Forbes.com consulted with law enforcement agencies to identify the top 10 most wanted white-collar fugitives, who are listed in no significant order.

Distinguishing white-collar criminals from organized criminals remains challenging 69 years after sociologist Edwin Sutherland coined the term “white-collar crime.” But we tried to stick to Sutherland’s definition of “a crime committed by a person of respectability and high social status in the course of his occupation.” All of the Forbes.com top 10 white-collar fugitives are criminally indicted, convicted or have arrest warrants outstanding–and are wanted by a national government.

http://www.forbes.com/2008/08/27/legal-crime-fbi-biz-cz_nv_0827fugitives_slide_2.html?thisspeed=25000

September 25, 2008

Corruption Index 2008

Filed under: corporate-greed,government,wealth — admin @ 3:52 am

“Persistently high corruption in low-income countries amounts to an “ongoing humanitarian disaster”

“Against a backdrop of continued corporate scandal, wealthy countries backsliding too.”

With countries such as Somalia and Iraq among those showing the highest levels of perceived corruption, Transparency International’s (TI) 2008 Corruption Perceptions Index (CPI), launched today, highlights the fatal link between poverty, failed institutions and graft. But other notable backsliders in the 2008 CPI indicate that the strength of oversight mechanisms is also at risk among the wealthiest.

“In the poorest countries, corruption levels can mean the difference between life and death, when money for hospitals or clean water is in play,” said Huguette Labelle, Chair of Transparency International. “The continuing high levels of corruption and poverty plaguing many of the world’s societies amount to an ongoing humanitarian disaster and cannot be tolerated. But even in more privileged countries, with enforcement disturbingly uneven, a tougher approach to tackling corruption is needed.”

The 2008 Results

The Transparency International CPI measures the perceived levels of public-sector corruption in a given country and is a composite index, drawing on different expert and business surveys. The 2008 CPI scores 180 countries (the same number as the 2007 CPI) on a scale from zero (highly corrupt) to ten (highly clean).

Denmark, New Zealand and Sweden share the highest score at 9.3, followed immediately by Singapore at 9.2. Bringing up the rear is Somalia at 1.0, slightly trailing Iraq and Myanmar at 1.3 and Haiti at 1.4.

While score changes in the Index are not rapid, statistically significant changes are evident in certain countries from the high to the low end of the CPI. Looking at source surveys included in both the 2007 and 2008 Index, significant declines can be seen in the scores of Bulgaria, Burundi, Maldives, Norway and the United Kingdom.

Similarly, statistically significant improvements over the last year can be identified in Albania, Cyprus, Georgia, Mauritius, Nigeria, Oman, Qatar, South Korea, Tonga and Turkey.

Strengthening oversight and accountability

Whether in high or low-income countries, the challenge of reigning in corruption requires functioning societal and governmental institutions. Poorer countries are often plagued by corrupt judiciaries and ineffective parliamentary oversight. Wealthy countries, on the other hand, show evidence of insufficient regulation of the private sector, in terms of addressing overseas bribery by their countries, and weak oversight of financial institutions and transactions.

“Stemming corruption requires strong oversight through parliaments, law enforcement, independent media and a vibrant civil society,” said Labelle. “When these institutions are weak, corruption spirals out of control with horrendous consequences for ordinary people, and for justice and equality in societies more broadly.”

Global fight against poverty in the balance

In low-income countries, rampant corruption jeopardises the global fight against poverty, threatening to derail the UN Millennium Development Goals (MDGs). According to TI’s 2008 Global Corruption Report, unchecked levels of corruption would add US $50 billion (€35 billion) – or nearly half of annual global aid outlays – to the cost of achieving the MDG on water and sanitation.

Not only does this call for a redoubling of efforts in low-income countries, where the welfare of significant portions of the population hangs in the balance, it also calls for a more focussed and coordinated approach by the global donor community to ensure development assistance is designed to strengthen institutions of governance and oversight in recipient countries, and that aid flows themselves are fortified against abuse and graft.

This is the message that TI will be sending to the member states of the UN General Assembly as they prepare to take stock on progress in reaching the MDGs on 25 September, and ahead of the UN conference on Financing for Development, in Doha, Qatar, where commitments on funding aid will be taken

Prof. Johann Graf Lambsdorff of the University of Passau, who carries out the Index for TI, underscored the disastrous effects of corruption and gains from fighting it, saying, “Evidence suggests that an improvement in the CPI by one point [on a 10-point scale] increases capital inflows by 0.5 per cent of a country’s gross domestic product and average incomes by as much as 4 per cent.”

Corporate bribery and double standards

The weakening performance of some wealthy exporting countries, with notable European decliners in the 2008 CPI, casts a further critical light on government commitment to reign in the questionable methods of their companies in acquiring and managing overseas business, in addition to domestic concerns about issues such as the role of money in politics. The continuing emergence of foreign bribery scandals indicates a broader failure by the world’s wealthiest countries to live up to the promise of mutual accountability in the fight against corruption.

“This sort of double standard is unacceptable and disregards international legal standards,” said Labelle. “Beyond its corrosive effects on the rule of law and public confidence, this lack of resolution undermines the credibility of the wealthiest nations in calling for greater action to fight corruption by low-income countries.” The OECD Anti-Bribery Convention, which criminalises overseas bribery by OECD-based companies, has been in effect since 1999, but application remains uneven.

Regulation, though, is just half the battle. Real change can only come from an internalised commitment by businesses of all sizes, and in developing as well as developed countries, to real improvement in anti-corruption practices.

Fighting corruption: A social compact

Across the globe, stronger institutions of oversight, firm legal frameworks and more vigilant regulation will ensure lower levels of corruption, allowing more meaningful participation for all people in their societies, stronger development outcomes and a better quality of life for marginalised communities.

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