And beware of Jeb Bush, former Florida governor and one of the biggest backers of charter schools and privatization of schools
Nearly 500 Hundred Arrested as Fast-Food Workers Rise Up September 5, 2014Posted by rogerhollander in Labor, Poverty.
Tags: burger king, civil disobedience, fast food workers, jon queally, kfc, labor, labor unions, labour, low-wage workers, mcdonalds, minimum wage, poverty, roger hollander, seiu, taco bell, union rights, worker rights
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Roger’s note: Only in this world of cancerous capitalist economic relations would a working person have to risk inevitable arrest to advocate for a living wage from from the employers for whom her labor helps to build billions of dollars in profits. Socialism is not, as often mistakenly thought, the state ownership of everything. Genuine socialism is worker democracy where the working people whose labor creates the value of the product or service share equally in the revenue generated. Given the enormous productive capacity of worldwide human labor, in such a world everyone would have a living wage. No private owners, all productive enterprises owned collectively by those who work them. This is neither an unattainable or Utopian dream, rather it is what must inevitably replace capitalism’s inherently unequal and undemocratic way of distributing wealth; otherwise the planet is doomed by the war, pestilence and environmental destruction that are a direct product of capitalist economic relations.
Friday, September 05, 2014
Strikes and protests in more than a hundred US cities reveals rapidly growing effort by labor unions and low-wage workers to join forces and reclaim power of organized people
Hundreds of fast-food workers and their supporters were arrested in cities across the country on Thursday as they stood up (and in some cases sat down) as they demanded a $15/hour minimum wage, the right to unionize, and better working conditions across the industry.
In what was the largest coordinated action yet by the low-wage workers movement that has been establishing itself over the last several years, nearly 500 people participated in civil disobedience that led to their arrest outside major fast-food chain restaurants, that included McDonald’s, Burger King, Taco Bell, KFC, and others.
The New York Times reports:
Organizers said nearly 500 protesters were arrested in three dozen cities — including Chicago, Detroit, Las Vegas, New York and Little Rock, Ark. All told, the sit-ins took place in about 150 cities nationwide, the organizers said.
In Milwaukee, United States Representative Gwen Moore, Democrat of Wisconsin, was arrested along with several fast-food workers.
“I’m doing this for better pay,” said Crystal Harris, a McDonald’s worker from St. Louis, minutes before she sat down in the middle of 42nd Street in Manhattan outside a McDonald’s restaurant about 7:30 a.m. on Thursday. “I struggle to make ends meet on $7.50 an hour.”
The protesters carried signs saying, “Low Pay Is Not O.K.,” “On Strike to Lift My Family Up,” and “Whatever It Takes: $15 and Union Rights.” They also want McDonald’s and other fast-food chains to agree not to fight a unionization drive.
The Guardian reports:
Many fast-food jobs pay little more than the federal minimum wage of $7.25 an hour. Thursday’s day of action called for a minimum wage of at least $15.
By the afternoon organisers reported police had arrested 436 people nationwide with more than 43 arrests in Detroit, 19 in New York City, 23 in Chicago, 10 in Little Rock, Arkansas, and 10 in Las Vegas. Protestors were arrested in New York after blocking traffic in front of a McDonald’s in Times Square. In Los Angeles police warned fast food workers sitting in the street they were part of an “illegal assembly” before arresting them.
“We’re definitely on the upward move because we feel justice is on our side … we can’t wait,” said Douglas Hunter, a McDonald’s worker in Chicago who said he has difficulty supporting his 16-year-old daughter on his hourly wage. “We think this is ridiculous in a country as rich as America.”
Also in the Guardian, economy columnist Heidi Moore suggests that not only is the fast-food workers movement growing—it’s working. She writes:
From the first $15-an-hour protest in Seattle in May 2013 to a convention in July, 60 cities on 29 August 29, and Thursday’s first widespread act of intentional civil obedience in the movement, the development of the fast-food protests has shown evidence of a labor movement ready to re-make itself.
“The unions themselves are recognizing that the old system is broken and they need to retool and try new strategies and new things, and that’s what the fast food strikes represent,” says Professor Ruth Milkman of the Graduate Center of the City University of New York (Cuny), who has co-authored a new report on the progress of the labor movement in New York and the rest of the US.
Today’s strikes are different from previous ones in a number of ways, demonstrating the willingness to innovate, said Milkman. The widespread civil disobedience – courting potential arrest by walking out on the job – is one aspect that has been widely mentioned. Other innovations: the addition of home healthcare workers, a separate industry that major unions like the SEIU have worked hard to unionize, but which has not received as much attention as fast food. Tying the two industries together is, for the unions, a way to widen their reach.
And the Huffington Post adds:
The high-profile strikes — which tend to draw national news coverage when they happen — have helped progressive legislators push through minimum wage hikes on the state and local level in recent months, including a $15 wage floor that will slowly go into effect in Seattle. Even President Barack Obama has held up the protests as evidence that Congress needs to hike the federal minimum wage, which hasn’t been raised since 2009. The current level of $7.25 is less than half of what the Fight for $15 campaign is calling for.
“You know what? If I were looking for a job that lets me build some security for my family, I’d join a union,” Obama said Monday in a Labor Day speech. “If I were busting my butt in the service industry and wanted an honest day’s pay for an honest day’s work, I’d join a union.”
While the fast-food companies themselves have generally remained quiet, critics of the campaign who sympathize with the industry have tried to dismiss the protests as stunts orchestrated by the Service Employees International Union. The union has devoted millions of dollars to the campaign in an effort to bring unionism to what’s generally a union-free industry.
With some exceptions, the fast-food strikes generally haven’t been large enough to shut down restaurants. In fact, it isn’t always clear how many of the people participating in a protest are striking workers. In Charleston on Thursday, several workers said they had the day off and wanted to take part in the protest; others told HuffPost they were missing a scheduled shift and were formally notifying their bosses they were taking part in a protected one-day strike.
Jonathan Bennett said he was supposed to be working at Arby’s on Thursday.
“If we don’t do this, I don’t know who will,” Bennett said. “$15 could change everything.”
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Canada, Capitalism, Detroit, Economic Crisis, Human Rights, Poverty, Water.
Tags: Canada, Council of Canadians, detroit, detroit bankruptcy, detroit poverty, detroit water, human rights, Maude Barlow, nadia prupis, poverty, roger hollander, water rights
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Tags: Canada, Council of Canadians, detroit, detroit bankruptcy, detroit poverty, detroit water, human rights, Maude Barlow, nadia prupis, poverty, roger hollander, water rights
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Roger’s note: there are trillions of dollars to support thirteen years of warfare in Afghanistan and hundreds of military bases around the world and a stockpile of nuclear weapons capable of destroying the planet a hundred times over; there is money for record profits for banks and financial institutions and millions to bail them out when their crimes lead to economic disaster; there is money to pay CEOs hundreds of millions of dollars in salaries; there are gazillions for war profiteering corporations such as Lockheed and Boeing; there are three billion dollars a year to arm Israel’s slaughter of Palestinian civilians (I could go on and on) … BUT THERE IS NO MONEY TO PROVIDE WATER TO POOR PEOPLE IN DETROIT.
Some naively and mistakenly believe that in a democracy you get the government you deserve. Yes, just as Palestinian children deserve to be murdered because their parents voted for Hamas. It is a perverse world we live in. In CAPITALIST democracy, you do not get the government you deserve; rather you get war and poverty. But, don’t listen to me, I am an unrepentant commie.
Thursday, July 24, 2014
Council of Canadians joins movement against city-wide water war
As Detroit activists and human rights groups continue to protest against widespread water shutoffs, the Council of Canadians mobilized on Thursday to deliver a convoy of water in a show of international support to beleaguered city residents.
The Windsor chapter of the council will bring hundreds of gallons of water into Detroit to help those faced with long-term service shutoffs.
“In a region that holds 20% of the world’s freshwater, the water cut-offs are a source of growing international outrage,” said Maude Barlow, national chairperson for the Council of Canadians. “Water is a human right, and it is unacceptable in a country of plenty, surrounded by the Great Lakes, the largest source of fresh water in the world, that people should go without.”
The council plans to deliver their convoy to a rally Thursday afternoon at the St. Peter’s Episcopal Church of Detroit. Several organizers will also send a petition to City Hall, asking for water to be restored to elderly people, disabled people and families with children.
“The human suffering is that of a major disaster, one that grows every day,” Barlow stated, adding that the council asks President Barack Obama to “intervene and to declare a state of emergency. It is appalling that this has been allowed to happen, even more so to go on this long.”
The city, which has been fighting its way out of bankruptcy in part by cutting public services such as pensions and welfare, ceased its water supply three months ago to households that were behind on payments in order to collect about $118 million in outstanding bills. Council members recently agreed to a 15-day moratorium on the shutoffs to allow residents time to catch up on what they owe, but emphasized that it was temporary. The policy began to receive international attention as residents held rallies and mass protests and the United Nations declared the shutoffs a violation of human rights.
