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From 1997: Financial Times Article on Free Market Creating Global Poverty

This is another piece I found combing through my scrapbooks. It’s by the Financial Times’ columnist, Joe Rogaly. Titled ‘Market Victims Who Are Free to Be Poor’, and with the subtitle ‘One set of figures shows the capitalist road leading to paradise; a better set shows it leading to misery for many’ it compares and contrasts two reports on global poverty, one by the UN and another by a group of free market think tanks led by the Fraser Institute. And Rogaly comes down firmly on the side of the UN. The article, published in the Weekend edition for 14/15 June 1997, runs

When pictures of skeletal children or abandoned babies appear on the TV news do you (a) lean forward to catch the commentary (b) change channels (c) switch off and head for the kitchen? Some of us have seen about as many images of third-world distress as we can bear. Our assumption is that we know the cure for deprivation: unshackle the free market and the globalised capitalist wealth-producing machine will do the rest.

No it won’t. The 1997 Human Development report, published this week by Oxford University Press for the United Nations, demolishes the idea that the bounty created by the genius of market economics will trickle down. You have to spend tax -payers’ money to help the worst-off, or they will be dead before they are rescued.

Not everyone accepts this. It is contrary to the spirit of the 1997 Economic Freedom of the World report. Right-thinking and therefore expressive of familiar sentiments, it was published last month by the Fraser Institute, Vancouver, in association with 46 other pro-market think-tanks dotted around the planet.

This clutch of capitalist theologians, which includes London’s Institute of Economic Affairs, has invented an index of economic freedom. Its 17 components include growth and inflation rates, government spending, top marginal tax rates, restraints on trade, and so on. These are expressed in hard numbers and therefore “objective”. Hong Kong tops a list of 115 countries thus appraised. The US comes 4th, Britain 7th and France 36th.

You can guess what follows. A few clicks on the mouse-button tell you that between 1985 and 1996 the economies near the top of the economic freedom index grew fastes, while those at the bottom – the “least free” fifth – got poorer. That unhappy quintile includes Russia, Ukraine, and the well-known African disaster areas. The lesson is obvious. Impede the market, and you pay, perhaps with your life. The unobstructed capitalist road is the highway to  paradise.

Wrong again. The UN’s Human Development Index is closer to the truth. it does not measure progress by the rules of conventional economics alone. To be sure, it factors in real gross domestic product per head, as do the freedom-theorists. But GDP is only one of three ingredients. The other two are life expectancy and educational attainment. The resulting list puts countries in a different order from the free marketeers’ league table.

On the latter, remember, Hong Kong comes first. On the development index it falls to 22nd. France, which believes in government expenditure, moves up from 36th on the economic freedom ladder to second place on human development. The United Kingdom falls from 7th to 15th. It’s not just the wealth you generate. It’s how you spend it.

The Human Development report introduces another index this year – for “human poverty”. It counts the people who are expected to die before turning 40, the number of illiterates, those without health services and clean water, and underweight toddlers. Once again you get changes in the rank order, particularly among developing countries.

Cuba, China, Kenya and Peru have all done relatively well at alleviating human poverty. Egypt, Guatemala and Pakistan score less on poverty relief than on human development. It is not only how you spend it, but who you spend it on.

The obvious message is aspirational. If the rich countries would put their hands in their pockets, poverty could be eliminated. We know this will not happen, in spite of the determination to give a lead expressed by Britain’s new Labour administration. Government to government aid is no longer fashionable. The money does not always reach its destination, as the worst case story, that of Zaire, teaches us. The US poured in the dollars, and they went straight into former president Mobutu’s Swiss bank accounts.

Tied assistance is better. Big donors usually demand that markets by set free. This is not quite enough to meet the needs of Human Development or the alleviation of poverty. Happily, contracts tying aid to certain actions are getting more sophisticated – although so are the means by which recipients contravene them. Anyhow, aid is but a part of what is needed.

The true value of the Human Development report lies in its implicit challenge to narrow-focused concentration on the market mechanism. Compiled by a team of economists and others directed by Richard Joly, it has evolved within the broad discipline of economics. It would be better still if someone could come up with an acceptable index of political freedom, to measure both economic and human development and democratic practices. That would require judgments that could not be quantified. How would you have treated 99 per cent votes in communist countries?

The outlook is not all so dolorous. Poverty is declining overall, largely thanks to the improvement in China, which has moved up the economic freedom tables and reduced destitution. Not many countries can make that boast. There are still 800m people who do not have enough to eat. We have some clever indices, but so far no great help to the misery on our TV screens. Only a change in the way we think can achieve that.