More than 14,000 households were disconnected between April and June, while the Detroit Water and Sewage Department (DWSD) announced plans to increase the shutoffs to up to 3,000 households a month. But according to Catarina de Albuquerque, UN expert on the human right to water and sanitation, disconnections for delinquent bills are only “permissible” if residents are simply choosing not to pay, which is not the case for the majority of the city’s low-income households.
“Disconnections due to non-payment are only permissible if it can be shown that the resident is able to pay but is not paying,” de Albuquerque said. “In other words, when there is genuine inability to pay, human rights simply forbids disconnections.”
Detroit’s cost of living is too high for many of its low-income residents, particularly as they take the brunt of service cuts decided on by their bankruptcy manager, Kevyn Orr. “Our water rates rise continuously,” Priscilla Dziubek, a spokesperson for the Detroit People’s Water Board, told Common Dreams. “More and more people are struggling with their water bills. We have a loss of democracy. [The city] should make decisions with the citizens of Detroit in mind.”
Water bills in Detroit have gone up by 119 percent in the past 10 years. In June, the city council approved an 8.7 percent increase in rates. At the same time, unemployment rates reached a record high and the poverty rate hit 40 percent. Orr ordered the shutoffs for anyone who owes more than $150 on their bill, while the DWSD said that the procedure is standard and enforced every year.
But as the Michigan Citizen pointed out in June, there is a notable discrepancy in who gets their water services turned off and who doesn’t: Low-income residents do while elite establishments — like the Palmer Park Golf Club, which owes $200,000; Ford Field, which owes $55,000; and the Joe Louis Arena, which owes $80,000, — don’t.
“Why are they going after citizens?” Dziubek said. “They could collect from one of these large accounts and get a lot more money.”
The Detroit People’s Water Board and several other organizations, including Food & Water Watch, called on the city’s managers to implement a water affordability plan that would ease the burden on low-income residents. In a report (PDF) submitted to the special rapporteur on the human right to safe drinking water and sanitation, the Detroit People’s Water Board stated that “it would be more just and efficient for the DWSD to spend its resources collecting unpaid bills from commercial and industrial users than depriving households of basic services.”
Wenonah Hauter, executive director of Food & Water Watch, said in a press statement Monday that the DWSD should “fundamentally reconsider its use of draconian water shutoffs as a means of strong-arming residents who cannot afford to pay their water bills.”
It was unclear Thursday morning whether the council would be able to cross the border, as the U.S. government has to give approval on allowing in any amount of water that exceeds what is necessary for “personal use.”
Dziubek wasn’t worried. “I can’t see any reason why humanitarian water would be turned away,” she said.
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The Play’s the Thing December 16, 2013Posted by rogerhollander in Art, Literature and Culture, Criminal Justice, Education, Poverty, Race, Racism, Torture.
Tags: august wilson, chris hedges, education, incarceration, poverty, prison, prisoners, Race, racism, roger hollander, solitary confinement, theatre, torture
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Posted on Dec 15, 2013, http://www.truthdig.com
|AP/Ted S. Warren|
|Pulitzer Prize-winning playwright August Wilson in his Seattle neighborhood in 2003.|
By Chris Hedges
I began teaching a class of 28 prisoners at a maximum-security prison in New Jersey during the first week of September. My last class meeting was Friday. The course revolved around plays by August Wilson, James Baldwin, John Herbert, Tarell Alvin McCraney, Miguel Piñero, Amiri Baraka and other playwrights who examine and give expression to the realities of America’s black underclass as well as the prison culture. We also read Michelle Alexander’s important book “The New Jim Crow: Mass Incarceration in the Age of Colorblindness.” Each week the students were required to write dramatic scenes based on their experiences in and out of prison.
My class, although I did not know this when I began teaching, had the most literate and accomplished writers in the prison. And when I read the first batch of scenes it was immediately apparent that among these students was exceptional talent.
The class members had a keen eye for detail, had lived through the moral and physical struggles of prison life and had the ability to capture the patois of the urban poor and the prison underclass. They were able to portray in dramatic scenes and dialogue the horror of being locked in cages for years. And although the play they collectively wrote is fundamentally about sacrifice—the sacrifice of mothers for children, brothers for brothers, prisoners for prisoners—the title they chose was “Caged.” They made it clear that the traps that hold them are as present in impoverished urban communities as in prison.
The mass incarceration of primarily poor people of color, people who seldom have access to adequate legal defense and who are often kept behind bars for years for nonviolent crimes or for crimes they did not commit, is one of the most shameful mass injustices committed in the United States. The 28 men in my class have cumulatively spent 515 years in prison. Some of their sentences are utterly disproportionate to the crimes of which they are accused. Most are not even close to finishing their sentences or coming before a parole board, which rarely grants first-time applicants their liberty. Many of them are in for life. One of my students was arrested at the age of 14 for a crime that strong evidence suggests he did not commit. He will not be eligible for parole until he is 70. He never had a chance in court and because he cannot afford a private attorney he has no chance now of challenging the grotesque sentence handed to him as a child.
My stacks of 28 scenes written by the students each week, the paper bearing the musty, sour smell of the prison, rose into an ungainly pile. I laboriously shaped and edited the material. It grew, line by line, scene by scene, into a powerful and deeply moving dramatic vehicle. The voices and reality of those at the very bottom rung of our society—some of the 2.2 million people in prisons and jails across the country, those we as a society are permitted to demonize and hate, just as African-Americans were once demonized and hated during slavery and Jim Crow—began to flash across the pages like lightning strikes. There was more brilliance, literacy, passion, wisdom and integrity in that classroom than in any other classroom I have taught in, and I have taught at some of the most elite universities in the country. The mass incarceration of men and women like my students impoverishes not just them, their families and their communities, but the rest of us as well.
“The most valuable blacks are those in prison,” August Wilson once said, “those who have the warrior spirit, who had a sense of being African. They got for their women and children what they needed when all other avenues were closed to them.” He added: “The greatest spirit of resistance among blacks [is] found among those in prison.”
I increased the class meetings by one night a week. I read the scenes to my wife, Eunice Wong, who is a professional actor, and friends such as the cartoonist Joe Sacco and the theologian James Cone. Something unique, almost magical, was happening in the prison classroom—a place I could reach only after passing through two metal doors and a metal detector, subjecting myself to a pat-down by a guard, an X-ray inspection of my canvas bag of books and papers, getting my hand stamped and then checked under an ultraviolet light, and then passing through another metal door into a barred circular enclosure. In every visit I was made to stand in the enclosure for several minutes before being permitted by the guards to pass through a barred gate and then walk up blue metal stairs, through a gantlet of blue-uniformed prison guards, to my classroom.
The class, through the creation of the play, became an intense place of reflection, debate and self-discovery. Offhand comments, such as the one made by a student who has spent 22 years behind bars, that “just because your family doesn’t visit you doesn’t mean they don’t love you,” reflected the pain, loneliness and abandonment embedded in the lives of my students. There were moments that left the class unable to speak.
A student with 19 years behind bars read his half of a phone dialogue between himself and his mother. He was the product of rape and tells his mother that he sacrificed himself to keep his half brother—the only son his mother loves—out of prison. He read this passage in the presentation of the play in the prison chapel last Thursday to visitors who included Cornel West and James Cone.
Terrance: You don’t understand[,] Ma.
Terrance: You’re right. Never mind.
PauseTerrance: What you want me to say Ma?
Terrance: Ma, they were going to lock up Bruce. The chrome [the gun] was in the car. Everyone in the car would be charged with murder if no one copped to it …
Terrance: I didn’t kill anyone Ma… Oh yeah, I forgot, whenever someone says I did, I did it.
Terrance: I told ’em what they wanted to hear. That’s what niggas supposed to do in Newark. I told them what they wanted to hear to keep Bruce out of it. Did they tell you who got killed? Did they say it was my father?
Terrance: Then you should know I didn’t do it. If I ever went to jail for anything it would be killing him … and he ain’t dead yet. Rape done brought me into the world. Prison gonna take me out. An’ that’s the way it is Ma.
Terrance: Come on Ma, if Bruce went to jail you would’uv never forgiven me. Me, on the other hand, I wasn’t ever supposed to be here.
Terrance: I’m sorry Ma … I’m sorry. Don’t be cryin’. You got Bruce. You got him home. He’s your baby. Bye Ma. I call you later.
After our final reading of the play I discovered the student who wrote this passage sobbing in the bathroom, convulsed with grief.
In the play when a young prisoner contemplates killing another prisoner he is given advice on how to survive prolonged isolation in the management control unit (solitary confinement, known as MCU) by an older prisoner who has spent 30 years in prison under a sentence of double life. There are 80,000 U.S. prisoners held in solitary confinement, which human rights organizations such as Amnesty International define as a form of torture. In this scene the older man tells the young inmate what to expect from the COs, or correction officers.
Ojore (speaking slowly and softly): When they come and get you, ’cause they are gonna get you, have your hands out in front of you with your palms showing. You want them to see you have no weapons. Don’t make no sudden moves. Put your hands behind your head. Drop to your knees as soon as they begin barking out commands.
Omar: My knees?
Ojore: This ain’t a debate. I’m telling you how to survive the hell you ’bout to endure. When you get to the hole you ain’t gonna be allowed to have nothing but what they give you. If you really piss them off you get a ‘dry cell’ where the sink and the toilet are turned on and off from outside. You gonna be isolated. No contact. No communication.
Ojore: ’Cause they don’t want you sendin’ messages to nobody before dey question some of da brothers on the wing. IA [internal affairs officers] gonna come and see you. They gonna want a statement. If you don’t talk they gonna try and break you. They gonna open the windows and let the cold in. They gonna take ya sheets and blankets away. They gonna mess with ya food so you can’t eat it. An’ don’t eat no food that come in trays from the Vroom Building. Nuts in Vroom be spittin’, pissin’ and shittin’ in the trays. Now, the COs gonna wake you up every hour on the hour so you can’t sleep. They gonna put a bright-ass spotlight in front of ya cell and keep it on day and night. They gonna harass you wit’ all kinds of threats to get you to cooperate. They will send in the turtles in their shin guards, gloves, shank-proof vests, forearm guards and helmets with plexiglass shields on every shift to give you beat-downs.
Omar: How long this gonna go on?
Ojore: Til they break you. Or til they don’t. Three days. Three weeks. You don’t break, it go on like this for a long time. An’ if you don’t think you can take it, then don’t start puttin’ yerself through this hell. Just tell ’em what they wanna know from the door. You gonna be in MCU for the next two or three years. You’ll get indicted for murder. You lookin’ at a life bid. An’ remember MCU ain’t jus’ ’bout isolation. It’s ’bout keeping you off balance. The COs, dressed up in riot gear, wake you up at 1 a.m., force you to strip and make you grab all your things and move you to another cell just to harass you. They bring in dogs trained to go for your balls. You spend 24 hours alone one day in your cell and 22 the next. They put you in the MCU and wait for you to self-destruct. An’ it works. Men self-mutilate. Men get paranoid. Men have panic attacks. They start hearing voices. They talk crazy to themselves. I seen one prisoner swallow a pack of AA batteries. I seen a man shove a pencil up his dick. I seen men toss human shit around like it was a ball game. I seen men eat their own shit and rub it all over themselves like it was some kinda body lotion. Then, when you really get out of control, when you go really crazy, they got all their torture instruments ready—four- and five-point restraints, restraint hoods, restraint belts, restraint beds, stun grenades, stun guns, stun belts, spit hoods, tethers, and waist and leg chains. But the physical stuff ain’t the worst. The worst is the psychological, the humiliation, sleep deprivation, sensory disorientation, extreme light or dark, extreme cold or heat and the long weeks and months of solitary. If you don’t have a strong sense of purpose you don’t survive. They want to defeat you mentally. An’ I seen a lot of men defeated.
The various drafts of the play, made up of scenes and dialogue contributed by everyone in the class, brought to the surface the suppressed emotions and pain that the students bear with profound dignity. A prisoner who has been incarcerated for 22 years related a conversation with his wife during her final visit in 1997. Earlier his 6-year-old son had innocently revealed that the woman was seeing another man. “I am aware of what kind of time I got,” he tells his wife. “I told you when I got found guilty to move on with your life, because I knew what kind of time I was facing, but you chose to stick around. The reason I told you to move on with your life was because I didn’t want to be selfish. So look, man, do what the fuck you are going to do, just don’t keep my son from me. That’s all I ask.” He never saw his child again. When he handed me the account he said he was emotionally unable to read it out loud.
Those with life sentences wrote about dying in prison. The prisoners are painfully aware that some of them will end their lives in the medical wing without family, friends or even former cellmates. One prisoner, who wrote about how men in prolonged isolation adopt prison mice as pets, naming them, carefully bathing them, talking to them and keeping them on string leashes, worked in the prison infirmary. He said that as some prisoners were dying they would ask him to hold their hand. Often no one comes to collect the bodies. Often, family members and relatives are dead or long estranged. The corpses are taken by the guards and dumped in unmarked graves.
A discussion of Wilson’s play “Fences” became an exploration of damaged manhood and how patterns of abuse are passed down from father to son. “I spent my whole life trying not to be my father,” a prisoner who has been locked up for 23 years said. “And when I got to Trenton I was put in his old cell.”
The night we spoke about the brilliant play “Dutchman,” by LeRoi Jones, now known as Amira Baraka, the class grappled with whites’ deeply embedded stereotypes and latent fear of black men. I had also passed out copies of Robert Crumb’s savage cartoon strip “When the Niggers Take Over America!,” which portrays whites’ fear of black males—as well as the legitimate black rage that is rarely understood by white society.
The students wanted to be true to the violence and brutality of the streets and prison—places where one does not usually have the luxury of being nonviolent—yet affirm themselves as dignified and sensitive human beings. They did not want to paint everyone in the prison as innocents. But they know that transformation and redemption are real.
There are many Muslims in the prison. They have a cohesive community, sense of discipline and knowledge of their own history, which is the history of the long repression and subjugation of African-Americans. Most Muslims are very careful about their language in prison and do not curse, meaning I had to be careful when I assigned parts to the class.
There is a deep reverence in the prison for Malcolm X. When the class spoke of him one could almost feel Malcolm’s presence. Malcolm articulated, in a way Martin Luther King Jr. did not, the harsh reality of poor African-Americans trapped in the internal colonies of the urban North.
The class wanted the central oracle of the play to be an observant Muslim. Faith, when you live in the totalitarian world of the prison, is important. The conclusion of the play was the result of an intense and heated discussion about the efficacy and nature of violence and forgiveness. But by the end of a nearly hourlong discussion the class had unanimously signed off on the final scene, which I do not want to reveal here because I hope that one day it will be available to be seen or read. It was the core message the prisoners wanted most to leave with outsiders, who often view them as less than human.
The play has a visceral, raw anger and undeniable truth that only the lost and the damned can articulate. The students wrote a dedication that read: “We have been buried alive behind these walls for years, often decades. Most of the outside world has abandoned us. But a few friends and family have never forgotten that we are human beings and worthy of life. It is to them, our saints, that we dedicate this play.” And they said that if the play was ever produced, and if anyone ever bought tickets, they wanted all the money that might be earned to go to funding the educational program at the prison. This was a decision by men who make, at most, a dollar a day at prison jobs.
We read the Wilson play “Joe Turner’s Come and Gone.” The character Bynum Walker, a conjurer, tells shattered African-Americans emerging from the nightmare of slavery that they each have a song but they must seek it out. Once they find their song they will find their unity as a people, their inner freedom and their identity. The search for one’s song in Wilson’s play functions like prayer. It gives each person a purpose, strength and hope. It allows a person, even one who has been bitterly oppressed, to speak his or her truth defiantly to the world. Our song affirms us, even if we are dejected and despised, as human beings.
Prisoners are given very little time by the guards to line up in the corridor outside the classroom when the prison bell signals the end of class. If they lag behind they can get a “charge” from the guards that can restrict their already very limited privileges and freedom of movement. For this reason, my classroom emptied quickly Friday night. I was left alone in the empty space, my eyes damp, my hands trembling as I clutched their manuscript. They had all signed it for me. I made the long and lonely walk down the prison corridors, through the four metal security doors, past the security desk to the dark, frozen parking lot. I looked back, past the coils of razor wire that topped the chain-link fencing, at the shadowy bulk of the prison. I have their song. I will make it heard. I do not know what it takes to fund and mount a theater production. I intend to learn.
The Extraordinary Pierre Omidyar November 18, 2013Posted by rogerhollander in Media, Poverty, Right Wing.