That was published nearly a quarter of a century ago. I don’t doubt that with time and the progress of neoliberalist, free market economics, things have become much, much worse. The book Falling off the Edge, which I’ve reviewed on this blog, is a full-scale attack on such globalisation, showing how it not only has created worse poverty and exploitation, but has also led to political instability and global terrorism. And as more British children go hungry, as more people fall into poverty due to the Tories’ privatisations and destruction of the welfare state, I wonder how long it will be before conditions very like those of the Developing World appear here.

This was published when the Financial Times’ weekend edition was still worth reading. It had good reviews and insightful columnists. It declined in quality around the turn of the millennium when it became much more lightweight. It has also switched its political allegiance from liberal to Conservative in an unsuccessful attempt to gain readers.

This article shows that neoliberal free market economics, of the type pushed by the Adam Smith Institute and the Institute for Economic Affairs, has always been a fraud, and known to be a fraud.

But our mendacious, vicious press and political establishment are still pushing it, at a massive cost in human lives and wellbeing. Even in Britain.

No Safe Haven

Published by Anonymous (not verified) on Mon, 29/06/2020 - 10:30pm in

Two books consider how U.S. policy ravages the Northern Triangle.

Anti-Semitism Witch-Hunters Targeting Prospective Labour Politico for Something She Hasn’t Yet Done

As Asa Winstanley, another anti-racism activist falsely expelled from the Labour Party for anti-Semitism remarks, this is beyond thoughtcrime. It’s pre-crime. Mike in his article about Keir Starmer reprimanding the respected Black women MPs Diane Abbott and Bell Ribeiro-Addy also mentions that the witch-hunters are demanding he censure their next target, Salma Yaqoob. Yaqoob is a prospective Labour candidate for mayor of the West Midlands, and a patron of the Stop the War Coalition. She is also due to appear in an online discussion from the Coalition about the new Labour leadership’s position on anti-war issues and Palestine on the 8th of this month, May 2020, alongside Paul Kelemen, the author of The British Left and Zionism: A History of a Divorce, and Tony Greenstein, ‘Jewish socialist and anti-war campaigner’. And it is his appearance on the panel that has sent the witch-hunters into a fearful bate, as Molesworth would sa. 

Greenstein is very definitely a Jewish socialist and anti-war campaigner. He a fierce, bitter opponent of Fascism and racism. This means that he also criticises Zionism for Israel’s ethnic cleansing of the Palestinians, and the movement’s own crimes against Jews. He has pointed out again and again that throughout their history Zionists and the Israeli state have supported Fascists against Jews and other ethnic minorities when it has served their purpose. Israel sought out an alliance with another White Supremacist state, apartheid South Africa. In the 1970s and ’80 they also allied with Fascist regimes in South and Central America, including Guatemala during its dictatorship’s genocidal civil war with the Mayan Indians, and the neo-Nazi regime in Argentina, which targeted Jews for torture, massacre and murder. At the same time, the Board of Deputies of British Jews attacked the Anti-Nazi League in this country, forbidding Jews from joining it or allowing it to hold meetings in synagogues, because the founder was an anti-Zionist. Some left-wing Jews, who defied the ban and joined it nonetheless, like David Rosenberg of the Jewish Socialist Group, say that there were rumours that the Board opposed it for different, racist reasons: they didn’t want Jews joining the Black and Asian fight against racism.

Yaqoob’s appearance was picked up by Ian Austin, the former Labour MP complaining of anti-Semitism while the real reason was that Jeremy Corbyn had returned it to its socialist ideals. He has complained to Starmer and demanded Yaqoob’s suspension. Hence Asa Winstanley tweeted

This racist fanatic wants a prominent Muslim woman expelled from Labour for a future event with the “wrong” kind of Jewish person.

This is beyond Thought Crime, it’s Pre-Crime.

Jackie Walker, another Jewish anti-racism activist smeared as an anti-Semite and expelled from the Party, also commented: It’s open season on black women.

Kerry-Ann Mendoza, the mighty head of The Canary said

Corbyn’s Labour:

For the many, not the few.

Starmer’s Labour:

For us, not you.