Tags: brac, bridge international, columbia journalsim review, donors choose, free market, Fujimori, glenn greenwald, grameen bank, hernando de soto, india suicides, journalism, koch brothers, mark ames, Media, micro credit, micro lending, microcredit, microfinance, milton friedman, neoliberal, omidyar network, pierre omidyar, poverty, predatory micro-loans, privatization, roger hollander, sks microfinance, tea party, third world, unitus, yasha levin
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Roger’s note: This is an incredible piece of investigative journalism. When I first read that Glenn Greenwald (I sincerely hope he has or will read this article) was leaving The Guardian to enter into a new journalist project financed by eBay founder, the billionaire Pierre Omidyar, my initial response was, “Glenn, say it isn’t so.” This was based on instinct. It just didn’t smell right. The article you are about to read pinpoints the source of the odor. Greenwald’s work as an investigative journalist, first with his own Blog, then with salon.com, and finally with the Guardian, even prior to the Snowden revelations, was of vital importance with respect to its exposing the crimes of the Bush and Obama administrations. In a sense, the I.F. Stone of our day. Even if Omidyar wasn’t the sleeze bucket neo-Liberal that is pictured by Ames and Levin, you don’t magically overnight create independent journalism via anyone’s big bucks. Salon and The Guardian have roots and a history of journalistic development for which there is no substitute. Apart from exposing Omidyar, this article is a clinic on the way the ultra and neo-fascist right is working to destroy what is left of the democratic public sector; and we know from Germany and Italy in the 1930s what to expect when private corporations are in total control of the state.
http://www.nsfwcorp.com, 11:51 a.m. November 15, 2013
“We ought to be looking at business as a force for good.” – Pierre Omidyar
“Like eBay, Omidyar Network harnesses the power of markets to enable people to tap their true potential.” – Omidyar Network, “Frequently Asked Questions”
* * The world knows very little about the political motivations of Pierre Omidyar, the eBay billionaire who is founding (and funding) a quarter-billion-dollar journalism venture with Glenn Greenwald, Laura Poitras and Jeremy Scahill. What we do know is this: Pierre Omidyar is a very special kind of technology billionaire.
We know this because America’s sharpest journalism critics have told us.
In a piece headlined “The Extraordinary Promise of the New Greenwald-Omidyar Venture”, The Columbia Journalism Review gushed over the announcement of Omidyar’s project. And just in case their point wasn’t clear, they added the amazing subhead, “Adversarial muckrakers + civic-minded billionaire = a whole new world.”
Ah yes, the fabled “civic-minded billionaire”—you’ll find him two doors down from the tooth fairy.
But seriously folks, CJR really, really wants you to know that Omidyar is a breed apart: nothing like the Randian Silicon Valley libertarian we’ve become used to seeing.
“…billionaires don’t tend to like the kind of authority-questioning journalism that upsets the status quo. Billionaires tend to have a finger in every pie: powerful friends they don’t want annoyed and business interests they don’t want looked at.
“By hiring Greenwald & Co., Omidyar is making a clear statement that he’s the billionaire exception….It’s like Izzy Stone running into a civic-minded plastics billionaire determined to take I.F. Stone’s Weekly large back in the day.”
Later, the CJR “UPDATED” the piece with this missing bit of “oops”:
“(UPDATE: I should disclose that the Omidyar Network helps fund CJR, something I didn’t know until shortly after I published this post.)”
No biggie. Honest mistake. And anyway, plenty of others rushed to agree with CJR’s assessment. Media critic Jack Shafer at Reuters described Omidyar’s politics and ideology as “close to being a clean slate,” repeatedly praising the journalism venture’s and Omidyar’s “idealism.” The “NewCo” venture with Greenwald “harkens back to the techno-idealism of the 1980s and 1990s, when the first impulse of computer scientists, programmers, and other techies was to change the world, not make more money,” Shafer wrote, ending his piece:
“As welcome as Omidyar’s money is, his commitment to the investigative form and an open society is what I’m grateful for this afternoon. You can never uphold the correct verdict too often.”
What all of these orgasmic accounts of Omidyar’s “idealism” have in common is a total absence of skepticism. America’s smartest media minds simply assume that Omidyar is an “exceptional” billionaire, a “civic-minded billionaire” driven by “idealism” rather than by profits. The evidence for this view is Pierre Omidyar’s massive nonprofit venture, Omidyar Network, which has distributed hundreds of millions of dollars to causes all across the world.
And yet what no one seems able to specify is exactly what ideology Omidyar Network promotes. What does Omidyar’s “idealism” mean in practice, and is it really so different from the non-idealism of other, presumably bad, billionaires? It’s almost as if journalists can’t answer those questions because they haven’t bothered asking them.
So let’s go ahead and do that now.
Since its founding in 2004, Omidyar Network has committed nearly $300 million to a range of nonprofit and for-profit “charity” outfits. An examination of the ideas behind the Omidyar Network and of the investments it has made suggests that its founder is anything but a “different” sort of billionaire. Instead, what emerges is almost a caricature of neoliberal ideology, complete with the trail of destruction that ensues when that ideology is put into practice. The generous support of the Omidyar Network goes toward “fighting poverty” through micro-lending, reducing third-world illiteracy rates by privatizing education and protecting human rights by expanding property titles (“private property rights”) into slums and villages across the developing world.
In short, Omidyar Network’s philanthropy reveals Omidyar as a free-market zealot with an almost mystical faith in the power of “markets” to transform the world, end poverty, and improve lives—one micro-individual at a time.
All the neoliberal guru cant about solving the world’s poverty problems by unlocking the hidden “micro-entrepreneurial” spirit of every starving Third Worlder is put into practice by Omidyar Network’s investments. Charity without profit motive is considered suspect at best, subject to the laws of unintended consequences; good can only come from markets unleashed, and that translates into an ideology inherently hostile to government, democracy, public politics, redistribution of land and wealth, and anything smacking of social welfare or social justice.
In literature published by Omidyar Network, the assumption is that technology is an end in itself, that it naturally creates beneficial progress, and that the world’s problems can be solved most effectively with for-profit business solutions.
The most charitable thing one can say about Omidyar’s nonprofit network is that it reflects all the worst clichés of contemporary neoliberal faith. In reality, it’s much worse than that. In many regions, Omidyar Network investments have helped fund programs that create worsening conditions for the world’s underclass, widening inequalities, enhancing exploitation, pushing millions of people into crippling debt and supporting anti-poverty programs that, in some cases, resulted in mass-suicide by the rural poor.
* * Pierre Omidyar was one of the biggest early backers of the for-profit micro-lending industry. Through Omidyar Network, as well as personal gifts and investments, he has funnelled around $200 million into various micro-lending companies and projects over the past decade, with the goal of establishing an investment-grade microfinance sector that would be plugged into Wall Street and global finance. The neoliberal theory promised to unleash billions of new micro-entrepreneurs; the stark reality is that it saddled untold numbers with crushing debt and despair.
One of his first major investments into micro-lending came in 2005, when Pierre Omidyar and his wife Pam gave Tufts University, their alma mater, $100 million to create the “Omidyar-Tufts Microfinance Fund,” a managed for-profit fund dedicated to jump-starting the growth of the micro-finance industry. At the time, Tufts announced that Omidyar’s gift was the “largest private allocation of capital to microfinance by an individual or family.”
With the Tufts fund, Omidyar wanted to go beyond mere charitable donations to specific micro-lending organizations that targeted the developing world’s poorest. At the same time, he wanted to create a whole new environment in which for-profit micro-lending companies could be self-sustaining and generate big enough profits to attract serious global investors.
This idea was at the core of Omidyar’s vision of philanthropy: he believed that microfinance would eradicate poverty faster and better if it was run on a for-profit basis, and not like a charity.
“If you want to reach global scale — and we’re talking about hundreds of millions of people who need this — you can’t do it with philanthropy capital. There’s not enough charity capital out there. By connecting with an institutional investor like a university, we would like to increase the level of professional investor involvement in this sector to try to stimulate more commercially viable investment products,” Pierre Omidyar said in an interview at the time. “We ought to be looking at business as a force for good.”
The idea behind micro-loans is very simple and seductive. It goes something like this: the only thing that prevents the hundreds of millions of people living in extreme poverty from achieving financial success is their lack of access to credit. Give them access to micro-loans—referred to in Silicon Valley as “seed capital”—and these would-be successful business-peasants and illiterate shantytown entrepreneurs would pluck themselves out of the muck by their own homemade sandal straps. Just think of it: hundreds of millions of peasants working as micro-individuals, taking out micro-loans, making micro-rational investments into their micro-businesses, dutifully paying their micro-loan payments on time and working in concert to harness the deregulated power of the markets to collectively lift society out of poverty. It’s a grand neoliberal vision.
To that end, Omidyar has directed about a third of the Omidyar Network investment fund—or about $100 million—to support the micro-lending industry. The foundation calls this initiative “financial inclusion.”
Shockingly, micro-loans aren’t all that they’ve cracked up to be. After years of observation and multiple studies, it turns out that the people benefiting most from micro-loans are the big global financial players: hedge funds, banks and the usual Wall Street hucksters. Meanwhile, the majority of the world’s micro-debtors are either no better off or have been sucked into a morass of crippling debt and even deeper poverty, which offers no escape but death.
Take SKS Microfinance, an Omidyar-backed Indian micro-lender whose predatory lending practices and aggressive collection tactics have caused a rash of suicides across India.
Omidyar funded SKS through Unitus, a microfinance private equity fund bankrolled by the Omidyar Network to the tune of at least $11.7 million. ON boosted SKS in its promotional materials as a micro-lender that’s “serving the rural poor in India” and that exemplifies a company that’s providing “people with the means to address their needs and improve their lives.”
In 2010, SKS made headlines and stirred up bitter controversy about the role that profits should play in anti-poverty initiatives when the company went public with an IPO that generated about $358 million, giving SKS a market valuation of more than $1.6 billion. The IPO made millions for its wealthy investors, including the Omidyar-backed Unitus fund, which earned a cool $5 million profit from the SKS IPO, according to the Puget Sound Business Journal.
Some were bothered, but others saw it as proof that the power of the markets could be harnessed to succeed where traditional charity programs supposedly hadn’t. The New York Times reported:
“An Indian company with rich American backers is about to raise up to $350 million in a stock offering closely watched by philanthropists around the world, showing that big profits can be made from small helping-hand loans to poor cowherds and basket weavers.”
Controversy or not, SKS embodied Omidyar’s vision of philanthropy: it was a for-profit corporation that fought poverty while generating lucrative returns for its investors. Here would be proof-positive that the profit motive makes everyone a winner.
And then reality set in.
In 2012, it emerged that while the SKS IPO was making millions for its wealthy investors, hundreds of heavily indebted residents of India’s Andhra Pradesh state were driven to despair and suicide by the company’s cruel and aggressive debt-collection practices. The rash of suicides soared right at the peak of a large micro-lending bubble in Andhra Pradesh, in which many of the poor were taking out multiple micro-loans to cover previous loans that they could no longer pay. It was subprime lending fraud taken to the poorest regions of the world, stripping them of what little they had to live on. It got to the point where the Chief Minister of Andrah Pradesh publicly appealed to the state’s youth and young women not to commit suicide, telling them, “Your lives are valuable.”
The AP conducted a stunning in-depth investigation of the SKS suicides, and their reporting needs to be quoted at length to understand just how evil this program is. The article begins:
“First they were stripped of their utensils, furniture, mobile phones, televisions, ration cards and heirloom gold jewelry. Then, some of them drank pesticide. One woman threw herself in a pond. Another jumped into a well with her children.
“Sometimes, the debt collectors watched nearby.”
What prompted the AP investigation was the gulf between the reported rash of suicides linked to SKS debt collectors, and SKS’s public statements denying it had knowledge of or any role in the predatory lending abuses. However, the AP got a hold of internal SKS documents that contradicted their public denials:
“More than 200 poor, debt-ridden residents of Andhra Pradesh killed themselves in late 2010, according to media reports compiled by the government of the south Indian state. The state blamed microfinance companies – which give small loans intended to lift up the very poor – for fueling a frenzy of overindebtedness and then pressuring borrowers so relentlessly that some took their own lives.
“The companies, including market leader SKS Microfinance, denied it.
“However, internal documents obtained by The Associated Press, as well as interviews with more than a dozen current and former employees, independent researchers and videotaped testimony from the families of the dead, show top SKS officials had information implicating company employees in some of the suicides.”
The AP investigation and internal reports showed just how brutal the SKS microfinancing program was, how women were particularly targeted because of their heightened sense of shame and community responsibility—here is the brutal reality of financial capitalism compared to the utopian blather mouthed at Davos conferences, or in the slick pamphlets issued by the Omidyar Network:
“Both reports said SKS employees had verbally harassed over-indebted borrowers, forced them to pawn valuable items, incited other borrowers to humiliate them and orchestrated sit-ins outside their homes to publicly shame them. In some cases, the SKS staff physically harassed defaulters, according to the report commissioned by the company. Only in death would the debts be forgiven.
“The videos and reports tell stark stories:
“One woman drank pesticide and died a day after an SKS loan agent told her to prostitute her daughters to pay off her debt. She had been given 150,000 rupees ($3,000) in loans but only made 600 rupees ($12) a week.
“Another SKS debt collector told a delinquent borrower to drown herself in a pond if she wanted her loan waived. The next day, she did. She left behind four children.
“One agent blocked a woman from bringing her young son, weak with diarrhea, to the hospital, demanding payment first. Other borrowers, who could not get any new loans until she paid, told her that if she wanted to die, they would bring her pesticide. An SKS staff member was there when she drank the poison. She survived.
“An 18-year-old girl, pressured until she handed over 150 rupees ($3)—meant for a school examination fee—also drank pesticide. She left a suicide note: ‘Work hard and earn money. Do not take loans.'”
As a result of the bad press this scandal caused, the Omidyar Network deleted its Unitus investment from its website—nor does Omidyar boast of its investments in SKS Microfinance any longer. Meanwhile, Unitus mysteriously dissolved itself and laid off all of its employees right around the time of the IPO, under a cloud of suspicion that Unitus insiders made huge personal profits from the venture, profits that in theory were supposed to be reinvested into expanding micro-lending for the poor.
Thus spoke the profit motive.
Curiously, in the aftermath of the SKS micro-lending scandal, Omidyar Network was dragged into another political scandal in India when it was revealed that Omidyar and the Ford Foundation were placing their own paid researchers onto the staffs of India’s MPs. The program, called Legislative Assistants to MPs (LAMPs), was funded with $1 million from Omidyar Network and $855,000 from the Ford Foundation. It was shut down last year after India’s Ministry of Home Affairs complained about foreign lobbying influencing Indian MPs, and promised to investigate how Omidyar-funded research for India’s parliament may have been “colored” by an agenda.
But SKS is not the only microfinancing investment gone bad. The biggest and most reputable micro-lenders, including those funded by the Omidyar Network, have come under serious and sustained criticism for predatory interest rates and their aggressive debt-collection techniques.
Take BRAC, another big beneficiary of Omidyar’s efforts to boost “financial inclusion.”
Started in the early 1970s as a war relief organization, BRAC has grown into the largest non-governmental organization in the world. It employs over 100,000 people in countries across the globe. While BRAC is known mostly for its micro-lending operation activities, the outfit is a diversified nonprofit business operation. It is involved in education, healthcare and even develops its own hybrid seed varieties. Much of BRAC’s operations are financed by its micro-lending activities.
Omidyar Network praises BRAC for its work to “empower the poor to improve their own lives,” and has given at least $8 million to help BRAC set up micro-lending banking infrastructure in Liberia and Sierra Leone.
But BRAC seems to worry more about its own bottom line than it does about the well-being of its impoverished borrowers, the majority of whom are women and who pay an average annual interest rate of 40 percent.
This twisted sense of priority could be seen after one of the worst cyclones in the history of Bangladesh left thousands dead in 2007, destroying entire villages and towns in its path. In the cyclone’s wake, the Omidyar-funded BRAC micro-lending debt collectors showed up at the disaster zone along with other micro-lenders, and went to work aggressively shaking down borrowers, forcing some victims (mostly women) to go so far as to sell their relief/aid materials, or to take out secondary loans to pay off the first loans.
According to a study about micro-lenders in the aftermath of Cyclone Sidr:
“Sidr victims who lost almost everything in the cyclone, experienced pressure and harassment from nongovernmental organisations (NGOs) for repayment of microcredit instalments. Such intense pressure led some of the Sidraffected borrowers to sell out the relief materials they received from different sources. Such pressure for loan recovery came from large organisations such as BRAC, ASA and even the Nobel Prize winning organisation Grameen Bank.
“Even the most severely affected people are expected to pay back in a weekly basis, with the prevailing interest rate. No system of ‘break’ or ‘holiday’ period is available in the banks’ current charter. No exceptions are made during a time of natural calamity. The harsh rules practised by the microcredit lender organisations led the disaster affected people even selling their relief assistance. Some even had to sell their leftover belongings to pay back their weekly instalments.”
These tactics may be harsh, but they pay off for micro-lenders. And it’s a lucrative operation: BRAC primarily targets women, offers loans with predatory interest rates and uses traditional values and close village relationships to shame and pressure borrowers into selling and doing whatever they can to make their weekly payments. It works. Loan recovery rates for the industry average between 95 and 98 percent. For BRAC, that rate was a comfy 99.3 percent.
So do predatory micro-loans really help lift the world’s poorest people out of poverty? Neoliberal ideology says they do — and the Omidyar Network represents one of the purest distillations of that ideology put into practice in the poorest and most vulnerable parts of the world.
As Cambridge University economics professor Ha-Joon Chang argued, saying of micro-lending:
“[It] constitutes a powerful institutional and political barrier to sustainable economic and social development, and so also to poverty reduction. Finally, we suggest that continued support for microfinance in international development policy circles cannot be divorced from its supreme serviceability to the neoliberal/globalization agenda.”
Omidyar Network has followed the same disastrous neoliberal script in other areas of investment, particularly its investments into privatizing public schools in the US and in poor regions of Africa.