See: https://voxpoliticalonline.com/2020/05/02/keir-starmer-has-turned-labour-into-the-party-of-hypocrisy-and-racism/

During the smear campaign a few years ago, the Board, Campaign for Anti-Semitism, Jewish Leadership Council and the other pro-Israel groups and their supporters waved placards at their protests bearing the slogan ‘Labour Party – For the many, not the Jew’. It was a play on Corbyn’s slogan ‘Labour – for the many, not the few’. According to Tony Greenstein, it was made up by British literary author, Howard Jacobson, when he was living in New York. It was supposed to show how anti-Semitic the Labour Party is. But the witch-hunters themselves have particularly targeted Jewish critics of Israel and pro-Palestinian activists. These entirely decent, self-respecting men and women have been viciously smeared as ‘self-hating’. The Board and the other pro-Israel organisations have also misrepresented themselves as standing for Britain’s Jewish community as a whole. They don’t. Board doesn’t represent Orthodox, Haredi nor secular Jews. It really only represents the United Synagogue. I find it very significant that when the I ran an article from a Jewish journalist denouncing Labour as anti-Semitic apart from their own columnist, Simon Kelner, that journo was always described as a member of the United Synagogue. As a Zionist organisation, the Board also doesn’t represent anti-Zionist Jews. The Board and the other organisations attacking Labour and Corbyn were also incensed when the Labour leader attended a Passover Seder with Jewdas, a left-wing Jewish group. This was another anti-Semitic affront to the Jewish community. They were the wrong kind of Jew! Which is itself a noxious, anti-Semitic gesture.

In fact the Board and the other witch-hunters targeting of Jews means that you could reasonably invert their slogan so it reads ‘Board of Deputies – For Israel, not the Jew’. 

It was Tony Blair’s administration that launched the invasion of Iraq, against which the Stop the War Coalition protested, and the Blairites shared the same goals as the Neocons. After George Dubya left office, and was replaced as President by Barack Obama, it was Blair and Sarkozy in France who really wanted an attack on Libya and the overthrow of Colonel Gaddafy. The result has been the destruction of one of Africa’s most prosperous states, which had a strong welfare system and was relatively secular. It has now been replaced in some areas by a hard-line Islamist theocracy, which has returned to slavery with Black migrants now being openly sold in markets. Before the appearance of Coronavirus plunged the world into lockdown, the American right seemed also to be preparing and agitating for a war with Iran. The Neocons also want that country’s regime overthrown because of its militant opposition to Israel, accompanied by frankly genocidal rhetoric, and its defiance of American hegemony in the Middle East. They and their Saudi allies also covet its oil reserves, which they also wish to seize, just like they did Iraq’s.

And there’s also a streak of islamophobia in the witch-hunters a mile wide. People have turned up at pro-Israel and anti-Palestine protests wearing Kach T-shirts. This is a far-right organisation banned in Israel for terrorism. They also wear T-shirts and wave placards for its successor, the Jewish Defence League, which is also banned. One of the witch-hunters turned up next to one anti-Palestinian demo two years or so ago next to Paul Besser, the intelligence officer of the infamous islamophobic group, Britain First. These pro-Israel demonstrators also include open supporters of Tommy Robinson, the founder of the English Defence League and Pegida UK. One of the Board’s members even appeared with him in a video for Rebel Media, a far-right Canadian internet broadcaster.

It therefore very much seems to me that Austin and the other witch-hunters, by making this complaint against Yaqoob, are desperately trying to keep debate and criticism in the Labour party of Israel and its genocide of the Palestinians very firmly closed. They are also seeking to keep Blair’s Neocon agenda alive in Labour. And they are terrified of Muslims and Muslim influence in the Labour Party. There have been polls showing that 85 per cent of British Muslims support Labour. Muslims are one of the largest ethnic minorities in contemporary Britain. The Radio Times a few years ago covered a radio programme about Jewish comedy and literary festivals that were being held up and down the country. These festivals were open to the wider British population. According to the Radio Times, they were partly being held in order to encourage the broader population to support the Jewish community at a time when that community felt its respect was slipping away and being replaced by concern for other ethnic groups.

Now I’ve got absolutely no objection to such festivals, whether by Jews or any other religious or ethnic group. And with the Far Right on the rise in Europe, Jews do need the support and solidarity of non-Jewish anti-racism activists. But Austin’s complaint about Yaqoob, a Muslim patron of the Stop the War Coalition, suggests that the general insecurity felt by part of the Jewish population is shared by the Israel lobby. And they’re scared of competition from Britain’s Muslims for our sympathies.

The witch-hunter’s targeting of Salma Yaqoob is therefore about preserving the Neocon project and protecting Israel from criticism by silencing genuine anti-racism activists, particularly Jews and Muslims. It’s yet another example of the racism of the Blairite Right.