One of the earliest Omidyar investments went to an online private charity website for needy public schools here in the US. As David Sirota wrote, huge billionaire foundations and corporations have been holding children hostage by starving public-school funding and replacing it with “charity” money from the likes of the Wal-Mart Foundation, Bill and Melinda Gates Foundation and Broad Foundation. We can add the Omidyar Network to this list as well.
Omidyar’s foundation invested in the same idea, but with a web 2.0 crowd-source twist: DonorsChoose.org allows individuals to pledge amounts as small as $10, and allows school teachers to get online asking for small sums to help their classrooms. The end result, of course, is that it normalizes the continued strangling of public schools and the sense that only private funding can save education.
Omidyar poured millions into DonorsChoose and organized donations from other Silicon Valley donors. At first, most public school teachers didn’t see the angle; many used the resource to raise funds for their own classrooms.
It wasn’t until DonorsChoose announced its partnership with the anti-public-education film “Waiting For Superman” that teachers realized they’d been duped. The movie promoted the myth that education could only be saved by the likes of Tea Party-backed school “reform” advocate Michelle Rhee. Teachers organized a boycott of DonorsChoose after the Omidyar-funded group announced it was essentially bribing its members with a $15 gift certificate to anyone who bought tickets for “Waiting for Superman.”
Overseas, the Omidyar Network is embarking on a school privatization program that will make DonorsChoose look like Mother Theresa’s handiwork. Omidyar provided seed capital for a new Africa-based for-profit private school enterprise for the poor called Bridge International. In 2009, ON gave Bridge a total of $1.8 million; Matt Bannick, the top figure (managing partner) in the Omidyar Network, sits on Bridge International’s board of directors.
Bridge International’s first schools are being built in Kenya, and are slated to expand across the sub-Sahara, hoping to rope millions of poor African kids into its schools. Bridge’s strategic partner is the for-profit education giant, Pearson. Diane Ravitch, former US Assistant Secretary of Education and critic of school “reform” efforts, has warned about Pearson’s near-monopolistic power influencing the privatization of American education (see Ravitch’s article“The Pearsonization of the American Mind.”)
The idea behind Bridge International is to provide a franchised “school in a box” model under which each school teaches the exact same curriculum at the exact same time to every student. Teachers are given minimal training—they’re merely required to teach according to the script given to them and read out to their students, scripts delivered through Nook tablets. Students pay $5 a month—a lot for each student in areas as poor as sub-Saharan Africa. Currently one new Bridge International school is opening every 2.5 days around Kenya, overtaking public education—with plans to expand further.
It sounds like a good idea, but the problem is that Bridge’s business model has a very narrow set of supporters, namely: free-market think-tanks, the global for-profit education industry and proponents of a neoliberal utopia who want to defund public education and replace it with private schooling. Bridge is only a few years old, but criticism of its educational model is already piling up—even from centrist pro-business thinktanks like the Brookings Institution. Even at $4 or $5 a month, Bridge’s “low cost” education is too expensive for many in the developing world, forcing children to go to work and making families choose between buying food and paying for education. Naturally, food wins out. And that simply means that many children can’t afford to go school, which only increases and reinforces stratification and inequality.
The fight against illiteracy requires free, quality education that’s available to all children. What it doesn’t need is a bunch of neoliberal techno-disruptors who want to turn education into a for-profit industry that provides schooling only to those who can afford it. And anyway, the very notion that you can squeeze enough profit from millions of the poorest children in the world to attract mega venture capital, while providing quality education is absurd. That profit money is extracted from the very people Bridge is supposedly trying to help.
Still think that Pierre Omidyar is a “different” type of billionaire? Still convinced he’s a one-of-a-kind “civic-minded” idealist?
Then you might want to ask yourself why Omidyar is so smitten by the ideas of an economist known as “The Friedrich Hayek of Latin America.” His name is Hernando de Soto and he’s been adored by everyone from Milton Friedman to Margaret Thatcher to the Koch brothers. Omidyar Network poured millions of nonprofit dollars into subsidizing his ideas, helping put them into practice in poor slums around the developing world.
In February 2011, the Omidyar Network announced a hefty $4.96 million grant to a Peru-based free-market think tank, the Institute for Liberty & Democracy (ILD).
Perhaps no single investment by Omidyar more clearly reveals his orthodox neoliberal vision for the world—and what constitutes “civic-mindedness”—than his support for the ILD and its founder and president, Hernando De Soto, whom the ON has tapped to participate in other Omidyar-sponsored events.
De Soto is a celebrity in the world of neoliberal/libertarian gurus. He and his Institute for Liberty & Democracy are credited with popularizing a free-market version of Third World land reform and turning it into policy in city slums all across the developing world. Whereas “land reform” in countries like Peru—dominated by a tiny handful of landowning families—used to mean land redistribution, Hernando De Soto came up with a counter-idea more amenable to the Haves: give property title to the country’s poor masses, so that they’d have a secure and legal title to their shanties, shacks, and whatever land they might claim to live on or own.
De Soto’s pitch essentially comes down to this: Give the poor masses a legal “stake” in whatever meager property they live in, and that will “unleash” their inner entrepreneurial spirit and all the national “hidden capital” lying dormant beneath their shanty floors. De Soto claimed that if the poor living in Lima’s vast shantytowns were given legal title ownership over their shacks, they could then use that legal title as collateral to take out microfinance loans, which would then be used to launch their micro-entrepreneurial careers. Newly-created property holders would also have a “stake” in the ruling political and economic system. It’s the sort of cant that makes perfect sense to the Davos set (where De Soto is a star) but that has absolutely zero relevance to problems of entrenched poverty around the world.
Since the Omidyar Network names “property rights” as one of the five areas of focus, it’s no surprise that Omidyar money would eventually find its way into Hernando De Soto’s free-market ideas mill. In 2011, Omidyar not only gave De Soto $5 million to advance his ideas—he also tapped De Soto to serve as a judge in an Omidyar-sponsored competition for projects focused on improving property rights for the poor. The more you know about Hernando De Soto, the harder it is to see Omidyar’s financial backing as “idealistic” or “civic-minded.”
For one thing, De Soto is the favorite of the very same billionaire brothers who play villains to Omidyar’s supposed hero—yes, the reviled Koch brothers. In 2004, the libertarian Cato Institute (neé “The Charles Koch Foundation”) awarded Hernando De Soto its biannual “Milton Friedman Prize”—which comes with a hefty $500,000 check—for “empowering the poor” and “advancing the cause of liberty.” De Soto was chosen by a prize jury consisting of such notable humanitarians as former Pinochet labor minister Jose Piñera, Vladimir Putin’s economic advisor Andrei Illarionov, Washington Post neoconservative columnist Anne Applebaum, FedEx CEO Fred Smith, and Milton Friedman’s wife Rosie. Milton was in the audience during the awards ceremony; he heartily approved.
Indeed, Hernando De Soto is de facto royalty in the world of neoliberal-libertarian gurus—he’s been called “The Friedrich von Hayek of Latin America,” not least because Hayek launched De Soto’s career as a guru more than three decades ago.
So who is Hernando De Soto, where do his ideas come from, and why might Pierre Omidyar think him deserving of five million dollars — ten times the amount the Koch Brothers awarded him?
De Soto was born into an elite “white European” family in Peru, who fled into exile in the West following Peru’s 1948 coup—his father was the secretary to the deposed president. Hernando spent most of the next 30 years in Switzerland, getting his education at elite schools, working his way up various international institutions based in Geneva, serving as the president of a Geneva-based copper cartel outfit, the International Council of Copper Exporting Countries, and working as an official in GATT (General Agreement on Trade and Tariffs).
De Soto didn’t return to live in Peru until the end of the 1970s, to oversee a new gold placer mining company he’d formed with a group of foreign investors. The mining company’s profits suffered due to Peru’s weak property laws and almost non-existent cultural appreciation of property title, especially among the country’s poor masses—De Soto’s investors pulled out of the mining venture after visiting the company’s gold mines and seeing hundreds of peasants panning on the company’s concessions. That experience inspired De Soto to change Peruvians’ political assumptions regarding property rights. Rather than start off by trying to convince them that foreign mining firms should have exclusive rights to gold from traditionally communal Peruvian lands, De Soto came up with a clever end-around idea: giving property title to the masses of Peru’s poor living in the vast shanties and shacks in the slums of Lima and cities beyond. It was a long-term strategy to alter cultural expectations about property and ownership, thereby improving the investment climate for mining companies and other investors. The point was to align the masses’ assumptions about property ownership with those of the banana republic’s handful of rich landowning families.
In 1979, De Soto organized a conference in Peru’s capital Lima, featuring Milton Friedman and Friedrich von Hayek as speakers and guests. At the time, both Friedman and Hayek were serving as key advisors to General Augusto Pinochet’s “shock therapy” program in nearby Chile, an economic experiment that combined libertarian market policies with concentration camp terror.
Two years after De Soto’s successful conference in Lima, in 1981, Hayek helped De Soto set up his own free-market think tank in Lima, the “Institute for Liberty and Democracy” (ILD). The ILD became the first of a large international network of right-wing neoliberal think tanks connected to the Mother Ships—Cato Institute, Heritage Foundation, and Britain’s Institute for Economic Affairs, Margaret Thatcher’s go-to think tank. By 1983, De Soto’s Institute was also receiving heavy funding from Reagan’s Cold War front group, the National Endowment for Democracy, which promoted free-market think tanks and programs around the world, and by the end of Reagan decade, De Soto produced his first manifesto, “The Other Path”—a play on the name of Peru’s Maoist guerrilla group, Shining Path, then fighting a bloody war for power. But whereas the Shining Path’s political program called for nationalizing and redistributing property, most of which was in the hands of a few rich families, De Soto’s “Other Path” called for maintaining property distribution as it was, and legalizing its current structure by democratizing property titles, the pieces of paper with the stamps. Everyone would become a micro-oligarch and micro-landowner under this scheme…
With help and funding from US and international institutions, De Soto quickly became a powerful political force behind the scenes. In 1990, De Soto insinuated himself into the inner circle of newly-elected president Alberto Fujimori, who quickly turned into a brutal dictator, and is currently serving a 25-year prison sentence for crimes against humanity, murder, kidnapping, and illegal wiretapping.
Under De Soto’s influence, Fujimori’s politics suddenly changed; almost overnight, the populist Keynsian candidate became the free-market authoritarian “Chinochet” he governed as. As Fujimori’s top advisor, Hernando De Soto was the architect of so-called “Fujishock” therapy applied to Peru’s economy. Officially, De Soto served as Fujimori’s drug czar from 1990-1992, an unusual role for an economist given the fact that Peru’s army was fighting a brutal war with Peru’s powerful cocaine drug lords. At the time Peru was the world’s largest cocaine producer; as drug czar, Hernando De Soto therefore positioned himself as the point-man between Peru’s military and security services, America’s DEA and drug czar under the first President Bush, and Peru’s president Alberto Fujimori. It’s the sort of position that you’d want to have if you wanted “deep state” power rather than mere ministerial power.
During those first two years when De Soto served under Fujimori, human rights abuses were rampant. Fujimori death squads—with names like the “Grupo Colina”—targeted labor unions and government critics and their families. Two of the worst massacres committed under Fujimori’s reign, and for which he was later jailed, took place while De Soto served as his advisor and drug czar.
The harsh free-market shock-therapy program that De Soto convinced Fujimori to implement resulted in mass misery for Peru. During the two years De Soto served as Fujimori’s advisor, real wages plunged 40%, the poverty rate rose to over 54% of the population, and the percentage of the workforce that was either unemployed or underemployed soared to 87.3%.
But while the country suffered, De Soto’s Institute for Liberty and Democracy—the outfit that Omidyar gave $5 million to in 2011—thrived: its staff grew to over 100 as funds poured in. A World Bank staffer who worked with the ILD described it as,
“a kind of school for the country. Most of the important ministers, lawyers, journalists, and economists in Peru are ILD alumni.”
In 1992, Fujimori orchestrated a constitutional coup, disbanding Peru’s Congress and its courts, and imposing emergency rule-by-decree. It was another variation of the same Pinochet blueprint.
Just before Fujimori’s coup, De Soto indemnified himself by officially resigning from the cabinet. However in the weeks and months after the coup, De Soto provided crucial PR cover, downplaying the coup to the foreign press. For instance, De Soto told the Los Angeles Times that the public should temper their judgment of Fujimori’s coup:
“You’ve got to see this as the trial and error of a president who’s trying to find his way.”
In the New York Times, De Soto spun the coup as willed by the people, the ultimate democratic politics:
“People are fed up, fed up…[Fujimori] has attacked two hated institutions at just the right time. There is an enormous need to believe in him.”
Years later, Fujimori’s notorious spy chief Vladimiro Montesinos testified to Peru’s Congress that De Soto helped mastermind the 1992 coup. De Soto denied involvement; but in 2011, two years after Fujimori was jailed for crimes against humanity, De Soto joined the presidential campaign for Keiko Fujimori, the jailed dictator’s daughter and leader of Fujimori’s right-wing party. Keiko Fujimori ran on a platform promising to free her father from prison if she won; De Soto spent much of the campaign red-baiting her opponent as a Communist. That led Peru’s Nobel Prize-winning author Mario Vargas Llosa to denounce De Soto as a “fujimontesenista” with “few democratic credentials.”
So in the same year that De Soto was trying to put the daughter of Peru’s Pinochet in power and to spring the dictator from prison, Omidyar Network awarded him $5 million.
It was during Fujimori’s dictatorial emergency rule, from 1992-94, that De Soto rolled out a property-title pilot program in Lima, in which 200,000 households were given formal title. In 1996, Fujimori implemented De Soto’s property-titling program on a national scale, with help from the World Bank and a new government property agency staffed by people from De Soto’s Institute for Liberty and Democracy. By 2000, the magical promise of an explosion in bank credits to all the new micro-property owners never materialized; in fact, there was no noticeable difference in bank lending to the poor whatsoever, whether they had property title or not.
The World Bank and the project’s neoliberal supporters led by Hernando De Soto were not happy with data showing no uptick in lending, which threatened to unravel the entire happy theory behind property titling as the answer to Third World poverty. De Soto was in the process of peddling the same property-titling program to countries around the world; data was needed to justify the program. So the World Bank funded a new study in Peru in the early 2000s, and discovered something startling: In homes that had formal property titles, the parents in those homes spent up to 40% more time outside of their homes than they did before they were given title. De Soto took that statistic and argued that it was a good thing because it proved giving property title to homeowners made them feel secure enough to leave their shanties and shacks. The assumption was that in the dark days before shanty dwellers had legal titles, they were too scared to leave their shacks lest some other savage steal it from them while they were out shopping.
No one ever conclusively explained why shanty parents were spending so much more time outside of their homes, but the important thing was that it made everyone forget the utter failure of the property title program’s core promise—that property titles would ignite micro-lending thanks to the collateral of the micro-entrepreneur’s micro-shack as collateral. Thanks to De Soto’s salesmanship and the backing of the world’s neoliberal nomenklatura — Bill Clinton called De Soto “the world’s greatest living economist” and he was praised by everyone from Milton Friedman to Vladimir Putin to Margaret Thatcher. The disappointing results in Peru were ignored, and De Soto’s program was extended to developing countries around the world including Egypt, Cambodia, the Philippines, Indonesia and elsewhere. And in nearly every case, De Soto’s Institute for Liberty and Democracy has taken the lead in advising governments and selling the dream of turning titled slum-dwellers into micro-entrepreneurs.
The real change brought by De Soto’s property-titling program has ranged from nil to nightmarish.
In Cambodia, where the World Bank implemented De Soto’s land-titling program in 2001, poor and vulnerable people in the capital Phnom Penh have suffered at the hands of land developers and speculators who’ve used arson, police corruption and violence to forcibly evict roughly 10% of the city’s population from their homes in more valuable districts, relocating them to the city outskirts.
An article in Slate titled “The De Soto Delusion” described what happened in Cambodia when the land-titling program was first implemented:
“In the nine months or so leading up to the project kickoff, a devastating series of slum fires and forced evictions purged 23,000 squatters from tracts of untitled land in the heart of Phnom Penh. These squatters were then plopped onto dusty relocation sites several miles outside of the city, where there were no jobs and where the price of commuting to and from central Phnom Penh (about $2 per day) surpassed whatever daily wage they had been earning in town before the fires. Meanwhile, the burned-out inner city land passed immediately to some of the wealthiest property developers in the country.”
De Soto and his Institute for Liberty and Democracy have advised property-title programs elsewhere too—Haiti, Dominican Republic, Panama, Russia—again with results ranging from nil to bad. Even where it doesn’t lead to mass evictions and violence, it has the effect of shifting a greater tax burden onto the poor, who end up paying more in property taxes, and of forcing them to pony up for costly filing fees to gain title, fees that they often cannot afford. Property title in and of itself—without a whole range of reforms in governance, corruption, education, income, wealth distribution and so on—is clearly no panacea. But it does provide an alternative to programs that give money to the poor and redistribute wealth, and that alone is a good thing, if you’re the type smitten by Hernando De Soto—as Omidyar clearly is.
Studies of property-titling programs in the slums of Brazil and Manila revealed that it created a new bitterly competitive culture and bifurcation, in which a small handful of titled slum dwellers quickly learn to benefit by turning into micro-slumlords renting out dwellings to lesser slum dwellers, who subsequently find themselves forced to pay monthly fees for their shanty rooms—creating an underclass within the underclass. De Soto has described these slums as “acres of diamonds”—wealth waiting to be unlocked by property titling—and his acolytes even coined a new acronym for slums: “Strategic Low-income Urban Management Systems.”
All of which begs the obvious question: If De Soto’s property-title program is such a proven failure in case after case, why is it so popular among the world’s political and business elites?
The answer is rather obvious: It offers a simple, low-cost, technocratic market solution to the problem of global poverty—a complex and costly problem that can only be alleviated by dedicating huge amounts of resources and a very different politics from the one that tells us that markets are god, markets can solve everything. Even before Omidyar committed $5 million to the dark plutocratic “idealism” De Soto represents, he was Tweeting his admiration for De Soto:
“Brilliant dinner with Hernando de Soto. Property rights underlie and enable everything.”
Indeed, property rights underlie and enable everything Omidyar wants to hear—but distract and divert from what the targets of those programs might actually need or be asking for.
Which brings us back to the wonderful words written about Pierre Omidyar last month: Where is the proof that he’s a “civic-minded” billionaire, a “different” billionaire, an “idealistic” billionaire who’s in it for ideals and not for profit? How is Omidyar any different from any other billionaire—when he is funding the same programs and pushing the same vision for the world backed by the Kochs, Soros, Gates, and every other neoliberal billionaire?
When you scratch the surface of his investments and get a sense of what sort of ideal world he’d like to make, it becomes clear that Omidyar is no different from his peers.
And the reason that matters, of course, is because Pierre Omidyar’s dystopian vision is merging with Glenn Greenwald’s and Laura Poitras’ monopoly on the crown jewels of the National Security Agency — the world’s secrets, our secrets — and using the value of those secrets as the capital for what’s being billed as an entirely new, idealistic media project, an idealism that the CJR and others promise will not shy away from taking on power.
The question, however, is what defines power to a neoliberal mind? We’re going to take a wild guess here and say: The State.
So brace yourself, you’re about to get something you’ve never seen before: billionaire-backed journalism taking on the power of the state. How radical is that? To quote “60 Minutes” producer Lowell Bergman:
“What has been adjudicated and established in the wake of Vietnam and the Civil Rights movement is the ability of the press to basically write or broadcast almost anything about the government.There’s very few restrictions in that way. It’s not true when we’re talking about private power, especially major Fortune 500 corporations, or people worth more than, say, a billion dollars.”
In other words: look out Government, you’re about to be pummeled by a crusading, righteous billionaire! And corporate America? Ah, don’t worry. Your dirty secrets—freshly transferred from the nasty non-profit hands of the Guardian to the aggressively for-profit hands of Pierre Omidyar—are safe with us.
America’s Education Whistleblower: Diane Ravitch and the Reign of Error September 25, 2013Posted by rogerhollander in Education, Poverty, Race.
Tags: charter schools, corporate education, diane ravitch, education, educational policy, jim horn, privatization, privatization of education, public education, reign of error, roger hollander, standardized testing
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Roger’s note: If you have not been following the attempts to privatize and, in effect, destroy public education in the United States, Diane Ravitch is a prominent and respected educator who has taken a 180 degree turn from a supporter to its major critic. Backed by mega corporations such as Microsoft and spearheaded by Obama’s basketball playmate and Education Secretary, Arne Duncan, the initiative involves making a fetish of standardized testing, the increased funding of elite charter schools, the marginalization of children from non-white and lower economic families, and a drastic reduction of dependence upon the skills, talents, and experience of teachers. The comments posted after the article fill in some of the details of how this works in practice. If genuine public education is to survive in the U.S., then serious resistance to this typical capitalistic attempt to make money at the expense of children, is essential.
Published on Wednesday, September 25, 2013 by Common Dreams
Author’s note: On September 18, Joe Bowers listed 33 reviews of Diane Ravitch’s new book, Reign of Error: The Hoax of the Privatization Movement and the Danger to America’s Public Schools. Since then, many other reviews have appeared, including a very substantial one by George Schmidt at Substance News. Please see Bowers’ list for some very good play-by-play reviews. That is not what I am offering here.
In 2007 when Diane Ravitch descended from her 20,000-foot view of the education reform landscape to examine what was going on at ground level, she did not like what she saw: children suffering nose-bleeds and vomiting from test anxiety, school personnel and parents humiliated by test results designed to satisfy the failure quotas imposed by cynical and self-serving corporate privateers and political ideologues; educators being blamed for the effects of poverty that no amount of good teaching could fix alone; untrained beginners replacing education professionals in schools that needed the most caring and experienced teachers; schools that had functioned as community centers of identity and activity being closed; a pathological fixation of quantifiable data that had displaced attention to the human needs of growing children; an educational governance structure increasingly controlled by autocratic and arrogant billionaires; and an incredibly shrinking and brittle collection of desiccated facts having replaced the curriculum for the lower caste of segregated untouchable children incarcerated in more and more urban corporate reform schools.
Seeing all this, Ravitch did what was unthinkable among the delusional and arrogant group of efficiency-worshipping zealots with whom she had spent much time during the prior twenty years: she admitted the entire antiquated system of back to basics on steroids 1) was not improving teaching and learning, 2) was not closing the achievement gaps, 3) was not making public schools stronger, and 4) was not being held accountable for the previous decades of more of the same failed policies built upon the same racist and classist standardized testing foundation, made harder still with each subsequent repackaged iteration.
What makes Diane Ravitch even more unique is that she did not sit behind a screen to offer her insider testimony on these issues to the court of public opinion and then go into an educational witness protection program but, rather, she made the continuing public condemnation of the Billionaire Boys Club her raison d’être, even as the plutocrats’ high-testosterone testocrats have challenged her unassailable facts and as the academic mercenaries from the corporate think tanks have resorted to pretzel logic in attempts to refute her wisdom. Since 2010 when she published The Death and Life of the Great American School System, Ravitch has been on a non-stop one-woman road show, crisscrossing the country, speaking to the growing and rumbling army of educators of the nation’s PS Hope.
In her new book, Ravitch has brought a megaphone to the long-ignored message that resistance, indeed, is not futile but, rather, resistance is demanded and that resistance will prevail.
Somehow she has found time between her face-to-face engagements and her online presence as both tweeter and blogger, to write a new book with a cover title in two inch orange Day-Glo letters: Reign of Error. Unlike with Death and Life, which Ravitch shopped to numerous publishers before landing with Basic Books, this time New York’s premier publishing house, Knopf, was eager to snap up Reign or Error, along with generous provisions for promotion, advertising, and touring.
The new book picks up where the last one left off, this time mixing sharp punctures of the ‘Corporate Education’ gas bags with lists of positive strategies that are sure to rankle the proto-fascist sensibilities of the corporate Borg’s swarm of propagandists, e.g., the Wall Street Journal. In this new volume, in fact, Ravitch has brought a megaphone to the long-ignored message that resistance, indeed, is not futile but, rather, resistance is demanded and that resistance will prevail. Her logic to reaching that conclusion is as simple and clear as her deliberate prose, and the directness of her indignant optimism bespeaks an historian who is enjoying her moment and looking forward to a future that she is determined to make livable and learnable for her grandchildren, and ours.
The first half of Reign of Error takes up for discussion a series of reformist claims that are repeated so often by the post-partisan CorpEd think tanks that they would have to be accurate if repetition were sole criterion for establishing truth. Reformist bromides are refuted with clear statements from evidence-based reality that are accompanied with enough documented examples to send any self-serving edupreneur scrambling back to his corporate teaching manual in hopes of salvaging some semblance of pedagogical respectability.
The second half of the book is comprised of Ravitch’s Top Ten educational policy interventions that may, once taken seriously by Washington, again restore sanity to an education policy world gone wild with what Harold Rugg called an “orgy of tabulation,” whose corrupting and abusive practices have spread into kindergarten and pre-K. Each point is discussed with clarity, determination, and evidence that Ravitch has been listening to the most important professionals not included in policy discussions—teachers.
It took a long time for Dr. Ravitch to break clear of the corporatist influence that has controlled the increasingly antiquarian version of education reform since the coming of Ronald Reagan in 1980. Whether her conversion in 2007 resulted from the gentle persuasion of researchers like Richard Rothstein or from the fierce prodding of researcher-advocates like Gerald Bracey and Susan Ohanian, Diane has made up for lost time since regaining her sight after being struck blind on the road out of DC. Whatever happens over the next ten or twenty years in education policy, her place is secure, just after six years of battle, as the single individual who most influenced the eventual outcome if parents and teachers and students continue to heed the call for the restoration and renewal of public schools free of high stakes tests for all children who choose a high quality and free education. Ravitch has brought the word—now it is time to act.
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